Category: Behavioral Targeting

Marketers Urging Targeting of Hispanic Tweens, including via Mobile [Annals of Mobile Marketing]

There’s nothing to say except read what this marketer wrote for MediaPost’s Engage series.

Excerpt:  “To effectively reach Hispanic tweens…Don’t forget mobile. Many tweens already have cell phones, and they use them daily to text their friends. Text messages are a key way to connect with tweens, especially if you offer them a fun service, such as daily horoscopes, that doesn’t feel like an ad. Cell phone numbers can be collected right alongside emails in your lead-gen efforts. You get a branding boost, as well as their mobile number in your database for future text messaging campaigns.”

source:  Make Your Marketing Dollars Pay: Target Tweens.  Engage Hispanics:  MediaPost.  February 6, 2009

Annals of Behavioral Targeting: New product designed to “to prompt a profitable response for every user”

Perfect timing for International Privacy Day.  A new behavioral targeting product that will soon be released.  Here’s an excerpt from the press release:  “TARGUSinfo, the leading provider of On-Demand Insight(SM) about prospects and customers, plans to unveil AdAdvisor(SM) services…a new predictive-targeting solution leveraging the industry’s largest repository of verified offline lifestyle and demographic information. “The power of AdAdvisor is that it enables ad networks, publishers and advertisers to serve the ad most likely to prompt a profitable response for every user based on the most predictive offline consumer information,”…When an ad network sees a user on its’ publisher network, AdAdvisor cookies relay precisely which segment they fall within and enables ad networks and publishers to serve the most relevant advertisement — from the moment they first encounter users.”…Extensive Coverage – More than 50 million unique cookies, each embedded with highly predictive data attributes.”

and from Targusinfo’s site:  “Each AdAdvisor cookie contains verified, household-level demographics, interests and purchase behaviors. Our cookies are then deployed to score Internet users according to their unique segment — enabling you to serve the ad most likely to trigger a response…

“We deliver unprecedented predictive power. Our cookie-based services deliver rich, offline consumer information to boost existing behavioral-targeting methods.”

The company’s privacy policy states that “AdAdvisor services place a cookie containing non-personally identifiable information on a user’s computer…AdAdvisor cookies enable Web sites using the Services to recognize users when they return to those Web sites…The cookies used by the Services do not contain any personally identifiable information. Instead, the cookie contains anonymous, non-personally identifiable categories of information which are derived as a result of a user’s registration through one of our registration partners.”

It’s not personally identifiable but, in their own words, “recognize users” when they return to sites!  It’s anonymous, but includes user “registration” data via third parties! This is another example of why the FTC and the Congress has to reform privacy safeguards.  The antiquated concept of what is considered personally identifiable has to brought into the 21st Century and the Obama Administration era.

The Interactive Advertising Bureau’s Official Definition of Behavioral Targeting

As the debate on privacy, consumer protection, and online marketing is renewed, it may be useful to see how the interactive ad industry classifies its practices.  Here is the definition of behavioral targeting from the IAB’s own glossary of terms.  My bold:
“Behavioral Targeting-
A technique used by online publishers and advertisers to increase the effectiveness of their campaigns. Behavioral targeting uses information collected on an individual’s web browsing behavior such as the pages they have visited or the searches they have made to select which advertisements to be displayed to that individual. Practitioners believe this helps them deliver their online advertisements to the users who are most likely to be influenced by them.”

Here are a few other terms used by the IAB that illustrate some of the the online ad industry’s data collection and targeting process:

“Click-stream –
1) the electronic path a user takes while navigating from site to site, and from page to page within a site; 2) a comprehensive body of data describing the sequence of activity between a user’s browser and any other Internet resource, such as a Web site or third party ad server.
Heuristic –
a way to measure a user’s unique identity. This measure uses deduction or inference based on a rule or algorithm which is valid for that server. For example, the combination of IP address and user agent can be used to identify a user in some cases. If a server receives a new request from the same client within 30 minutes, it is inferred that a new request comes from the same user and the time since the last page request was spent viewing the last page. Also referred to as an inference.

