Ms. Huffington will be a keynote speaker at Advertising Age’s “360 degree Media” conference on March 21. The editor-in-chief of the Huffington Post will share the podium that day with Yahoo’s Terry Semel and other marketing executives. We hope Ms. Huffington will warn the online ad industry that its aggressive moves to track all of our digital behaviors– so they can create a variety of desired actions (“conversions”)– raise fundamental questions about privacy. Ms. Hufffington should boldy challenge their plans to manipulate consumers through the “always-on, always-being branded to” interactive media machine that has been developed. Lastly, Ms. Huffington should especially urge advertisers to rein-in messages and campaigns promoting consumption. It’s time advertisers owned up to their own role which contributes to global warming. Ms. Huffington’s Post has a real opportunity to be a model for responsible interactive advertising–where privacy, a “green” ethos,” and a pro-civic engagement commitment–shape the message and the marketing.
Category: Behavioral Targeting
Online Alcohol Promotion in Web 2.0: A-B+Blue Lithium
Stuart Elloitt of the New York Times reports today that “Anheuser-Busch is teaming up with Blue Lithium, an online marketing company in San Jose, Calif., to introduce a promotional program called Clink as part of its “Here’s to beer” campaign. The program, to be housed on MingleNow, a social-networkingWeb site, will let members upload and share photographs as well as video clips. Anheuser-Busch also plans to add a video-sharing feature to Bud.tv…â€
But those concerned about inappropriate marketing of beer and alcohol products to underage youth—as well as online privacy—should know more about the deal between A-B and Blue Lithium. It illustrates how marketing is dramatically changing as a result of digital technologies. Data collection, one-to-one targeting via new broadband platforms, and better ways to meld the consumer’s psyche with the brand (such as encouraging user-generated content to promote “engagement”) are just a handful of the new techniques.
Blue Lithium is more than just an “online marketing company†described by the Times. It provides advertisers a broad range of digital tools to deliver precision advertising and marketing, via its “ad network†of online content providers (called publishers). Blue Lithium touts the power of its technology to drive change in consumers, something called “conversions.†Advertisers using Blue Lithium can count on it “identifying the right people, based on tracking user actions and interests, then bundles those individuals up into a highly-receptive audience for your messages.†[Many other companies engage in such behavioral techniques via ad networks].
As consumers are attracted to Blue Lithium connected websites to view consumer generated video content, they will be targeted with a variety of multimedia ads. AdRoll, explains Blue Lithium, permits advertisers to “[L]ayer with advanced targeting capabilities to refine the focus of your video campaigns, reaching those consumers with certain demographic profiles…†AdRoll’s network of publishers permits advertisers to engage in “behavioral retargeting,†which means that consumers will see a refined video pitch from the same advertisers as they travel to entirely different websites. Blue Lithium notes that such retargeting “has been show to improve click-through and conversion rates by [more than] 300%.
The A-B and Blue Lithium deal involve the latter’s “MingleNow,†called an “online/offline social network.†MingleNow, launched in December, “is dedicated to connecting users to their favorite clubs and bars and the people who go there.†It’s worth checking out the various functions of MingleNow’s approach to social networking and marketing. According to its press release (Google cached for now): “MingleNow is built along three fundamental dimensions: Profiles, Places and Events. Once users indicate which bars and clubs, they frequent, their photos show up on the Place page of that establishment and they become part of the community that goes there to share photos and video, trade comments, plan events and in person meetings. MingleNow has over 900,000 place pages representing the most popular drinking, clubbing and socializing establishments in the U.S. Event pages enable users to see what’s going on in their area or publicize their own event. Profile pages give users a place to share information about themselves, feature their favorite people and places, make plans, upload video and more. In order to create an open social network, MingleNow allows users to import feeds and data from other social networks, and export feeds from MingleNow to other networks.â€
In another example of techniques to engage users, MingleNow lets you “earn VIP points†as you bring others in to join it. Such rewards can be used for free drinks. We don’t know whether MingleNow is using behaviorally targeting nor the extent of its deal with A-B. But we think both companies need to be candid about what is going on.
