Category: Congress

Google Lobbying: Why Congress Should Not Use the new YouTube Senate and House Video Hubs

Google is taking a lobbying tactic developed in part by CSPAN years ago–offer members of Congress a free service so they can be seen by the public.  That kind of electronic or digital campaign contribution helps insure that Congress will think twice about biting (or regulating) the video hand that feeds.  Google’s new YouTube Senate and House Hub channels raise a number of concerns and policy questions.

For example, what happens to the user data as people click on the Congressional YouTube channels?  Does Google get to collect, analyze and use such data for its growing political online advertising business?  Beyond privacy, should Congress be endorsing a private for-profit venture as the principal access point voters and constituents need to use?  Does the use of YouTube create a potential conflict of interest for members of Congress who will need to regulate Google–on such things as competition (the DoJ recently described Google as a monopoly); privacy, consumer protection, etc (remember, Google sells all kinds of ads for mortgages, credit cards, junk food, health remedies, etc.).

It’s not a coincidence perhaps that Google’s YouTube congressional channel announcement comes at the same time the company is expanding its online ad business for politics.  As Ad Age reports this week,“The end of an election season usually means dismantling the campaign apparatus until the next cycle. But not at Google; not this year…Rather than packing it all away until 2010, it’s hoping to build a year-round political-advertising business one House seat and hot-button issue at a time.  “There are 500,000 elected officials in the U.S. With the advances we’ve made in geo-targeting, we think this will be part of every political campaign in the country, as well as issue campaigns,” said Peter Greenberger, Google’s director of election and issue advocacy…Google doesn’t yet offer targeting based on congressional districts, but with ZIP code and city targeting, politicians and advocacy groups can cobble together a reasonable approximation of a congressional district.”

The in-coming Obama Administration has had the support of Google’s CEO, and company officials have played a role in the transition.  But the new administration should develop a digital outreach approach to the public which is public–and non-commercial–in nature.  It shouldn’t show any favoritism, even if Google is the leading search and video service.  It should be a change.org--not a government via dot com.

see: “Election  is Over, but Google Still Chasing Political Spending.”  Michael Learmonth.  Advertising Age.  January 12, 2009.

Ad agency has “profiled more than one-third of the world’s online population”

Developments in advertising, data collection, consumer analysis and targeting must be transparent and accountable to the public.  In a profile of Havas Digital, OMMA Magazine notes that [our emphasis]:

“Havas has created a dynamic online ad trading system that separates audiences from publishing content, and it makes user profile and unique cookie data king, rather than the inventory a publisher serves.  The core of Havas Digital’s virtual brand network is its Artemis database management and reporting system, which has already profiled more than one-third of the world’s online population. That and the agency’s Adnetik system help deliver customized roi analytics for media buying.”  “Artemis is the central piece of our media buying offering,” Kasper [Adam Kaspar, a senior VP] says. “Its importance has only grown as the technology has improved.”Coupled with proprietary algorithms, that database has allowed the agency to develop systems that draw on data from third parties, including clients, publishers and networks, that helps it understand which audiences command the most value at a particular time for specific brands.”

Artemis is a “marketing data warehouse.”  Yahoo is using the service, including for its already data-enabled Right Media Exchange.  Havas describes Artemis as “our proprietary marketing decision support system – a secure warehouse for all your marketing data, plus reporting tools that help make sense of it all.  Unlike some of the less sophisticated reports advertisers may receive from ad-servers, for instance, Artemis® provides detailed reporting right down to the user level.”

The FTC, EU, Congress and others will need to need to investigate the growing role consumer data plays in targeting us on and offline.  We don’t need private ministries of information tracking the global public.

CDD Memo to President-elect Obama’s FTC Transition team

My organization provided the FTC-transition team of President-elect Obama a brief memo on what the agency should do as it changes leadership. With a new majority, the FTC should be in the forefront of addressing how the financial and marketing system has evolved in ways which threaten our fiscal well-being and privacy, among many other concerns.  Here’s an excerpt:

