Category: consumer protection

Black Box Warning Required for Digital Rx Ads

This week CDD expanded its work on public health & digital advertising to include issues related to prescription drug advertising and health marketing online.  It submitted to the FDA, as part of that agency’s proceeding on Internet and social media marketing, comments.  We are speaking on this issue next week in New York.  And we will be dedicating resources via this blog and other venues on the issue.

But meanwhile we will begin by covering some of the latest developments.  In our FDA comments, we raise questions about the online targeting and data collection practices of online health marketers, including the tracking and targeting a consumer by their medical “condition.”  One of the companies we cited was “Everyday Health” and its “ConditionMatch(TM)” marketing system.  Today, that company posted a release saying it was the “faster-growing health network.”  Here’s an excerpt:  GHM audience is up 93% over a year ago — to 32 million unique visitors monthly — due to growth in consumers’ appetite for sophisticated, condition-specific information on niche sites. Advertisers have followed…

One factor driving the ad gains: a precise targeting capability GHM calls ConditionMatch(TM), which profiles “in-market” consumers (people searching for specific medical and wellness information). GHM delivers three primary audience channels: Consumer Medical, Consumer Wellness, and Healthcare Professionals. The Medical Channel delivers condition-specific audiences (e.g., allergy, diabetes, depression); Wellness bridges a marketplace gap by combining fitness and nutrition sites; and HCP aggregates professional website audiences.

“Pharma and CPG brands want condition specific-audiences of scale,” said Bill Jennings, CEO of Good Health Media. “Our site partners attract more a more frequent, loyal audience than broader health destinations online. We’re able to reach people who are actively seeking specific information on partner sites and across the Internet. That’s the ideal platform.”

When Privacy Groups Raise Money from Facebook, Google, and the companies they are supposed to hold accountable

Facebook’s COO Sheryl Sandberg is the industry draw for CDT’s 2010 fundraising event.  “Gold” sponsors of the “host committee” include Facebook, Google, Microsoft and AT&T.  “Silver” sponsors (and there’s a long list) include Adobe, NCTA, eBay, Verizon, Intel, AOL, Time Warner Cable, News Corp., Visa, Yahoo, Comcast and a bevy of law firms that work on privacy and related issues.  They include Manatt Phelps, Wilmer Cutler, Wilson Sonsoni, and Arnold and Porter.

It’s troubling–to say the least–when any consumer/public interest group takes funding from the industry/industries it is supposed to hold accountable.  Conflict of interest questions and concerns need to be posed whenever the group takes a position and has funding from parties connected to the issue (think about Facebook and Google’s recent privacy problems, let alone legislation and policies now before Congress and the FTC).  It’s great to have extra money.  But we suggest groups “just say no” to such special interest relationships.

Interactive Ad Bureau boasts it “Lobbied extensively and proactively against” FTC Consumer Protection Proposals

In its annual report for 2009, the Interactive Advertising Bureau [IAB] cites as a accomplishment that it “Lobbied extensively and proactively against several proposals— including the FTC Reauthorization Act—that would grant broad newn rulemaking powers to the Federal Trade Commission.“  It also notes that the “IAB PAC had an active year supporting many key Congressional champions of the interactive advertising industry and was able to host the first ever IAB fundraiser.  The PAC begins 2010 with a healthy balance of over $55,000 cash on hand.“

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)”

Buzz and all that Social Media Data `Jazz’

As we explained to reporters, the larger issue to be addressed when discussing Google’s Buzz is the  role of social media marketing and our privacy.  There’s a race to “monetize” our relationships and connections–the so-called social graph.  It wasn’t a coincidence that at the same time Google launched books it acquired social media marketing company Aardvark.    Here is an insightful excerpt from this week’s Search Insider:

” …by building its own social tools into the growing user base for Gmail, Apps and iGoogle, Google’s algorithms will be able to see what sorts of conversations, questions or responses you offer not only through email correspondence or in a collaborative exchange on Wave, but also via Aardvark and, by extension, Facebook and Twitter.  Which represents an opportunity to serve highly targeted, extremely relevant ads in ways that go well beyond the keyword search.”

