Category: Behavioral Targeting

Interactive Ad Bureau to Congress and Public: If Your Privacy is Protected, The Internet Will Fail Like Wall Street!

It’s too disquieting a time in the U.S. to dismiss what a lobbyist for the Interactive Advertising Bureau said as merely silly. The IAB lobbyist is quoted in today’s Washington Post saying: “If Congress required ‘opt in’ today, Congress would be back in tomorrow writing an Internet bailout bill. Every advertising platform and business model would be put at risk.” [reg. required]

Why is the IAB afraid of honest consumer disclosure and consumer control? If online ad leaders can’t imagine a world where the industry still makes lots of money–while simultaneously respecting consumer privacy–perhaps they should choose another profession (say investment banking!).

Seriously, online ad leaders need to acknowledge that reasonable federal rules are required that safeguard consumers (with meaningful policies especially protecting children and adolescents, as well as adult financial, health, and political data). The industry doesn’t need a bail-out. But its leaders should `opt-in’ to a responsible position for online consumer privacy protection.

Google Policy Blog Fails to Address Yahoo! Deal & Threat to Competition & Privacy

Google’s post today by Tim Armstrong on why its proposed deal with Yahoo! isn’t a competition problem attempts to weave and spin this critical issue. It’s very revealing as well about Google’s own failure to develop into a company which honestly engages in self-examination and reflection. As one can see from the current melt-down of the financial markets, making money shouldn’t be the sole motivation for behavior. Google should have been able to acknowledge that a major deal with its leading search competitor raises serious questions worthy of broad debate and critical analysis.

The failure of Google to respond to the concerns raised by the World Association of Newspapers this week is reflective of this. Newspapers and content publishers are rightly worried about ensuring a diversity of funding sources for the production of news and other information necessary for a democratic society. It’s not as simple as Google’s Tim Armstrong (who wrote today’s post) suggests, that this deal with give consumers “relevant ads” and help keep Yahoo afloat as a robust competitor. In fact, Armstrong and Google, we believe, aren’t being candid here. When an online ad company dismantles (or turns over) a core part of its search function to its leading competitor, it becomes fatally wounded. As Google knows all well, search and display (and online content) are all intertwined. Yahoo’s future, in my opinion, as a full service online ad company is endangered, as more businesses realize that its search ad business relies increasingly on Google.

There are many troubling privacy issues with this deal, something Mr. Armstrong tries to dismiss by saying that [our emphasis]: “[W]e have taken steps in the Yahoo! agreement to make sure that neither company has access to personally identifiable user information from the other company.” But that leaves open an array of personal data collection points, such as cookies, IP addresses, and other statistical analysis online related data. (The failure, by the way, for the privacy issues of the proposed deal to be investigated by the FTC and Congress, is also disturbing).

Mr. Armstrong is Google’s “President, Advertising and Commerce, North America.” He directs their online ad sales. In responding to concerns about competition in the online advertising market–given its links to broader societal concerns–more than just assurances from the sales department is required.

Behavioral Targeters Use Our Online Data to Track Our Actions and, They Say, to “Automate Serendipity.” Attention: FTC, Congress, EU, State AG’s, and Everyone Else Who Cares About Consumer Welfare (let alone issues related to public health and ethics!)

NPR’s On the Media co-host and Ad Age columnist Bob Garfield provides policymakers and advocates with an arsenal of new material that support the passage of digital age consumer protection laws. In his Ad Age essay [“Your Data With Destiny.” sub required], Garfield has this incredibly revealing–and disturbing–quote from behavioral targeting industry leader Dave Morgan (Tacoda) [our emphasis]:

“Now we have the ability to automate serendipity,” says Dave Morgan, founder of Tacoda, the behavioral-marketing firm sold to AOL in 2007 for a reported $275 million. “Consumers may know things they think they want, but they don’t know for sure what they might want.”

Garfield writes that “In 2006 Tacoda did a project for Panasonic in which it scrutinized the online behavior of millions of internet users — not a sample of 1,200 subjects to project a result against the whole population within a statistical margin of error; this was actual millions. Then it broke down that population’s surfing behavior according to 400-some criteria: media choices, last site visited, search terms, etc. It then ranked all of those behaviors according to correlation with flat-screen-TV purchase…“We no longer have to rely on old cultural prophecies as to who is the right consumer for the right message,” Morgan says. “It no longer has to be microsample-based [à la Nielsen or Simmons]. We now have [total-population] data, and that changes everything. With [those] data, you can know essentially everything. You can find out all the things that are nonintuitive or counterintuitive that are excellent predictors. … There’s a lot of power in that.”

