Watch this online video of Randall Rothenberg speaking before a June Federated Media Publishing event. In Mr. Rothenberg’s worldview, demon critics of advertising (such as myself) are deliberately trying to undermine democratic digital media. This would be absurd, if it wasn’t so sad. Mr. Rothenberg is using scare tactics to whip up his members into a frenzy-all so they can fight off laws and regulations designed to provide consumers real control over their data and information. Luckily, Mr. Rothenberg will be on the losing side of this battle to protect consumers in the digital era. Regulators on both sides of the Atlantic understand how the digital marketing ecosystem raises serious concerns about privacy and consumer welfare. We have to say we are disappointed in John Battelle, the CEO of Federated (who wrote a very good book entitled The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture). Mr. Battelle should know that the online marketing system requires a series of safeguards which protects citizens and consumers. There is a balance to be struck here. Online advertisers have unleashed some of the most powerful tools designed to track, analyze, and target individuals–whether on social networks, or watching broadband video, or using mobile devices. We have never said there shouldn’t be advertising. We understand the important role it must play, including for the underwriting of online content. But the online ad system should not be designed and controlled solely by ad networks, online publishers, trade groups and online ad lobbying groups. It must be structured in a way which promotes as much freedom for individuals.
Category: wireless
IAB’s Lobbying Against Privacy Safeguards: Trade Group Will Add New Members to Help Fight Consumer Protection Legislation
The trade lobbying group Interactive Advertising Bureau (IAB) plans to add new members to help it generate “grassroots support against proposed legislation in New York and Connecticut that would ban the collection of data about online consumers without a person’s specific consent.” According to ClickZ, the IAB will create a new low-dues membership structure which will enable smaller online advertisers to swell its ranks. What is IAB’s pitch to its prospective members about privacy safeguards offered by state legislators in New York and Connecticut? ClickZ says that “[T]he IAB contends that the proposed measures would have a disproportionate negative impact on small publishers that rely on ad networks to manage advertising sales.”
The IAB’s leadership is off on a irresponsible mission to persuade online marketers and the public that privacy rules would “kill the web.” Such an self-serving view of why privacy rules are required in the age of online marketing will only further diminish the credibility of the IAB.
ATT: DoJ, EC and Congress: Yahoo!’s own claims should raise alarms about a Google or Microsoft deal
No one should sit by and let either Google or Microsoft carve-up or take-over Yahoo! without a serious examination of the competition, privacy, and other consumer protection issues. This week, Yahoo! ran a four-page ad inserted in Advertising Age. Here’s some of Yahoo!’s own copy for regulators and the public to ponder:
“Yahoo! delivers the largest audience in the U.S.-the most 18-34 year olds, the most 35-54 year olds, the most women….Today, Yahoo! reaches over half the world’s Internet users. And with our growing network of premium publishing partners, including over 625 leading newspapers, we’re working with the other half…Our insights and understanding of our users lead to smarter targeting, so we can connect the right audience with the most relevant message–yours…With more ways to connect to your customers more deeply than ever, the future is wide open.”
From Yahoo! Advertising Age insertion. June 2. 2008 entitled: “What Happens When You Can Connect To More Than 550 million People From Over 170 countries Who Spend 2 Billion Hours Each Month In One Place?”
Verizon Research: Mobile Banner Ads work as well as TV spots producing brand recall
As part of our work covering mobile marketing, we will post relevant information to foster discussion and debate. Mobile communications will bring a profound change in how we live our lives. How we engage with our communities and social networks, let alone with brands and ads, will be greatly influence by mobile technologies. We need to try and create the mobile media “ecosystem” in a way which strengthens democracy, protects privacy, encourages innovation and fosters commercial growth. Here’s an excerpt from Online Media Daily:
“On average, small banner ads on mobile devices produce the same level of brand recall as the typical 30-second TV spot, according to Stephanie Bauer Marshall, the mobile advertising leader for Verizon Wireless… “The banner ads work really well, and that’s where you have the greatest reach”…they were on par with TV spots in terms of brand recall….Mobile banner ads also produce click-through rates that are “exponentially higher than online” banner ads…Verizon has commissioned brand recall studies…”
Mobile Banner Ads Have Same Brand Recall As TV Spots. Eris Sass. OnlIne Media Daily. May 15, 2008 [reg required and well worth it]
Google’s Mobile Plans include Cookies for Ad Targeting
At last week’s FTC hearing on mobile marketing, we pressed several industry representatives to confirm that the data tracking, profiling and targeting system we now have online is being migrated to mobile. That’s what eventually we were able to get at least one mobile marketing panelist to confirm.
Meanwhile, we have learned that Google has made presentations to advertisers about its mobile marketing capabilities. It appears that mobile cookies are part of their targeting marketing plan. Google told advertisers that “Google provides mobile conversion tracking on phones that support cookies. Google can measure clicks, impressions and conversions for all campaigns.”
