Ad industry continues its focus on brain research, inc. meeting at Harvard U

[we have covered this topic in our book and on this blog. Here’s a story from the April 2008 issue of Media Magazine–excerpt]

The meeting, held in a lecture room of the Harvard Business School, was hosted by four leading research organizations that are trying to figure out how to apply the fledgling field of neuroscience to media and marketing research, and to find out whether biometric technologies that map the brain’s responses to media stimuli can be used the way Madison Avenue has used conventional forms of audience research like Nielsen’s TV ratings.

In fact, the field is so promising that Nielsen itself is jumping into it. The media research giant recently acquired NeuroFocus, a Cambridge, Mass.-based firm that is beginning to apply neuroscience to advertising research…What social research was to advertising and media 50 years ago, neurological research promises to be for the next half century…By mapping and understanding how the brain responds to advertising and media stimuli, he [Gerald Zaltman] suggested, researchers would have empirical knowledge about what kinds of advertising and media content were most engaging to consumers. Because the brain – and how it remembers things – is malleable, Zaltman says, it’s not possible to use a map of someone’s thought processes to create rules of thumb. Rather, researchers must use the information to understand how people “coauthor” messages. In other words, people don’t just passively absorb and process information, but react to it, append it and make the content their own. And depending on when and where they are exposed to it, the content could be processed very differently.”

source: Going Mental. Joe Mandese. Media Magazine. April 2008

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AOL should also explain for our EU friends

AOL’s articulate chief privacy officer Jules Polonetsky says he will be responding in his blog to my citing some of Advertising.com ad copy promoting its behavioral targeting. I hope he also explains, to help out privacy and consumer advocates in the EU, what Advertising.com’s UK division means when it says:

Behavioural Targeting is the most dynamic way of reaching the right audience online. Using our Behavioural Network and LeadBack technology, we can target a pre-defined audience segment based on user behaviour on the internet.

There are a number of different ways we can create these audience segments:

  • Advertiser LeadBack
    We are able to target users across our network based on their behaviour on advertiser websites (e.g. partial conversion, abandoned shopping cart).
  • Audience LeadBack
    We are able to target users across our network based on their behaviour on publisher websites (e.g. viewing product review sites).
  • Search LeadBack
    We are able to target users across our network based on their search engine activity.
  • Creative LeadBack
    We are able to target users across our network based on their interaction with ads served outside the Advertising.com network.

By establishing certain user traits or demographics within an audience we are able to target those individuals with the most relevant advertising or simply reach those same users in a different environment.”

and when it says that: Advertising.com employed its web marketing solutions to drive high-volume subscriptions for Vonage. From advanced targeting to view-through tracking…Advertising.com’s AdLearn optimisation technology analyzed user response data, accounting for thousands of factors – including behavior, geography, hour, creative, website and more – to determine optimal ad placement based on the highest expected number of subscriptions generated for Vonage… Vonage also sought a solution to convert those users who clicked on the ad but did not complete a subscription. Vonage implemented Advertising.com’s LeadBack behavioural targeting technology to anonymously track consumer activity on the Vonage website, e.g., abandoned subscription form. After exiting the website, consumers who had not completed a subscription received targeted ads designed to drive them back to the Vonage site.

In order to accurately track the success of the campaign, Vonage leveraged Advertising.com’s view-through tracking technology to match conversions occurring in the days following the initial impression.”

and with: “MediaContacts came to Advertising.com to drive sales of Volkswagen’s Jetta A4 model… Advertising.com created a custom subnet within its extensive network comprised of consumers who had researched cars online in the past six months. Ads featuring the Jetta A4 model were targeted to this subnet and were designed to drive consumers to Volkswagen’s website where they could configure their ideal version of the A4 or request more information from a local dealer.MediaContacts also leveraged Advertising.com’s LeadBack behavioural targeting technology to anonymously track consumer activity on Volkswagen’s website, e.g., did not configure an A4. After exiting the Volkswagen website, consumers who did not configure a vehicle or complete a request for information received targeted ads designed to drive them back to the site to complete the unfinished action.”

and please also explain what you currently offer via Time Warner’s recently acquired Tacoda. For example, when it says that (our emphasis):

“All 4,000 plus partner sites in TACODA Audience Networksâ„¢ carry tags that reflect the interests of the audience that view that page. Every time a user visits any page, that tag information is added to a cookie on the user’s computer and a profile of the user’s interests quickly builds up. Before they are added to a segment in the database though, individuals must have demonstrated an interest in specific content at least two to four times in the past 7-30 days (this period varies to account for the differing lengths of the purchase cycle for each segment). Such is the size and scope of our network that over two billion new web behaviours are added to the database each day – making it one of the top ten largest commercial databases in the world.”