There’s more in the piece, including what eBay is doing. As the annual Advertising Week fest begins in New York, we hope the leaders of the ad industry will take time to reflect on what they are creating. You cannot have a largely invisible system which tracks and analyzes our online and interactive behaviors and relationships, and then engages in all manner of stealth efforts to get individuals (including adolescents and kids) to act, think or feel in some desired way. Such a system requires rules which make the transaction entirely transparent and controlled by the individual. The ad industry must show some responsibility here.

More Google Ad Tag Targeting & Data Collection via DoubleClick’s new “DART Natural Search”

Google now does the hiring and firing over at DoubleClick. It’s also responsible, of course, for its business activities and privacy policies. Here’s an excerpt from a 2008 “beta programme” called DART Natural Search. We think the growing role of user tracking across a myriad of online content, which other companies are also doing, is a very disturbing practice:

“By working with DART Natural Search, the impact of the entire search experience and click history can provide directional and prescriptive insight for your business’ search strategies. The DART Natural Search solution empowers businesses to better understand consumer search activities, through a robust tool that leverages existing spotlight tags used in paid search management and a simple tag on landing pages. DART Natural Search reports on where your traffic originates via the following search engines properties. [they list Google, MSN, Yahoo, Windows Live, ASK & AOL]…Conversion data from both Paid Search and Display is de-duplicated. And you get full exposure-to-conversion pathway reporting, giving you a snapshot into what influences a customer purchase decision… DoubleClick implements a state-of-the-art, single tracking tag and system for both Paid Search and Natural Search… By understanding the complete picture of the online media mix, you gain insight into the visits and conversions attributable to natural searches. Specifically for Natural Search, you’ll be able to understand what country people search from, and the search engine property they use (images, video, news, etc). Lastly, learn what search terms and landing pages are most valuable to your business.”

source: “Gain Insight into Your Customers’ Natural Searches.” DoubleClick [UK]. 2008.

Behavioral Targeting: A “Guide” from Yahoo!

Here’s an excerpt from a Yahoo! description of its behavioural targeting capabilities,via its UK site:

“What is behavioural targeting? Online has always been able to offer varied targeting opportunities, such as demographic, geographic and interest targeting, based on a user’s claimed interest and activity at one specific point in time. However behaviourial targeting goes one step further. Behaviourial targeting is different in that it allows advertisers to deliver specific targeted ads to consumers interested in a product, when they are close to the point of purchase, by leveraging actual online user behaviour. Even better, because the ad is served to a person based upon relevancy, it can be on a page that’s not directly related to the product…

Behavioural targeting anonymously follows someone’s interests, patterns and behaviours so you can speak to them knowing they want to be spoken to, which means less campaign wastage. This can be done by monitoring a number of consumer actions including:

> Search terms entered
> Editorial content viewed
> Ads clicked on
> Channels or micro sites
…Yahoo! behavioural targeting gives each category a unique “product purchase cycle” to ensure it reaches consumers for the correct duration while they are in market for that product. These cycles are based on a rigorous investigation of a consumer’s actions in the buying process. The frequency and intensity of these actions change the closer the consumer gets towards the point of purchase, allowing distinct periods of brand consolidation and purchase intent to be identified. Behavioural targeting allows ads to be strategically delivered to these exact points of the process…

Yahoo! tracks historical behaviour – who clicked on ads in this category in the past and what actions led to this click? Each user is then scored on how likely they are to respond to ads in this category. The ads are then delivered through behavioural targeting, which will only reach those judged to be in market and ready to respond to that specific product category.

