A Glimpse Under the Data Collection `Hood’: Behavioral, Social Graph, Ad Exchanges, Ad Optimization


As CDD explained to the FTC and data protection commissioners, advances in online ad data collection, selling and targeting raise significant privacy concerns. This rapidly evolving infrastructure of user data auctioning requires scrutiny and safeguards.  Here are some excerpts from jobs in the sector, which gives one a glimpse of what’s going on.

Director of Agency Development- NYC – eXelate

About eXelate

The eXelate Targeting eXchange is the world’s first and largest open marketplace for behavioral targeting data. Through participation on the eXchange, data buyers build an instant behavioral targeting function and optimize their campaign delivery, while data sellers gain insight on their audience, control over their data distribution, and build a new privacy–friendly income stream. The eXchange includes over 40 top ad network/agency buyers and dozens of leading publishers, who deliver targeting data on more than 170 million unique users each month.

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Account Manager – NYC – Netmining…

Netmining is a global provider of behavioral marketing solutions that are proven to increase conversion rates across websites, online advertising, email programs and offline sales channels. With a real-time profiling engine that understands each individual’s interests and buying propensity, Netmining enables companies to deliver highly relevant and personalized interactions across the entire customer lifecycle.
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Senior Account Manager – Social Targeting Data – NYC – Media6degrees: About Us

We are the first online advertising firm built from the ground up specifically to leverage “social graph” data. The power of this data is captured by the phrase “birds of a feather flock together.”  We have mapped the social graph interactions of nearly 75 million US consumers and are the first company to offer “social targeting” which allows marketers to fully exploit the network value of every individual customer with whom they interact while also significantly improving response rates on new acquisition campaigns.

Our platform employs proprietary cookies to map the social graph. Our core data used to map the social graph has long been part of the standard Internet advertising protocols for trafficking advertisements and has been fully integrated with both Yahoo’s RightMedia platform as well as the DoubleClick Exchange and is accessible to any of the thousands of major marketers who advertise through these vehicles.

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Senior Account Executive (2 Jobs) – NYC, SF – TARGUSinfo: 

Its unique identification, verification, qualification and location services enable retailers, call-center operators, Web-based marketers, communication service providers and others to dramatically increase the quality of their services and the effectiveness of their marketing. A privately held company, TARGUSinfo is headquartered in Vienna, Va. For more information, visit www.TARGUSinfo.com.

With a focus on delivering measurable, predictable results in a online environment, TARGUSinfo is defining tomorrow’s marketing standards by delivering a display advertising targeting solution to advertising networks, interactive advertising agencies, and publishers.  We currently have a large cookie-based audience solution based on verified offline data assets.

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Optimization Consultant, Ad Exchange – NYC – Google

you will be responsible for working with buyers and sellers on the Ad Exchange to optimize their experience (ie. manage yield or drive return on marketing investment). You will be responsible for partnering closely with Product Management, Engineering, Sales, and Services to build models, develop new ones, apply customer specific data, and develop insights.

Microsoft Taps Academics to Help its Lobbying in DC

Microsoft “launched an online forum January 6 for the academic community to participate in a dialogue about policy issues relating to the technology industry,” according to PR Week.  The so-called “Technology Academic Policy” [TAP] group “is aimed at journalists, Capitol Hill staffers, think tanks, and other decision makers,” explained Kathryn Neal, academic relations director for Microsoft. Academic institutions that are participating include UC Berkeley, Harvard University, Northwestern University, and Stanford Law School.  Microsoft, which hired Adfero Group in summer 2009 to support the program, also created a presence for TAP on Twitter, YouTube, LinkedIn, Digg, and Facebook. Academic participants can engage in each medium, including posting videos to YouTube, noted Neal.” Adfero Group says that it helps clients “persuade the powerful.”

Microsoft is playing a game of academic catch-up to Google, which funds scholars and research to help advance it’s own interests.  But there should be real independence between the academy and powerful special interests.  One will have to examine closely Microsoft’s relationship with the following academic institutions aligned with the new TAP program:

“TAP Centers – The following institutions currently contribute to TAP:

  • The Berkeley Center for Law & Technology at UC Berkeley
  • The Berkman Center for Internet & Society at Harvard University
  • The George Washington University Law School
  • The John M. Olin Program in Law and Economics at the University of Chicago Law School
  • The Program in the Law & Economics of Intellectual Property and Antitrust at Stanford Law School
  • The Searle Center on Law, Regulation, and Economic Growth at Northwestern University
  • Silicon Flatirons — A Center for Law, Technology, and Entrepreneurship at the University of Colorado
  • The Stanford Institute for Economic Policy Research (SIEPR)
  • The Toulouse Network for Information Technology, hosted by the Institut d’Economie Industrielle at Toulouse University
  • The Center for Technology, Innovation & Competition at The University of Pennsylvania Law School (CTIC)”