Google needs to explain to the public how its cookies and mobile ad tracking and targeting will work, including what safeguards it plans. By the way, we also think it’s interesting to place Google mobile in the context of its DoubleClick subsidiary. DoubleClick mobile “is an ad delivery system for mobile websites that delivers dynamic, interactive ads to mobile web pages based on specific criteria as determined by you. It supports a wide range of devices and boasts a full management and reporting suite. Now publishers can deploy mobile advertising with the same confidence and control as online display ads…Report on impressions, clicks, jump pages and third-party metrics…Full reporting for all dynamically displayed ads.”
Google’s Android does, it turns out, dream of electric ads via cookies.
Google & Yahoo!’s mobile businesses will require antitrust scrutiny in any deal
Among the questions we will raise with policymakers is what any alliance between Google and Yahoo! will also mean for their respective mobile search advertising businesses. Privacy is certainly a concern here, as companies such as Google migrate the user tracking and targeting model which fuels the traditional PC-focused online ad business.
Here’s what Yahoo! says in can do with its Mobile Ad Services: “Yahoo!’s Mobile Ad Services make it possible to reach your target customers wherever they are, seamlessly following them from the PC to the mobile Internet. A wide variety of ad formats, targeting options, and calls-to-action are available – as well as resources to help you put effective programs in place if you’re new to mobile advertising…
Eye-catching display ads can be targeted using the same wide array of options as traditional Web banners (e.g. context, demographics, behavioral) – and can incorporate location, which has greater importance when marketing to consumers who are ‘on the go’.”
Update [via 5/12/08 Advertising Age. sub required likely]: “Google has managed to command a lead in mobile search, though nothing like the massive share it has in the PC-based internet world. According to M:Metrics data, Google had a 38.3% share as of August 2007. (Yahoo is the next closest with 25.4%.)”
source: WiMax Could Bring Dramatic Changes, Wherever You Are. Abbey Klaassen. Ad Age. May 12, 2008
Do Androids Dream of Mobile Digital Ads? I’m Speaking at FTC next Tuesday on Mobile Marketing and Consumer Protection
The mobile marketing ecosystem, as its called by the industry, poses significant consumer protection and privacy concerns. Next week, the FTC is holding a two-day town hall meeting on mobile marketing. The commission has invited me to participate on the mobile advertising and marketing panel. The public and many policymakers are entirely unaware of what’s soon coming. The FTC and policymakers must do a better job both educating the public and asking them to speak out about how the marketing system should be structured. Safeguards will be required, including for youth. I will try and deliver a “click to call to action” overview.
Yahoo! merger or deal watch. privacy division: Yahoo! may expand behavioral targeting
All these privacy, data collection and marketplace competition issues will need sorting out. Yahoo is acquiring “Tensa Kft., more commonly known as IndexTools…IndexTools will add more insight and metrics for online campaigns…” One search column explains the significance of the deal is the “…huge benefit that Yahoo will have is the ability to put their pixels (data collection mechanism) around the web and hence collect data. Which, in turn, will help their Behavioral Targeting efforts, which are currently limited to Yahoo portal only. This is huge!!!
Those mobile devices will be watching you–and telling you what you would like (even on other screens)
As part of our public service to the FTC, esp. in light of its upcoming town hall, we submit some excerpts from io global. This company “provides the software and services to enable Network Operators, Media Brands and Advertisers to collaborate in a trading model to personalize and monetize their interactions with individuals on the run.” They explain to potential advertisers that “the io global ltd -enabled device learns what your consumer cares about most. Which TV shows and movies she likes. Her favorite music and games. Where she travels. What news, entertainment or other services she prefers. This rich, detailed data creates an accurate profile of this single customer for powerful target marketing. Then io global ltd uses this learning to serve up her preferred content. It’s in this friendly “opt-in†environment that your brand and messaging is delivered… In addition, io global ltd moves seamlessly from the mobile device to engage the consumer on her PC and her TV.”
European Privacy Officials investigate behavioral targeting & data mining
Just to place the privacy and online marketing debate in better perspective. It is appropriate and necessary for lawmakers and policymakers to examine and then address through rules the impact of new technologies on privacy. The Article 29 Working Party, the EU’s data protection review group, adopted as part of its 2008-2009 work plan to help ensure “data protection in relation to new technologies.” Among the areas they are now examining include: “search engines, on-line social networks (especially for children and teenagers), behavioural profiling, data mining, [and] digital broadcasting” (they are also focusing on ICANN and WHOIS). Direct Marketing is being reviewed as well.
Our point here is that the online industry has largely developed its system of data collection without user permission largely in the absence of thoughtful oversight that would ensure privacy. We believe the process underway in the EU will help address this issue in a meaningful way.