social networks – Page 6 – Digital Destiny

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

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.

Behavioral Targeting Lawsuit Illuminates How Data is Collected From You

Look for a moment at an excerpt from a legal tangle between behavioral targeting companies Valueclick and Tacoda (the latter now owned by Time Warner). Valueclick filed suit on July 15 claiming patent infringements, including for one entitled “Method and Apparatus for Determining Behavioral Profile of a User.” Read the “Abstract” and part of the “Summary of the Invention” for this patent and think about your privacy (and that this is based on 1998 technology!):“Abstract: Computer network method and apparatus provides targeting of appropriate audience based on psychographic or behavioral profiles of end users. The psychographic profile is formed by recording computer activity and viewing habits of the end user. Content of categories of interest and display format in each category are revealed by the psychographic profile, based on user viewing of agate information. Using the profile (with or without additional user demographics), advertisements are displayed to appropriately selected users. Based on regression analysis of recorded responses of a first set of users viewing the advertisements, the target user profile is refined. Viewing by and regression analysis of recorded responses of subsequent sets of users continually auto-target and customizes ads for the optimal end user audience.”

Summary Of The Invention: …Over time, the tracking and profiling member holds a history and/or pattern of user activity which in turn is interpreted as a users habits and/or preferences. To that end, a psychographic profile is inferred from the recorded activities in the tracking and profiling member. Further, the tracking and profiling member records presentation (formal) preferences of the users based on user viewing activity. Preferences with respect to color schemes, text size, shapes, and the like are recorded as part of the psychographic profile of a user…The tracking and profiling member also records demographics of each user. As a result, the data assembly is able to transmit advertisements for display to users based on psychographic and demographic profiles of the user to provide targeted marketing.”
source: Complaint for Patent Infringement: Jury Trial Demanded. Valueclick, Inc. v, Tacoda, Inc. Case No. CV08-04619 DSF. U.S. District Court, Central District of California, Western Division.

Google studies the online behavior of tweens (10-14 year olds) with message to target them via search advertising

When Google acquired DoubleClick last year, they also took over its search marketing division called Performics. A new study commissioned by Performics focuses on the media behaviors of 10-14 year olds, so-called tweens. The aim of the study is basically to get more online targeted marketing aimed at young people. The senior VP of search operations at Performics–Stuart Larkins–recently wrote an article on the new study that appeared in Chief Marketer. Here are some excerpts.

“At DoubleClick Performics, we sought to better understand the online search and purchase behaviors of seven influential demographic segments and commissioned ROI Research to study these habits across 10 different product categories. Results just arrived for one of the most dynamic segments â€“ Tweens, consumers between the ages of 10 and 14…Tweens consume information through many channels, but the Internet leads. When asked how much time they spent with various media types, 83% said they spend at least an hour per day online, and 68% reported at least an hour per day watching TV. Radio, magazines and newspapers came in much lower…

Nearly half of respondents go online many times per day (more than three), and 87% usually spend at least a half hour each time. Looking closer at this time spent online, the survey found:

72% have a profile on at least one social networking site
Â· 54% have a MySpace profile
Â· 35% have a Facebook profileâ€¦

For search engines, Google was the overwhelming choice among tweens, with 78% indicating they use Google most frequentlyâ€¦

Tweens reported varying levels of involvement across product categoriesâ€¦

To capture the demand generated in complementary channels, marketers should incorporate search ads into other online and offline marketing campaigns. While a nice rule of thumb for any marketing program, this golden rule is especially true when targeting tweens.â€

A story on the Performics study in today’s Marketing Daily noted the research came just as kids were getting ready to get their back- to- school gear. As reporter Tameka Kee explained, the study showed that “search marketing in the media mix is crucial to snagging the attention and influence of tweens, as they are increasingly using search to make product recommendations and find pricing info for their parents...Peformics also found that tweens were using search to find specific product information and store locations across multiple product categories. Nearly half of all respondents said that they used search to find product Web sites in the electronics, telecom, apparel and CPG categories, while nearly half said that they used search to find out where to purchase said products online.”

