Category: FTC

The emerging online health field requires meaningful privacy and interactive marketing safeguards to prevent the exploitation of American consumers. Google, Microsoft and many others see digital gold from the online targeting of medical-related products & services. There will be a flood of personalized pitches from the Big Pharma brands, health remedies, and over-the counter remedies. Yesterday, CDT sent out an email saying that “[N]ext week the Center for Democracy & Technology will announce a major health privacy initiative that will emerge as the major player in this converging field, poised to stand in the gap, bringing providers, industry and consumers to the table to build workable solutions and impact policy makers.” The CDT missive explained that “[A]ddressing these issues requires a strong, credible voice, that combines privacy and technology expertise with a deep understanding of the health care system and the goals for information technology; a voice with privacy policy experience and an understanding of how technology can be used to improve health care.”

The health of the American public in the digital era will be directly connected to the policies we enact governing medical micro-targeting, data collection, and online marketing. Groups have to stand up for what is right for consumers. The new CDT effort–along with the online health data and marketing initiatives–will require close scrutiny. Protecting health-related privacy and ensuring safeguards for digital medical advertising are essential if we are going to engage in prevention.

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Consider this a form of `let’s help Google try and be more honest about privacy and data collection’ public service.

Excerpt from PC World:
“Google’s YouTube will soon give marketers more data about viewership of its videos, so that they have a better understanding of clips’ reach and effectiveness at boosting brand awareness and sales.

The online video site plans to make more granular metrics available in this year’s second and third quarters, including data about the usage of YouTube videos that are embedded in external sites, said Brian Cusack, YouTube sales team manager.

“YouTube has enormous amounts of data, but not great reporting on that data yet,” Cusack said during a keynote speech at the eRetailer Summit….YouTube…is building models to distinguish content that is universally interesting from content that is locally interesting, in order to make that useful for its advertising customers, Cusack said.

YouTube to Improve Usage Metrics: New data about Google’s YouTube video viewership will be availabletp marketers. Juan Carlos Perez. IDG News. March 3, 2008

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Microsoft is set to acquire behavioral microtargeting and “marketing automation” specialist YaData. YaData’s software helps identify “behavioral micro-segments” [thats our behaviors, btw]. As YaData explains, “[M]icro-segments may overlap, reflecting the true multi-dimensional nature of customers and their changing habits. The continuous dynamic discovery and management of focused micro-segments allows marketers to understand and act upon changing market trends and gain rapid results for a real competitive differentiator. In order to act upon these changes, it is vital that marketers be able to routinely and autonomously launch the discovery process and manage the entire segment lifecycle…” [the managing, we presume, is of people’s behaviors and attitudes].

“YaData fully believes in the potential of behavioral targeting to enhance the value of online advertising for publishers, advertisers and users,” said Amir Peleg” in the press release announcing the sale. Microsoft officials claimed that as YaData’s technology became part of the company’s “advertising platform” they would “continue to adhere to its high standards for the protection of consumer privacy.” As Microsoft moves closer to acquiring Yahoo!, privacy advocates will need to analyze how the company’s recent acquisitions and developments related to online advertising require real safeguards–not just a reflexive we-care-about-privacy approach.

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The departure of Deborah Platt Majoras should mark the closing of the special-interest revolving door at the FTC

Deborah Platt Majoras came to the FTC as a corporate lawyer who had represented Chevron Texaco while at the Jones Day law firm. Under her watch, the FTC failed to make any real advances protecting consumer privacy, ensure an open Internet (network neutrality), and promote competition and diversity in the key online marketing sector (Google/DoubleClick, for example).

