Google and Network Neutrality: Make Your “Open Edge” Proposals to the Telcos and Cable Companies Public

If the documents reviewed by the Wall Street Journal provide Google with “a fast lane for its own content,” critical questions are raised about its commitment to meaningful network neutrality.  The Google policy blog post suggests that the Journal misunderstood the meaning of the alleged negotiation documents.  What Google wants, they claim, is to develop an effective caching arrangement.  But there are legitimate critical questions that should be raised about the ultimate effect of a contractual deal which places  “servers directly within the network of the service providers.”

We believe Google is seeking this arrangement to ensure that its advertiser-based services, including so-called rich media applications, You Tube branded ads, and multi-media universal search applications, have priority.  We think the future of the democratic potential of the Internet is undermined when those with deep pockets can favor their content over others.  In essence, Google’s Fortune 1000 client base will get to jump to the head of the queue before non-profit, small business and civic applications.  We recognize that many applications use similar strategies.  But all this needs to to be fully publicly debated, especially given the incoming Obama Administration’s support for network neutrality and its own political connections with Google.

That’s why Google should make immediately public the proposals made to phone and cable companies.  Let’s thoughtfully review what they are asking for, understand the context, and engage in the necessary public discussion. Google needs to be forthcoming on this.

30,000 media jobs lost in ’08–Congress should hold hearings and pass new laws to address the Journalism crisis

Ad Age reports that “the media industries have shed more than 30,000 jobs in 2008, according to an Ad Age analysis of Department of Labor employment statistics and news reports.” More than 200,000 media jobs have been lost since 2000, the story notes.

But we all know that the mainstream news industry has been in trouble for decades, with mega mergers and various financial schemes saddling them with debt. Now the downturn in the economy, with ads on the decline, as well as the fundamental shift to digital news sources, is helping further erode the support system for serious journalism. Congress should hold hearings on why journalism is in crisis, investigating who is responsible, and what can be done about it. Among the possibilities: New laws permitting employee buy-outs of newspapers (real ones, not the phony kind engineered by Trib’s Sam Zell); changes in the tax and corporate governance rules so public service comes before shareholder profits; and regulations that reward non-profit and philanthropic news media ownership. There should also be funds from the economic stimulus designed to foster diverse ownership of news outlets. If we can bail-out Wall Street and automakers, we should certainly do something for a profession essential to our democracy.

source: “Media Companies Cull 30,000 in Fight for Their Future.” Michael Learmouth. Ad Age. December 8, 2008

Google’s “Policy Fellowships”–Self-Serving Efforts to Help Ward Off Privacy and Online Marketing Protections?

Google has selected 15 organizations for its 2009 “Google Policy Fellowship.” Fellows are funded by Google and will work on “Internet and technology policy” issues over the summer. Take a look at some of the groups it selected and what they say the projects will be (and their positions on Internet issues). And then ask–is Google working to help undermine the public interest in communications policy? Think online privacy and interactive marketing as you read these following excerpts from a number of these groups:

“The Competitive Enterprise Institute is a 501(c)(3) non-profit public interest organization dedicated to advancing the principles of free enterprise and limited government. We believe that individuals are best helped not by government intervention, but by making their own choices in a free marketplace…Electronic privacy: CEI seeks to reframe the online privacy debate in terms of the potential benefits to consumers of greater information sharing, transparency, and marketing. Fellows will explore competing privacy policies and how they are evolving as the public grows more aware of privacy risks. This research will also encompass privacy-enhancing technologies that empower consumers to safeguard personal data on an individualized basis.”

“The Progress & Freedom Foundation (PFF) is a market-oriented think tank that studies the digital revolution and its implications for public policy… Online Advertising & Privacy Policy Issues: PFF defends online advertising as the lifeblood of online content and services, particularly for the “long tail,” and emphasizes a layered approach to privacy protection, including technological self-help, user education, industry self-regulation, and enforcement of existing laws, as a less restrictive—and generally more effective—alternative to increased regulation.”

“The Technology Policy Institute is a think tank that focuses on the economics of innovation, technological change, and related regulation in the United States and around the world… Privacy and data security: benefits and costs to consumers of online information flows, and the effects of alternative privacy policies on consumers and the development of the Internet.”

“The Cato Institute’s research on telecommunications and information policy advances the Institute’s vision of free minds and free markets within the information policy, information technology, and telecommunications sectors of the American economy…Information Policy: Examining how increased data sensing, storage, transfer, processing, and use affect human values like privacy, fairness and Due Process, personal security, and seclusion. Articulating complex technological, social, and legal issues in ordinary language. Promoting the policies that protect these human values consistent with a free society and maximal human liberty.”

