Category: Department of Justice

First & Third Party Combined Data Targeting Grows–Safeguards Needed on Publisher Sites

As USPIRG and CDD told the FTC last month, the growing integration of first and third party data for consumer targeting requires a uniform approach to protect privacy.  Entangling a consumer via a host of outside third-party databases used for stealth profiling and targeting is unacceptable–especially when used for financial and health marketing, or targeting youth.  Adobe, for example, just announced that it’s “Online Marketing Suite” now incorporates “a wide range of third-party data from providers such as Acxiom (demographics, segmentation and buying behavior), Bizo (business demographics), DataLogix (buying behavior and purchase intent), eXelate (demographics, buying behavior and purchase intent) and TARGUSinfo’s AdAdvisor (demographics, brand preferences, product needs and CRM data).”  Adobe also is “partnering with DataXu, InviteMedia, MediaMath and Turn to provide customers with the means to act on valuable audience data. Publishers can deliver larger audiences to advertisers by combining their own ad inventory with inventory acquired through the use of DSP partners.”

Both the Congress, the FTC and the European Commission have to address the growing merging of first and third party data that occurs without a users awareness or informed consent.  Meanwhile, ad agencies such as Omnicom have created their own data tracking and targeting services.  One executive recently noted that “There’s been increasing momentum in the use of third-party data. It’s a critical element of our stack – to use the right third-party audience intelligence data both for targeting and sometimes more importantly for audience insights post impression delivery. I don’t know the exact percentage, but I would say there are a significant percentage of our impressions that are bought with some form of third party data.“

NTIA’s Strickling on Privacy: He Forgets Consumers!

Here’s an excerpt via Politico from their interview with Department of Commerce NTIA Chief–and potential privacy policy maven–Lawrence Strickling.  Note the absence of consumers in his description of the problem and issues.  The Commerce Department, which is jockeying to have a greater role in the privacy debate (which the largest data collectors like because they are afraid of the consumer watchdog-minded FTC), better start making consumer needs come first–if they are to have any credibility here in the U.S. and with the EU.   It appears from the interview the Commerce Department has largely made up its mind to rely on “voluntary enforceable codes of conduct.”   Here’s what Larry said in a Q & A:

NTIA is also getting into the privacy discussions.

It’s part of the larger Internet Policy Task Force that’s underway here at Commerce where our agency — along with other agencies — is looking at a number of Internet policy issues. Privacy is first and foremost on the list, but we’re also looking at the protection of intellectual property, cybersecurity, and we’ll be looking at the free flow of information. For Commerce, our theme links all these topics around the notion of innovation, preserving the job creation and business expansion aspects of the Internet and trying to protect that going forward. So in the area of privacy, the task force did issue the green paper late last year. Comments just came in on that, so people are starting to work their way through them, with the goal that we’ll take the green paper and turn it into a more final pronouncement of the Department of Commerce or perhaps even the administration’s policy on privacy later this spring.

Do you think there should be a government office specifically dedicated to privacy?

We certainly believe that if we’re going to move forward with these voluntary enforceable codes of conduct with the industry that the function of convening and organizing that process should sit [in the government]. Our believe is that the Department of Commerce, and in particular NTIA, is the appropriate place for that function to reside. When we start talking about offices that sounds more bureaucratic and maybe requires departmental administrative orders. But on the issue of making sure that function is done, yes, based on what we see in the comments, we think that’s an appropriate idea. We think it’s a necessary idea in terms of working with industry and we’ll see how this all plays out over the course of the spring.

What is NTIA doing internationally on the privacy front?

Privacy has big international implications because the Council of Europe is looking at redoing what they’ve done in privacy. The European Union is looking at this issue. OECD is looking at the issue. So we’re very cognizant of the need to make sure our policy, whatever it is, is designed in a way to best harmonize with what’s happening in the rest of the world, and in particularly Europe.