MicroHoo & Digital Data Consolidation: Despite DoJ okay, FTC Needs to Act and Protect Consumer Privacy

Today’s announcement that Microsoft and Yahoo have received clearance from the DoJ and EU to proceed with its partnership continues the global trend towards online marketing consolidation.  Given Google’s dominance in search, the Microsoft `helps save Yahoo deal’ creates what some hope will be more robust competition in the search market.  But the real issue with the deal is data privacy.  That’s why the Federal Trade Commission needs to dig into this new partnership and ensure consumer privacy is protected.

AOL: “we live and breathe data,” inc. Behavioral Targeting & Retargeting

Here’s what AOL says it can do for marketers who want to target users [excerpt]:
You wouldn’t order pizza from a bank. So why would you try to sell a luxury travel package to a high school student?…

Behavioral targeting
Target consumers based on what they read – and where they click.

Audience behaviors: Hit your audience sweet spot. AOL Advertising observes consumer behavior (anonymously) across thousands of websites, then organizes people into groups based on their interests. Choose from over 350 pre-packaged audiences…With our LeadBack suite, you can retarget consumers who have… – Visited your website (Advertiser LeadBack)
– Seen or clicked on your ad creative (Creative LeadBack)
– Visited a webpage that you’re sponsoring (Sponsorship LeadBack)
– NOT visited your website – a great way to reach more unique visitors (Reverse LeadBack)…Demographic/Household: Target individuals, households or sites based on user registration data.
– Survey-Based: Target users based on their responses to consumer survey questions (e.g., MRI).
– Purchase-Based: Target users based on products they’ve purchased…Look-Alike Modeling: Target users who exhibit similar characteristics to your customers (or other valuable audiences).

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and AOL Advertising also says that “we live and breathe data…AOL’s new content management system, Seed, uses advanced algorithms to measure consumer demand and determine the next hot topics.”

Microsoft to Advertisers: “Behavioural targeting is transforming the capabilities of online advertising”

In a recent post, Microsoft extolled the virtues of using its behavioral targeting service profiling mobile phone users.  It explained that “campaigns can target individuals based on their online behaviour, including the sites that they visit, the actions they take and the terms they enter into search engines. In the US behavioural targeting on mobiles has already delivered increases in click-through rate of 215% for the fashion and beauty sector, 97% for airlines and 76% for auto advertisers.”

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.
*****

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.
*****

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.
  • *****

  • 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.

Microsoft Differs from IAB Lobby on Strengthening FTC Consumer Safeguards [via a letter sent to CDD]

We asked both Microsoft and Google, which serve on the executive committee of the Interactive Ad Bureau [IAB]  trade lobbying group, whether they supported its recent letter opposing congressional action to strengthen the FTC. The letter was signed by IAB and other marketing and advertising organizations.  Microsoft has just replied.  We are glad they aren’t in lock-step with the ever so transparent–and terrified of consumer protection policy–IAB.  Here’s what they emailed me today:


Jeff,

 

Thank you for your inquiry.

 

As a company, Microsoft has not taken a position on the Consumer Protection Financial Agency bill.  As a whole, the bill is directed at other industry sectors.  Nor has Microsoft taken a position on the expansion of the Federal Trade Commission’s regulatory authority as proposed in that legislation.

 

Microsoft has supported the expansion of FTC authority, including in our longtime support for comprehensive federal privacy legislation and in a recent legislative proposal on protecting consumers related to cloud computing, where we said that the FTC should play a key role.  In the current environment, there ought to be better alternatives to guide the marketplace than de facto rulemaking through enforcement activity.

 

It is our view that there is merit to having FTC rulemaking authority mirror that of other agencies — we favor increased certainty and the ability for comment on proposed rules that will impact our industry.  At the same time, the reasons the FTC’s existing mechanisms were put in place (as articulated in the industry letter you cited) should not be ignored.  Perhaps there is room for a balanced approach.

 

We understand that the status of the financial reform bill may be uncertain, at least the status of the relevant provision in the Senate version of that legislation.

 

We are open to discussing these issues further with you and other interested stakeholders.

 

Sincerely,

Frank Torres

Director, Consumer Affairs