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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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

Former journalist and now online ad industry lobbyist Randall Rothenberg, in a BusinessWeek commentary, suggests that the call for privacy rules ensuring individuals have control over their data will undermine the Internet. You would think a Madison Ave. trade group could craft more creative PR copy. But the online ad industry’s position is indefensible, since they built a system based on the harvesting of our information without believing they would need to get our permission first. The IAB board should realize it has embarked on a very dangerous campaign here that will undermine credibility for many marketers. Here’s my response submitted to BusinessWeek:
Mr. Rothenberg, as head of the interactive ad trade group lobbying against the call from consumer groups for the government to protect personal privacy online, fails to address the central question regarding online advertising. The call for regulation is designed to ensure individuals control their data while on the Internet or using their mobile phones—not companies such as Google, Microsoft, and AOL. Public interest groups are not opposed to interactive marketing: indeed, we recognize it as a key source of funds for online publishing. But Mr. Rothenberg’s members have created a commercial surveillance system that rivals the NSA—tracking and analyzing our every move while on the Internet, all so we can be encouraged to behave favorably to some marketing message. Responsible ad industry leaders will seriously address the privacy threats created by the interactive marketing apparatus—and not hide behind self-serving claims that unless our privacy is lost, we won’t have a robust digital medium.

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24/7 Real Media working with data miner Claritas for “Lifecycle Media Management” targeting

excerpt from Ad Age: “24/7 Real Media …[W]e offer the most advanced targeting options…Using our Lifecycle Media Management approach, we work with you to determine where your customers are in the lifecycle and then strategically apply the most effective targeting techniques for your needs. Beyond standard content and behavioral targeting, we have compelling targeting techniques involving online and offline consumer research.

  • Search retargeting:
    We enable marketers to target and customize display advertising based on users’ keyword queries on search engines. This allows advertisers to reach and convert the particular customers who are truly interested in their offerings.
  • Geo-demographic targeting:
    By partnering with consumer research expert Claritas, a Nielsen company, we can target and retarget your customers with greater efficiency by analyzing customers’ true marketing profiles, including behaviors and lifestyle, detailed demographic and behavioral data.
  • Mindset Media buys:
    Our partnership with Mindset Media makes it possible for you to target your customer based on psychographics or personality traits…

TARGETING

24/7 offers the most advanced targeting:

  • Lifecycle targeting
  • Search retargeting
  • Retargeting
  • Mindset Media buys
  • Geo-demographic targeting
  • Content channels
  • Behavioral targeting
  • Geographic targeting
  • Demographic targeting
  • Daypart targeting
  • Technographic
  • Keyword/search
  • Branded sites
  • Roadblocking
  • Custom

Attention AOL Privacy Penguins: Here’s some copy–written by Time Warner–that you should tell to users

via the Platform-A, Advertising.com multi-page ads in this week’s Ad Age:

Audience insights guide all Platform-A
solutions. Our sophisticated reporting
allows us to discover the behavioral
profile of the consumers who are most
receptive to your message. This
information helps you find target
audiences, understand their demographic,
psychographic and behavioral
characteristics and, ultimately, decide how
you craft and place your brand’s message.
NETWORK REACH
Platform-A reaches nine out of 10 online
consumers.
TARGETING
Platform-A offers a comprehensive suite
of targeting technologies, including:
Demographic
• Age/gender/household income
• Audience affinity
• Cluster solutions
• Rosters/data match
Contextual
• Via content networks and
sponsorships
Geographic
• Data targeting, destination-based
and regional content
Daypart
Behavioral
Vertical
…Our performance
technology continually learns and refines
ad placement across our network based
on observed and expected performance.
Ads are automatically allocated across our
network based on the highest expected
return for the advertiser and publisher.
We also optimize advertising based on
the behavioral interests that resonate
with an advertiser’s key audience.
Leveraging conversion data—anything
from newsletter sign-ups to event
registrations and online purchases—will
increase brand performance and drive
more response with less waste.”