Google and the NSA: The search giant’s DC marketing office is looking to “generate and close sales to the Intelligence Community”

Google and other major companies want help from the NSA to help it  better defend against cyberattacks and commercial spying.  But is also illustrates a real problem: companies such as Google that gather extensive information on citizens everywhere, including in the US, are partnering with government agencies that have engaged in domestic spying.  Google really needs to create something more than a “Chinese wall” between itself and governments–including the US.  Another real problem is Google is working to curry favor with the NSA, CIA, DoD and others in order to sell its services and make greater profits.  Take a look at the current job openings at Google’s DC office focused on selling its services to both the intelligence community and Department of Defense.  It raises questions about the dimensions of its relationship with NSA, given that they are also looking to develop marketing opportunities.
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excerpt:  Enterprise Federal Inside Sales Representative for Intelligence Community – Washington D.C.

This position is based in Washington D.C.

The area: Enterprise

The Enterprise team focuses on integrating Google’s products and services into small and large businesses, educational institutions and government agencies. Consisting of high-achieving engineering, sales and marketing professionals, we work with a vast array of partners and customers to advance the company’s mission of organizing the world’s information to make it universally accessible and useful.

The role: Enterprise Federal Inside Sales Representative for Intelligence Community

This position is responsible for selling Google Enterprise Solutions including the Google search appliance and Geospatial products, including Google Earth and Google Maps to Federal Clients. The Google Search Appliance is a hardware and software product designed to offer large businesses the productivity enhancing power of Google search.

You must be comfortable making dozens of cold calls a day, working closely with the Federal Enterprise Sales Managers to generate and close sales to the Intelligence Community. [our bold]. Candidates must have demonstrated experience prospecting and growing an account list, as well as a successful track record of closing sales to the Federal government. Candidates should be willing to do some travel, to attend and work tradeshows and conferences, as well as to attend customer meetings.

Responsibilities:

Be responsible for the entire sales process from Prospecting to Close.
Lead Generation/outbound calling and warm lead follow up.
Understand Customer Needs and requirements.
Present and articulate advanced product features and benefits of Google Enterprise solutions. Provide on-line demonstrations.
Close Sales and achieve sales quotas. Be able to sell and differentiate in a competitive environment.
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Enterprise Federal, DOD Sales Manager – Washington D.C.

This position is located in Washington D.C.

The area: Enterprise

As the emerging leader in cloud computing, Google’s Enterprise division delivers cloud services and other IT products to small and large businesses, educational institutions and government agencies. Our team of high-achieving engineers, product managers, and sales and marketing professionals works with a vast array of partners and customers to advance the company’s mission to organize the world’s information to make it universally accessible and useful. The Enterprise team is among a handful of rapidly emerging new businesses that are becoming front-and-center for Google as it enters its second decade as a company.

The role: Enterprise Federal, DOD Sales Manager

In this position, you will generate and close sales of the Google Search Appliance and Google Geospatial products among U.S. Dept. of Defense government agencies. The main duties of this position will include making cold calls on new prospects and following up on marketing and sales leads. You will be delivering quarterly quotas and building an existing region into a more fruitful territory. Most importantly, you will be developing business strategies to capture long term programs and opportunities.

Responsibilities:

  • Achieve annual sales quota, with emphasis on strong quarterly attainment.
  • Build business strategy to generate short and long-term opportunities for all Google Enterprise products.
  • Increase awareness of Google Federal and strengthen customer relationships in the Department of Defense.
  • Develop current and new Google partners focused on DoD customers.
  • Provide accurate quarterly sales projections on a weekly basis and keep thorough records of customer interactions.
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  • Federal/Intelligence Community Account Manager, Enterprise – Washington D.C.

    This position is based in Washington D.C.

    The area: Enterprise

    The Enterprise team focuses on integrating Google’s products and services into small and large businesses, educational institutions and government agencies. Consisting of high-achieving engineering, sales and marketing professionals, we work with a vast array of partners and customers to advance the company’s mission of organizing the world’s information to make it universally accessible and useful.

    The role: Federal/Intelligence Community Account Manager, Enterprise

    In this position, you will generate and close sales of the Google Search Appliance and Google Geospatial products among Intelligence community accounts. The main duties of this position include making cold calls on new prospects and following up on marketing and sales leads. You will be delivering quarterly quotas and building an existing region into a more fruitful territory. Most importantly, you will be developing business strategy to capture long term programs and opportunities.

