Category: advergaming

The Net’s “Long-Tail”–a Leash Controlled by Two Giants & FTC Bungles Merger Review

Just a few added thoughts on the proposed Microsoft-Yahoo! deal. We think there needs to be real soul-searching by Congress and the FTC on how it addressed the Google/DoubleClick deal and the related spate of new media mergers in 2007. We told both Hill leaders and the FTC that they needed to explore the larger dimensions of this deal–including its impact on the diversity of online publishing (that’s because whomever controls the “monetization” engine of the online ad biz becomes the critical controller). When Microsoft, Yahoo!, Time Warner and the others went on a post GoogleClick shopping spree, we said the FTC should reject these mergers until they had examined the entire online ad market. But the commission failed to do so, in our opinion.

So now as a proposed Yahoo! takeover by Microsoft is considered, one serious concern is that a merger brings with it newly acquired assets that further add to concerns over consolidation and data privacy. The FTC approved without safeguards the $6 billion takeover of aQuantive by Microsoft. The FTC approved without safeguards the takeover by Yahoo! of behavioral targeting ad network Blue Lithium. The FTC approved without safeguards Yahoo!s acquisition of online ad exchange (and data collection system) known as Right Media. There have been other purchases as well by the two companies.

Congress will need to investigate the implications to both competition and consumer privacy: neither the FTC nor DoJ can be trusted to address these concerns. There are also human right issues, given Microsoft’s own work in China. We will be following this deal closely, including examining the implications of a Yahoo!-Microsoft digital combine.

Behavioral Advertising: Targeting “Users Further Down the Purchasing Funnel”

When you can get the online ad industry to write your copy, it makes the work at the FTC and the European Commission so much easier! Here’s an excerpt from a revealing imediaconnection article entitled “Targeting Tips for a Converged Media World.” [Jan. 30, 2008]
“In days past, audience segmentation was based solely on demographic and contextual targeting information, which allowed advertisers to promote their products or services to a group of potential consumers based on their gender, age and other fairly unsophisticated, generic characteristics. In the online world, consumers now essentially determine their own segmentation based on individualized habits, determined through behavioral targeting…. Behavioral targeting…is also an additional way for marketers to target users further down the purchasing funnel and helps marketers better predict how users will act… Marketers will be able to track individuals or user clusters across their favorite TV shows, travel habits through their car’s GPS or obtain their video game proficiency through in-game advertising… As users age and change their personal preferences, behavioral targeting can change with users’ habits and compensate accordingly…With marketers able to include interactive components into traditional media outlets while infusing behavioral knowledge and targeting, advertisers must create messages that can be delivered across all platforms. For example, we could see mobile ads that use interactive elements if marketers know the behavioral cluster exhibits a preference for interactive media.”

IAB and its Proposed Privacy Guidelines: Will Fail to Effectively Protect the Public

So relieved where some in the interactive ad business when they read the FTC’s staff proposed privacy principles released last month that commentators described the reaction as the industry had “dodged a bullet” and “breathed a sigh of relief” [“FTC Online Ad Targeting Guidelines: Industry Breathes A Sigh Of Relief”].

Now Paidcontent describes plans underway by the IAB to offer “privacy standards,” via a “15-member working group,” that includes Time Warner, Microsoft, Yahoo! and others [“Online Ad Industry Groups Take Steps To Self-Police”]. According to the January 4, 2008 article by David Kaplan “[T]he IAB task force will address issues of consumer notice and choice, in terms of deciding the context for selecting opt-in or opt-out.”

IAB lobbyist Mike Zaneis says in the article that “[T]he level of appropriate choice needs to be flexible…consumer regulation will prove to be more efficient and powerful than government regulation.” Zaneis considers the campaign against Facebook that resulted in some modest–and ineffective in my view–changes in its data collection system as an illustration of “consumer regulation.” It’s clear that the IAB is incapable of developing a policy that will protect consumers. Anyone who understands the contemporary dimensions of the interactive marketing industry–and has the public welfare in mind–should recognize what is required. The IAB will not be taken seriously if it can’t deliver the truth (it’s so far failed to protect the public from troubling online lead generation practices, for example. See our November 1, 2007 FTC filing). Yahoo!, Microsoft, Time Warner and others on the committee should lead–and not follow–advice from the IAB that will lead to prolonged political conflict–in Europe, in Congress, at the FTC and FCC, and with the incoming Administration.

