Ms. Huffington will be a keynote speaker at Advertising Age’s “360 degree Media” conference on March 21. The editor-in-chief of the Huffington Post will share the podium that day with Yahoo’s Terry Semel and other marketing executives. We hope Ms. Huffington will warn the online ad industry that its aggressive moves to track all of our digital behaviors– so they can create a variety of desired actions (“conversions”)– raise fundamental questions about privacy. Ms. Hufffington should boldy challenge their plans to manipulate consumers through the “always-on, always-being branded to” interactive media machine that has been developed. Lastly, Ms. Huffington should especially urge advertisers to rein-in messages and campaigns promoting consumption. It’s time advertisers owned up to their own role which contributes to global warming. Ms. Huffington’s Post has a real opportunity to be a model for responsible interactive advertising–where privacy, a “green” ethos,” and a pro-civic engagement commitment–shape the message and the marketing.
Category: interactive advertising
Online Alcohol Promotion in Web 2.0: A-B+Blue Lithium
Stuart Elloitt of the New York Times reports today that “Anheuser-Busch is teaming up with Blue Lithium, an online marketing company in San Jose, Calif., to introduce a promotional program called Clink as part of its “Here’s to beer” campaign. The program, to be housed on MingleNow, a social-networkingWeb site, will let members upload and share photographs as well as video clips. Anheuser-Busch also plans to add a video-sharing feature to Bud.tv…â€
But those concerned about inappropriate marketing of beer and alcohol products to underage youth—as well as online privacy—should know more about the deal between A-B and Blue Lithium. It illustrates how marketing is dramatically changing as a result of digital technologies. Data collection, one-to-one targeting via new broadband platforms, and better ways to meld the consumer’s psyche with the brand (such as encouraging user-generated content to promote “engagement”) are just a handful of the new techniques.
Blue Lithium is more than just an “online marketing company†described by the Times. It provides advertisers a broad range of digital tools to deliver precision advertising and marketing, via its “ad network†of online content providers (called publishers). Blue Lithium touts the power of its technology to drive change in consumers, something called “conversions.†Advertisers using Blue Lithium can count on it “identifying the right people, based on tracking user actions and interests, then bundles those individuals up into a highly-receptive audience for your messages.†[Many other companies engage in such behavioral techniques via ad networks].
As consumers are attracted to Blue Lithium connected websites to view consumer generated video content, they will be targeted with a variety of multimedia ads. AdRoll, explains Blue Lithium, permits advertisers to “[L]ayer with advanced targeting capabilities to refine the focus of your video campaigns, reaching those consumers with certain demographic profiles…†AdRoll’s network of publishers permits advertisers to engage in “behavioral retargeting,†which means that consumers will see a refined video pitch from the same advertisers as they travel to entirely different websites. Blue Lithium notes that such retargeting “has been show to improve click-through and conversion rates by [more than] 300%.
The A-B and Blue Lithium deal involve the latter’s “MingleNow,†called an “online/offline social network.†MingleNow, launched in December, “is dedicated to connecting users to their favorite clubs and bars and the people who go there.†It’s worth checking out the various functions of MingleNow’s approach to social networking and marketing. According to its press release (Google cached for now): “MingleNow is built along three fundamental dimensions: Profiles, Places and Events. Once users indicate which bars and clubs, they frequent, their photos show up on the Place page of that establishment and they become part of the community that goes there to share photos and video, trade comments, plan events and in person meetings. MingleNow has over 900,000 place pages representing the most popular drinking, clubbing and socializing establishments in the U.S. Event pages enable users to see what’s going on in their area or publicize their own event. Profile pages give users a place to share information about themselves, feature their favorite people and places, make plans, upload video and more. In order to create an open social network, MingleNow allows users to import feeds and data from other social networks, and export feeds from MingleNow to other networks.â€
In another example of techniques to engage users, MingleNow lets you “earn VIP points†as you bring others in to join it. Such rewards can be used for free drinks. We don’t know whether MingleNow is using behaviorally targeting nor the extent of its deal with A-B. But we think both companies need to be candid about what is going on.
Death of Broadband Privacy in Venice? What’s the Deal with Joost & Viacom?
Reporters are hyping the new deal between Joost and Viacom. Missing from the discussion is the impact of the new video service on privacy and commercialism. According to Advertising Age (my bold):
“So far, Joost’s ad model includes five- to seven-second ads that pop up when certain videos are initiated and mid-roll video ads in videos more than five minutes long, the number of which are scaled pro rata to the length of the content. Wrigley, T-Mobile, Maybelline and Phillips are among the beta advertisers. The idea is to have a single advertiser sponsor a piece of content, but to give it multiple elements, Mr. Clark said.
Like other web ads, they’re interactive and let users click through for more info, e-mail offers and long-form messages. The service also touts what will be powerful targeting and reporting capabilities. Echoing Joost’s founders, Mr. Clark said, “We’re combining the best of the web with the best of TV.”