The Federal Trade Commission has a potentially extraordinary role to play in the new Administration.  The agency should be engaged in developing and promoting policies that protect privacy, ensure consumer welfare, and stimulate economic development.  Unfortunately, in recent years the commission has largely failed to comprehend the threats to consumer privacy arising from the data collection-based online marketing system.  It ignored, for example, the role that data collection and behavioral targeting played in the marketing of subprime loans and other consumer financial products…
Under new leadership, the FTC should view its role as a champion of consumers…. in consumer protection, privacy, and online-related competition policy, the agency has failed to conduct the kind of serious inquiry that would enable it to make sophisticated recommendations or decisions.  It has not developed a 21st century framework that will protect consumers in the digital marketing “ecosystem.”  We saw this with behavioral advertising and privacy policy, protecting children and youth from marketing linked to the obesity crisis, and in the approval of the Google and DoubleClick merger, for example.
If the FTC is to help the country move forward during this crucial period of economic transition, it should:
•    Make Consumer Protection its highest priority
•    Recruit new staff for consumer protection with a background and commitment to consumer interests
•    Engage in a serious and ongoing analysis of the digital marketplace, with a focus on the impact of interactive advertising/behavioral targeting on financial products, health and medical services, product purchasing, and children and adolescents
•    Propose new policies to protect consumer privacy and welfare online…
•    Work with the FCC and state authorities to create a new Mobile Marketing, Consumer Protection, and Privacy Task Force (with annual reports to the public, and, where appropriate, new legislation recommended to Congress).

Statement on FTC’s Children’s Online Privacy Protection Act legal action against Sony/Additional Privacy Policies are Required

Statement of Dr. Kathryn C. Montgomery, who led the campaign for the passage of the Children’s Online Privacy Protection Act (COPPA), commenting on the FTC children’s privacy lawsuit announced today against Sony BMG Music Entertainment

I applaud the FTC’s actions to enforce the Children’s Online Privacy Protection Act. The government’s lawsuit against SONY sends a strong signal to the online industry that this law must be taken seriously. COPPA was designed to protect children under the age of 13 from unfair data collection and manipulation by online marketers. Congress passed the law ten years ago to establish a clear set of safeguards and principles that were built into the foundation of the emerging digital marketplace. However, in recent years, online data collection has become increasingly sophisticated, expanding into a variety of new platforms — from social networks to mobile phones to interactive games — that are now central tools in young peoples’ their lives. In the new administration of President-elect Barack Obama, both the FTC and Congress must support additional policies that will extend COPPA’s mandate and create privacy protections for all children under the age of 18.

Kathryn C. Montgomery, Ph.D, is Professor of Communication at American University in Washington, DC.

Tales of Behavioral Targeting: Merging Offline Databases with Online User Tracking

The folks at the Federal Trade Commission better toughen up its proposed privacy principles. And Congress and the new Obama Administration, of course, will need to step in. That’s because the online marketing behavioral targeting industry is rushing to push the data collection from unprotected consumer digital envelope. Take, for example, Datran Media. In an interview, a representative explains “Datran’s unique advantage is in the fact that we have figured out a way to aggregate more audience data than anyone else…We derive our behavioral and lifestyle data from real online and offline requests for information or transactions, and obtain our household-level demographics and interests from the most informative and accurate direct marketing databases available. We feel that the combination is unprecedented and unbeatable in the marketplace.”

On Datran’s website it explains to potential clients that its Aperture product “is the first and only advertising solution to leverage the power of offline demographic data – at the household level – with online display advertising to help identify, reach and define your ideal customers – no matter where they are on the Web.” Describing a “smarter way” to reach consumers, the company explains that:

  • Aperture is the only advertising solution that uses household demographic information to precisely target banner ads online, and report on the ads’ audience AND responders.
  • Aperture defines your customers by WHO they are and WHAT they do.
  • Retargeting capabilities bring customers back to your site with an added level of insight into who they are.
  • Leveraging 100 million + demographic profiles combined with proprietary transaction-based behavioral intelligence, Aperture is capable of delivering greater consumer insights than ever before.

Aperture provides deep insights into the effectiveness and reach of your campaigns – by the view and click – so you can make the best business, media mix and creative decisions for your brand.”

The company’s targeting capabilities are also explained:

“Using Datran Media’s proprietary 100 million+ household level profiles, Aperture can layer any of following criteria to define your ideal customer and target your ads directly to them anywhere they go on the web.

  • Household
  • Gender
  • Household Size
  • Number of Adults
  • Number of Children Present
  • Renter/Owner
  • Length of Residence
  • Marital Status

The company can also “layer” in such targeting parameters as one’s neighborhood [“Number of Adults, Median Number of Children Present, Median Annual Income,” etc.] as well as consumer “behavior” [“auto, insurance, personal finance, dating and romance,” etc.].

As we said to the FTC and the industry, just because technology permits you to collect data and target individuals, doesn’t mean one should do it without the complete prior informed consent of users. Industry leaders need to own up to what they are doing, and support the kind of privacy protections a digital democracy requires.

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.