The FTC should have a chairman and commissioners whose background indicates a strong commitment to consumer protection. They have to be willing to take on the powerful special interests, much of which will be from the big business sector. We need to stop business as usual, where yesterday you were a top corporate lawyer–then you are at the FTC–and soon, back in a well-compensated corporate boardroom. In Deborah Platt Majoras’s case, she is to be a top counsel for the Procter and Gamble company, according to press reports (her former law firm Jones Day has represented P&G, btw). The next administration must appoint officials to the FTC–and the FCC–who are in the orbit of the special interests. The cozy K Street golden revolving door should be sealed shut. If the country is to tackle the problems facing it, it requires consumer champions and business visionaries who understand what is at stake.

I would be remiss if I also didn’t remind readers that my group and the Electronic Privacy Information Center asked Chairman Majoras to recuse herself on the Google/DoubleClick merger, once we discovered that her husband’s law firm Jones Day represented one of the parties. She refused, and groups have asked the FTC to turn over documents related to the case. We intend to pursue this, of course, despite her departure. But the real point is that we need officials at the FTC who have demonstrated through their previous work and intellectual perspectives that they represent the concerns of average Americans—not multi-billion dollar law firms, Fortune 1000 corporations, or well-connected trade associations. In the 21st Century, anti-trust and consumer protection plays a crucial role in the operation of the digital marketplace. That alone is reason enough to make who becomes a FTC commissioner an important public policy issue for those who care about serious reform.

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Murdoch’s MySpace uses behavioral targeting to harvest data of its users, including when they are having a baby or going off to college

From the mouths of data collecting social network executives, via Online Media Daily:

“…Heidi Browning, the senior vice president of client solutions for Fox Interactive Media, cited some impressive results from behavioral targeting using data from MySpace–including a 733% lift in brand awareness, 800% lift in recall, 152% increase in brand favorability, and 179% increase in purchase intent.

She added that social networks like MySpace are ideal places to harvest data for behavioral targeting because consumers voluntarily provide detailed information about a host of behaviors and attitudes–including, for example, media consumption and brand preferences as well as simple demographic descriptors, age, education, and geographic location. From these, Fox assembled a number of enthusiast and lifestyle segments, broadly grouped in 10 super-segments, with at least 3 million and as many as 10 million members each.

According to Browning, MySpace data can tell marketers when a user “is moving, having a baby, going to college”–but also more subtle information including receptivity to ad messaging at different times of day. With other data sources, like DVR records, she said MySpace information will allow “hyper-targeting” of consumers, delivering the right kind of ad message via the right medium at the right time of day.”

source: “Behavioral Targeting: A Brave New World… Maybe.” Erik Sass. Online Media Daily. Feb. 26, 2008 [reg required]

Time Warner’s `Platform A’ Data Collection System: 3 billion online ads a day bolstered by $1 B in online ad company acquisitions

Time Warner has been buying up online ad properties to bolster its AOL and Advertising.com subsidiaries. AOL exec Randy Falco, as reported in Advertising Age [Feb. 26, 2008, sub. required likely] told interactive marketers that “[W]e have Platform A, the largest ad network in the world.” Falco said that 3 billion ad impressions were being delivered daily by the AOL networks. He also said that “[W]e spent with the help of Time Warner about a billion dollars to acquire [Quigo, Tacoda, Third Screen Media and AdTech] over the past year.”

IAB’s new “Privacy Principles”=A Failure to Protect Consumer Privacy

The IAB has embraced a `circle the data collection and micro-targeting digital wagon’s’ with its new privacy principles. Instead of embracing a policy that truly protects consumer privacy, IAB members are trying to hide behind the same failed approach they have led to governmental inquiries in the US and the EU. The IAB should have adopted rules so that no data can be collected without full disclosure and prior consent of the consumer, as well as other fair information collection principles. The IAB’s proposed new PR campaign to promote the role of interactive marketing will undoubtedly by slick–but won’t be honest. That’s why my CDD will keep telling the FTC, the EU and the public about what really goes on with data collection and digital marketing. These slightly refurbished fox-watching-the-data-hen-house-privacy principles won’t provide any substantive protections for consumers. The failure of the IAB to acknowledge key issues related to sensitive data–including children, teens, financial (think subprime mortgage-related) and health–is a glaring failure of the group’s ability to do what is required to protect consumer privacy.