Pandora to Investors: We are Afraid of “Do-Not-Track” Privacy Rules and also Google’s Clout

From Pandora’s recent S-1 IPO filing at the SEC [our bold]:
excerpt:  Existing privacy-related laws and regulations are evolving and subject to potentially differing interpretations, and various federal and state legislative and regulatory bodies may expand current or enact new laws regarding privacy and data security-related matters. We may find it necessary or desirable to join self-regulatory bodies or other privacy-related organizations that require compliance with their rules pertaining to privacy and data security. We also may be bound by contractual obligations that limit our ability to collect, use, disclose, and leverage listener data and to derive economic value from it. New laws, amendments to or re-interpretations of existing laws, rules of self-regulatory bodies, industry standards and contractual obligations, as well as changes in our listeners’ expectations and demands regarding privacy and data security, may limit our ability to collect, use, and disclose, and to leverage and derive economic value from listener data. We may also be required to expend significant resources to adapt to these changes and to develop new ways to deliver relevant advertising or otherwise provide value to our advertisers. In particular, government regulators have proposed “do not track” mechanisms, and requirements that users affirmatively “opt-in” to certain types of data collection that, if enacted into law or adopted by self-regulatory bodies or as part of industry standards, could significantly hinder our ability to collect and use data relating to listeners. Restrictions on our ability to collect, access and harness listener data, or to use or disclose listener data or any profiles that we develop using such data, would in turn limit our ability to stream personalized music content to our listeners and offer targeted advertising opportunities to our advertising customers, each of which are critical to the success of our business...


We use DoubleClick’s ad-serving platform to deliver and monitor ads for our service. There can be no assurance that our agreement with DoubleClick, which is owned by Google, will be extended or renewed upon expiration, that we will be able to extend or renew our agreement with DoubleClick on terms and conditions favorable to us or that we could identify another alternative vendor to take its place. Our agreement with DoubleClick also allows DoubleClick to terminate our relationship before the expiration of the agreement on the occurrence of certain events, including if DoubleClick determines that our use of its service could damage or cause injury to DoubleClick or reflect unfavorably on DoubleClick’s reputation….In fiscal 2010 and the nine months ended October 31, 2010, advertising revenue accounted for 90.9% and 86.4%, respectively, of our total revenue, and we expect that advertising will comprise a substantial majority of revenue for the foreseeable future. In fiscal 2010 and the nine months ended October 31, 2010, Google accounted for 11.4% and 7.4%, respectively, of our total revenue. We deliver online ads provided by Google through our service, and Google sources us with advertising customers through ad exchanges.

Online Data Targeting Companies Say: “The usage of data will penetrate the online ad ecosystem and the next few years should see data impacting the entire media buying process”

 excerpt from a post by a BlueKai exec:   “The usage of data will penetrate the online ad ecosystem and the next few years should see data impacting the entire media buying process – end to end.  Marketers already need to understand their audiences through customer interactions across multiple channels.  The most progressive marketers are maximizing both audience and campaign performance data as a way to drive marketing spend…as more and more agencies  adopt media strategies that deploy audience profiling and data analysis, there will be an increase in demand for the data scientist…Data driven audience targeting moves operation out of the back room black box systems and into the hands of marketers who are planning so they can really do a much better job of identifying your ideal customer, reach them by very specific targeting attributes and get a much better picture of what’s working and what’s not.  It seems like a no-brainer, but much of the online media spend today is not driven by data.  A data-centric approach to marketing is opening up a new world to online marketing which promises to be a world that provides transparency, target specificity, scale, accountability and results…The ability to combine audience and media performance data gives marketers a full picture of how they can get more of their marketing dollars. 2011 promises to be the year marketers take control of their data and look for solutions that can provide a full-service, full-loop solution will become vendors of choice.”

Microsoft on Privacy Regs vs its business model: “to monetize human attention”

As we prepare for a vigorous debate on protecting consumers and citizens, it’s useful to reflect how online marketing companies view the process.  This excerpt from a Politico story last month notes, that:

Representatives from Google and Microsoft agreed it is the companies’ jobs to make sure consumers can trust them with personal information by giving them more control over how that data is shared. But regulation is a slippery slope. “Our business model is to monetize human attention,” said Marc Davis of Microsoft’s Online Services Division. “Regulation does potentially threaten the value of that.” Added Google’s Betsy Masiello: “Those business models also rely entirely on user trust.” They agreed there’s no legal clarity over who owns what data, and whether online information is owned by the person who entered it online or the company who runs the platform that stores it. “We’ve created this new business class without any clarity,” Davis said.

