Google’s Eric Schmidt on Mobile Marketing [Annals of Why We Need Mobile Privacy and Consumer Protection Safeguards]

Google CEO Eric Schmidt gave the keynote address at the Interactive Advertising Bureau’s “Ecosystem 2.0” conference.  As reported, he explained that [our emphasis]:

“The smartphone is the iconic device of our time,” Schmidt told the record IAB audience of 750 in Palm Springs, California. A year ago, he added, he predicted that mobile use would surpass PCs within two years. “It happened two weeks ago. And the PC is not going to catch up,” Schmidt said, as he labeled the new era, “Mobile First.”…The hyperlocal potential of mobile, Schmidt continued, means that smartphones and tablets bring a practical application to marketing that no other medium can match: A connection that will lead you to the store, open the door, and direct you to a product you need. “A RadioShack ad can tell you where you are and how to get to the nearest store.” And equipped with Near Field Communication chip (NFC), the newest generation of smartphones not only can tell you what to buy, it can enable a tap-and-pay transaction…Think of the offers mechanisms for advertisers,” Schmidt offered. “We’ve spent 20 years trying to get here. And now there’s an explosion in commerce. Particularly for the consumer who says, “I want to buy something and want to buy it right now,” he added, “We can do it.”

And, in large part, that capability means that mobile media consumption “is happening faster than all our internal predictions.”

Some 78% of smartphone internet users already use their smartphones as they shop. And, as consumer comfort with – and acceptance of – new mobile technology continues, Schmidt envisions “a world, in the very near future, where computers remember things and you never need to worry about forgetting anything. You want it to remember something and it will. And you’re never lost. No one is ever lost. You never turn off the [mobile device] and you’ll always know where you are. And where you want to go….”

Leading Health, Privacy, and Consumer Groups Call on FTC to Protect Adolescent Privacy online

For Immediate Release:  Feb. 18, 2011
Child, Health and Consumer Advocates Ask FTC for Teen Privacy Protections, including Do-Not-Track and No Behavioral Targeting

Today a Coalition of Child, Health and Consumer Advocates filed comments on the Federal Trade Commission’s proposed privacy framework asking for increased privacy protections for adolescents.   The coalition includes leading advocates such as the Center for Digital Democracy, the American Academy of Child and Adolescent Psychiatry, American Academy of Pediatrics, Children Now, and the Consumer Federation of America.

Privacy protections are needed as teens are increasingly subjected to privacy invasions online. Teens are using new media technologies for key social interactions and to explore their identities. This increased use of digital media subjects them to wholesale data collection and profiling of even their most intimate interactions with friends, family, and schools. Meanwhile, recent research in psychology and neuroscience reveals that teens are more prone to risky behavior when their anxieties and peer relations are exploited. Privacy protections are needed to keep the online world social and safe.

Companies should not use data to behaviorally profile teens. The framework should also provide enhanced choice for adolescents, including a Do Not Track feature. In implementing “privacy by design,” companies should consider the needs and vulnerabilities of teens.  They should address those vulnerabilities by, for example, minimizing the amount of data collected from teens.  Data that is collected should be retained for only short periods and should be afforded greater security.

“Teens live online today,” said Guilherme Roschke, attorney for CDD. “This time of development and maturation requires privacy protections. Teens cannot go it alone against the vast data collection and profiling infrastructure of new media technologies that not even adults can understand.”

“Because of their avid use of new media, adolescents are primary targets for digital marketing,” explained co-signer Kathryn C. Montgomery, Ph.D. “The unprecedented ability of digital technologies to track and profile individuals across the media landscape, and to engage in sophisticated forms of targeting, puts these young people at special risk of compromising their privacy.”

The full coalition includes:

Center for Digital Democracy, American Academy of Child and Adolescent Psychiatry, American Academy of Pediatrics, Berkeley Media Studies Group, a project of the Public Health Institute, Children Now, Consumer Federation of America, Consumer Watchdog, David VB Britt, Retired CEO, Sesame Workshop, Ellen Wartella, Kathryn Montgomery, National Policy & Legal Analysis Network to Prevent Childhood Obesity, a project of Public Health Law & Policy, The Praxis Project, Privacy Rights Clearinghouse, Public Good, Public Health Institute, Tamara R. Piety, and World Privacy Forum

Guilherme Roschke
Staff Attorney / Fellow
Institute for Public Representation
First Amendment and Media Center
Georgetown University Law Center
T:(202) 662-9543
F:(202) 662-9634
gcr22@law.georgetown.edu
http://www.law.georgetown.edu/clinics/ipr/
**********

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.