Google is also funding fellowships at other groups, including the partially Google funded Center for Democracy and Technology. The CDT connected Internet Education Foundation (which helps run the Congressional Internet Caucus, where Google is a corporate Advisory member) also will house a Google Fellow. There are a few public interest groups hosting Fellows that have an independent track record, including Media Access Project, EFF, and Public Knowledge. But awarding Fellowships to groups which will help it fight off responsible privacy and online marketing safeguards provides another insight into Google’s own political agenda.

Memo to Obama Administration: Time for a “Public Media Corps” [or the WPA Meets the Digital Age]

As the nation faces a severe economic crisis, new jobs–especially for youth– must come from the public sector. We should take this opportunity to create a federally-funded “public media corps.” Its mission would be to revitalize public television, helping it become more relevant for the 21st Century. We have a generation of youth (and many others) adept at using new media, who can create social networks, mobile applications, online video and more. There is a vastly under-utilized system of broadcast stations which can serve as production and distribution hubs for new programming. The public media corps would be tasked to engage in investigative reporting and news production; create new forms of cultural programming that reflect the country’s diversity (something public TV desperately requires, by the way); help develop a new approach to public media communications (in such areas as mobile content and social networks).

As the Obama Administration considers its policy for public broadcasting, it should recognize the system is in deep crisis. There’s been an absence of leadership and vision coming from CPB and PBS [I will let others address NPR, which is much more vital than its TV kin; although they too should be part of the public media corps]. We can use this unfortunate financial melt-down to both re-envision public television and help develop a new generation of digital media advocates, journalists, and creators. At a time when traditional news institutions are in their own crisis, the country needs a way to better see itself. A public media corps could provide numerous digital mirrors–so we could see our mistakes, flaws, and the many positive qualities that can help with the painful transition ahead.

Why Google Can’t Say a Word that Starts With “P”—Privacy

The senior execs and DC lobbying team at Google really have a major problem addressing one of the company’s gravest problems–its lack of leadership protecting consumer/citizen privacy. While Google claims to reporters and others it’s been proactively strengthening its privacy policies, most of the changes have come as a result of pressure from policymakers and privacy advocates.

This week, Google released a booklet which “spelled out…2009 policy priorities” for the new Administration and Congress, including several Internet related issues. The booklet’s release coincided with a speech Google CEO Eric Schmidt gave at the New America Foundation in Washington, D.C. Missing from the booklet’s agenda was any discussion of privacy or the role and structure of online advertising (You would never know, for example, that Google was just forced by the Department of Justice’s antitrust division to drop its proposed deal with leading rival Yahoo!).

Google should be playing a leadership role supporting the enactment of serious privacy rights for the public–including “opt-in,” real transparency, user control, limits on retention, etc. If Google believes its golden digital goose will be baked once consumers better understand and control how they are being profiled and targeted, they should examine how it defines corporate social responsibility. But Google’s current approach—we can’t admit we are collecting your data for interactive marketing and cannot even say the word privacy in public-– will ultimately have consequences for Google’s future–including its share price.

Google Using Brain Research to Hone its Online Ads

Google has joined the stampede of advertisers who have embraced the tools of neuroscience to help them create the emerging generation of interactive ads. In the new model for marketing, the goal is to bypass our conscious, more rational, decision-making. They want to reach deeply into our emotional, unconscious, self. Hence, the gaggle of companies helping marketers with brain research. Google, by the way, is using the same company that recently tested how junk food ads affected consumer brains during the recent Olympic games. Neurofocus, the Berkeley-based company partnering with Google, won a major ad award for its help harnessing neuroscience to sell Frito-Lay chips. The growing role of neuroscience research for advertising (especially digital marketing) must be addressed by policymakers, health professionals, and other responsible parties. Here’s the Mediaweek excerpt:

“Google is so confident that its InVideo Ads product—those semi-transparent/animated overlay ads it launched on YouTube last year—are game changers that the company is turning to brain wave researchers to prove their effectiveness.

The search giant–in conjunction with MediaVest–has partnered with NeuroFocus, a researcher that specializes in biometrics, to gauge both how users respond to InVideo ads and how well those ads complement traditional banner ads. NeuroFocus specializes in measuring individuals’ brain response—by literally placing sensors on their heads—as well as other factors like pupil dilation and skin response.

“We were really interested in looking at what we think of as a pretty innovative ad unit,” explained Leah Spalding, advertising research manager, Google, who emphasized that since InVideo ads are designed to be non-intrusive, they warrant an evaluation that goes beyond traditional measures like click-through rates. “Standard metrics don’t tell the whole story…Specifically, after fielding a study among 40 participants last May, InVideo ads scored above average on a scale of one to 10 for measures like “attention” (8.5), “emotional engagement” (7.3) and “effectiveness” (6.6). According to officials, a 6.6 score is considered strong.

source: “Google, MediaVest Tap Biometrics for InVideo Ads Play.” Mike Shields. Mediaweek. October 23, 2008.

and more on the research via Mediapost: “…the NeuroFocus research conducted in May looked at the reactions of 40 people to YouTube InVideo overlay and companion banner ads from a cross-section of MediaVest advertising clients.