Digital Ad Lobby Plan for Commerce Privacy Approach: Sideline FTC and Stronger Consumer Protection Rules

The Department of Commerce’s report on privacy has received praise from the Interactive Advertising Bureau lobbying group.  As reported by Politico,  “IAB’s Mike Zaneis [said] the Commerce Department’s new privacy report represents “a really important step in what has been a really inclusive and productive process by commerce and the administration.” Zaneis said he felt Commerce recognized (more than the FTC did) the importance of “economic growth” in recommendations about what to do next with online privacy. On the proposed Privacy Policy Office, the IAB-er further told us he felt it strikes the right balance – it is a “great idea to coordinate various stakeholders,” he said – and it creates a relationship where Commerce coordinates the rulemaking while the FTC handles enforcement. “What this has done is identify the FTC as an enforcement, not as a rulemaking or legislative, body,” he told us.


The IAB and other data collection groups are fearful of the FTC, because that agency has finally caught up to speed on the digital marketing, consumer protection and privacy issue.  Its Chairman Jon Leibowitz supports do not track (something the Commerce paper didn’t really discuss);  the Bureau of Consumer Protection head appointed by Mr. Leibowitz is a serious and skilled attorney who is concerned about consumers.  The IAB would rather have the business-interest friendly Department of Commerce be the broker of a deal that they hope will affirm the data profiling and tracking status quo.

The Obama Administration is going to have to ensure that any new multi-stake holder process provides the consumer and privacy advocates not only parity with industry, but access to resources and information so the process will be fair to consumers.  Discussions will require transparency and accountability.  The FTC should not be sidelined–although we want to see both that agency and the Commerce Department do a better job standing up to protect consumers and their privacy.

Finally, the Obama Administration must put the interests of European and Asian/Pacific consumers and citizens before the commercial concerns of U.S. online marketing companies.  The U.S. shouldn’t be a digital enabler that allows online ad companies to track and target users abroad for financial, drug, junk food and other products without serious safeguards.  A higher global standard of privacy and ethical conduct of the U.S. government is required.

Google’s Ad Targeting on Finance & Health via its Exchange: Do you know this?

Google tells users, policymakers and reporters that its “ad preference manager” is an effective consumer tool that addresses behavioral marketing.  But on its Doubleclick Ad Exchange, advertisers can use Google provided tools to target online consumers based on a wide range of product and issue “vertical” categories, including health and finance.  Here’s what Google says advertisers can target in the health and financial area.  Ask yourself.  Did you know this and shouldn’t all this be truly transparent, under full user control, with real safeguards about how such information can be obtained and used?  We do. Google isn’t the only one doing this, of course:
Doubleclick Category Targeting Codes:
category::Finance
category::Finance>Accounting & Auditing
category::Finance>Accounting & Auditing>Tax Preparation & Planning
category::Finance>Banking
category::Finance>Credit & Lending
category::Finance>Credit & Lending>Auto Financing
category::Finance>Credit & Lending>College Financing
category::Finance>Credit & Lending>Credit Cards
category::Finance>Credit & Lending>Debt Management
category::Finance>Credit & Lending>Home Financing
category::Finance>Currencies & Foreign Exchange
category::Finance>Financial Planning
category::Finance>Grants & Financial Assistance
category::Finance>Insurance
category::Finance>Insurance>Auto Insurance
category::Finance>Insurance>Health Insurance
category::Finance>Insurance>Home Insurance
category::Finance>Investing
category::Finance>Investing>Commodities & Futures Trading
category::Finance>Retirement & Pension