As Google Expands Digital Food Marketing Clout, How Will it Protect Children and Adolescents from Online Junk Food Ads?

Google just announced plans to “to build its advertising and marketing business in the food and beverage industries,” including “establishing a food-and-beverage team in Chicago to link with advertisers and marketers.”   The online ad market leader hired a former Frito Lay and beer marketing executive who explained that the company intended to harness the “untapped potential in the digital world for food and beverage advertisers, and Google’s ability to work with them, based on proprietary analytics that map out consumer behavior.”   The exec–Karen Sauder–said that Google intended to use its clout with online media to generate a deep connection to users, including taking advantage of “some of the new location-based services and mobile technology that’s really untapped at this point.”

As our companion site digitalads.org documents, food and beverage companies, along with online ad companies such as Google, Yahoo and Microsoft, are targeting young people with digital ads for products linked to the youth obesity crisis (they are doing this in the U.S. and globally).  Google should play a leadership role and adopt new safeguards to ensure that no one under 18 is targeted by digital junk food ads–and that it undertakes a thoughtful analysis to address problems raised when targeting vulnerable groups.  We hope Microsoft, Yahoo and others will also do so.  We call on Google to embrace a “healthy” digital diet for its food and beverage marketing. This is an issue that will be on the policy radar in 2011.

Online Ad Biz to Reps. Markey/Barton: We Really Don’t Have to Tell You the Facts! The case of Yahoo!




If George Orwell were writing today, 1984’s Winston Smith would be working as a “Doublespeak” specialist crafting privacy policies and creating self-regulatory regimes for the online ad industry.  None of the replies provided to Reps. Markey and Barton answered the basic charge posed by the WSJ in its series and previously raised by privacy advocates:  that “[O]ne of the fastest-growing businesses on the Internet is the business of spying on Internet users.”   All the companies hide behind `it’s a business as we created it and good for everyone’ facade.  Many use a scare tactic claiming that the data collection model they developed is responsible for funding online content/publishing and without it much/if not all of the Internet would vanish (as if you can’t have both robust e-commerce and privacy!).  Many of the answers to Congress also say that their privacy policies and membership in self-regulatory groups (such as the NAI) reflect best practices (as if they automatically vanish the problems!).  The companies don’t take responsibility for the problem or acknowledge that there are privacy concerns outstanding. 

The responses reflect the Orwellian recasting of industry terms on the data collection practices it created and operates.  Behavioral targeting (with $1.13 billion this year in spending for this type of ad) has been transformed into “preference,” “relevant,” or “interest” targeting.  Online profiling and targeting is now called “customization.”  The industry is running away from the precise definitions they created and use because they are honest terms showing consumers are being tracked, profiled and targeted based on our behaviors and actions.  Finally, several of the companies submitted their privacy policies.   In order to full understand them, a consumer (in between taking their children to school or a soccer game, working, shopping, cooking) would simultaneously also have to be a technologist, lawyer, and investigator, to understand and control all the cookies, etc.

Also, the companies resort to a now out-of-date definition of what’s considered so-called personally identifiable information (PII).  Cookies, IP addresses, pixels and web bugs, they claim, are “non-PII” and hence fail to raise privacy concerns.  Yet both the EU and FTC have said that in today’s online data collection world, the old definition of what’s identifiable no longer really works.  The FTC explained last year that “[S]taff believes that, in the context of online behavioral advertising, the traditional notion of what constitutes PII versus non-PII is becoming less and less meaningful and should not, by itself, determine the protections provided for consumer data.  Indeed, in this context, the Commission and other stakeholders have long recognized that both PII and non-PII raise privacy issues…

