Google’s new online ad-suppported animated venture:“We feel that we have recreated the mass media”

That’s the headline here–“We feel that we have recreated the mass media,” said Kim Malone Scott, director of sales and operations for AdSense in a New York Times article on Google backing a “Calvalcade of Cartoon Comedy” for online. Google is likely using its resources which can track how long users are likely to watch a video, and how they interact with a slew of interactive advertising pitches. They can measure each click too, so they can better determine what works for the commercial sell.

But, of course, the analogy to the “mass media” is what is interesting. Google is leading the way to recreate the mass media in the digital age. They are right about that. But with such an ambitious plan comes responsibility–to ensure there is funding for serious and diverse independent news, investigative reporting, and quality cultural programming. Google should also help ensure that women and people of color–now cut out of ownership in media–actually own significant parts of the new digital content landscape. And there must also be a serious privacy policy which covers broadband video as well. Google, its advertisers, and partners shouldn’t automatically know what we watch and how we respond (without our permission–and with special rules for children and adolescents).

source for quote: Google and Creator of `Family Guy’ Strike a Deal. Brooks Barnes. NYT. June 30, 2008

Google “Platinum Sponsor” at Ad Research Event

excerpt: “At the Advertising Research Foundation measurement conference… Google’s designs on establishing a leadership position in advertising research were evident… It was the event’s “platinum sponsor,” and the stage, halls and registration area were festooned with Google signage and promotions that made other dominant industry players such as Nielsen Co. look circumspect by comparison…

a Google executive gave a presentation about the capabilities of the TV Ads service–which provides a detailed next-day report on where an ad ran, how many impressions it received, and viewer tune-in levels over the course of a particular spot via second-by-second data.”

ARF Talk: Google Stalks Research Walk, May Balk On Accreditation. David Goetzl. Media Daily News. June 26, 2008

Hasn’t Google Heard of Separating Content from Advertising? YouTube Fostering Stealth Infomercials

Google is now permitting creators of YouTube content to sell their own ads (with a split going to Google). But what’s alarming is that some of the videos on YouTube are being produced in cooperation with advertisers, including featuring its products in the program. For example, Advertising Age reports that “Revision3, the online-video-production company…is selling advertising on YouTube, starting with GoDaddy, a sponsor that’s regularly integrated into the content of its shows.” Revision3’s website explains that “it has attracted a wide-range of top advertisers including Sony, Netflix, Dolby, Microsoft, IBM, HP… Verizon and FX Networks. Advertisers enjoy a unique bond with the audience via customized message integration and host mentions that deliver phenomenal results.” Revision3 lists among its “success stories” the following:

Verizon VCast: As part of its launch of a mobile phone-based streaming video service, Verizon sponsored Diggnation. As part of the sponsorship, the hosts interacted with the VCast service during an episode, and discussed how the service worked and what it did. Awareness skyrocketed. According to Amanda Donelly, the Media Supervisor at Verizon’s agency Moxie Media, the results were “seriously way better than we had ever anticipated”.

Congress, the FCC, FTC, and media reform advocates will need to address the purposeful blurring of content and advertising in online video (broadband and mobile). But industry also must enact meaningful rules regulating such practices. That’s where Google comes in. As the global online advertising market leader, Google needs to set the highest standard for ethical business behavior. Enabling stealth informercials guised as entertainment tarnishes the reputation of YouTube.

source: “YouTube: You Created the Content, Now Sell the Ads.” Abbey Klaassen. Advertising Age. June 9, 2008 [sub required]

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.

Google Opens its Network to 3rd Party Ad Servers, but Fails to Candidly Address the Privacy Issues

Google announced Tuesday that it [our emphasis] “is accepting third-party advertising tags on the Google content network in North America. This will empower advertisers to work with approved third parties to serve and track display ads, including rich media ads, across the Google content network through AdWords, giving them more options, flexibility and control over their campaigns.” Among the companies it lists that can track us through the Google network includes its own DoubleClick, as well as Eyeblaster, Eyewonder, Pointroll, Unicast, Dynamic Logic, and Interpolls.

Google has created a three-part video series on YouTube to “explain” how ad serving works. But like so much of Google’s privacy PR, it doesn’t really explain what the goals are of its expanded ad service. It also attempts to minimize the very real privacy concerns. Google uses its online ad industry Orwellian-like Doublespeak to suggest that the profiling and targeting of users is “enhancing their web experience.” Google could have included in its YouTube script what it is telling prospective YouTube ad sales persons: “that Google technology enables the world’s biggest advertisers to enjoy immediate and accountable communication with the consumer…to drive revenue… to top-tier brand advertisers and agencies…[via]… a next-generation advertising platform.” It could have said that its expanded online ad platform was designed, as its job announcement for a New York-based “Google Financial Services Account Executive” states, to help “the biggest financial services companies in the world. This includes investment, credit card, tax, banking and insurance companies.” Or as it explains in its “Google entertainment account executive” job announcement, “you’ll help to provide integrated, cross-platform advertising solutions for media and entertainment clients including TV, movie, gaming, music and web publishing companies.”