We hope Joost will clearly spell out what data is being collected and reported to Viacom and others. We don’t believe its privacy policy addresses what it will be providing, for example, its new partner Viacom. But services such as Joost should embrace privacy policies which fully disclose precisely the information provided to advertisers. Opt-in should also be the standard, once users are formally and proactively informed.
Joost update. Here’s how Joost plans to help marketers conduct precision targeting, according to Octagon Music blog: “For every user that downloads the Joost application, part of the registration process is to complete a user profile with typical demographic information. It’s this user profile that will be an advertiser’s dream. Imagine being able to target viewers by location, time of day, viewing habits, and other profile information to serve up the perfect ad… Friis and Zennstram believe this unlocked targeting power will command a premium in terms of dollars from advertisers, which will hopefully keep Joost up and running.”
Media industry watcher Jack Myers reports that “advertisers will be able to cherry pick users by location, time/date of viewing, viewing history and preferences, and even profiles of Joost members who opt-in. In the future both advertisers (and programmers) will have the flexibility to upload content themselves…”
Source: Why Joost Isn’t Just Your Average `YouTube Killer’. Abbey Klaassen. Advertising Age. Feb. 26, 2007 [sub. required]
Thank You, Fox’s Levinsohn. Did You Hear What He Said, FTC?
It always helps to have interactive ad industry leaders make the case for the public interest. So we are gratful to Fox Interactive’s Peter Levinsohn (MySpace, IGN) for telling the New York Times that [my bold] “We have more information about our users, I believe, than any other site on the Web today.” Levinsohn’s comment was to explain the importance of its new interactive advertising technology acquisition, Strategic Data Corporation (SDC). Here’s what Online Media Daily said about the deal:
“Fox Interactive is already taking steps to mine the wealth of personal information found on profile pages on MySpace and other sites to better target ads. “With SDC, we’ll be able to plug all that rich data into their ad optimization technology and be able to fine-tune our ad delivery on a much more targeted basis,” explained Burkart. She said Fox is already working with brand marketers to figure out what kinds of user data are most valuable to them.”
SDC’s technology helps deliver precision targeted marketing. As the new Fox acquisition explained on its site, SDC “automatically optimizes the selection of creative for each impression to maximize profitability by combining sophisticated statistical and predictive algorithms, demographic and geographic segmentation, and performance tracking. Our clients typically see network-wide (not just individual campaign) revenue increases of 50-150%. We are so confident of these results that we charge based on the actual increase in profit you measure… Using standard Intel-based servers, the software sustains real-time optimization of over 15-30 million impressions per server per day with a 1-2 millisecond response time.”
Source: “Fox Interactive Acquires Technology Ad Company.” Louise Story. New York Times. Feb. 23, 2007
“Fox Interactive Buys Strategic Data Corp., Plans Ad Targeting Upgrade.” Mark Walsh. Online Media Daily. Feb. 23, 2007
Rupert
We couldn’t resist this: “Fox Interactive Media (FIM)… announced today that it has completed the acquisition of interactive advertising technology company, Strategic Data Corporation (SDC)…SDC’s technology will enable FIM to deliver highly-targeted graphical performance-based advertising on literally billions of Web pages viewed each day across its growing network. Fox Interactive Media, which spans MySpace, IGN, Direct2Drive, AmericanIdol.com, AskMen.com and more, is among the most visited networks on the Internet with more than 135 million worldwide unique visitors each month and is the number one most viewed network in the U.S. with over 40 billion pages viewed each month…“We couldn’t be more pleased to join the Fox Interactive Media family,†said Richard Janssen, SDC CEO. “FIM is truly innovating how brands reach consumers in a socially networked world and we look forward to bringing our technologies and team to the effort.â€
Paidcontent.org reports that SDC’s technologies provide “sophisticated statistical and predictive algorithms, demographic and geographic segmentation, and performance tracking…”
Source:
FOX INTERACTIVE MEDIA ACQUIRES INTERACTIVE ADVERTISING TECHNOLOGY COMPANY STRATEGIC DATA CORPORATION
Enhanced Media Network to Bring Hyper-targeted Ad Serving to Reality
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IAB: Worried that the Feds Will Do the Right Thing
Here’s a brief update on IAB. They are, notes ClickZ’s Kate Kaye, “…in the process of creating a Public Policy Council, to be comprised of Chief Public Policy Officers, General Counsels and IAB members. Tacoda Chairman Dave Morgan is heading up that operation, according to the IAB. Legislation and regulatory issues will have an enormous impact” on the interactive ad industry, said Rothenberg, noting, “We should be concerned, but we shouldn’t be crazy scared.”
Given that IAB’s new president Randall Rotherberg used to be a journalist (covering advertising for the New York Times and Ad Age), one would hope that he would be in the forefront of having his industry face up to facts. The basic business model is a threat to privacy and more. It’s gone beyond the time for “public policy councils” run by the industry’s spinmeisters. What’s needed is an honest admission of the problem, and support for a federal policy where consumers opt-in to all the techniques (after they are fully informed). That’s right. You need to get permission from individuals before you engage in behavioral targeting, retargeting, immersive rich media, etc. We imagine most people will consent. But it should be up to each person-not Ad Networks, IAB members, etc.