The firm used biometric measures such as brainwave activity, eye-tracking and skin response to gauge the impact of ads. Based on criteria including attention level, emotional engagement and memory retention, it then comes up with an overall “effectiveness” score for ads.”

“Google: This is your brain on advertising.” Mark Walsh. Mediapost. Oct. 23, 2008

PS: Google has been holding research discussions on such topics as “The Neuroscience of Emotions [Sept. 16, 2008]. Here’s the link to a presentation via YouTube.

Here’s another on computational neuroscience by a researcher who works on online advertising.

Facebook ad targeting system is using the “keywords in people’s status messages”–Tales of Behavioral Targeting

Fresh proof that Congress has to prohibit behavioral targeting unless consumers opt-in appears in the new issue of Brandweek. Facebook is “experimenting” with the targeting by “keywords in people’s status messages,” according to “Tim Kendall, director of monetization at Facebook.” Here are some other choice excerpts from the article:

“Advertisers are extremely interested in all new developments in the behavioral targeting space,” said Emily Riley, senior analyst at Forrester Research, Cambridge, Mass. “We’re seeing a big uptick in the use of [these] tactics.” According to Forrester data, 24% of advertisers used behavioral targeting in 2008. Last year it was only 16%…Almost half of advertisers say, ‘Even if I didn’t use behavioral last year, I definitely want to this coming year…”…

“…said Jeff Berman, president of sales and marketing at MySpace. “… the more data you have, the smarter you can be with your media… but if you want to focus on . . . 25-40-year-old mom Nascar fans who love romantic comedies and live in 12 specific zip codes, we can do that.”

…”as BT becomes more invasive at social networking sites, the technology should improve and thus serve up more relevant ads based on our true site behavior…Revenue Science, one of the biggest independent BT networks, is using forward-to-friend behavior to allow advertisers to target virally oriented people. Bebo, the social networking site AOL bought earlier this year, works with Elkridge, Md.-based Lotame, an agency that helps brand advertisers target unique users, such as new moms, who spend a lot of time on social sites.”

source: Behavioral Targeting: A Tricky Issue for Marketers. Becky Ebenkamp. Brandweek. Oct. 21, 2008

Attention Google & Tim Armstrong: `Town Hall’ on Proposed Yahoo Deal Must Include Consumer, Privacy and Civil Society

Ad Age reports that Google sales exec Tim Armstrong “is calling for a town hall meeting with the Association of National Advertisers.” [sub. may be required]. The ad association has come out against the proposed Google/Yahoo search ad combine. But such a meeting shouldn’t be a closed door `only the ad biz’ event. By now, Google’s key execs should recognize that the search and online ad market is connected to such issues as privacy, the state of competition, and the future of funding diverse content online. This isn’t an issue that should be constructed by Google as an insider deal. The full range of public policy issues must be debated–including the participation of independent advocates and academic experts to discuss privacy and related concerns. Let Google, the advertisers, critics, supporters, and those in-between have their say–and make it available prominently on YouTube.

MySpace, Social Networks, Massive Data-Mining, Privacy & Interactive Advertising

Policymakers–including state attorneys-general, the FTC and EU officials– are failing to examine how social networks such as MySpace are utilizing advanced data mining techniques to track, analyze, and target millions of unsuspecting users (including, likely, adolescents). For example, MySpace (and other Fox Interactive Media properties, FIM) are using data warehouse and parallel computing techniques that “is enabling a new set of applications and services that previously were simply neither possible nor practical at this scale.”

MySpace and other FIM entities are engaged in daily “real-time” analysis of massive data sets from its 190 million active users. Such data analysis is driving FIM’s “advanced targeted advertising systems.” So all the MySpace “user-generated content” becomes fodder for the analytical ad-targeting. Such data collection must be under the full control of the user–they need to know how and what is being collected, how its used, what inferences are made, the range of ad and marketing targeting linked to the data, etc. It’s time social media marketing, as the industry calls it, draws the attention of policymakers, including the U.S., Canada, and in the EU.

Google Receives Lion’s Share of Obama Online Ad Campaign Spend

The enterprising Kate Kaye from Clickz posted an article on Sen. Obama’s online ad spending. The latest stats, she notes, is nearly $5.5 million, with $3.3 spent on Google. In a telling commentary on the state of search marketing competition, Mr. Obama’s campaign spent only $700,000 on Yahoo and a slightly less than $250k for Microsoft/MSN. See Ms. Kaye’s piece for more details.