Thank You, Fox’s Levinsohn. Did You Hear What He Said, FTC?
It always helps to have interactive ad industry leaders make the case for the public interest. So we are gratful to Fox Interactive’s Peter Levinsohn (MySpace, IGN) for telling the New York Times that [my bold] “We have more information about our users, I believe, than any other site on the Web today.” Levinsohn’s comment was to explain the importance of its new interactive advertising technology acquisition, Strategic Data Corporation (SDC). Here’s what Online Media Daily said about the deal:
“Fox Interactive is already taking steps to mine the wealth of personal information found on profile pages on MySpace and other sites to better target ads. “With SDC, we’ll be able to plug all that rich data into their ad optimization technology and be able to fine-tune our ad delivery on a much more targeted basis,” explained Burkart. She said Fox is already working with brand marketers to figure out what kinds of user data are most valuable to them.”
SDC’s technology helps deliver precision targeted marketing. As the new Fox acquisition explained on its site, SDC “automatically optimizes the selection of creative for each impression to maximize profitability by combining sophisticated statistical and predictive algorithms, demographic and geographic segmentation, and performance tracking. Our clients typically see network-wide (not just individual campaign) revenue increases of 50-150%. We are so confident of these results that we charge based on the actual increase in profit you measure… Using standard Intel-based servers, the software sustains real-time optimization of over 15-30 million impressions per server per day with a 1-2 millisecond response time.”
Source: “Fox Interactive Acquires Technology Ad Company.” Louise Story. New York Times. Feb. 23, 2007
“Fox Interactive Buys Strategic Data Corp., Plans Ad Targeting Upgrade.” Mark Walsh. Online Media Daily. Feb. 23, 2007
Rupert
We couldn’t resist this: “Fox Interactive Media (FIM)… announced today that it has completed the acquisition of interactive advertising technology company, Strategic Data Corporation (SDC)…SDC’s technology will enable FIM to deliver highly-targeted graphical performance-based advertising on literally billions of Web pages viewed each day across its growing network. Fox Interactive Media, which spans MySpace, IGN, Direct2Drive, AmericanIdol.com, AskMen.com and more, is among the most visited networks on the Internet with more than 135 million worldwide unique visitors each month and is the number one most viewed network in the U.S. with over 40 billion pages viewed each month…“We couldn’t be more pleased to join the Fox Interactive Media family,†said Richard Janssen, SDC CEO. “FIM is truly innovating how brands reach consumers in a socially networked world and we look forward to bringing our technologies and team to the effort.â€
Paidcontent.org reports that SDC’s technologies provide “sophisticated statistical and predictive algorithms, demographic and geographic segmentation, and performance tracking…”
Source:
FOX INTERACTIVE MEDIA ACQUIRES INTERACTIVE ADVERTISING TECHNOLOGY COMPANY STRATEGIC DATA CORPORATION
Enhanced Media Network to Bring Hyper-targeted Ad Serving to Reality
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IAB: Worried that the Feds Will Do the Right Thing
Here’s a brief update on IAB. They are, notes ClickZ’s Kate Kaye, “…in the process of creating a Public Policy Council, to be comprised of Chief Public Policy Officers, General Counsels and IAB members. Tacoda Chairman Dave Morgan is heading up that operation, according to the IAB. Legislation and regulatory issues will have an enormous impact” on the interactive ad industry, said Rothenberg, noting, “We should be concerned, but we shouldn’t be crazy scared.”
