FCC – Page 4 – Digital Destiny

Annals of Digital Product Placement: Brand Integration Deals & Online Video

Eventually, both the FTC and FCC–and Congress–will need to address this (as will the EU, etc). As “brand integration” increasingly becomes a key business model for online video publishing, more than disclosure should be required. Here’s an excerpt from TV Week:

“Some market research firms forecasting the size of the online video ad economy arenâ€™t counting money spent on brand integration and product placements…

That suggests the size of the Web video economy is being underestimated by the amount of ad dollars flowing into high-profile Web shows such as NBC-backed â€œGemini Division,â€ EQAL-owned â€œLG15: The Resistanceâ€ and Revision3â€™s â€œDiggnation.â€

Thatâ€™s a problem because they generate most of their ad revenue from brand integration and host shoutouts, as do many Web studios including Next New Networks, Revision3, ManiaTV and For Your Imagination.

â€œThe vast majority of revenue we derive for our shows are from brand integration,â€ said Greg Goodfried, one of the executive producers of â€œLonelyGirl15â€ and its spinoffs, which have inked deals with MSN, Disney, Paramount and Procter & Gamble…â€œBrand integration is one of the biggest segments of the online video ad market, maybe bigger than pre-rolls,â€ said Raj Amin, CEO of HealthiNation, the online video health information network…There are no current estimates on the size of product placement deals in Web video. But Web TV networks such as Revision3 and For Your Imagination said they charge $60 to $80 on a cost-per-thousand basis for such buys.”

source: “Problems Emerge Measuring Web Video Ads: Product Placements Left Out of Estimates.” Daisy Whitney. TV Week. August 31, 2008.

Comcast is no longer a cable company, says Brian Roberts. It’s “a new products company”

Cable’s triple play is turning into a multi-dimensional effort designed to take advantage of its monopoly positions in cable TV and broadband (with mobile coming down the pike). Data collection and targeted advertising is on its agenda, as it is with phone company ISPs. Right now Comcast and other cable companies are working to build an interactive ad system— which raises all kinds of privacy, data collection, interactive marketing and consumer protection, and antitrust issues. This is no slow cable boat adrift on the digital sea, but a well-funded effort that–in part–is connected to Project Canoe. So we were not surprised when we saw this quote from Mr. Roberts during a February 2008 call with analysts: “Over the last few years we have successfully transformed Comcast from a cable company into a new products company that utilizes one infrastructure to deliver a growing number of products.”

Hasn’t Google Heard of Separating Content from Advertising? YouTube Fostering Stealth Infomercials

Google is now permitting creators of YouTube content to sell their own ads (with a split going to Google). But what’s alarming is that some of the videos on YouTube are being produced in cooperation with advertisers, including featuring its products in the program. For example, Advertising Age reports that “Revision3, the online-video-production company…is selling advertising on YouTube, starting with GoDaddy, a sponsor that’s regularly integrated into the content of its shows.” Revision3’s website explains that “it has attracted a wide-range of top advertisers including Sony, Netflix, Dolby, Microsoft, IBM, HP… Verizon and FX Networks. Advertisers enjoy a unique bond with the audience via customized message integration and host mentions that deliver phenomenal results.” Revision3 lists among its “success stories” the following:

“Verizon VCast: As part of its launch of a mobile phone-based streaming video service, Verizon sponsored Diggnation. As part of the sponsorship, the hosts interacted with the VCast service during an episode, and discussed how the service worked and what it did. Awareness skyrocketed. According to Amanda Donelly, the Media Supervisor at Verizon’s agency Moxie Media, the results were “seriously way better than we had ever anticipated”.

Congress, the FCC, FTC, and media reform advocates will need to address the purposeful blurring of content and advertising in online video (broadband and mobile). But industry also must enact meaningful rules regulating such practices. That’s where Google comes in. As the global online advertising market leader, Google needs to set the highest standard for ethical business behavior. Enabling stealth informercials guised as entertainment tarnishes the reputation of YouTube.

source: “YouTube: You Created the Content, Now Sell the Ads.” Abbey Klaassen. Advertising Age. June 9, 2008 [sub required]

Google+Yahoo!=Further Newspaper Industry Consolidation (Att: FTC et al.)