Real governmental rules are required–including measures that effectively protect every consumer and also address vulnerable groups and sensitive marketing issues. The IAB’s old school Beltway mentality will likely give online advertisers a bad name. Where are the ad industry’s thoughtful leaders who can help steer the IAB in an honorable direction?

Microsoft cooks your data: Gatineau and behavioral targeting

As our online behaviors are continually tracked and analyzed, more about us is known–by marketers and others. Web analytics–software that analyzes how one interacts with a site, is being merged with behavioral measurement and other identifying technologies. Microsoft is moving further in this area, including with its “Gatineau” product. Explains Online Metrics Insider:

“Once demographic information is captured in a registration database, it can be joined with behavioral data in the Web analytics system and reported on. For a real-world example of analytics/demographic integration, take a look at what Microsoft is doing with Gatineau, the company’s free Web analytics offering currently in beta. Microsoft is joining Web site behavioral data with rich demographic data from MS Live profiles.”

What can Microsoft collect? The Micro Marketing blog explains that “Gatineau provides unique insight into the age, gender, and occupation of your site’s visitors…Microsoft stores demographic and behavioral targeting data about a person separately from their contact information with strong safeguards in place to prevent “unauthorized correlation” of the separate data sets…What kind of data is accumulated? Certainly the information you supply when signing up for Hotmail or any number of Microsoft services. As well, your behavior on Microsoft web sites—which sites you visit, which parts of those sites, and how often. Also, publicly available data supplied by third parties may be used to complete your profile…From this data a site can build a detailed profile of the content that interests you and then use that profile to provide additional content or offers relevant to your interests.”

In another words–where is the FTC, the EC, and other privacy regulators!

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The evolution of targeting users online (or, "Oh where oh where has our privacy gone")

An excerpt from a recent trade piece that should encourage reflection and concern (our emphasis):

“Today, we can not only target by the sites we think our customers frequent, we can follow them around the Web and target them based upon the other sites they actually visit. We can also target them based upon the words typed into a box, and from where those words are typed through search geo-targeting. We can also retarget searchers elsewhere on the Web. Facebook’s recent announcements take targeting to a whole new level, based upon age, location, interests, and other online activity.”

Source: “Search And Online Advertising: A Continual Evolution.” Ellen Siminoff. Search Insider. November 16, 2007

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IAB creates new post: "SVP, Thought Leadership and Marketing."

As the IAB ramps up its political operation to defend the interactive marketing industry from consumer-friendly privacy safeguards, it has created a new senior position. The SVP for Thought Leadership and Marketing is… “to help drive the growth of interactive advertising through enhanced communications with marketers, agencies, and others about the power of interactive media to reach and influence consumers.” In another words, a seasoned PR hand. David Doty is now in that position; he came from Booz Allen Hamilton where he was Director of Corporate Branding and Creative Services.”

But what IAB requires is “thought leadership” that recognizes that interactive marketing can’t run a-muck. Consumer protections are required, as well as a socially responsible approach to digital advertising in a global environment.

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Knight Foundation and a Grant for Viacom’s MTV: Funding a giant on its Journalism advisory committee

We have long had concerns about foundations funding media conglomerates to provide public service content. So, the John S. and James L. Knight Foundation’s recent award of $700,000 to MTV was troubling for us. The grant, part of Knight’s News Challenge awards, was so MTV can create “a Knight Mobile Youth Journalist (Knight “MyJos”) in each of the 50 states and the District of Columbia to report weekly – on cell phones, and other media – on key issues including the environment, 2008 presidential election and sexual health.” Viacom’s 2006 revenues were $11.5 billion. Don’t you think there’s enough left over to pay for the mobile journalism program! The idea that MTV should be subsidized for contributing to public service is wrong-headed. Besides, MTV is engaged in such mobile activities to help build up its brand so it can earn more online advertising dollars.

