We are glad Google is pushing a more open system for wireless. Cable and the phone monopoly want to run a closed shop. But we also believe that Google ultimately has the same business model in mind for wireless. Google wants access to more mobile spectrum so it can advance online advertising via data collection, profiling and one-to-one targeting. Missing in most of the debate about wireless is how can we ensure the U.S. public has access to non-commercial and community-oriented (and privacy-respectful) applications and services. There should be well-developed plans simultaneously advanced with the auction that will ensure the spectrum really serves the public interest (we see some have made such proposals). Such spectrum should be community-run and help stimulate a new generation of broadband public interest content and network services. But we fear that all that will happen is that Google and others will further transform what should be public property into a crazy maze of interactive [pdf] advertising-based content. This will further fuel a culture where personal consumption takes further precedence over the needs of civil society.
Category: public health
excerpt from a Q and A on online ad exchanges:
“8. How can advertisers target their ads?
The DoubleClick Advertising Exchange service has one of the most
sophisticated and broad set of targeting options available. The exchange
supports standard online targeting elements including time of day, day of
week, user location, et cetera. In addition, buyers can target using
DoubleClick’s proprietary solutions including a three-tier content
categorization, site genre and site maturity. Buyers can target
participating sites by name or, alternately by using IDs, target sites
that are participating anonymously. The exchange also allows buyers to
leverage their own data by targeting based on their own user information.
9. What differentiates your ad exchange from other ad exchanges?
* Seamless integration: DoubleClick Advertising Exchange is tightly
integrated with DoubleClick’s existing DART ad management platform,
enabling yield maximization across sales channels for sellers, as well
as shared creatives, advertisers, Spotlight Tags and audience
targeting for buyers…
12. Can your ad exchange service be integrated with other ad management
platforms?
DoubleClick Advertising Exchange is tightly integrated with DoubleClick’s
existing solutions. Integration with DoubleClick’s ad management platforms
— including DART® for Publishers and DART® Enterprise — enables it to
deliver unique benefits such as dynamic allocation, which helps publishers
automatically determine how to generate the highest return for every
impression. In addition, DoubleClick Advertising Exchange is integrated
with DART® for Advertisers, allowing for shared campaign management
elements including creative, advertisers, user-lists and spotlight
tracking tags.”
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Google Buys More Lobbyists and Influence
excerpt from Washington Post: “…Google went on a hiring spree and now has 12 lobbyists and lobbying-related professionals on staff here — more than double the size of the standard corporate lobbying office — and is continuing to add people. Its in-house talent includes such veteran government insiders as communications director Robert Boorstin, a speechwriter and foreign policy adviser in the Clinton White House, and Jamie Brown, a White House lobbyist under President Bush.
Google has also hired some heavyweight outside help to lobby, including the Podesta Group, led by Democrat Anthony T. Podesta, and the law firm King & Spalding, led by former Republican senators Daniel R. Coats (Ind.) and Connie Mack (Fla.). To help steer through regulatory approvals in its proposed acquisition of DoubleClick, an online advertising company, Google recently retained the law firm Brownstein Hyatt Farber Schreck.”
from: “Learning from Microsoft’s Error, Microsoft Builds a Lobbying Engine. Jeffrey H. Birnbaum. June 20, 2007
PS: And that’s before Johanna Shelton, former aide to Rep. John Dingell and FCC Commissioner Adelstein, starts working for Google on Monday!
Online Marketing & Advertising– “the core of creating online demand.”
Excerpt from: Editorial: The Internet Revolution
“…Beyond all this is a basic truth—online marketing and advertising have moved from the periphery to the core of creating brand demand. It is also now at the core of the research industry and at the core of how business gets done today.â€
Joseph T. Plummer. Journal of Advertising Research. June 2007
Google Loves Our Data! Let Us Count the Ways…
As admirers go, Google is definitely of the secret variety. From its highly guarded formula for generating search results, to the shroud of mystery that surrounds its plans “to organize the world’s information and make it universally accessible and useful,” to a complex privacy policy that is spread over 20 separate pages on the Web, the search giant invariably raises more questions than it answers. “Don’t be evil,” reads the company’s motto, but apparently it’s OK to be evasive. “It’s somewhat of a paradox,” financial analyst Jordan Rohan told the Los Angeles Times last year. “Google’s whole purpose is to make information easier to access—unless, of course, you want to know information about Google.” As the Times added, “Google’s unwillingness to disclose little more than the legally required basics of how it does what it does—and where it’s headed—has left advertisers puzzled, partners confused, competitors nervous and investors frustrated.”
Make no mistake, however, this secret admirer really does care about us. Why else would Google give us so much—lightning-fast search results, interactive maps, email service (with plenty of storage space to archive our communications), online calendars, word processing programs, spreadsheet applications, and more—all free of charge?