Embedding Brands in Videogames

The growth of in-game marketing should be on the public policy radar. It’s something we have been following with food and beverage marketing targeting children and adolescents. Read this excerpt from a Double Fusion ad for a regional sales manager. Then ask yourself: does this business model raise consumer protection and public welfare concerns.

excerpt: “Want to place brands in games? Double Fusion’s Core Games Group is looking for a passionate gamer with the desire to sell marketers on the sexy allure of the gaming console as a means to reach the increasingly allusive 18-34 Male demographic. The Regional Sales Manager, Core Games Group will be responsible for using Double Fusion’s multi-platform approach (static in-game advertising, dynamic in-game advertising, gaming tournaments, downloadable content, co-marketing partnerships, etc) to in-game advertising to meet marketers’ campaign objectives in the most engaging ways imaginable.

…Double Fusion connects brands with audiences through the immersive medium of games…our integrated marketing solutions continue to inspire Fortune 500 companies to get in the game with groundbreaking advertising campaigns…Chance to make media history in a “rising star” category – interactive entertainment is one of the fastest growing categories across female audiences and advertisers are just beginning to realize this huge market potential…Our unique media capabilities across 2D and 3D games allow advertisers to benefit from a level of interaction that’s simply not possible with traditional advertising. In fact, research from Nielsen has shown the superior recall and purchase preference results that 3D programs deliver. The best of both worlds – we’re well-funded with financial backing from top-tier venture capital firms plus media giants such as Time Warner and Hearst…”

Two years after CDD & USPIRG warn about online advertising & media consolidation, a call to “monitor the state of competition”

Yesterday, Sen. Herb Kohl, the chair of the Senate Antitrust Committee, sent a letter to the Department of Justice about the proposed Google/Yahoo alliance. Two years ago next month, in its initial complaint filed at the Federal Trade Commission calling for an investigation into behavioral online ad targeting, CDD and USPIRG also petitioned the agency to open up an antitrust investigation. It was clear two years ago–as one surveyed the dizzying global shopping spree by Google, Yahoo, Microsoft, Time Warner/AOL–that a tiny handful would soon dominate the online ad market. Given that online ad revenues are the key to the funding of almost all interactive and online content, we were disturbed by the trend then towards consolidation. Of course, fewer companies controlling all that consumer data also raised fundamental privacy concerns.

Two years later, of course, we have even fewer independent companies left standing. Google swallowed DoubleClick (and is poised to partially operate Yahoo); Yahoo acquired Blue Lithium and Right Media; Microsoft acquired giant aQuantive; Time Warner bought Tacoda and Third Screen Media. Etc.

Regulators on both sides of the Atlantic have been asleep at the digital switch. They have failed to both protect competition and privacy. However, there is a growing awareness that there are serious problems looming. As we know, the same deregulatory philosophy which helped wreck our economy is also the foundation for communications and media policy. It is accompanied, of course, by a `golden’ revolving door between government and private industry that has left consumers and citizens vulnerable to a wholesale set of unfair practices. Addressing these issues will be the focus of much work over the next several years.

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.

Google Policy Blog Fails to Address Yahoo! Deal & Threat to Competition & Privacy

Google’s post today by Tim Armstrong on why its proposed deal with Yahoo! isn’t a competition problem attempts to weave and spin this critical issue. It’s very revealing as well about Google’s own failure to develop into a company which honestly engages in self-examination and reflection. As one can see from the current melt-down of the financial markets, making money shouldn’t be the sole motivation for behavior. Google should have been able to acknowledge that a major deal with its leading search competitor raises serious questions worthy of broad debate and critical analysis.

The failure of Google to respond to the concerns raised by the World Association of Newspapers this week is reflective of this. Newspapers and content publishers are rightly worried about ensuring a diversity of funding sources for the production of news and other information necessary for a democratic society. It’s not as simple as Google’s Tim Armstrong (who wrote today’s post) suggests, that this deal with give consumers “relevant ads” and help keep Yahoo afloat as a robust competitor. In fact, Armstrong and Google, we believe, aren’t being candid here. When an online ad company dismantles (or turns over) a core part of its search function to its leading competitor, it becomes fatally wounded. As Google knows all well, search and display (and online content) are all intertwined. Yahoo’s future, in my opinion, as a full service online ad company is endangered, as more businesses realize that its search ad business relies increasingly on Google.

There are many troubling privacy issues with this deal, something Mr. Armstrong tries to dismiss by saying that [our emphasis]: “[W]e have taken steps in the Yahoo! agreement to make sure that neither company has access to personally identifiable user information from the other company.” But that leaves open an array of personal data collection points, such as cookies, IP addresses, and other statistical analysis online related data. (The failure, by the way, for the privacy issues of the proposed deal to be investigated by the FTC and Congress, is also disturbing).

Mr. Armstrong is Google’s “President, Advertising and Commerce, North America.” He directs their online ad sales. In responding to concerns about competition in the online advertising market–given its links to broader societal concerns–more than just assurances from the sales department is required.