Journalism foundations such as Knight–and J-Schools–should be holding the media industry’s editorial feet to the fire, shaming them to spend more money on serious journalism. Knight should not be funding media conglomerates whose owner resides comfortably in Beverly Hills. Meanwhile, it what raises some interesting questions about “insider funding,” we note that Viacom’s MTV VP Ian Rowe serves on the Knight Foundation advisory committe for journalism. Rowe is quoted in the Knight Foundation press release announcing its News Challenge grants as a grantee spokesperson.

PS: What timing. Broadcasting & Cable just reported that Knight is again teaming with Viacom’s MTV to give away $500,000 to support “young people who have ideas for pushing journalism into the digital age.” It’s called the “Young Creators Award.” We hope all the money has come from Viacom. By the way, Knight and media beat reporters should be asking what MTV is doing with the data it can collect from mobile users. Will it engage in targeting for its other products? In what ways are the Knight supported work designed to build up the commercial role of MTV? How much is such pro-social ad campaigns worth to Viacom’s bottom-line?

When Do Google, Washington Post, Time Warner, Disney, Microsoft, Cox et al. work together lobbying? As they help IAB make the U.S safe for Internet Advertising practices

The Interactive Advertising Bureau (IAB) has stepped up its efforts as a lobbying force in D.C. The group wants to make sure we don’t have laws and regulations which would meaningfully protect the public, including consumers. Here’s how the IAB describes its “Public Policy Council” (one of the groups many standing councils and committees):

“Proactively lobby Congress and Federal Administrative agencies on privacy issues, with a focus on educating key decision-makers on the importance of the interactive advertising industry. 2. Help craft meaningful legislative proposals that protect consumers’ privacy interests without unduly burdening legitimate interactive advertising practices. 3. Engage the Federal Trade Commission to influence future enforcement proceedings, potential rulemakings, and public workshops on issues central to the interactive advertising industry.”

Here is their mission statement and a list of the policy council members:

Mission

Lead the advocacy efforts of IAB’s membership as they engage all levels of government on key policy issues in order to ensure continued growth of the industry.