Google’s blog announcement for the opening up of its network to 3rd party ad servers, and its three-part series, could have detailed the range of data being collected and tracked by its DoubleClick and now other companies. That would include DoubleClick’s “Rich Media’s Audience Interaction Metrics package,” which “lets you analyze data on more than 100 unique interactions in every creative unit including multiple exit links, counters, timers and video metrics.” Or Eyeblaster’s “advanced …powerful tracking and optimization capabilities” that examine “unique viewer behavior– why look at impressions and clicks when you can look at the behavior of individual customers.” Or Unicast’s “User Engagement Index (UEI), that measures a user’s interaction with a rich media ad and provides a score made up of key engagement metrics.” Or what its now 3rd party approved from Eyewonder collects, such as “track all video interactions, rich media interactions, brand interactions and time, and …Custom tracking… to also measure metrics critical to your specific campaign.”

Google really requires both a privacy and online marketing ombudsman, to say the least. They have a very hard time being straight-forward about what information about us is being collected, how it’s really used, etc. Perhaps independent observers and consumer advocates whose mission is to help the company be more honest with itself, its employees, and its users would help. Meanwhile, we will just have to help regulators, policymakers, and the public better understand what Google isn’t really telling us.

PS: This announcement also has implications for mobile privacy. We think this quote from Mobile Marketer is very telling (hey, Google. Put him on your GoogTube channel!): “As mobile advertising evolves and matures, advertisers will demand consistent, in-depth analytics and immersive consumer engagement frameworks,” Mr. Rahav said [Amit Rahav, VP, Marketing, Eyeblaster]. “…To be able to retain client confidence and quality of user experience, Google defined a process for certifying trusted partners like Eyeblaster and other companies. Defining such rules of engagement creates the win-win ecosystem that helped scale Web advertising and stands to do the same for the mobile world.”

PPS: Perhaps Google should have addressed this, from its new 3rd Party approved partner Interpolls: “Interpolls is the only rich media company providing a complete end-to-end suite of integrated marketing solutions. In addition to rich media advertising, Interpolls provides clients with interactive promotions, live on-air voting, site polling, online sweepstakes and more. All of Interpolls services can be integrated into its proprietary platform, offering customers tremendous convenience while maximizing reach, awareness and results. “Expanding our distribution network to include the Google content network was a critical piece needed to provide our clients with the industry’s largest rich media distribution to reach their customers and prospects without limitations,” said Peter Kim, CEO and president, Interpolls. “The agreement opens the door for our clients to increase their distribution through the Google content network, and provides Google publishers and advertisers access to our innovative rich media advertising and widget solutions.”

PPPS (and we promise this is the last one!). Google also announced that several research firms were now allowed to work with its network and, we assume, help “measure performance” of Internet ads. They include Dynamic Logic, IAG Research, InsightExpress, and FactorTG. For example, IAG (now owned by Nielsen) says it “is the only panel-based measurement service that provides continuous evaluation of Internet ad performance and a direct comparison to TV ad effectiveness.” In another words, to help grow Google’s ad business it has, understandably, opened up its service to the network of tracking, analysis, and interactive media delivery services which comprise the world of marketing. But, we believe, Google should have explained all this clearly to users, and not–in our view–gloss over what this all means.

Microsoft pitches interactive ad and branding “integrated campaigns… that don’t necessarily feel like campaigns”

Microsoft is holding its annual meeting with advertisers, to show off what it can do. We will have more to say about it, but for now ponder this from Robbie Bach, Microsoft’s President, Entertainment and Devices Division:

“We think there are screens and areas beyond the browser for people to reach. We think you can reach them, whether it’s on a PC, on a TV, or on mobile devices. We think there are integrated campaigns that can be built, that don’t necessarily feel like campaigns, and that don’t necessarily feel like advertising, in a world in which people want to be entertained.”

The Shopping Cart Tells You What To Buy–and knows if you did!

Just when consumers tighten their wallets and purses, a new system emerges that will use data collected from us to target us while we shop in grocery stores. Here’s an excerpt from MediaCart’s pitch to advertisers:
“With MediaCart, consumer product brand marketers can deliver full-motion video advertising to shoppers as they approach various product locations in the store – whether walking down an aisle, approaching an end cap or standing at the checkout.

Direct One-to-One Ad Targeting. By collecting shoppers’ preferences through loyalty card information, prior shopping history, geographic locations and shopping times, advertisers are able to channel valuable communications to individual shoppers and deliver a powerful visual message right at the point of purchase.

Tracking Your Advertising Investment. The MediaCart® system tracks each cart’s location, dwell time, and shoppers’ purchases. This information will give valuable feedback on shoppers’ responses to alternative ads, offers, displays or message frequency. Advertisers are able to measure the true impact, quickly determine what is most effective, and adjust advertising messages and promotional offers as quickly as sending an email.”

Microsoft, by the way, is working with them. Be sure to see the picture of the cart on the press release.