Given that IAB’s new president Randall Rotherberg used to be a journalist (covering advertising for the New York Times and Ad Age), one would hope that he would be in the forefront of having his industry face up to facts. The basic business model is a threat to privacy and more. It’s gone beyond the time for “public policy councils” run by the industry’s spinmeisters. What’s needed is an honest admission of the problem, and support for a federal policy where consumers opt-in to all the techniques (after they are fully informed). That’s right. You need to get permission from individuals before you engage in behavioral targeting, retargeting, immersive rich media, etc. We imagine most people will consent. But it should be up to each person-not Ad Networks, IAB members, etc.
PS: Mr. Rothenberg: Don’t hide behind the press! We see that the IAB president quoted saying “The Interactive media industry is committed to striking the right balance between consumer protection and a consumer’s free online access to information and entertainment.” That’s not the real issue. No one is saying there shouldn’t be interactive advertising–or even the kind of personalized interactive practices the industry has embraced (with some notable exceptions). We understand the role which advertising plays to support the media. What we are saying is there have to be safeguards. In fact, ironically, I believe interactive ad practices done in the current stealth manner will help to undermine public confidence in the news media. The growing debate over online advertising is primarily about giving the public real information and control.
New Threats to Privacy: Interactive Ad Bureau (IAB) Hires D.C. Lobbyist
The interactive ad lobby–that includes most publishers of major newspapers, magazines and online outlets–is worried that consumer advocates might persuade Congress or the FTC to actually do something to protect digital privacy. Groups such as the Interactive Advertising Bureau (IAB) are alarmed that if consumers can actually control their data, the ability of digital marketers to collect, profile, track and target us will be threatened. So the IAB–which has a old and new media who’s who on its board–has brought in some political help. According to Online Media Daily:
“AIMING TO INCREASE ITS SWAY over government, the Interactive Advertising Bureau has opened a Washington, D.C. office and hired its first in-house lobbyist, Mike Zaneis…he and lobbyists from the Venable law firm have been talking with Congressional staffers on the IAB’s behalf. “We’ve been educating them on how the Internet works, and what the interactive advertising industry actually is and how it operates,” said Zaneis, who previously served as executive director of technology and e-commerce at the U.S. Chamber of Commerce.”
Presumably, the IAB will be working alongside DC lobbyists for Google, Yahoo!, Time Warner and the like to ensure that our digital media platforms provide a direct connection to Madison Avenue’s data warehouses. But they should be ashamed for creating a business model where direct access to our data across countless online media properties needs to be defended by special interest lobbying tactics.
PS: We just saw the ClickZ story. It’s very telling what the new IAB DC lobbyist said:
“…Zaneis says his initial plan of is, “Putting together a public policy council, developing positions on key issues, and leveraging the contacts that I have on the Hill, and in the FTC and other places. And then it’s a take no prisoners attitude to advocate for our members.”
How long will the Federal Trade Commission wait before it decides to act to safeguard consumer privacy and protection online? Advocates will likely have to ask Congress to organize an oversight “Tech-ache” to prod the agency into some sort of action. Note this excerpt below as just one example of how the FTC is asleep at the interactive advertising/data collection `digital’ switch.
“Imagine the value to a national automaker of isolating a swath of people so ready to splurge on a fuel-friendly hybrid they’ve price shopped and maybe even placed an eBay bid to buy a Prius. Now, imagine if that auto advertiser could follow those folks around the web — from news sites to social-networking pages — serving up ads that remind them of the benefits of owning a hybrid car. It’s a pretty appealing prospect to marketers, and exactly what they will be able to do if Yahoo gets its way… “We’re actually in a fairly unique position to be able to take advantage … of the enormous data and insight we have on the largest online audience in the world,” Ms. Decker said in Yahoo’s year-end earnings call Jan. 23. “We can see what people are putting in their search strings. We can see what kinds of ads they click on. We can see what kinds of sites they were on prior to the site that they are currently on…”
from: The Right Ads at the Right Time — via Yahoo: Web Giant Looks to Offer Behavioral-targeting Tools Outside Its Own Properties
Abbey Klaassen. Advertising Age. Feb. 5, 2007 [subscription required]
Susan Decker, CFO, bio link.
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