The growing and ever-evolving corporate consolidation of the online advertising industry is a critical issue that should be addressed. Are there any responsible regulators and policymakers out there? We wonder, since so many are asleep at the digital switch. The intense, libidinal rivalry between Google and Microsoft almost knows no bounds. While an alliance with Google may save Yahoo from Microsoft, leasing out its search business all but ends Yahoo’s role as an independent competitor, as far as we are concerned.

One issue that requires analysis is what happens to newspapers if a Google and Yahoo merge or mingle its search business. Between the two companies, they have the majority of newspapers locked up. Yahoo’s newspaper consortium represents hundreds of dailies. Google also has its own newspaper network. Indeed, Google just ran a full-page ad in the March 31, 2008 issue of Advertising Age touting its “Google Print Ads” network. Google says it now “covers all but two of the top 50 media markets and reaches an aggregate audience of more than 40 million readers a day via more than 750 million newspapers, from major dailies like the New York Times to smaller community and college papers, Hispanic newspapers, alternative weeklies and business journals.”
With our nation’s newspaper industry in tatters–and journalism in dire straits–the role that a competitive online ad system plays to provide much needed revenues to newspapers is an important issue. Anti-trust regulators, and other policy makers, should examine the implications to newspaper diversity of any new deal further reducing the competitiveness of the online ad system. By the way, since newspapers are using these systems for behavioral and other targeting, both privacy and data collection issues should be part of the analysis.

TV advertising, as we discussed in our book, is going interactive. The same privacy problems we now have with online–and will also have with mobile–are being migrated to television. Here’s an excerpt from a trade story on a meeting just held by the advertising industry to discuss interactive and highly targeted TV commercials [our emphasis]:

…Google executive Dan Gertsacov demonstrated the latest iteration of the search giant’s so-called “Goolge TV Ads” program, which is [sic] marries an online, auction-based system for buying TV advertising with Google’s methods for analyzing the clickstream data produced by TV digital set-top devices to give advertisers and agencies the ability to buy and evaluate TV the way they would online search.

The first iteration of the system enabled advertisers to buy TV time based on networks and dayparts. The iteration shown at Carat Wednesday revealed that advertisers and media buyers can now procure TV advertising time based on key words or terms, much the way they would buy online search.

A computer laptop marketer, for example, can now type in the word “laptop” and find a schedule of TV shows referencing computer laptops that they might place ads into.”

source: Carat Meeting Reveals Addressable TV Roll Out, Google ‘Key Word’ TV Buying System. Joe Mandese. Media Daily News. March 27, 2008. reg required.

PS:Â Here’s another addition.Â Google will track and analyze targeting done via TV and its impact online [excerpt]:

“Both [Michael] Steib and [Dan]Gertsacov spoke about Google TV Ads’ ability to offer insight into how a campaign functions simultaneously on TV and online. Steib mentioned the potential for gauging what transpires online–with site visits and transactions–soon after a TV spot runs.”

source: Google Crawls Stations, Tells Broadcasters ‘TV Ads’ Makes Good AdSense.Â David Goetzl.Â Media Daily News.Â March 28, 2008

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Google as “media company” & favoring its own sites–a report from a search engine trade show

John Battelle was on a panel at the recent Search Engine Strategies (SES) conference in New York. Here’s an excerpt from his blog post–which I hope you will read in full [our emphasis]: Google’s brand promise – to be neutral, to be above monetary interest – is in conflict with, well, the rest of Google’s brand promise, to be a superstar stock, to grow faster than any company in the history of the world. And all of that is in conflict with …. Google’s brand promise, to get consumers to the best answer, fastest, regardless of who owns the content. Because…sometimes, that content is now owned by Google…Why when you search for stocks does Google Finance come first? Let’s be honest here. It’s not because some neutral algorithm chose Google Finance. It’s because Google owns that data. Google’s representative admitted as much on our panel today. And, given that, can one reasonably ask why, according to Comscore’s data, the preponderance of results that come up in Google’s universal search are YouTube? Might it be because they are they best results? Sure. Might it also be because Google owns YouTube, which is madly trying to monetize the second, third, and fourth click with new models that it hopes to heck are going to pay off?

