Category: interactive advertising

A thoughtful response to the IAB

Steve Rappaport, co-author of The Online Advertising Playbook: Proven Strategies and Tested Tactics from the Advertising Research Foundation, wrote the following comment to Randall Rothenberg’s Huffington Post piece. In our view, Mr. Rappaport’s analysis and measured tone is exactly how online ad industry leaders should respond to the growing debate on privacy and consumer protection. Mr. Rappaport wrote that:

“I work in the advertising industry, have written a book on online advertising (The Online Advertising Playbook), am acquainted with Randy and Prof. Turow (I like them both), and am expressing my personal views. They are not those of my employer or anyone else. Please, hold them harmless.
Regarding issues of targeting, privacy and security online, it’s the duty of academics and public interest organizations to question, and to question practices. In my book’s section on behavioral targeting I brought up Prof. Turow’s argument concluding that it was important and that the industry should consider it, not to reject behavioral targeting, but to think about it in a more nuanced way so that marketers can benefit their brands and consumers. While writing, drafts of chapters were sent to highly regarded industry folks. Not one questioned the inclusion of that passage.
While Turow is portrayed as an enemy of advertising, the truth is that we have bold people in the advertising industry itself who raise similar questions – see Matt Creamer’s article in the special digital issue of Ad Age from March (“Think different: the web’s not a place to stick your ads”). And none other than Tim Berners-Lee, the putative father of the web, is raising concerns about online tracking. The internet is all about throwing light on topics and having lively discussions that work towards a resolution, which was nearly impossible just 10 or 15 years ago. We’re better for it. We should encourage it, not quash it.”

European Privacy Officials investigate behavioral targeting & data mining

Just to place the privacy and online marketing debate in better perspective. It is appropriate and necessary for lawmakers and policymakers to examine and then address through rules the impact of new technologies on privacy. The Article 29 Working Party, the EU’s data protection review group, adopted as part of its 2008-2009 work plan to help ensure “data protection in relation to new technologies.” Among the areas they are now examining include: “search engines, on-line social networks (especially for children and teenagers), behavioural profiling, data mining, [and] digital broadcasting” (they are also focusing on ICANN and WHOIS). Direct Marketing is being reviewed as well.

Our point here is that the online industry has largely developed its system of data collection without user permission largely in the absence of thoughtful oversight that would ensure privacy. We believe the process underway in the EU will help address this issue in a meaningful way.

European online advertisers organize to defend the industry

excerpt:
European Interactive Advertising Bureau bodies will convene next month to formulate a constitution. IABs based in European nations are expanding their operations, driven by a more mature, renewed and redefined central body: IAB Europe. “[Europe] has started to wake up now, finally,” said IAB Europe President Alain Heureux…IAB Europe plans to restructure and reorganize the European bureau to provide a “more professional and more effective” central body, Heureux told ClickZ News… Now, representatives from each of the continent’s 15 national bodies will meet in Brussels on May 6 and 7 to draw up a constitution defining a new role for the IAB Europe, as well as a funding and staffing structure to support it…

The primary role of the bureau going forwards, according to Heureux, will be to represent and defend the industry in relation to legal and public affairs, and be prepared to “educate European regulators properly” on issues surrounding the industry.

source:AB Europe Embarks on Expansion and Restructuring. Jack Marshall.The ClickZ Network, Apr 23, 2008

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MySpace expands ability for marketers to track and target "community" members

MySpace has launched what it calls its “community builder platform for [the] advertising community.” Here’s what they say it does (our emphasis):

“The new platform gives MySpace advertisers the ability to build, maintain and customize brand profiles while also providing guaranteed valuable analytics to help them gauge campaign performance and make real-time adjustments to maximize effectiveness. The platform is currently being beta tested by Deep Focus…

“Community Builder allows our clients to connect with potential brand evangelists in an unprecedented way,” said Ian Schafer, CEO of Deep Focus. “The flexible platform provides access to solutions and value propositions that enable brands to engage with a new generation of consumers and the freedom to update and manage communities in real-time. It’s a powerful tool that can help build community literally — and figuratively.”

The Community Builder advertising platform will be available in the US and builds upon MySpace’s industry leading advertising model, which includes customized communities, multi-platform integrated marketing campaigns, and the new advertising platforms HyperTargeting and SelfServe which empower users such as small business owners, bands, and politicians to purchase, create and analyze the performance of ads throughout the MySpace network.”