Committee Leadership
  • Dave Morgan, Tacoda, Chair
Committee Participants
  • Alan Davidson, Google, Inc.
  • Alan Roth, Zango
  • Alexandra Wilson, Cox Newspapers, Inc.
  • Alissa Kaplan, 24/7 Real Media, Inc.
  • Andrew Moskowitz, Vizi Media
  • Anne Lucey, CBS Digital Media
  • Bennet Kelley, ValueClick Media
  • Bennett Zucker, Right Media Inc.
  • Bill Bailey, Walt Disney Internet Group
  • Bob Filice, Blue Lithium
  • Brad Aaron, Q Interactive
  • Brent Thompson, IAC Media & Advertising
  • Brooks Dobbs, DoubleClick, Inc.
  • Bryce Harlow, CBS Digital Media
  • Caroline Little, Washingtonpost.Newsweek Interactive
  • Charles Curran, AOL
  • Chris Kelly, Facebook
  • Chris Lin, comScore
  • Cliff Harris, Cablevision Advanced Systems
  • Colin Johnson, Motive Interactive Inc
  • Craig Spiezle, MSN (Microsoft Digital Advertising Solutions)
  • Dan O’Connell, WeatherBug
  • Danny Choriki, ADTECH US, Inc.
  • David Cancel, Compete, Inc.
  • David Green, NBC Universal Digital Media
  • David Payne, CNN.com
  • Diane McDade, MSN (Microsoft Digital Advertising Solutions)
  • Don Mathis, Azoogle Ads, Inc.
  • Erin Miranda, Weather Channel Interactive (Weather.com)
  • Frank Torres, MSN (Microsoft Digital Advertising Solutions)
  • George Pappachen, Dynamic Logic
  • Greg Berretta, Zango
  • Gregg Pendola, Walt Disney Internet Group
  • Henry Goldstein, CNET Networks, Inc.
  • Hillary Smith, Right Media Inc.
  • Ho Shin, Advertising.com
  • Jeff Long, Revolution Health Group
  • Joey Lesesne, Cox Newspapers, Inc.
  • John Barabino, Google, Inc.
  • John Hopkins, WebMD
  • John Orlando, CBS Digital Media
  • John Wilk, WorldNow
  • Jonathan Meyers, Forbes.com
  • Josh Brown, CBS Digital Media
  • Jules Polonetsky, AOL
  • Karl Gallant, ValueClick, Inc.
  • Ken Levin, Edmunds.com
  • Ken McGraw, Zango
  • Laura O’Daly, iVillage, Inc
  • Lesley Grossblatt, I/PRO
  • Leslie Dunlap, Yahoo!, Inc.
  • Linda Chan, SourceForge Inc.
  • Linda Schoemaker, aQuantive, Inc.
  • Lisa Anderson, AOL
  • Louis Hengen, Tacoda
  • Marilyn Cade, AT&T
  • Mary Berk, MSN (Microsoft Digital Advertising Solutions)
  • Matt Kaminer, WebMD
  • Matthew Stern, Musicloads
  • Melissa DeVita, MediaFLO USA, Inc.
  • Michael Drobac, Ask, Inc
  • Pablo Chavez, Google, Inc.
  • Pesach Lattin, Vizi Media
  • Phil Stelter, Range Online Media, Inc.
  • Richard Bates, Walt Disney Internet Group
  • Rick Lane, News. Corp
  • Robert Gratchner, Atlas Solutions
  • Sarah Deutsch, Idearc Media Corp.’s SuperPages.com
  • Shayne Bryant, Idearc Media Corp.’s SuperPages.com
  • Shayne Wiley, Yahoo!, Inc.
  • Sheri McGaughy, Weather Channel Interactive (Weather.com)
  • Sherrese Smith, Washingtonpost.Newsweek Interactive
  • Steve Emmert, LexisNexis Martindale-Hubbell
  • Susan Fox, Walt Disney Internet Group
  • Tom Bartel, Return Path
  • Tom Beck, Enlighten

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Google & Doubleclick: Merging the No 1. Video Platforms

It’s important to follow the online ad marketplace for video-based advertising. Note what a Doubleclick top exec said in a ClickZ interview: ” We claim we do the most video on the Internet.” The same exec also said that “[A]ccording to all the figures, as far as we can tell, we’re the second largest rich media vendor.”

Of course, Google’s YouTube is the number one online video brand as well [a Google rep. is quoted saying that it’s now the eight largest website]. As YouTube explains, it is “the world’s largest online video community allowing millions of people to discover, watch and share originally created videos. YouTube… acts as a distribution platform for original content creators and advertisers large and small.”

In other words, the merging of Google with Doubleclick will create an online video and search advertising and marketing powerhouse–one which threatens both competition and privacy (among other issues).

excerpt:
A Multi-Party System or a Monopoly

While Google looks at spending potentially $4.6 billion on the wireless auction, it has another multi-billion dollar matter it would like to have settled. That, of course, is its acquisition of DoubleClick. Announced in April, the deal has been met with significant backlash and questioning from all corners. Currently the deal awaits Federal Trade Commission approval. At stake is potential control of the Web advertising ecosystem. A marriage of Google & DoubleClick creates a clear pecking order for all advertising online — an order that would once again put Yahoo and Microsoft in a trailing position…To date, Google employees have out-contributed Microsoft employees toward the 2008 presidential candidates — a stark contrast to the 10:1 contribution margin that existed in 2006…As Google tries to rewrite the rules on how advertising is done and expands its reach into all spectrums of communications, the importance of Washington will only grow. Over the past two years Google has grown its Washington lobbyists base from 0 to 12 (a sizable number for a technology company), hosted four 2008 presidential candidates on its campus (three Dems, one Republican) and established its own political action committee that has already out-raised its 2006 total.”

from: “The Next President: Sponsored by Google.” Chris Copeland. Search Insider. August 10, 2007.

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