Profiling –
the practice of tracking information about consumers’ interests by monitoring their movements online. This can be done without using any personal information, but simply by analyzing the content, URL’s, and other information about a user’s browsing path/click-stream.
Unique user –
unique individual or browser which has either accessed a site (see unique visitor) or which has been served unique content and/or ads such as e-mail, newsletters, interstitials and pop-under ads. Unique users can be identified by user registration or cookies. Reported unique users should filter out bots. See iab.net for ad campaign measurement guidelines
Web beacon –
a line of code which is used by a Web site or third party ad server to track a user’s activity, such as a registration or conversion. A Web beacon is often invisible because it is only 1 x 1 pixel in size with no color. Also known as Web bug, 1 by 1 GIF, invisible GIF and tracker GIF.

Google Supports Greater “Micro-targeting” of Ads on its Content Network

Google is working with online ad company Tumri to facilitate greater ad targeting.  According to Behavioral Insider [excerpt]:
“What we’re doing with Google is that for the first time they’re opening up the interface on their contextual network. So as an ad is being served they pass us keyword information and we adjust the ad subcomponents in real time, based on the context of the page the reader is looking at on a keyword level. Examining the contextual information and marrying that with past search and behavioral patterns, elevates the level of targeting.

… With Tumri, Google is opening their interface and architecture to allow Tumri to access keywords for pages. When an ad is served, the Google content network will pass through Tumri with recommendation of content, and Tumri will refine that further.”

In Tumri’s January 6, 2009 release announcing the Google deal, it noted that:  “Tumri’s participation in context-aware ads on the Google content network benefits advertisers by allowing Google to feed its contextual page information about web page content into Tumri’s dynamic ad generation engine. Tumri’s AdPod seamlessly generates highly-targeted marketing messages in real time through its dynamic, intelligent ad optimization and presentation layer based upon the advanced contextual information from Google…

The Tumri solution – the AdPod – enables advertisers to craft highly targeted marketing messages to consumers on-the-fly. The Tumri platform seamlessly deconstructs ad creatives into core sub-components, then enables advertisers to adjust each sub-component by targeting parameters or optimize by performance metrics… Tumri’s patent-pending platform optimizes performance at a sub-ad component level and delivers unparalleled consumer insights through its proprietary reporting.”

Google, YouTube, and DoubleClick Cookies Placed on Users of YouTube’s new Congress Channels, Says Computer Scientist

Columbia U computer professor Steven M. Bellovin has an important post on the privacy issues raised by YouTube’s new House and Senate channels.  He writes [excerpt, our emphasis] that:

“I opened a fresh web browser, with no cookies stored, and went directly to the House site. Just from that page, I ended up with cookies from YouTube, Google, and DoubleClick, another Google subsidiary. Why should Google know which members of Congress I’m interested in? Do they plan to correlate political viewing preferences with, say, searches I do on guns, hybrid cars, religion, privacy, etc.?

The incoming executive branch has made the same mistake: President-Elect Obama’s videos on Change.gov are also hosted on (among others) YouTube. Nor does the privacy policy say anything at all about 3rd-party cookies.”

Video channels providing the public access to members of Congress and the new Administration should be in the forefront of privacy protection-and not serve as a data collection shill for any company.  Nor should one company be permitted to shape broadband video access to federal officials.

Get Set, Ready, Regulate!: Online Marketing and Data Collection in 2009-2010 [see how everyone “owns” your data except you!]