The IAB is trying to help its members dodge the digital privacy data bullet. But privacy advocates and officials concerned about consumer welfare in the digital age will eventually force the needed changes. What’s sad is that instead of playing a leadership role in the privacy debate, the IAB is attempting to stick with the past. Don’t they realize that change is coming?

Google’s mobile vision: “integrated marketing campaigns” for” Fortune 1000 companies”

Google, as we have said previously, deserves praise for its work on open spectrum. But its motives are more aligned with plans to expand its interactive data collection and targeted marketing business. Here’s an excerpt from Google’s job listing for “Team Manager Mobile Advertising, Google Mobile Advertising:
“As a Google Mobile Team Manager, you’ll serve as a mini-CEO responsible for developing and implementing strategies to sustain and increase a multi-million-dollar revenue business in the mobile industry. You’ll hire, train and lead your team, which will work closely with many internal Google divisions to develop integrated marketing campaigns and present them to Fortune 1000 companies. A crucial focus will be to understand how the mobile area fits into cross-media campaigns.”

or perhaps you are interested in: Senior Account Executive, Google Mobile Advertising:

“The Mobile Advertising team that operates within Advertising Sales was organized to fortify the company’s mobile objectives in search, branding and measurement. We do this by striving to identify our clients’ business challenges, to collaboratively shape solutions that drive their strategic initiatives and to keep them educated and informed in the ways that our products can enhance their online and/or offline presence…
Senior Account Executives drive revenue by selling Google’s mobile solutions to top-tier advertisers. This is a high-energy job requiring persistent and persuasive interactions with clients, deep mobile and Internet expertise, proven sales skills, the ability to work collaboratively with internal sales teams, closing deals, strong communication skills and a broad base of mobile industry contacts.”

Microsoft/Yahoo! privacy & merger watch: Yahoo! is "largest behavioral targeting network" according to its Blue Lithium subsidiary

Yesterday, the behavioral targeting firm and Yahoo! subsidiary Blue Lithium gave a lunch time presentation at the OMMA Behavioral Targeting conference. The Yahoo!/Blue Lithium representatives discussed how “Yahoo! was the largest behavioral targeting network,” even prior to its acquisition of Blue Lithium. They talked about the “amount of knowledge we have about users,” including the “deep information” on its “hundreds of millions” of users. Yahoo!, they claimed, had a treasure trove of user data for its targeting “engine,” including search clicks, page views, ad views, and clicks. Yahoo!, they explained, “has spent time and money” to build an ad targeting system that can use all this data, with 400 distinct “categories and models.” Yahoo! has “scale” and “unprecedented reach.” They made a point of noting that [for now], Google doesn’t use behavioral targeting. The representatives also boosted about Blue Lithium’s retargeting capabilities, and that they can target with “specific messages,” and “identify the people that clicked.”  The retargeting is followed up with a “call to action” they noted.

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Microsoft/Yahoo! combination would create a "dominant player in display ads"

From the UK’s New Media Age online ad trade (excerpt). It underscorses for us the failure of regulators to address both the competition and privacy issues (let alone consequences for digital media content diversity): “A merger in the wake of Microsoft’s proposed $44.6bn (£22.7bn) takeover, could create a dominant display provider to match Google’s dominance of the search market…A combined Microsoft-Yahoo! could reach as much as 81.5% of the total worldwide audience…

“I think it would consolidate a position as the dominant leader in display advertising, in the same way that Google is the head-and-shoulders leader in search’ [said Caroline McGuckian, global head of media at LBi.]…Media agencies have largely welcomed the takeover as a boost to the display ad market, particularly behavioural targeting. It’s also seen as bringing welcome competition to Google’s dominance of online.”

source: “Microsoft-Yahoo! Would Be Display Ad Leader.” Danielle Long. NMA. 07.02.08 [sub. required]/

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