Red Herring reports that “… Community Builder…allows marketers to analyze the impact of their online ad effort and respond to it by doing things like updating blogs, studying finely tuned traffic data, changing videos, shifting ads, or testing messages…“One of the major complaints about social network ads has been the metrics, as marketers complain that they have no return on investment to show for their campaigns,” said Ian Schafer… “This gives us 24/7 access to the process of building communities.”

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Randall Rothenberg of the IAB cries digital wolf

Mr. Rothenberg, head of the trade group that represents interactive marketers, is in a tizzy because privacy, consumer advocates, and some lawmakers in the U.S. and EU advocate public policies that would empower citizens and consumers to have greater control over their data. Groups such as my CDD also want online marketers to inform users about the range and intent of data collection taking place. Anyone who has studied the online ad industry and is following it should be disturbed by many of its developments and directions.

There needs to be a serious and honest debate about all this–and rules enacted to protect the public. As more people realize the dimensions of the interactive marketing system and its implications, there will be a raising protest. We expect that when the EU’s Article 29 Working Party, made up of data privacy commissioners, issues its report on behavioral targeting, it will be an informed and thoughtful discussion of what must be done. Given the henny-penny approach Mr. Rothenberg has embraced to fight off consumer protection safeguards, we assume he will ask Congress to formally break diplomatic relations with `old’ Europe!

This is a serious issue, with ramifications affecting consumer welfare in a number of areas, including information they receive about pharmaceutical products, personal finances (such as mortgages) and with our children and adolescents. As I’ve said, we recognize the vital importance of advertising for the online medium. But it must be transparent, respect privacy, and operate fairly. The global digital ecosystem must evolve, as much as possible, in the most open and democratic manner.

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One more request for those friendly Privacy Penguins–the AOL and Verizon deal, please

Dear Mr. or Ms. Penguin: It appears that Advertising.com’s new deal with Verizon brings behavioral and other data targeting to both its broadband and mobile platforms. Please explain what AOL’s recent acquisition Third Screen Media means with its April 14, 2008 release that says:

“Under the terms of the agreement, Verizon will leverage Platform-A’s sales capabilities for all of Verizon’s online inventory and a majority of Verizon’s mobile inventory. In addition, Platform-A will be the only sales organization that can represent Verizon’s inventory in the marketplace and guarantee placement within the Verizon network. All other sales partners are selling on a blind-network basis.

Verizon will continue to use Platform-A’s mobile ad serving platform, Third Screen Media, to manage the sale of its mobile web advertising. Third Screen Media’s advanced mobile advertising options include geographic, demographic, and content targeting, display, and sponsorship opportunities on Verizon Wireless’ portal, sections and article Web pages. The Verizon ad network is available to brands and agencies wishing to buy advertising on Verizon Wireless Mobile Web pages…”

We await, kind Privacy Penguin, for an answer. Thanks.

PS: Please include any details about the sharing of consumer data from either the broadband or mobile platforms.

U Penn Prof. Joseph Turow responds to the

Randall Rothenberg of the Interactive Advertising Bureau lobbying group wrote a commentary where he made a number of misleading statements. He incorrectly characterized the work of Professor Joseph Turow. Prof. Turow, a leading academic expert of the online marketing industry, is on the faculty of the Annenberg School for Communication, University of Pennsylvania. Here is Professor Turow’s response:

“In one sentence, Mr Rothenberg manages to make two fundamental misrepresentations. What I really say on page 2 of my 2006 book Niche Envy (where the quote originates) explicitly relates to marketers use of surveillance technologies without consumers understanding: “Over the long haul, however, this intersection of large selling organizations and new surveillance technologies seems sure to encourage a particularly corrosive form of personal and social tension.” Nor do I anywhere lament the passage of the three network universe. For example, I explicitly state in Breaking Up (on page 199, for example) that three network era had its own forms of social exclusions and state that “that “the proper response to this hypersegmentation of America is not to urge a return to the mass-market world of the 1960s and 1970s.” My conclusion: when I see Mr Rothenberg quote someone I will be sure to check the source to make sure the passage has not been wrenched from its context. I should add, too, that I accept the need that digital interactive media have for target marketing and database marketing. But there are many creative ways to meld data analytics and their implementation with openness and public engagement. I fear that Mr Rothenberg”s policies and writings indicate he will lead this important organization in directions that are misguided for marketers and for society.