New Year, new Administration and Congress.  Plus a growing global concern from policymakers, advocates and citizens about data collection online.  Even the relatively feckless Federal Trade Commission will do more on the issue this year. Here’s a toast to hope for a honest discussion about the data collection and targeting system which embodies the online marketing apparatus.  Look at this excerpt from a story on behavioral targeting and online publishing from this week’s Advertising Age.  Note that everyone believes that can collect and use the data collected from observing an individuals’ behavior–and don’t even have to get permission from the actual person.  Such online marketing practices, of course, raise important civil liberties issues, as far as I’m concerned.

Here’s the excerpt:  “…Who created the customer and who owns the data generated by a visit or a sale? “Data is key; everybody wants to own it, everybody wants to use it. It’s not just ad networks — its portals, publishers and holding companies,” said Mike Cassidy, CEO of Undertone Networks. “The question to be answered is who owns the data, if anybody.” In the offline world, publishers market their own subscriber lists. But online that data is harvested by a host of third parties such as Google’s DoubleClick, Microsoft’s Atlas and vast ad networks such as Platform A’s Advertising.com. “People are stealing from the media companies who have lost control of their data,” said Operative CEO Mike Leo….Here’s how it works: A publisher decides to allow an ad network to sell some of its inventory. That network places a cookie on the publisher’s site. Now, when a user leaves that site, and goes somewhere else, the network can track that user.”

source:  “As Tracking Proliferates, Web Publishers are Left Out: Behavioral Targeting Punishes Producers of Original Content.”  Michael Learmouth.  Advertising Age.  January 5, 2009 [sub may be required].

CDD Memo to President-elect Obama’s FTC Transition team

My organization provided the FTC-transition team of President-elect Obama a brief memo on what the agency should do as it changes leadership. With a new majority, the FTC should be in the forefront of addressing how the financial and marketing system has evolved in ways which threaten our fiscal well-being and privacy, among many other concerns.  Here’s an excerpt:

The Federal Trade Commission has a potentially extraordinary role to play in the new Administration.  The agency should be engaged in developing and promoting policies that protect privacy, ensure consumer welfare, and stimulate economic development.  Unfortunately, in recent years the commission has largely failed to comprehend the threats to consumer privacy arising from the data collection-based online marketing system.  It ignored, for example, the role that data collection and behavioral targeting played in the marketing of subprime loans and other consumer financial products…
Under new leadership, the FTC should view its role as a champion of consumers…. in consumer protection, privacy, and online-related competition policy, the agency has failed to conduct the kind of serious inquiry that would enable it to make sophisticated recommendations or decisions.  It has not developed a 21st century framework that will protect consumers in the digital marketing “ecosystem.”  We saw this with behavioral advertising and privacy policy, protecting children and youth from marketing linked to the obesity crisis, and in the approval of the Google and DoubleClick merger, for example.
If the FTC is to help the country move forward during this crucial period of economic transition, it should:
•    Make Consumer Protection its highest priority
•    Recruit new staff for consumer protection with a background and commitment to consumer interests
•    Engage in a serious and ongoing analysis of the digital marketplace, with a focus on the impact of interactive advertising/behavioral targeting on financial products, health and medical services, product purchasing, and children and adolescents
•    Propose new policies to protect consumer privacy and welfare online…
•    Work with the FCC and state authorities to create a new Mobile Marketing, Consumer Protection, and Privacy Task Force (with annual reports to the public, and, where appropriate, new legislation recommended to Congress).

Behavorial Tracking a User of Search and Display: Hey, FTC. Better Tighten Up Those Proposed self-regulatory rules [Annals of Behavioral Targeting]

Online ad companies, such as Microsoft, have been developing ways of tracking a users journey online (“engagement mapping” of the digital marketing “conversion funnel”) so the share of ad dollars can be more properly apportioned (meaning, it’s not only the ad companies providing the “last-click” that receives all the credit).  We have long been troubled by the stealth tracking and commercial surveillance system being put in place.  Rich media online ad company Eyeblaster has developed a similar service.  Here’s an excerpt from a trade article.  After you read it, think about the FTC during an Obama Administration, and what we should expect it to do under a new majority:

“Eyeblaster has introduced Channel Connect for Search, a service that helps marketers track consumers who click on their display ads but do not transact immediately.