    Responsibilities:

  • Achieve quarterly sales quotas.
  • Generate and qualify all leads and sales opportunities.
  • Make outbound calls to targeted customers.
  • Respond to inbound inquiries from marketing and lead generation programs.
  • Serve as primary customer contact during bid submission, pilot test, legal review, and procurement.

Facebook Expands Big Brand Marketing Clout: Helping Starbucks to “get people to buy a muffin on a certain day”

The top execs at Facebook claim that the social network giant ad targeting apparatus is well understood by its users, and that they have secured their consent.  But I suggest few users understand the complexities of Facebook’s viral marketing and tracking system, let alone the new Facebook/Nielsen “Brandlift” initiative designed to demonstrate Facebook can deliver big for the biggest brands.  According to New Media Age:
More than 70 studies have been done in the US in the FMCG, retail, media and entertainment, telecoms, financial and automotive sectors. Nielsen and Facebook said 97% of these found a significant lift in at least one brand metric, while 85% reported an increase in at least two.  “Starbucks is a heavy advertiser on Facebook,” said [Trevor Johnson, head of strategy and planning EMEA at Facebook] Johnson. “We ran a campaign to get people to buy a muffin on a certain day and measured a 94% uplift in purchase intent.”…Facebook will apply the demographic data it already collects from its users to deliver results tailored to brands’ needs.

Civil Liberties, Consumer & Privacy Groups to FCC: Protect Privacy


The American Civil Liberties Union, Center for Digital Democracy, Consumer Action, Consumer Federation of America, Consumer Watchdog, Privacy Lives, Privacy Rights Clearinghouse, Privacy Times, and U.S. PIRG told the FCC in a filing 22 January 2010 that: “There are significant problems concerning the collection and use of personal data by companies, especially sensitive data and children’s data; (2) The FCC should not rely on industry self-regulatory models because they do not adequately protect consumer privacy; and (3) The principles and standards that should serve as the foundation of consumer privacy protection should be the Fair Information Practices, especially as they are implemented in the OECD Guidelines on data privacy… The FCC should consider all avenues it may use to protect consumers, including exercising its ancillary jurisdiction to address broadband privacy issues, and working with Congress and the Federal Trade Commission (“FTC”), which has substantial expertise in consumer privacy protection.”


To learn more, click here.


Where Does Google and Microsoft Really Stand–with the IAB and ad lobby or for Consumer Protection?

Both Google and Microsoft serve on the executive committee of the Interactive Ad Bureau, a trade association fighting against consumer privacy proposals in Congress and the FTC.  The IAB just sent a letter signed by other ad and marketing industry lobbyists opposing Obama and congressional proposals to expand the ability of the FTC to better protect consumers.  My CDD just sent emails to officials at both Google and Microsoft asking them to clarify where they stand on the IAB’s letter [see below].  Do our two leading online marketing leaders support financial and regulatory reform, including protecting privacy?  Or does the IAB letter–and Google and Microsoft’s own role helping govern that trade lobby group–really reflect their own position against better consumer protection? Not coincidently, the IAB’s PAC has expanded its PAC contribution giving to congress.

Why does the IAB and other ad groups want to scuttle a more capable FTC?  Think online financial products, including mortgages, pharmaceutical operated social networks, digital ads targeting teens fueling the youth obesity crisis, ads created by brain research to influence our subconscious minds, a mobile marketing system that targets us because it knows our location, interests and behavior.  The IAB is terrified that a responsible consumer protection agency will not only peek under the ‘digital hood,’ as the Obama FTC is currently doing.  But actually propose policies and bring cases that rein in irresponsible and harmful business practices.  So Microsoft and Google:  who are with?  Consumers or the special interest advertising lobby?
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letter to Google:  22 January 2010

Dear Pablo, Jane, Peter and Alan:

As you may know, the Interactive Advertising Bureau recently sent a letter  to Congress, along with other ad related groups, opposing the expansion of FTC regulatory authority as proposed in the Consumer Financial Protection Agency bill and related reauthorization [http://www.clickz.com/3636212].

Google serves on the executive committee of the IAB’s board.  For the record, does Google support IAB’s stance that, as news reports say, if the FTC is given additional enforcement and penalty-making authority, “the FTC could essentially act as an unelected legislature governing industries and sectors across the economy.”

If Google disagrees with the IAB’s letter, I ask that it make its position public as soon as possible.  I also respectfully request Google state its position regarding the Consumer Financial Protection Agency proposal, as well as its position on expanding FTC authority.