Marketing is a fundamental part of our lives–and will be increasingly so with digital media. But researching the online media behaviors of young people so they can be targeted with interactive digital marketing raises a number of policy issues, as well as parental concerns. We know that Google has announced plans to sell Performics, although it will incorporate some of its activities within its business operations. But Google’s senior executives should play a leadership role in addressing how to ensure the healthy development of young people. Consumer and childrens’ advocates in the U.S. and the EU-among other places–will be watching closely.

Update. The announcement just came from the Google press office that global ad giant Publicis will acquire Performics. Of course, Google and Publicis are also working together and announced an alliance earlier this year.Â Here’s an excerpt from today’s email to the press: â€œPublicis Groupe and Google (NASDAQ: GOOG) announced today that Publicis Groupe has agreed to acquire the Performics search marketing business (Performics) from Google. Chicago-based Performics, one of the leading search marketing services providers, helps to improve the performance of advertisersâ€™ investments and maximize
client campaign effectiveness. Its profit-driving suite of marketing solutions includes Performicsâ€™ reporting platform, local platform, advanced market expertise and active account management….Publicis Groupe has been a leader in the advertising industry for decades, and we believe Performics’ growing business will benefit from being part of it,â€ said Eric Schmidt, Chairman and CEO, Google. â€œWe look forward to working with Performics as a partner.â€

The IAB (US) “mobilizes” to Fight Against Consumer Protections for Online Media

Watch this online video of Randall Rothenberg speaking before a June Federated Media Publishing event. In Mr. Rothenberg’s worldview, demon critics of advertising (such as myself) are deliberately trying to undermine democratic digital media. This would be absurd, if it wasn’t so sad. Mr. Rothenberg is using scare tactics to whip up his members into a frenzy-all so they can fight off laws and regulations designed to provide consumers real control over their data and information. Luckily, Mr. Rothenberg will be on the losing side of this battle to protect consumers in the digital era. Regulators on both sides of the Atlantic understand how the digital marketing ecosystem raises serious concerns about privacy and consumer welfare. We have to say we are disappointed in John Battelle, the CEO of Federated (who wrote a very good book entitled The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture). Mr. Battelle should know that the online marketing system requires a series of safeguards which protects citizens and consumers. There is a balance to be struck here. Online advertisers have unleashed some of the most powerful tools designed to track, analyze, and target individuals–whether on social networks, or watching broadband video, or using mobile devices. We have never said there shouldn’t be advertising. We understand the important role it must play, including for the underwriting of online content. But the online ad system should not be designed and controlled solely by ad networks, online publishers, trade groups and online ad lobbying groups. It must be structured in a way which promotes as much freedom for individuals.

Watch out for those data-collecting “brand builder” widgets!

excerpt from Technewsworld: “…pairing widgets with behavioral analytics creates a sea change in the iterative marketing process. Emerging sophisticated analytics tools for widgets and social applications now give marketers unprecedented capabilities to reach out and track engagement within the consumer social networking environment. As a result, widgets and social applications may well become the most powerful brand builder of all for online marketers.

While most widget platforms that target the professional market provide analytics, some go a step further by giving marketers access to detailed interaction metrics, including time spent with the widget, number of viewings at the component level, rollovers, clickthroughs, pass-alongs, postings, and mass distribution. Brand awareness and recall, difficult to measure in traditional advertising without focus groups and surveys, can be measured at a granular level by analyzing widget engagement levels…By tracking posting, sharing, and viral hotspots, widget analytics provide specific metrics regarding a consumer’s actual and potential influence and his value on the engagement ladder…

With advanced widget analytics, marketers can identify, profile and reach out to opinion leaders within social networking communities. These influencers might be missed when tracking purchase history or Web site page views, because they may not be frequent or large dollar value purchasers. Instead, these opinion leaders influence their network of family, friends and associates by passing along content, posting it to their blogs or profile pages, or reviewing and rating it.”