The service places a cookie on a user’s computer that remains on his or her desktop for 30 days. Eyeblaster customers can then identify those individuals when they later convert through search.

“It bridges the gap between display and search advertising,” said Thomas MciIheran, senior media manager with digital media agency Sicola Martin, which is based in Austin, TX. “It’s such valuable information, because there are clients who say display advertising isn’t working, and they think they should stop. This could be eye opening for them, because it shows that display is leading to search, and how much.” …The new service is “able to pinpoint crucial campaign data and draw important insights about the interaction of our search and display ads,” said Harry Case, director of media analytics and technology at Mindshare, in a written statement. “In the end, it provided us with a more comprehensive overview of user behavior.”

Ad Industry Lawyer Spins in Ad Age that Privacy Will Be on “Back Burner.” Not Only Incorrect–but self-serving

This week’s Advertising Age has a “Legal Issues to Watch in 2009” column.  Written by Douglas J. Wood of Reed Smith, it claims that: “PRIVACY TO THE BACK BURNER- Congress and regulators are in a Catch-22: While under constant pressure from constituents and consumerists to curtail the use of personal information or behavioral targeting, they recognize that advertising is the backbone of the internet. So while there will be occasional skirmishes, the war on privacy will continue in its stalemate. Regulators will also see browser makers offering more control to consumers to block ads and the collection of personal information as adequate progress.”

Mr. Wood, it turns out is “a member of Reed Smith’s Executive Committee and the firm’s Advertising Technology & Media Group…and is General Counsel to both the Association of National Advertisers and the Advertising Research Foundation.”

Perhaps Mr. Wood is too busy to really follow Hill and FTC developments, because he is wrong.  There will be considerable activity on the Hill and elsewhere.   His column should have been labeled as written by the lawyer for the ad industry lobby group.  But it does reflect a lack of insight about the online ad industry’s problems related to privacy and consumer protection.

A Behavorial Targeting Example Shows Why Privacy Laws are Required, including a New and More Accurate Definition of Personally Identifiable Information

Interclick, “one of the largest advertising networks in the U.S., reported higher revenues today.  The company says that it collects “non-personally identifiable information (non-PII)” via cookies.  Here’s what Interclick considers, like other online advertisers, non-PII: “On the interCLICK network, we collect non-personally identifiable information (non-PII) such as web sites visited, content viewed, ad interaction, interaction with advertiser websites, IP addresses, search terms used, and other click and browsing behavior. Additionally, we may collect non-PII technical information including IP address, OS, browser type, language settings.”

Meanwhile, Interclick’s behavioral targeting “option” for advertisers explains that its: “innovative behavioral targeting filters allow you to target the right individual users at the right time, increasing the effectiveness of your campaigns. With over 350 behavioral categories, interCLICK can get as precise as you want.

We segment users based on observed behaviors into 3 interest levels: slightly, moderately and very. Furthermore we use frequency and recency to classify these interest as short, mid, or long term interests. As the user navigates throughout our network of sites, we continually adjust their profile based on anonymous observations, assuring the accuracy of our profiles.” It offers “Behavioral Segments” which allows online advertisers to “Leverage interCLICK’s massive data warehouses to effectively target users who have been determined to exhibit certain behaviors throughout interCLICK’s network. interCLICK offers over 350 different Behavioral Targeting categories/sub-categories.”

Among the segments include financial services including “personal banking seekers, credit card seekers, retirement investing.”   There’s a segment targeting “college seekers,” raising issues related to youth marketing.  Another segment is on “health,” including categories targeting “Diet & Fitness Enthusiasts.”

InterClick is just of many ad networks engaged in such data collection and targeting.  But it illustrates why the online ad industry must be regulated, to protect consumer privacy and welfare.