The answer, of course, is that Google actually gets plenty in return, in the form of massive amounts of data that it compiles on consumer interests, tastes, and behavior. For all of its variations on the search engine theme—from Google News to Google Video to Google Product Search—the company remains above all else an advertising engine, one whose $500 stock price and $700 billion revenues are testaments of its success.
So how does Google love us? Let us count the ways, with a sampling of the kinds of user data to which Google currently has access:
1. The keywords and phrases we use in the searches we perform.
2. The time and date of these searches.
3. Our Internet IP address and browser configuration.
4. The websites we visit as a result of these searches.
5. The amount of time we spend on those sites before returning to Google.
6. Our patterns of navigation as we travel away from and back to Google.
7. The addresses and directions we enter in Google Maps.
8. The messages we send and receive via Gmail or Google Talk.
9. The schedules we create on Google Calendar.
10. The documents we create and edit in Google Docs.
11. The figures we enter in Google Spreadsheets.
12. The sources we subscribe to in Google Reader.
13. The accounts we create and the information we post to Google’s far-flung Web properties, including Blogger, Orkut, and YouTube.
14. The activities we carry out using a variety of Google-branded “helper” applications, including Google Desktop, Google Toolbar, Google Checkout, Google Web History, and Picasa.
“Google has been aggressive about collecting information about its users’ activities online,” observed Adam Cohen in the New York Times. “It stores their search data, possibly forever…. Its e-mail system, Gmail, scans the content of e-mail messages so relevant ads can be posted. Google’s written privacy policy reserves the right to pool what it learns about users from their searches with what it learns from their e-mail messages, though Google says it won’t do so. It also warns that users’ personal information may be processed on computers located in other countries.”
The lynchpin in Google’s vast data-dragnet is the small text file placed on the user’s hard drive, known as a “cookie,” stamped with a unique user ID and passing information back and forth between one’s PC and a particular website. “Google was the first search engine to use a cookie that expires in 2038,” explains Google-Watch.org. “…This cookie places a unique ID number on your hard disk. Anytime you land on a Google page, you get a Google cookie if you don’t already have one. If you have one, they read and record your unique ID number.”
As if Google (with its billions of searches and millions of users it serves every month) doesn’t already know enough about us, its proposed $3.1 billion acquisition of DoubleClick will bring online consumer surveillance to an entirely new level. DoubleClick might not be the household name that Google is, but in its field—online advertising—it is perhaps even more dominant, reaching an estimated 80 to 85 percent of all Web surfers with some 720 billion ads a year. Its consumer analysis, profiling, and behavioral targeting technologies, carried out on a vast network of affiliated websites, are extraordinarily thorough. “Without a doubt, DoubleClick’s historical data is very valuable,” says Jupiter Research analyst Emily Riley. “Every time you’re online, every page visit, and every ad you see comes with the possibility that a cookie is placed on your machine. DoubleClick has all the data.”
And soon Google will have access to all of that data as well. DoubleClick’s DART system, for example, will provide Google with a complete set of applications—and data access—to allow it to extend its more linear search advertising business into the third-party and rich-media advertising market. Another of DoubleClick’s key technologies, called Motif, is used to track user interaction with video content. As the search and online video markets converge, the ability to identify and assess user response to interactive media environments will be central to online advertising. Google’s interest in such technology was no doubt fueled by its $1.65 billion acquisition of YouTube in 2006. Google is now in the process of “data-tagging” all of the videos on YouTube in order to make the site a much more effective platform for advertisers.
A combined Google and DoubleClick, clearly, will be a potent force in the online universe. As the New York State Consumer Protection Board recently declared, the Google/DoubleClick “merger presents significant privacy implications. The combination of DoubleClick’s Internet surfing history generated through consumers’ pattern of clicking on specific advertisements, coupled with Google’s database of consumers’ past Internet searches, will result in the creation of ‘super-profiles,’ which will make up the world’s single largest electronic repository of personally and non-personally identifiable information.”
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Youth Health Crisis: New Report on Digital Marketing of Food & Beverage Products
I co-authored a report released yesterday. For those concerned about the obesity crisis, it’s a useful resource. It also offers a good overview about the forces shaping the global media system. It’s available here.
Regulators Must Stop Microsoft/aQuantive as well as GoogleClick
Today’s announcement that Microsoft is swallowing the immense aQuantive digital marketing apparatus is no surprise. Having lost the leading third-party online display giant Doubleclick to its archrival Google, Microsoft is desperate to remain relevant in online marketing. The $6b acquisition of aQuantive provides Microsoft and its adCenter platform with the digital marketing clout of Atlas. Atlas products include services designed to super-charge brand-marketing friendly ads utilizing rich media, broadband video, search, etc.
The deal is more proof that the FTC better wake-up and do something about the consolidation of the online advertising market. That agency can’t address the hypocrisy though of Microsoft lobbyists. They have beseeched advocates, including this blogger, to stop the Google-Doubleclick merger. All along we knew that Microsoft was desperately seeking a deal, including with Yahoo!