PS: Mr. Rothenberg: Don’t hide behind the press! We see that the IAB president quoted saying “The Interactive media industry is committed to striking the right balance between consumer protection and a consumer’s free online access to information and entertainment.” That’s not the real issue. No one is saying there shouldn’t be interactive advertising–or even the kind of personalized interactive practices the industry has embraced (with some notable exceptions). We understand the role which advertising plays to support the media. What we are saying is there have to be safeguards. In fact, ironically, I believe interactive ad practices done in the current stealth manner will help to undermine public confidence in the news media. The growing debate over online advertising is primarily about giving the public real information and control.
New Threats to Privacy: Interactive Ad Bureau (IAB) Hires D.C. Lobbyist
The interactive ad lobby–that includes most publishers of major newspapers, magazines and online outlets–is worried that consumer advocates might persuade Congress or the FTC to actually do something to protect digital privacy. Groups such as the Interactive Advertising Bureau (IAB) are alarmed that if consumers can actually control their data, the ability of digital marketers to collect, profile, track and target us will be threatened. So the IAB–which has a old and new media who’s who on its board–has brought in some political help. According to Online Media Daily:
“AIMING TO INCREASE ITS SWAY over government, the Interactive Advertising Bureau has opened a Washington, D.C. office and hired its first in-house lobbyist, Mike Zaneis…he and lobbyists from the Venable law firm have been talking with Congressional staffers on the IAB’s behalf. “We’ve been educating them on how the Internet works, and what the interactive advertising industry actually is and how it operates,” said Zaneis, who previously served as executive director of technology and e-commerce at the U.S. Chamber of Commerce.”
Presumably, the IAB will be working alongside DC lobbyists for Google, Yahoo!, Time Warner and the like to ensure that our digital media platforms provide a direct connection to Madison Avenue’s data warehouses. But they should be ashamed for creating a business model where direct access to our data across countless online media properties needs to be defended by special interest lobbying tactics.
PS: We just saw the ClickZ story. It’s very telling what the new IAB DC lobbyist said:
“…Zaneis says his initial plan of is, “Putting together a public policy council, developing positions on key issues, and leveraging the contacts that I have on the Hill, and in the FTC and other places. And then it’s a take no prisoners attitude to advocate for our members.”
Newsflash: Yahoo! Now Partnering with AT&T
No sooner than we had written the previous post, we saw this in today’s Advertising Age. At yesterday’s presentation before advertisers, CEO Terry Semel announced that Yahoo! “is working with AT&T domestically on its IPTV program.” Perhaps that helps explain our previous post on a Yahoo! VP dismissing network neutrality concerns.
Semel appeared at what Yahoo! called its “infront,” a online advertising version of the well-known bazaar where television time for the next season is first sold. We think such “infronts” are just another indication of how much of the business model for the new media is based on the dynamics girding television. It will be all about brandwashing on behalf of the largest global advertisers, but propelled by sales of each of us on a “one to one” basis.
Sources: paidcontent.org
“Yahoo Woos TV Media Buyers at its `Infront.” Claire Atkinson and Abbey Klaassen. Advertising Age. Feb. 14, 2007. subscription required.
Example today of NY Times Failure to Disclose IAB Connection
Just a few days after we blogged a piece on the conflicts of interests raised when media outlets uncritically report on interactive marketing–while failing to acknowledge their own official corporate role promoting the field–we have a good example. Today, in a New York Times story about online video marketing, the reporter quotes the head of the Interactive Advertising Bureau (IAB). The story failed to acknowledge that the New York Times Co. is on the IAB board as well as its executive committee. Here is a link to the IAB board. See here for the IAB mission. I believe that media outlets serving on the IAB board have to not only acknowledge their membership when they report on the industry, but also commission a steady series of stories that will look at interactive marketing and their own corporate role with a critical perspective. The Times Co., btw, is also a member of the Advertising Research Foundation.
See: “Forgive Me Viewer, for I Have Confessed in a Banner Ad.” New York Times. Feb. 10, 2007.
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A Google-Cable Industry Alliance?
A quote from a Reuters story about a Google exec. complaining that the Internet has a lack of bandwidth for delivering video and multi-media. It suggests that Google’s plan to further transform the Internet into a better interactive video ad system will eventually bring it into an alliance with the phone and cable giants.
Reuters: “The Web infrastructure, and even Google’s (infrastructure) doesn’t scale. It’s not going to offer the quality of service that consumers expect,” Vincent Dureau, Google’s head of TV technology, said at the Cable Europe Congress. Google instead offered to work together with cable operators to combine its technology for searching for video and TV footage and its tailored advertising with the cable networks’ high-quality delivery of shows.”
Source: “Internet not Designed for TV, Google Warns.” Lucas van Grinsven, European Telecoms Correspondent. February 7, 2007.