CEO from NebuAd demonsrates why New York, other states and Feds must protect consumer privacy on digital networks

We raised concerns about NebuAd last November. The growing use of behavioral targeting collection of data via ISPs requires immediate intervention by policymakers. Thanks to an article written today by NebuAd’s CEO, there’s more evidence supporting a compelling need for policymakers to act and protect consumers.
Here’s an excerpt [our emphasis]: “Web-wide behavioral advertising
This is the type of solution being offered by my company, NebuAd, as well as others, such as Adzilla. The web-wide behavioral advertising companies are able to leverage a large proportion of user surfing habits and their searches. So while portals such as Yahoo may collect information on a fraction of user surfing behavior, web-wide behavioral advertising companies are able to observe most of a user’s surfing behavior. Having such rich information allows companies in this space to build much larger, and define more meaningful audience segments, which in turn will enable advertisers to tailor their offerings to their specific desired audiences.

Moreover, having instant access to user surfing behaviors means that profiles can be developed quickly — really quickly. Web-wide behavioral targeting can develop detailed profiles in a single surfing session, something it would take “traditional” BT players weeks or even months to do. And as profiles are developed almost instantaneously you get a clear picture of what the user wants now — not what he was interested in a while back. Ultimately advertisers want results, and this means they need to reach web users with a relevant ad at the exact moment they are in the market for their goods and services.”

source: “3 Factors Improving BT’s Aim.” Bob Dykes. imediaconnection.com. March 20, 2008

AOL’s Privacy “Penguins”–Time Warner Skating on [Very] Thin Consumer Protection Ice

The senior management over at Time Warner must be `in treatment’ with some of their Looney Toon characters. How else to explain the ludicrous use of cartoon penguins that will soon be deployed to really misinform consumers about how and why their data and personal information are being collected and harvested for microtargeting purposes. It’s really shameful that the Time Warner, its Platform A targeting service, and the AOL division are hiding behind these well-liked creatures. But they are doing so because the company doesn’t want to be honest with its users. What Time Warner should be telling consumers are some of the things it pitches to perspective and current advertisers. For example, it should tell consumers that they are being tracked and followed online so advertisers will know they are “demonstrating a specific behavior.” Or that it’s “an advertisers dream–the ability to target consumers…across thousands of websites…[while they] research their options…Through behavioral targeting–and retargeting–we keep your brand top of mind during this crucial consideration phase.” Or that when we are watching online video, Time Warner informs advertisers that it can tell them “[H]ow long did consumers view your ad? Did they visit your website as a result? Better yet, did they visit your store? Online video takes the best of TV and the best of online to create the ultimate solution–high-impact advertising with measurable results.”

Or that it can help them get “leads” for future pitches (think mortgage loans, etc). Will AOL’s Penguin say that it will give marketers “a high-volume” of leads that will “convert into an actual customer…that perform best for your goals.” Or that it can identify our behaviors and then place us for sale as part of consumers profiles to be targeted (such as whether they consider us to be a “Traveler, Health Seeker, Entertainment Buff, Auto Intender or Trendy Homemaker”), which include information about whether we have children at home, how much money we make, or our gender? I hope our Penguin will be telling consumers (and the FTC and the EU’s Article 29 Working Group) that its “insight Reports” provide marketers with “deep knowledge” [our emphasis] “[B]y combining TACODA behavioral segments with comScoreâ€™s MediaMetrixÂ® database of online consumer demographics, Web site visitation patterns, and eCommerce buying power index, TACDOA is able to discover previously unknown key behavioral traits that may be non-intuitive and even counterintuitive behaviors. Our pre and post campaign analyses will help you identify your strategically important audiences in a snap.”

When asked to testify before Congress, as it debates privacy safeguards, we hope Time Warner’s Penguin will be able to explain its “Audience Point” service, which promises advertisers that they will be able to “[R]each the right audience….without waste…the first precision targeting solution giving audiences direct interaction with their likely customers.” Or that Time Warner, via Leadback.com, promises to “helps you reach your site visitors after they exit your site â€“ reinforcing your brand positioning and driving users back to your site to complete a desired action. LeadBack.com â€“ converting browsers into buyers, and buyers into repeat buyers.”

Time Warner and the online ad industry have to be honest with consumers and citizens. They shouldn’t engage in playing games when it comes to protecting privacy. Here’s the real penguin Time Warner and AOL should be using:

The Penguin, as seen in Detective Comics

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.”