Companies such as Yahoo, AOL, About.com (NYTimes Co), News Corp/MySpace and others are disingenuous in their responses—failing to inform the Congress what they tell their clients and prospective advertisers.  Among the most cynically self-serving is Yahoo. First, Yahoo did not describe all the ways it collects data on users when it answered question 1.  For example, examine Yahoo’s Advertising Blog, where you can find a discussion of far-ranging techniques used in the data collection process.  Most of which are not spelled out or really explained in the privacy policy;  See also, Yahoo’s “smart ad” technology that changes the copy in real time based on the data it collects.  Its privacy policy really doesn’t explain it in the same way it pitches itself to clients.  Yahoo says in its Hill letter that it “may” acquire data from external sources and gives the link to that section of its privacy policy.  Not even a multi-tasking genius could opt-out all of that.  Nor does Yahoo tell you about the tons of data on consumers their partners collect.  Also, they say in question 3 how they collect data, but tell potential clients a more informed story:  “Yahoo! gets to know its visitors to give them what they’re looking for, even when they’re not actively looking. In part, Yahoo! does this by using an industry practice called behavioral targeting (BT)… Yahoo! BT goes beyond common rules-based segmentation or grouping of consumers by the sites they’ve visited. The tool is powered by sophisticated modeling technology based on extensive online interactions that include searches, page views, and ad interactions. With these models, Yahoo! identifies what consumers are interested in and predicts where they are in the buying process, thereby determining which consumers may respond best to your ad placements.”  In question 4-5, Yahoo claims its users have all the information they require via the privacy policy.  But Yahoo’s information for perspective clients tells a more complete and different story:  “With rich media, you benefit from deep reporting that goes way beyond the click. Track time spent watching video, mouse-over interactions, poll results, average number of panels interacted with and much more.  If you design it, we can track it… Partner with Yahoo! to produce unique, immersive consumer experiences that integrate your brand…”Question 9, again, they call it “customized experience” to Congress—and “smart ads” that track and learn about you when they explain it to advertisers.   Question 10.  Health and finance.  Yahoo failed to tell Congress they track and target consumers health and financial info.  And they target teens.  For health; finance.


Danah Boyd, COPPA, Online Marketing Targeting Youth, the role of Microsoft

Danah Boyd, like many other digital media researchers, fails to examine the business practices which shape and construct most of contemporary online media.  Ms. Boyd is quoted in last week’s Boston Globe about the Children’s Online Privacy Protection Act saying “[I]t’s well-intentioned, but this legislation has failed on every level.”  Ms. Boyd is incorrect.   A whole range of interactive ad practices and techniques commonly found on most digital sites has not been embraced by the under-13 online advertising market.  The goal of COPPA was to help structure the commercial online data collection and targeting practices aimed at young people–and it’s done so (just see what kind of data collection and targeting practices occur the minute anyone reaches 13.  From that age onwards, everyone is fair game for a wide range of very disturbing practices, most of which collect and use our information). Ms. Boyd and the Globe article are also incorrect claiming that “Congress is considering renewing” COPPA.   The FTC is currently conducting a periodic review of COPPA’s rules and the Congress has held hearings on the law.  But Congress doesn’t have to “renew” COPPA.

Finally, a challenge to Ms. Boyd.  She is working for Microsoft–which is targeting youth across the globe via its advertising division.  Microsoft Advertising is collecting data and targeting teens for junk food and other products.  See Microsoft’s “How to Target Young People Online” and other materials, for example.  Ms. Boyd needs to analyze what her employer–and other financial backers from the online ad industry supporting Berkman–are doing regarding youth–and hold them and herself accountable.

The new “Digital Advertising Alliance” self-reg plan. See if it tells consumers what its sponsor ad groups really say to each other. That they track and target your “digital footprint”

On Monday, the new self-regulation magical “icon” that is designed to make the online ad industry’s privacy problems disappear will be unveiled.  A new group called the “Digital Advertising Alliance” will unveil the icon-based plan–all timed to help head-off the kinds of protections and safeguards consumers require.  The current financial crisis affecting tens of millions of Americans require that government and big business groups do more than pay digital lip service to consumer protection.

As a kind of litmus test for the new self-regulation effort, see if the icon and the information connected to it really informs you about how data on you is collected and used for profiling, tracking and targeting. For example, last week, the Interactive Advertising Association (IAB), one of the key backers of the new Alliance, released a guide to targeting consumers at the local level.  Here’s excerpts of what they say.  See if that little icon is being honest when you click it.  Of course, we really require rules that eliminate the kind and amount of data that can be collected on you and you family and friends in the first place–as well as honest disclosure on the process.  Note as well that all that data on you is expensive–and others are cashing in on information that belongs to you!  From the new “Targeting Local Markets” guide:

Explicit profile data Targeting. definition–
Explicit data is “registration quality data” collected either online or offline. For online registration data, the user has certain attributes in his or her registration profile at a particular site or service, and that data is associated with the user’s Web cookie or some sort of audience database when the user next logs in. Offline registration data includes the sorts of data held in the massive offline direct response industry databases built up over the last several decades. These are then matched to a user online when that user logs in somewhere that is a partner of the data company. The site at which the user logs in, usually an online mail or similar site, sends the name/email combination to the data company, which then makes the match and sends back data…pricing–In general, first party data commands a far more variable premium than third party data…Third party data is usually available in much larger quantities, and yet there is often a fee of anywhere between $0.50 to $2.00 or more paid to the data provider by the ad seller – thus increasing the cost of goods sold (COGS) on the ad, and therefore increasing the price…