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Ad industry continues its focus on brain research, inc. meeting at Harvard U

[we have covered this topic in our book and on this blog. Here’s a story from the April 2008 issue of Media Magazine–excerpt]

“The meeting, held in a lecture room of the Harvard Business School, was hosted by four leading research organizations that are trying to figure out how to apply the fledgling field of neuroscience to media and marketing research, and to find out whether biometric technologies that map the brain’s responses to media stimuli can be used the way Madison Avenue has used conventional forms of audience research like Nielsen’s TV ratings.

In fact, the field is so promising that Nielsen itself is jumping into it. The media research giant recently acquired NeuroFocus, a Cambridge, Mass.-based firm that is beginning to apply neuroscience to advertising research…What social research was to advertising and media 50 years ago, neurological research promises to be for the next half century…By mapping and understanding how the brain responds to advertising and media stimuli, he [Gerald Zaltman] suggested, researchers would have empirical knowledge about what kinds of advertising and media content were most engaging to consumers. Because the brain – and how it remembers things – is malleable, Zaltman says, it’s not possible to use a map of someone’s thought processes to create rules of thumb. Rather, researchers must use the information to understand how people “coauthor” messages. In other words, people don’t just passively absorb and process information, but react to it, append it and make the content their own. And depending on when and where they are exposed to it, the content could be processed very differently.”

source: Going Mental. Joe Mandese. Media Magazine. April 2008

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Yahoo! wants politicians to use Behavioral Targeting to target voters–Privacy and voter manipulation ethics ignored

Yahoo! is urging elected political officials and campaigns to use the arsenal of online advertising tools, despite the questions such dubious techniques raise on privacy and other consumer protection issues. Here’s an excerpt from a Yahoo! VP for political ads piece urging pols to embrace behavioral targeting. From Politics magazine online:

“Use the Internet as a more efficient, less expensive channel to reach voters with certainty… political campaigns are about seven years behind the private sector in their use of the Internet as a paid media vehicle…campaigns can make the web work harder for them by using online display media…Our studies indicate that a targeted ad based on geography or demographics can increase response rates by 50 percent. And when ads are targeted based on behavior, those rates increase to 66 percent. These are campaigns based on certainty-whereby a specific audience is messaged to and managed to produce a desired result. This is true whether it’s a campaign to acquire donations or e-mail addresses, or a persuasion or get-out-the-vote message. Moreover, the results can be seen in just hours or days, letting you keep doing what works and kill what doesn’t…the real opportunity is to use the Internet as a paid media platform to run, track and move persuasion metrics.”

Here’s Your Real Online Advantage … And No, It’s Not Viral Videos. Richard J. Kosinski. Politics. 4/1/08

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FTC will need to do better job protecting our mobile privacy

The FTC, as nice as so many folks are over there, simply lags behind the online ad market. The agency’s forthcoming May 6-7 town hall entitled “Beyond Voice: Mapping the Mobile Marketplace” fails to include consumer and privacy advocates on the key “Mobile Advertising & Marketing — The Transition and Adaptation to Mobile Devices and the Small Screen” panel. There is overall a lack of real mobile industry watchdogs at this FTC event. Perhaps the FTC should start off reviewing the plans of mobile marketers to track and target consumers. Here’s what Yahoo! Mobile says it can help marketers do:

“Yahoo! offers a rich, comprehensive set of mobile ad products – all designed to empower advertisers to tap into the rapidly–growing, lucrative audience of mobile consumers. Yahoo!’s Mobile Ad Services make it possible to reach your target customers wherever they are, seamlessly following them from the PC to the mobile Internet. A wide variety of ad formats, targeting options, and calls-to-action are available – as well as resources to help you put effective programs in place if you’re new to mobile advertising…Eye-catching display ads can be targeted using the same wide array of options as traditional Web banners (e.g. context, demographics, behavioral) – and can incorporate location, which has greater importance when marketing to consumers who are ‘on the go’…Select the call–to–action that works best for your business: click through to a promotional site, enable the consumer to find or call a store directly, offer a coupon, send an SMS message – the options keep expanding…

Mobile search that practically reads your mind.”

PS: How come so many of the speakers from the non-profit world on the agenda are supported by online marketers, including mobile oriented ones? See, for example, CDT, Internet Education Foundation, TRUSTe.

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