Charter Cable to Spy on its Broadband Users to Serve Targeted Ads via NebuAd

We have long pointed out that deep-packed inspection can be used by ISPs to both eavesdrop on users and undermine the neutrality of the Internet. Via Wired and other sources we learn that “Charter Communications, one of the nation’s largest ISPs, plans to begin eavesdropping on the web surfing of its customers, in order to help web advertisers deliver targeted ads. In letters being sent to some of its 2.7 million high-speed internet customers, Charter is billing its new web tracking program as an “enhancement” for customers’ web surfing experience. The letters were first reported by a BroadbandReports.com user on Sunday. The pilot program is set to begin next month.”Charter, using language straight out of Orwell’s 1984, claims it’s offering an “enhanced” service. Demonstrating its monopoly clout, Charter is imposing this service on an opt-out basis. Charter will be using, notes Wired, NebuAd. Here’s what NebuAd says it does (our emphasis): “NebuAd delivers the most actionable consumer intelligence by extending its reach dynamically to encompass the ever-growing network of sites that consumers visit. NebuAd combines this web-wide view of pages navigated, searches performed, ads clicked, etc., with the industry’s most accurate targeting capabilities, matching consumer interests across more than 1,000 categories…The result is behavioral advertising on a vast scale with a level of relevance that drives significantly improved response and engagement rates across all categories of advertisements.”

Here’s what NebuAd told Behavioral Insider magazine last November (excerpt, our emphasis): “The kind of data we do aggregate includes Web search terms, page views, page and ad clicks, time spent on specific sites, zip code, browser info and connection speed…within this vast universe of information we create a map of interest categories, beginning with the widest definitions, auto, finance, education, what have you. But within those we can provide far greater granularity. So if you’re talking about auto, we can drill down into particular interest segments, say SUVs, luxury cars, minivans, and then even to particular brands or models. Within the interest category of travel, we can identify consumers interested in learning about Martinique, the south of France or Las Vegas.”…“ISPs have been a neglected aspect of online’s evolution over the past several years. But the fact is the depth of aggregated data they have to offer, anonymous data, is an untapped source of incredible power… The conventional approach to behavioral targeting has been to place cookies on specific Web sites or pages. We’ve gone about it in a very different way. We place an appliance in the ISP itself. Therefore we’re able to get a 360-degree, multidimensional view over a long period of time of all the pages users visit. So what we’re really talking about for the first time is a truly user-focused, though still anonymous, targeting, taking the totality of anonymous behaviors rather than just a subset of sites on a network.” Here’s what NebuAd said in a November 2007 release: “NebuAd’s rich insight into consumer interests surpasses any other behavioral targeting solution and enables NebuAd to deliver precisely targeted ads that drive substantially increased value per impression…NebuAd’s deep insight into anonymous consumer commercial interests across the Internet, combined with its ability to micro-target the most relevant ad placements, brings a new level of value for advertisers, publishers and ISPs:..ISPs, who have up to now facilitated but barely participated in online advertising opportunities, can open new revenue streams that complement advertiser and publisher objectives to maximize revenue and generate higher revenue-per-subscriber.”

Both the FTC and FCC must investigate Charter’s plan (and other ISP’s permit snopping schemes. Congress needs to hold oversight hearings as well). ISPs should not be in the business of letting online marketers have access to the rich informational personal data streams of their customers. Broadband providers such as Charter get paid handsomely already by their subscribers for connectivity (and also benefit from their monopoly status to secure lucrative `bundle’ packages from consumers). Charter, which has a checkered financial history, should not be allowed to weaken the privacy rights of U.S. consumers. Paul Allen, Charter’s chairman and the co-founder of Microsoft, should do better than this.

Google’s YouTube now offers advertisers ability to do “Buzz Targeting”

excerpt from YouTube May 13, 2008 press release: “As part of our continued efforts to experiment with new ways to provide value to YouTube advertisers, today we’re announcing one such new product: buzz targeting…YouTube’s …algorithm…determines which YouTube partner videos are quickly becoming popular on the site and about to go viral. The algorithm looks at several factors, such as acceleration of views, favorites, and ratings activity, and then allows advertisers to target their ads specifically to these videos on YouTube.

“Every advertiser hopes that their campaign will to be the next big viral hit online, and they come to YouTube to reach the millions of video viewers who are on the site everyday,” said Rajaraman [Shiva Rajaraman, YouTube Product Manager]. “Buzz targeting lets them do both at the same time. They associate their brand with the hottest content of the day, while reaching the most engaged users in our community.”

and from Online Media Daily: “YouTube buzz targeting works on an algorithm that looks at a number of viewer activities, including how many times a video is chosen as a favorite, how favorably it’s rated, and how quickly it picks up views, to determine which clips are about to “go viral.” Advertisers can capitalize on the momentum by choosing to run overlay ads on these videos, with the possibility of combining buzz targeting with other options like time of day, gender and category targeting.”

source: Advertisers Get Buzzed On YouTube With New Targeting Capability. Tameka Kee. Mediapost. May 14 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.