Category: Yahoo!

ATT: DoJ, EC and Congress: Yahoo!’s own claims should raise alarms about a Google or Microsoft deal

No one should sit by and let either Google or Microsoft carve-up or take-over Yahoo! without a serious examination of the competition, privacy, and other consumer protection issues. This week, Yahoo! ran a four-page ad inserted in Advertising Age. Here’s some of Yahoo!’s own copy for regulators and the public to ponder:

“Yahoo! delivers the largest audience in the U.S.-the most 18-34 year olds, the most 35-54 year olds, the most women….Today, Yahoo! reaches over half the world’s Internet users. And with our growing network of premium publishing partners, including over 625 leading newspapers, we’re working with the other half…Our insights and understanding of our users lead to smarter targeting, so we can connect the right audience with the most relevant message–yours…With more ways to connect to your customers more deeply than ever, the future is wide open.”

From Yahoo! Advertising Age insertion. June 2. 2008 entitled: “What Happens When You Can Connect To More Than 550 million People From Over 170 countries Who Spend 2 Billion Hours Each Month In One Place?”

Yahoo/WPP Alliance=More Data Collection via Targeting and Privacy Concerns

Regulators will need to examine the privacy implications of the new Yahoo and WPP alliance. When the display ad leader–Yahoo--links up with the global ad agency holding company powerhouse–WPP--data collection issues must come to the fore. Under the deal, explains Reuters, “WPP advertising agencies would, through its 24/7 Real Media arm, develop a proprietary advertising media trading platform that takes advantage of Yahoo’s Right Media exchange.” WPP’s “brands” include Ogilvy, Cheskin, Dentsu Y&R and many, many others.

WPP’s 24/7 says the following about its “comprehensive” targeting:

“Whoever you want to reach, we have targeting down to a science.

  • Behavioural. We can serve ads based on your customer’s browsing behaviour.
  • Demographic. We can target campaigns based on a number of demographic criteria such as race, age, income, sex, employment, education, and home ownership.
  • Technographic. We can target based on browser, browser version, bandwith or operating system.
  • Retargeting. We can flag visitors to a site based on what they did on their last visit, and then “retarget them” when they return.
  • Geo-dem. We can overlay geographic data such as country, state or zip code with demographic information.
  • Daypart. You can tell us what hour of the day or day of the week that you’d like an ad to be viewed.
  • Content. You can choose specific sites, sections or positions on a page for ad placement.
  • Keyword/search. We can serve ads based on specific words that are entered into a search engine by your customer.
  • Custom. We can develop a comprehensive targeting strategy that is customised for whatever your marketing goal may be.”

Mind over our data: It was 24/7 that just announced it was also using “psychographic targeting through a partnership with Mindset Media…[that] will enable brand advertisers to target consumers with specific personality traits that drive buyer behavior and brand affinity across a broad range of consumer goods and services.”

From MediaPost’s coverage (excerpt):  “ The multi-year deal will pair Yahoo’s Right Media ad exchange with the targeting prowess of WPP’s 24/7 Real Media, giving WPP agencies a more effective system for buying mass quantities of display inventory worldwide… WPP’s GroupM…will be able to access the platform directly through 24/7 Real Media and plug in various targeting options-… Ryan Jamboretz, director of corporate development at GroupM…said “[T]his only improves the product by allowing us to do things like behavioral and retargeting on a larger scale.”

source:  Yahoo, WPP Partner to Buy, Sell Rich Media More Effectively.   Tameka Kee.  Online Media Daily. May 15,2008.

Google & Yahoo!’s mobile businesses will require antitrust scrutiny in any deal

Among the questions we will raise with policymakers is what any alliance between Google and Yahoo! will also mean for their respective mobile search advertising businesses. Privacy is certainly a concern here, as companies such as Google migrate the user tracking and targeting model which fuels the traditional PC-focused online ad business.

Here’s what Yahoo! says in can do with its Mobile Ad Services: “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’.”

Update [via 5/12/08 Advertising Age. sub required likely]: “Google has managed to command a lead in mobile search, though nothing like the massive share it has in the PC-based internet world. According to M:Metrics data, Google had a 38.3% share as of August 2007. (Yahoo is the next closest with 25.4%.)”

source: WiMax Could Bring Dramatic Changes, Wherever You Are. Abbey Klaassen. Ad Age. May 12, 2008

Yahoo! merger or deal watch. privacy division: Yahoo! may expand behavioral targeting

All these privacy, data collection and marketplace competition issues will need sorting out. Yahoo is acquiring “Tensa Kft., more commonly known as IndexTools…IndexTools will add more insight and metrics for online campaigns…” One search column explains the significance of the deal is the “…huge benefit that Yahoo will have is the ability to put their pixels (data collection mechanism) around the web and hence collect data. Which, in turn, will help their Behavioral Targeting efforts, which are currently limited to Yahoo portal only. This is huge!!!

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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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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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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Google/Yahoo or Microsoft/Yahoo!–either way, antitrust issues for the Asian online ad marketplace

In addition to North America and the EU, any combination (or alliance) raises serious marketplace competition questions. One area that will require attention is the growing Asian digital media market. Here’s an excerpt on the search engine related market:

“…a huge factor on who wins the search engine war in Asia hinges on search engines’ ability to develop business relationships that would help both parties leverage their capabilities and offer the appropriate services…We are already seeing such partnerships beng forged between large telecommunications companies and search engine providers across Asia.

A case in point is Yahoo, which has made great strides in developing strong relationships with mobile carriers in the Asia Pacific region. In China, Google and its formidable rival Baidu, are partnering up with large telcos such as China Unicom and China Telecom. In addition to relations with the telcos, search engines are reaching out to mobile phone manufacturers to provide search engine solutions.

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The Online Ad industry Must Respect & Protect Adolescent Privacy

Last week, a coalition of child advocacy, health and media groups asked the FTC to develop safeguards for digital marketing that would protect adolescent privacy online. This will be a major focus of the Center for Digital Democracy over the next year or so, building on our work during the 1990’s which led to the passage of the Children’s Online Privacy Protection Act (COPPA). COPPA helps protect the privacy of children under 13 years of age. Adolescents are now a principal focus of the online data collection and targeting system, a process which raises many ethical and health-related issues. We call on responsible online ad industry leaders to work with us to enact meaningful policies that protect adolescent privacy on websites, social networks, online gaming, etc. We are pleased that some major online ad companies have privately said to us that they recognize there is a problem. We will work with them and other responsible digital marketers. Policymakers from both congress and the FTC also recognize adolescent privacy is an important concern. It is a bi-partisan one as well (Senator John McCain was the co-sponsor of COPPA). The time to develop a meaningful framework that respects the autonomy of adolescents, but protects their privacy, is now