Regards,

Jeff Chester
Center for Digital Democracy
www.democraticmedia.org

letter to Microsoft:  22 Jan. 2010:

Dear Mike and Frank:

As you may know, the Interactive Advertising Bureau recently sent a letter to Congress, along with other ad related groups, opposing the expansion of FTC regulatory authority as proposed in the Consumer Financial Protection Agency bill and related reauthorization [http://www.clickz.com/3636212].

Microsoft serves on the executive committee of the IAB’s board.  For the record, does Microsoft support IAB’s stance that, as news reports say, if the FTC is given additional enforcement and penalty-making authority, “the FTC could essentially act as an unelected legislature governing industries and sectors across the economy.”

If Microsoft disagrees with the IAB’s letter, I ask that it make its position public as soon as possible.  I also respectfully request Microsoft state its position regarding the Consumer Financial Protection Agency proposal, as well as its position on expanding FTC authority.

Regards,

Jeff Chester
Center for Digital Democracy
www.democraticmedia.org

Tracking Mobile Users by Behavior and Race: Why the FTC Must Address Mobile Privacy ASAP

Here’s a brief excerpt from the “The mobiThinking guide to mobile advertising networks 2010.”  Our emphasis.

Microsoft Mobile Advertising: Targeting capabilities include device, demographic (gender, age, household income), geographic and behavior.

Advertising.com/AOL: Full suite of targeting options, including device, browser, operating system, carrier, on/off-deck, geography, time-segment, content, and multiple demographic combinations.

Nokia Interactive Advertising: Demographics, location, handset type, and in the US by channels (e.g. auto, news, sports.

Quattro Wireless: a) contextual: media type, channel, publisher; b) demographic: gender, age, ethnicity, education; c) location; d) mobile: carrier, device class, manufacturer, model, features, operating system, browser; e) frequency of exposure.

Jumptap: Jumptap offers 64 different targeting options including: demographic, geographic location, carrier, on/off-deck (operator portal), device types and browser, time of day, day of week, content category and frequency controls. These targeting parameters are derived from multiple data courses, including contextual information and true carrier subscriber information. Premium brand advertising guarantees the ad will appear on certain sections of chosen site at the time specified.

Millennial Media: Audience targeting: Millennial can uniquely identify a user across all sites on the network – they are grouped into audiences, based on their observed behaviors on sites, participation and review of click-stream data, so campaigns can be targeted at specific audiences. (Millennial discloses these techniques, with an opt-out in accordance with the Self-Regulatory Principles for Online Behavioral Advertising, July 2009). Advertisers can also do Run of Network (RON) campaigns or target by channel, custom subnet, takeover, network blocks or demographic. There is also targeting via geography, carrier, handset model/manufacturer/operating system, handset features, age of device, time of day, location, Wi-Fi, etc.

Which “Network/Entertainment” Company is Expanding its use of Neuromarketing? NeuroFocus Looks for Specialist to help that showbiz client “Develop actionable insights from neurological studies”

Companies that rely on influencing brain behavior in order to achieve marketing goals are treading on a very slippery regulatory slope.  Nielsen-backed NeuroFocus is currently searching for a “Partner” in its “Consulting Practice.”  That person will be “responsible for the development and presentation of neurological studies commissioned by our key client in the network/entertainment industry…Of primary focus will be…developing insights from the neurological study results to benefit the client leading to a lasting relationship. Summary of essential job functions:


• Develop actionable insights from neurological studies
• Present results of neurological studies directly to clients
• Deep understanding of entertainment industry / network & cable television industry
• Experience in management consulting, market research, and advertising…

NeuroFocus, Inc. is the market leader in bringing neuroscience to the world of advertising, messaging, packaging, and product development. NeuroFocus clients include Fortune 100 companies across consumer package goods, food and beverage, entertainment, financial services, automotive, consumer electronics and retail sectors. NeuroFocus clients also include major companies in the TV and Motion Picture industries.”

Facebook and Privacy: Why the FTC and EU Have to Become Our Real “Privacy Wizards”

Facebook is a very valuable tool.  But its effort to harness more of its member data–and cloak it as a “privacy” approach–illustrates how out of touch Facebook is with the fundamental concept of personal privacy.  That’s why the FTC and EU Privacy commissioners have to step in and act as Facebook’s true “privacy wizard.“  Left on its own, with its business interests driving Facebook to make our information available to them and their business partners, the privacy of 100 million US users (and even more globally) are at risk.  Facebook cavalier approach that your “name, gender, current city, networks, Friend List and Pages” is considered by them “publicly available information” illustrates this.  Facebook has framed these changes as beneficial to users, claiming that its “new, simplified privacy settings giver you more control over the information you share.”   Classic PR doublespeak with a Silicon Valley accent.