Behavioral Targeting (Implicit profile data Targeting)-definition-
Behavioral Targeting is the ability to serve online advertising based on profiles that are inferred from an individual user’s technical footprint and viewing behavior…As the medium has grown from a “browsing” experience to interactional so have the levels of information gathered. Newer forms of information include the data collected about influences, social preferences through social networks and an individual user’s content created online…The data is often gathered in real-time and can be used for real-time decision-making so that relevant advertising can be delivered dynamically to an individual user during their online session…Behaviorally targeted advertising commands a higher price because of targeted placement versus general run-of-site (ROS) advertising…Behavioral Targeting can be highly accurate when the user is leaving a digital footprint of their activities as they move through the Web.

Digital Junk Food Marketing Watch: Cox’s Adify Bringing Behavioral Targeting to Food Marketing to Youth and Others?

Adify–owned by Cox Enterprises–provides online marketing and network tools–including behavioral targeting. It offers advertisers the ability to track you site to site (retargeting), can “deploy tracking beacons,” and uses “sophisticated logic to define targetable behavioral segments.”  Adify’s “platform powers more than 160 of the world’s best vertical ad networks, and connects premium brand advertisers to the deeply engaged audiences of thousands of quality mid- and long-tail sites.” Its network provides services for a number of sites, including those targeting African Americans, Gays and Lesbians and others.  It now is moving into what is called the “food vertical” business–which means helping quick service restaurants and other food and beverage companies target youth and others.

The FTC is now looking into the digital marketing of food and beverages to youth–prodded by my CDD.  No food marketer should use behavioral targeting or any related data collection and profiling technique when targeting children and adolescents.  Questions must also be raised about vulnerable populations as well.   Cox should ensure that its Adify doesn’t multiple the country’s obesity epidemic.

Mobile Marketer Delivers “Real World Behavioral Targeting”–they know where you are and what you do!

Mobile marketers have embraced the behavioral tracking, profiling and targeting paradigm–but they now add real location.  Brightkite, which offers “highly targeted mobile media, says it delivers “Ultra-Targeted Advertising,” including:

Real World Behavioral targeting

Want to target people who have purchased items in a hardware store? Or people who go to the movies more than twice a month? Or people that buy coffee more than three times a week? We know who they are, and can put your campaign in front of an audience who cares.

Examples:

For Pantene, we targeted people in hair salons.
For Dentyne, we targeted people in social groups of two or more…

Location and Place targeting

We can target by precise geography – such as, people in Tulsa, people within 2 miles of a KFC, people at Costco, people in a bar, etc.

Examples:

For Chevrolet, we targeted people within 3 miles of a dealership on a given weekend.
For Jack in the Box, we targeted people within 2 miles of a restaurant in the week following the launch of smoothies in each restaurant…

Activity

Want to target people who are currently doing something specific? We know what our members are doing throughout the day, so we can get a relevant ad to match their current activity.

Example:

For Grey Goose Vodka, we targeted people over 21 engaged in drinking and nightlife activities…

Weather

We know the location of our millions of users, and we also know the precise weather in each location. This allows us to target or optimize ads according to the local weather. We can deliver ads only when the temperature is over certain threshold, or deliver different creatives if the weather is sunny, cloudy, raining, snowing.

Example:

Diet Coke wanted to target people when the afternoon temperature was over 75°.
Big-O tires wanted to target to days with ice or heavy rain.

Microsoft Fuels Youth Obesity Epidemic via Xbox tie-ins: Digital Product Placement and Beyond

Microsoft is one of the most aggressive online marketing companies targeting teens online.  Across the globe, Microsoft Advertising touts its ability to deliver interactive food and beverage ads on PCs, mobile phones, gaming devices and via IM, Bing, etc.  Teens and young adults are the key target–but so are young children.  In its desperation to catch up with online ad leader Google, Microsoft has strained to be the “yes we will” digital agency.  For several years, Microsoft has had a close tie with Pepsi’s Doritos and Mountain Dew, offering various special games that feature the chip.  Now Microsoft is continuing that alliance, as the new Halo:Reach edition comes to market.  As explained by Variety, “helping build Microsoft’s brand is Madison Avenue, which has fully embraced the franchise’s main character, Master Chief, and turned him into a pitch soldier, with PepsiCo plastering him on 300 million Mountain Dew cans and 30 million bags of Doritos for the launch of the latest game.”

Microsoft officials–and those who play a influential role in the company–should not endorse digital marketing schemes that target youth–and especially contribute to such major public health problems as youth obesity.  For shame, Microsoft.