How does it work? Behavioural targeting anonymously follows someone’s interests, patterns and behaviours so you can speak to
them knowing they want to be spoken to, which means less campaign wastage. This can be done by monitoring
a number of consumer actions including:> Search terms entered
> Editorial content viewed
> Ads clicked on
> Channels or micro sites visitedYou can then weight each person according to their relevancy to a particular industry category and their exact position within the buying process. This can be worked out by the frequency and how recently they have shown an interest in a specific product. For example, if someone visits Yahoo! Travel and searches for flights or travel insurance this will increase their rating for the travel category. Naturally they will also fall into the finance and insurance category and their subsequent actions will determine how relevant they are to

A Few Thoughts on Google, Data Collection, and Privacy: The Search Giant Blinks as Regulators Review

Google’s announcement today is a classic case study on how modern media companies deal with pressure from regulators and advocates. The company announced it would “anonymize IP addresses on our server logs after 9 months.” First, this would not have occurred without the extraordinary pressure brought by EU officials, especially data protection commissioners. [We should also thank numerous privacy and consumer advocates]. Nor would it have happened so readily if Google wasn’t trying to appease policymakers to ensure it can continue unfettered its online advertising shopping spree–such as DoubleClick and the pending joint venture with Yahoo! (and soon perhaps Verizon). Google blinks a bit on privacy when its corporate plans are under the regulatory cross-hairs (such as precisely this moment by the U.S. Department of Justice).

Google still needs to really limit its data collection practices, and become the global leader in privacy protection. It needs to become fully transparent about the myriad–and ever-growing–ways it collects, analyzes, and utilizes consumer data. It shouldn’t take regulatory review, policy pressure, or an attempt to blunt the outcome of a review from competition authorities, for Google to do the right thing. More coming.

Faster than the CBS Blinking Eye: CNET now offers behavioral targeting for its advertisers

We know the folks at Viacom and CBS know a great deal about digital marketing. The new overhaul of the CNET site, which CBS acquired last June, includes behavioral targeting in the redesign. CNET now–“[B]ased on what users are searching for, manufacturers will be able to connect with them… within the comparison shopping process. In addition to its traditional focus on tech products, CNET is adding appliance and kitchen gadget reviews, covering such products as built-in ovens, dishwashers, microwaves, refrigerators, small appliances, stoves and ranges, and washers and dryers.”

Of course, we hardly don’t know any media outlet that isn’t using some form of behavioral targeting and other interactive marketing techniques. But what’s generally missing is real disclosure to users and their ability to determine what is collected and by what methods. And while online advertising is the key business model for the future of online publishing, the rush to embrace of behavioral targeting by news organizations raises a number of disturbing questions. It’s an issue we will cover.

source: CNET.com undergoes major revamp. btobonline.com. August 28, 2008

Behavioral Targeting and Political Campaigns: The tip of the Online Targeting Iceberg

We hope readers will review the excellent articles on behavioral targeting and the election that appear in Businessweek [“The Candidates are Monitoring Your Mouse”] and The Washington Post [“Candidates’Websites Get to Know the Voters”].

Most observers understand that there are serious privacy issues involved when anyone–be it a marketer and (especially) a politician engages in data collection and micro-targeting online without prior consumer/citizen consent. While a few might express sentiments of cynicism–claiming that because some lawmakers may use these techniques it’s unlikely they will support safeguards–the opposite is true. Responsible lawmakers will recognize that in a digital democracy, protecting everyone’s privacy is crucial. Just as the Children’s Online Privacy Protection Act, which I helped spearhead, received strong bi-partisan support (Sen. John McCain was a co-sponsor, along with Rep. Ed Markey, for example), so will new rules which protect everyone online. Responsible parties will support meaningful safeguards–or be on the wrong side of much consumer ire.

PS: NPR has a fascinating and a very revealing video interview on this topic with Michael Bassik, Vice President for Interactive Marketing at MSHC Partners. MSHC represents the Democratic National Committee, Moveon.org, and the Center for American Progress, among many others. Here’s an especially informative excerpt [my transcription]:

“…in the past we were able to determine whether an advertisement was delivered, and we call those advertising impressions; we were able to determine how many people clicked on an ad, which is called the click-thru rate, and we could figure out from there the cost-per-click. That was about the extent of the reporting we had in the past. But now in 2008 we have tremendous deep reporting capabilities. So I can tell you, for example, who saw a John McCain banner ad on which site. And which placement on that site and which size the ad was. I can tell you how long that ad was on the page for before someone click on it. I can tell you if they clicked on it whether they donated, whether they signed –up. But also tell you whether someone saw that ad, but did not click on it. But two weeks later went to John McCain’s website on their own and made a donation. We can tie that donation back to the fact that they saw an ad on CNN.com three weeks prior in the political section in the 728 by 90 leaderboard size. I used McCain as an example, but of course all the candidates, including our Democratic and progressive candidates, are doing that.”