Online marketers want to track you–from click to click to “last ad” click

Microsoft and Google, along with many partners, are working to perfect a consumer tracking and analysis system so they can better figure out who gets to share in the growing online ad revenue pie. It’s called “engagement mapping.” Although if you are concerned about privacy, you might want to say, “let’s call the whole thing off.” Here’s an excerpt from the April 14, 2008 Ad Age article:

“The concept appears simple, but the technology is complex: raw log-file data, time-stamped and collected by ad-serving companies like Google’s DoubleClick and Microsoft’s Atlas, along with a short line of code known as a pixel hidden in web pages, keep a record of each time consumers enter or exit a web page, click on a link or ad and enter information in a search box or application. Those data are fed into software platforms designed by companies such as Atlas, Epic Advertising, Media Contacts and Starcom.

“It’s sort of like reading an advertising diary,” said Ben Winkler, VP-interactive media director at New York-based Ingenuity Media Group, which joined Atlas’ project earlier this year. “It’s like you opened a diary where someone wrote, ‘I saw three billboards, I heard a radio ad, saw a few banners ads, and searched through Google to find and buy the product.’ “

Rather than wait for a crisis to tell the advertising client something isn’t working, media buyers can rely on these data to identify when consumers had contact with the ads, even if it’s an hour, day or week later.

“We know the person saw ad No. 4 on Yahoo Finance an hour ago,” said David L. Smith, CEO at Mediasmith, which is participating in Atlas’ and DoubleClick’s tests with advertisers. “Embedded code in the pixels lets us track the pages and things they interact with on the site.”

source: New metrics give `credit where due.’ Laurie Sullivan. Ad Age. April 14, 2008 [sub may be required]

Market researchers tell FTC to give them exemption for consumer data mining

Among the comments filed at the FTC for its staff privacy principles proceeding was one submitted by CMOR (the Council for Marketing and Opinion Research). CMOR, whose motto is “shielding the profession” wants the FTC to make certain that any privacy policy protecting consumers doesn’t restrain the activities of its members. A huge infrastructure of online market research has emerged–tracking our online behaviors and attitudes. The trade group offer’s an incredible self-serving defense of their practices, all so they can push the boundaries of targeted digital marketing. Here are some excerpts from CMOR’s filing:

“…much of the FTC’s specific proposals for self-regulation of online behavioral tracking could have significant negative consequences for the survey and opinion research profession, and strangle many possible new methods of research – methods that could better serve consumer choice and privacy than current methods – before they’ve even been conceived…CMOR notes that research is a multi- million driver of the private economy – and that U.S. government agencies like the FTC are, as a group, the single largest purchaser/user of research from the survey and opinion research profession. CMOR also notes that online behavioral tracking could be a form of
research particularly well-suited to the needs of non-profit entities, political activists, and for-profit businesses that are small or serve niche markets and interests. These parties have an even greater need than most to drill down to small, difficult-to-pinpoint segments of the population. Such research could have profoundly positive benefits for consumers and citizens and such public good is worth preserving…As recently stated by Josh Chasin, Chief Research Officer for the research firm ComScore, researchers must “push the limits of data mining and data base integration and artificial intelligence, in the interest of deploying information technology to meet the needs of people. At the same time, it is incumbent upon us to zealously guard the privacy of the consumers whose lives we touch, even tangentially. I do not believe these two goals are paradoxical.”

CMOR and ComScore may try to convince the FTC to somehow believe that expanding the limits of data mining research will further privacy. But much of the research is about extending the power of micro-targeting in order to create new attitudes and behaviors in individuals (inc. children and adolescents). Researchers can’t be given a free pass to push the limits of data mining in the digital era.