Health
category::Health
category::Health>Aging & Geriatrics
category::Health>Aging & Geriatrics>Alzheimer’s Disease
category::Health>Alternative & Natural Medicine
category::Health>Alternative & Natural Medicine>Acupuncture & Chinese Medicine
category::Health>Alternative & Natural Medicine>Cleansing & Detoxification
category::Health>Health Conditions
category::Health>Health Conditions>AIDS & HIV
category::Health>Health Conditions>Allergies
category::Health>Health Conditions>Arthritis
category::Health>Health Conditions>Cancer
category::Health>Health Conditions>Cold & Flu
category::Health>Health Conditions>Diabetes
category::Health>Health Conditions>Ear Nose & Throat
category::Health>Health Conditions>Eating Disorders
category::Health>Health Conditions>GERD & Digestive Disorders
category::Health>Health Conditions>Genetic Disorders
category::Health>Health Conditions>Heart & Hypertension
category::Health>Health Conditions>Infectious Diseases
category::Health>Health Conditions>Infectious Diseases>Parasites & Parasitic Diseases
category::Health>Health Conditions>Infectious Diseases>Vaccines & Immunizations
category::Health>Health Conditions>Injury
category::Health>Health Conditions>Neurological Disorders
category::Health>Health Conditions>Obesity
category::Health>Health Conditions>Pain Management
category::Health>Health Conditions>Pain Management>Headaches & Migraines
category::Health>Health Conditions>Respiratory Conditions
category::Health>Health Conditions>Respiratory Conditions>Asthma
category::Health>Health Conditions>Skin Conditions
category::Health>Health Conditions>Sleep Disorders
category::Health>Health Education & Medical Training
category::Health>Health Foundations & Medical Research
category::Health>Medical Devices & Equipment
category::Health>Medical Facilities & Services
category::Health>Medical Facilities & Services>Doctors’ Offices
category::Health>Medical Facilities & Services>Hospitals & Treatment Centers
category::Health>Medical Facilities & Services>Medical Procedures
category::Health>Medical Facilities & Services>Medical Procedures>Medical Tests & Exams
category::Health>Medical Facilities & Services>Medical Procedures>Surgery
category::Health>Medical Facilities & Services>Physical Therapy
category::Health>Medical Literature & Resources
category::Health>Medical Literature & Resources>Medical Photos & Illustration
category::Health>Men’s Health
category::Health>Mental Health
category::Health>Mental Health>Anxiety & Stress
category::Health>Mental Health>Depression
category::Health>Mental Health>Learning & Developmental Disabilities
category::Health>Mental Health>Learning & Developmental Disabilities>ADD & ADHD
category::Health>Nursing
category::Health>Nursing>Assisted Living & Long Term Care
category::Health>Nutrition
category::Health>Nutrition>Special & Restricted Diets
category::Health>Nutrition>Special & Restricted Diets>Cholesterol Issues
category::Health>Nutrition>Vitamins & Supplements
category::Health>Oral & Dental Care
category::Health>Pediatrics
category::Health>Pharmacy
category::Health>Pharmacy>Drugs & Medications
category::Health>Public Health
category::Health>Public Health>Health Policy
category::Health>Public Health>Occupational Health & Safety
category::Health>Public Health>Poisons & Overdoses
category::Health>Reproductive Health
category::Health>Reproductive Health>Birth Control
category::Health>Reproductive Health>Erectile Dysfunction
category::Health>Reproductive Health>Infertility
category::Health>Reproductive Health>OBGYN
category::Health>Reproductive Health>Sex Education & Counseling
category::Health>Reproductive Health>Sexual Enhancement
category::Health>Reproductive Health>Sexually Transmitted Diseases
category::Health>Substance Abuse
category::Health>Substance Abuse>Smoking & Smoking Cessation
category::Health>Substance Abuse>Steroids & Performance-Enhancing Drugs
category::Health>Vision Care
category::Health>Vision Care>Eyeglasses & Contacts
category::Health>Women’s Health

Google & Microsoft Tout their Mobile Targeting Clout, inc. Behavioral, Location, Gender, etc.