We have raised concerns about Facebook in the past–especially with Beacon and also with the third party apps (my CDD played a leading role providing information on the data collected by third party applications to the leading Canadian privacy group).   I asked Facebook officials to brief me and other privacy groups on the recent changes: that briefing was on Wednesday.  I wanted Facebook to explain how its new privacy approach allowed its users to control data mined by Facebook and its third party developers used for interactive advertising and marketing. I was so appalled by what Facebook officials said at that meeting that, after some additional research into Facebook’s plans, my Center for Digital Democracy decided to join with EPIC and others in a complaint to the Federal Trade Commission.

I was flabbergasted to hear Facebook officials claim that its new changes actually reflected “Fair Information Principles” for privacy. That in their view the concept of privacy has “evolved,” with users wanting to share all their information via what they call the “social graf.” Facebook officials said that only a few people (implying privacy advocates) wanted to have control over their information. That they didn’t consider allowing users to control the data collected on them for marketing and advertising purposes as part of a privacy regime.  Data used for advertising–even to Minors–is considered outside of what a person should be able to control, in Facebook’s view.   They also suggested that those who didn’t appreciate what they called its privacy “permission” model were out of step.

Nothing was said by Facebook officials about the company’s real motivations for expanding its access to its user data (as if business reasons had nothing to do with Facebook’s approach to member privacy!).  As InsideFacebook recently explained, “Last week, Facebook launched a major initiative geared towards getting users to share more information more openly…However, while many people don’t want to share much information publicly online today, some do. For those people, Facebook’s historical default privacy settings did not make it the right product for them. As a result, Facebook recognized that its default-private model made it vulnerable to other services with default-public models, like Twitter…Facebook’s decision to make the recommended privacy options for profile data like “Family and Relationships” and “Posts I Create” be set to “Everyone” – as well as its move to remove privacy controls for Gender, Current City, and Friends – were pretty aggressive by almost anyone’s standards. In particular, its decision to present users with a binary choice between “Everyone” and “Old Settings” for some privacy preferences was especially confusingly executed…Facebook isn’t satisfied with a mostly-private platform: it wants to be the single place where both sensitive personal information is shared and public memes spread…Facebook has shown, as recently as a few months ago with its launch of the “real-time” stream as the default News Feed, followed by its decision a few months later to go back to the algorithmic News Feed, that it is capable of making suboptimal product decisions due to intense feelings about services like Twitter…”

Relevant too are Facebook’s plans to enable its third party developers to gain access to more of its member data, including their email addresses.  As Facebook explains on its “Roadmap” for developers, “We’re excited to announce that you will soon have the ability to ask users for their primary Facebook email addresses, providing you with a direct channel to communicate with your users.” At our briefing, Facebook officials said they were soon addressing third party apps and their access to data.  But given Facebook’s failure to protect basic user privacy, we have serious doubts it will deal with data access by its developers.

CDD will be working to educate the FTC, EU privacy officials and others.  Facebook is consciously devaluing the notion of privacy for its own interests.  How Facebook deals with user data–including what is used for advertising–will be on the policy agenda.  The complaint from EPIC, Consumer Federation of America, Privacy Rights Clearinghouse, CDD and others opens the door for a serious examination of Facebook’s data collection practices.

CNN uses Neuromarketing to Help Advertisers on its news site

The lead ad in the Dec. 14, 2009 print edition of Brandweek is from CNN.com touting its “more effective ad units.”  The trade ad from the “#1 news homepage” says that it tested its ad products using “objective biometric and eye tracking researching.”   CNN engaged the services of neuromarketer Innerscope Research and its co-founder, Harvard professor Dr. Carl Marci.  Innerscope just became the first “neuroscience- based biometric company validated by the Advertising Research Foundation’s [ARF] review process.”  According to ARF, Innerscope:
 “Addresses all levels of impact and response to media with its capabilities;
• Combines well-developed, biological-psychological concepts and theories with both scientifically-validated tools and creative approaches to research problems;
• Delivers “superb” scientific and analytic expertise, with a scientific approach that supports a consistent, thorough validation program;
• Provides results that are reliable and valid, helping clients to make proper advertising and marketing decisions; and
• Possesses tools and methods that can be used for any communication element, including hard-to-measure areas such as product placement, ads in video games and social media.” 

Among the proven benefits to advertisers of its interactive ad units (based on this research) says CNN.com in its Brandweek ad are:
“17% increase in thought and processing; 21% higher emotional engagement; 22% better recognition; 31%  faster recognition; 50% increase in thought and processing; 56% higher emotional engagement.”