Facebook Fails to Address Privacy Concerns, as Powerful Canadian Complaint Documents

They ought to change the name of a corporate position entitled chief privacy officer to chief data collection protector. That’s our response to the comment from Facebook’s Chris Kelly, who serves as its chief privacy officer. According to the Associated Press, Mr. Kelly responded to the privacy complaint filed by the Canadian Internet Policy and Public Interest Clinic (CIPPIC) with the following comment: “We’ve reviewed the complaint and found it has serious factual errors â€” most notably its neglect of the fact that almost all Facebook data is willingly shared by users…”

We find such a remark incredibly revealing about Facebook, and it raises questions about how well they have structured the role of its “chief privacy officer.” For example, does Mr. Kelly believe that Facebook users understand, as pointed out in the very important CIPPIC complaint on page 22, that outside developers are given access to a wide range of user information. As the complaint notes:

“(a) Information That May Be Provided to Developers. In order to allow you to use and participate in Platform Applications created by Developers, Facebook may from time to time provide Developers access to the following information: (i) any information provided by you and visible to you on the Facebook Site, excluding any of your Contact Information, and
(ii) the user ID associated with your Facebook Site profile.
(b) Examples of Facebook Site Information. The Facebook Site Information may include, without limitation, the following information, to the extent visible on the Facebook Site: your name, your profile picture, your gender, your birthday, your hometown location (city/state/country), your current location (city/state/country), your political view, your activities, your interests, your musical preferences, television shows in which you are interested, movies in which you are interested, books in which you are interested, your favorite quotes, the text of your “About Me” section, your relationship status, your dating interests, your relationship interests, your summer plans, your Facebook user network affiliations, your education history, your work history, your course information, copies of photos in your Facebook Site photo albums, metadata associated with your Facebook Site photo albums (e.g., time of upload, album name, comments on your photos, etc.), the total number of messages sent and/or received by you, the total number of unread messages in your Facebook in-box, the total number of “pokes” you have sent and/or received, the
total number of wall posts on your Wallâ„¢, a list of user IDs mapped to your Facebook friends, your social timeline, and events associated with your Facebook profile.”

Whoa! Do users really know this and give away their data consciously? We think not. Our friends from Up North have ignited a campaign which will grow throughout the world.

European Privacy Officials investigate behavioral targeting & data mining

Just to place the privacy and online marketing debate in better perspective. It is appropriate and necessary for lawmakers and policymakers to examine and then address through rules the impact of new technologies on privacy. The Article 29 Working Party, the EU’s data protection review group, adopted as part of its 2008-2009 work plan to help ensure “data protection in relation to new technologies.” Among the areas they are now examining include: “search engines, on-line social networks (especially for children and teenagers), behavioural profiling, data mining, [and] digital broadcasting” (they are also focusing on ICANN and WHOIS). Direct Marketing is being reviewed as well.

Our point here is that the online industry has largely developed its system of data collection without user permission largely in the absence of thoughtful oversight that would ensure privacy. We believe the process underway in the EU will help address this issue in a meaningful way.

MySpace expands ability for marketers to track and target "community" members

MySpace has launched what it calls its “community builder platform for [the] advertising community.” Here’s what they say it does (our emphasis):

“The new platform gives MySpace advertisers the ability to build, maintain and customize brand profiles while also providing guaranteed valuable analytics to help them gauge campaign performance and make real-time adjustments to maximize effectiveness. The platform is currently being beta tested by Deep Focus…

â€œCommunity Builder allows our clients to connect with potential brand evangelists in an unprecedented way,â€ said Ian Schafer, CEO of Deep Focus. â€œThe flexible platform provides access to solutions and value propositions that enable brands to engage with a new generation of consumers and the freedom to update and manage communities in real-time. Itâ€™s a powerful tool that can help build community literally — and figuratively.â€

The Community Builder advertising platform will be available in the US and builds upon MySpace’s industry leading advertising model, which includes customized communities, multi-platform integrated marketing campaigns, and the new advertising platforms HyperTargeting and SelfServe which empower users such as small business owners, bands, and politicians to purchase, create and analyze the performance of ads throughout the MySpace network.”

Red Herring reports that “… Community Builder…allows marketers to analyze the impact of their online ad effort and respond to it by doing things like updating blogs, studying finely tuned traffic data, changing videos, shifting ads, or testing messages…â€œOne of the major complaints about social network ads has been the metrics, as marketers complain that they have no return on investment to show for their campaigns,â€ said Ian Schafer… “This gives us 24/7 access to the process of building communities.”

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