My CDD and USPIRG asked the FTC in January 2009 to investigate mobile marketing and its threat to both privacy and consumer protection issues (Ringleader Digital, now the subject of lawsuits and stories in the WSJ and NYT, was included in the complaint, btw).  Online mobile marketers, including Microsoft and Google, illustrate how regulators in the U.S. and abroad should require safeguards to protect the public from unfair and deceptive practices–including those that involve their privacy.  In Ad Age, both Google and Microsoft loudly proclaim what their mobile marketing services can do for brands, ads and marketers.  Here are some choice excerpts:

Microsoft:  “Microsoft Advertising’s industry-leading mobile display and search advertising solutions engage more than 43 million on-the-go U.S. consumers each month—regardless of a user’s mobile phone or wireless carrier. Its innovative ad placements and ad formats include display, rich media, search, video and custom in-app ad units…

Advanced Targeting Options
  • Profile targeting: age, gender, household income, location, time of day
  • Behavioral targeting: more than 120 custom segments (e.g., “movie watchers” and “business travelers”)
  • Device: make and model
  • Wireless carriers: on-deck inventory
  • Keyword targeting: exact or broad match…Complete mobile ad solutions for automotive, CPG, entertainment, financial services, retail, technology, telecommunications, travel and other sectors…
  • More than 43 million, or 55 percent of active mobile web users in U.S.
  • More than 80 million active mobile users globally in 32 countries.”

Google: “Today’s consumers are on the move. More than ever before, audiences are searching and browsing the web on their mobile devices. How do advertisers connect with the on-the-go consumer…As customers go mobile, advertisers need smart mobile advertising strategies. With Google, they can easily target and tailor messages according to location and automatically show their customers relevant local business information or phone numbers to enable them to take immediate action. Once a campaign is up and running, marketers can measure their results via detailed reports. Additionally, integrated mobile reporting in Google Analytics allows them to track and optimize conversion, e-commerce and engagement metrics on mobile devices. They can take advantage of Google’s mobile-specific ad formats. Click-to-call text ads, animated mobile banner ads, click-to-download ads and other display ad formats are examples of how Google is innovating for the small screen.  Google closed its acquisition of AdMob, one of the world’s leading mobile advertising networks, in May. AdMob’s innovative rich media ad units—including full-screen expandable, animated banner and interactive video—create opportunities for advertisers to engage with a relevant audience on their mobile devices. Now the Google and AdMob teams are working to create new ways to deliver engaging and innovative advertising experiences that will help marketers drive their businesses forward…

CASE STUDY

CHALLENGE: Esurance, a direct-to-consumer personal car insurance company, wanted to ensure that customers could do business with it on their own terms and at their own convenience… To make the connection between mobile users and Esurance agents, Esurance used Google mobile ads with integrated click-to-call functionality. The CTC ads gave mobile users the option of clicking through to Esurance’s mobile-optimized landing page or initiating a phone call with a licensed insurance agent…Results…

  • Boosted conversion rates: Click-to-call mobile ads drove a 30 percent to 35 percent higher response.”

PS:  Attention Music Lovers.  In the same Ad Age piece, the online music service Pandora exclaims that it can provide:“Through powerful hypertargeting, reach the right person, at the right time, without waste. Target based on age, day, gender, location, mobile platform, time and type of music…Pandora offers a broad array of formats and rich media functions to create an immersive mobile experience, including:

  • Tap to video
  • Drag and drop
  • Tap to app
  • Tap to call
  • Tap to e-mail
  • Tap to expand
  • Tap to find a location
  • Tap to iTunes
  • Tap to mobile webpage
  • Standard banners”

Google’s new `simplifed’ Privacy Policy: More disclosure and honesty required [updated]

Last week Google announced it was “simplifying and updating” its privacy policies.  As it so often does, the announcement was framed as a `we did for your good’ kind of effort.  “[W]e want to make our policies more transparent and understandable,” it explained, noting that “most privacy policies are still too hard to understand.” But as so often with Google and other online marketers, you have to both read between the digital lines and also analyze what’s really going on.