Google Behavioral Targeting Watch: Certifies Online Ad Targeter for its content network that “delivers unparalleled consumer insights”

Google’s growing number of “certified” third-party ad companies–many whom engage in behavioral targeting–which now operate over its “content Network” should raise questions from policymakers and privacy advocates around the world. Take Tumri, for example, which won such Google approval last month. Tumri is the “new player in the behavioral targeting space that promises seamless integration of highly targeted content with heightened consumer relevancy,” according to trade publication Clickz. Tumri says it combines “behavioral, contextual, geographic, demographic, and more” so advertisers can, for example, ensure that “the target audience take action rather than simply generating awareness…”

When it announced it had gained the Google seal of targeting approval last month, Tumri explained that [our emphasis]:

“We are excited to be included as one of the platforms certified on the Google content network,” said Calvin Lui, President & CEO of Tumri…Tumri’s participation in the Google content network combines the impact and effectiveness of today’s most dynamic and targeted ad delivery platform with Google’s broad reach. The combination of Tumri’s patent pending targeting and optimization platform with Google’s leading content network will deliver unmatched relevancy to consumers and performance for advertisers. As part of the certification, Tumri worked with Google to ensure that all Tumri ads meet Google’s policies, specifications, and performance requirements.

Attack of the AdPod People:

Tumri describes its service this way: “Dynamic and interactive by design, the Tumri AdPod enables publishers to deliver the right message to the right customer at the right time, yielding greater consumer relevancy, stronger click through and conversion metrics, strengthened monetization and heightened user satisfaction.” They explain that:
“Across traditional web sites, social networks, and the incredible amount of user-generated content that users interact with daily, consumers’ unique needs and personalities are reflected in the content of the pages they visit, the context of their visits, and the aggregated behavior pattern they demonstrate online. Given the power of the Internet, marketers and content developers can reach consumers using measurable dialogs across all online channels – web sites, advertisements, email, widgets, instant messaging, and many more….”

They also discuss the company’s tools, including its “matching engine,” which enables it to “match in real-time users with commercial content…
We utilize information from site visits, geographical location, browser context, search behavior, ISP/bandwidth characteristics, time of day, and past interactions which then become input to our classifiers who work in collaboration to determine:

  • Who is this user?
  • What is this user about?
  • What are they doing right now?
  • What are they in the market for?
  • What are they most likely to respond to NOW?”

All Tracking, All Predicting, All Targeting: Insights into how consumers are behaviorally targeted via the China digital ad market

We live in a world that is being increasingly shaped by the forces of digital advertising. It’s a largely global market after all, and there are very important developments in places such as China, India, and in the United Kingdom that have relevance for online privacy in the U.S. This description of the targeted online advertising model embraced by the China-based PinYou is very revealing of where behavioral targeting is today and headed [our emphasis]:

“The idea is really to understand consumers based on behaviors and profile them based on accumulated inputs. Instead of being reactive, we need to be predictive. Instead of indexing pages, or key words, we are indexing consumers Instead of creating preset segments, we understand multiple dimensions of consumers. As a result, we can deliver ads to the right consumers regardless where they are. We target a consumer not because he is now visiting a page, but rather because he has searched some key words, and he has visited certain sites, etc. As a result, different people see different ads when they log on the same page…The long term vision of PinYou is to allow advertisers to be able to come in and define the specific target consumers based on different dimensions for an advertising campaign. PinYou’s system will profile consumers based on multiple inputs, including demographics, psychographics, category interests, lifestyle and purchasing funnel. Through PinYou’s network of publishers, the ad will automatically appear whenever the target consumers visit the page. What Valueclick recently launched in the U.S “precision profiling” is similar to what we have in mind.”

Ms. Huang does say she is aware and concerned about the privacy issues (and refers to the current political debate in the U.S. over online behavioral tracking). You should read the interview. But to us, Ms. Huang primarily embraces a perspective echoed by online marketers in the U.S. that threatens consumer privacy.
source: “Interview with Grace Huang, Founder of Behavioral Targeting Startup PinYou.” Kaiser Koo. Ogilvy Digital Watch. Aug. 15, 2008