Google’s revised policy, which takes effect October 3, fails to really explain to consumers/users what’s actually going on.  Like other privacy policies, Google claims that all its data collection is to “provide you with a better experience and to improve the quality of our services.”  But what they really mean–and what the Congress, the FTC and other regulators must require them to disclose–is that they have crafted a wide-ranging system designed to foster personalized data collection and online targeting.  Missing from the revised Privacy Policy (which Google, btw, is pitching to privacy advocates and no doubt others as a  paragon of digital virtue) is any candid disclosure on how its Doubleclick, Admob, Google Display Network, Ad Exchange, Teracent, and other services collect information from and about us.

Google isn’t alone–Facebook, Microsoft, Yahoo and everyone else rely on a purposefully deceptive privacy policy to engage in data collection activities that require disclosure and individual user control.  Google is also reshaping its privacy policy to better capture all the data it can collect across multiple platforms and applications. Here, just for the record, is what Google advertised in Ad Age’s recent Ad Exchange and online advertising guide [excerpt]:  No matter how you define performance, the Google Display Network offers a solution. By bringing more measurability and precision to your advertising, it enables you to create, target and optimize ads based on real-time data, meaning better returns for you.

The Google Display Network helps advertisers and agencies achieve performance at scale by delivering relevant, accountable ads to their target audiences—in more places, more often…Precisely target your audience: The Google Display Network’s technology enables you to find customers based on their interests, sites they visit and when they’re engaging with relevant content via contextual targeting, or show specific messages to users who’ve already visited your site with remarketing…The Google Display Network provides opportunities to advertise in all such environments—feeds, games, mobile, social networks and video streams— enabling you to create an immersive experience for your audience.

PS.  Well, Google just also announced what its interactive display ad system can do for marketers.  How come this isn’t in the privacy policy in understandable language and full consumer control? Excerpt:  Advertising with Google used to be all about four lines of text, on Google.com and on our partner sites. No longer. Did you know that, outside of ads alongside search results, more than 40 percent of the ads that we show are now non-text ads? And that doesn’t include the 45 billion ads that our DoubleClick advertising products serve every day across the web.

We get excited by display advertising for a number of reasons…Teracent’s technology can automatically tailor and select the creative elements in an ad, and adjust them based on location, language, weather and even the past performance of ads, to show the optimal ad.  We’re focused on helping advertisers get the best results from their campaigns—by enabling creative branding campaigns, precise targeting, wide reach and effective measurement. Over recent years, we’ve added a ton of new features to YouTube and the Google Display Network, to help advertisers get—and measure—the results they’re after. From remarketing to Campaign Insights to video targeting on YouTube, we’re building tools that are helping advertisers get great results and enabling them to run some of the most amazing ad campaigns the world has ever seen.

New Google Exec Rohit Khare has warned: “our social networks have traded away our privacy for mere “privacy theater”

Google just acquired Angstro and hired its co-founder Rohit Khare. Khare will help Google create its new social network.  Last December, Khare warned about the growing lack of privacy online [excerpt]: “When RockYou can stash 32 million passwords in the clear; when RapLeaf can index 600 million email accounts; and when Intelius can go public by buying 100 million profile pages; then our social networks have traded away our privacy for mere “privacy theater.”…none of the social networks that we’ve integrated with has an API for reading email addresses — but all of them have no problem asking you to “Invite your friends!”  After all, most social networks remain hypocritical enough to phish passwords to other social networks themselves as soon as they ask you to “Invite your friends” for their own viral growth!
Putting aside the hypocrisy of phishing passwords to scrape those friends’ email addresses in the first place, the subtler flaw is that social networks are more than happy to search their member database for those addresses to share a list of suggested friends. That’s how a Rapleaf could take a mailing list, pretend that those are all friends of theirs, and slowly accumulate a “reverse phonebook” that maps emails to social network profiles.”

Given Google’s own problems addressing consumer privacy, we will be watching closely to see if Khare’s concerns are reflected in what “Google Me” (or whatever their social network gets called) really addresses the problem.  That will need to include enabling users to control the data used for digital marketing and advertising, as far as we’re concerned.