We will discuss the deal later in this column. But it underscores what we’ve been saying, including in our November 2006 complaint to the FTC. There’s major and troubling consolidation occurring in the online ad market. If we want to see competition and content diversity thrive online, regulators need to act. Perhaps our friends in Europe at least will. They certainly need to examine the landscape over the last few weeks. Yahoo! acquires the remaining interest of Right Media for $680m; Time Warner’s AOL buys German-based adTech and Third Screen Media; and ad giant WPP snatches up 24/7 Real Media online ad firm for $649m. Something, we suggest, is going on. Is the FTC listening?
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Microsoft’s Vision for the Internet’s Future: Not a Pretty Picture
“We can tell you who saw…we let you target that…we will let you serve that on dayparting…†Yusuf Mendi, Microsoft’s Senior VP and “Chief Advertising Strategist†delivered such words—and more— yesterday. We urge you to watch and listen to his presentation. One learns that Microsoft is willing to help its wealthiest customers to better “pop†their brands. This includes helping them `know’ “who the user is and target to the user.†Mendi told the group that he knows they don’t want to target only “raw tonnage.†So, for Microsoft, the “quality of the user†can be better defined by the “25 behavioral segments†that can be targeted to the “280 million people who use Hotmail†at least once a month. The 280 million Messenger users can be targeted with rich media marketing technologies that sense their mouse hovering and interacting with an ad. For Microsoft, the “end to end IP experience†is all about transforming the global digital platform into one powerful brandwashing system.
Mr. Mendi told the audience that Microsoft is “open for business†to help “redefine†the Internet’s future. Such a future—given to us by Microsoft, Google, Yahoo!, major ad agencies and marketers—raises a series of disturbing questions and should be a cause for alarm and debate. The foremost role for digital media should be to promote civil society (that’s not the “cause†marketing cases Microsoft and others have embraced as the “Trojan Horse†to convince everyone to endorse the idea about data collection and targeted interactive marketing). Shaping the most powerful platforms so it can better collect our data and then drive our behaviors—without our full awareness and informed consent—is not a responsible act. That’s why it’s time for a much more robust debate about where this is headed—before it’s too late.
We will be come back to Mr. Gates and the Summit.
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Will the Interactive Advertising Bureau `Mess-up’ Branding Online By Opposing Privacy Safeguards?
The IAB appears to have engaged in a Congressional game of deception today, warning Congress that legislation designed to protect privacy and digital marketing abuses would “curtail consumer choice and hinder the growth of advertising that is proving one of the Internet’s economic underpinnings.” The IAB lobbying group used the same, tired, old refrain as it sought to protect its special interests from having to act responsibly. If Congress protected consumers with online marketing safeguards, warned IAB, it would threaten the nature of the Internet itself. Dave Morgan, representing the IAB (and with the behavioral targeting company Tacoda) told a House subcommittee that “there is always a risk that legislation that governs complicated technology could result in limiting and/or stifling innovation. We want to ensure that the availability of free content online continues to grow and that consumers receive the richest, most relevant internet experience, without unduly burdening the advertising engine that makes these websites run.” The IAB’s new president Randall Rothenberg said that interactive advertising was the “primary means of support for cost-free, rich Internet content, as well as free access to unparalleled products and services. Such advertising has lowered barriers to market entry, enabling new businesses, both small and large, to thrive.”
The ad industry always plays the content card when it engages in self-protection. But the IAB’s leaders are doing a disservice to their industry. No one is saying that there can’t be interactive advertising. What is being said is that there have to be safeguards to ensure it’s done responsibly. There is going to be a growing movement to rein-in the abuses emerging. If the IAB was truly interested in the public, it would get in front of the issue. Instead, they are hiding behind the content the American public actually pays for (through higher prices to cover marketing, and now with unprecedented violations of personal privacy, data collection and more).
Unless the IAB, its members, and the ad industry as a whole begins to honestly address what is being put in place and support meaningful safeguards, marketing in the digital era will increasingly be distrusted. Where are the ad industry leaders who place the interests of the public before more narrow concerns about market share, brand engagement, and `closing’ the `conversion’ loop?
Online Alcohol Promotion in Web 2.0: A-B+Blue Lithium
Stuart Elloitt of the New York Times reports today that “Anheuser-Busch is teaming up with Blue Lithium, an online marketing company in San Jose, Calif., to introduce a promotional program called Clink as part of its “Here’s to beer” campaign. The program, to be housed on MingleNow, a social-networkingWeb site, will let members upload and share photographs as well as video clips. Anheuser-Busch also plans to add a video-sharing feature to Bud.tv…â€
But those concerned about inappropriate marketing of beer and alcohol products to underage youth—as well as online privacy—should know more about the deal between A-B and Blue Lithium. It illustrates how marketing is dramatically changing as a result of digital technologies. Data collection, one-to-one targeting via new broadband platforms, and better ways to meld the consumer’s psyche with the brand (such as encouraging user-generated content to promote “engagement”) are just a handful of the new techniques.
Blue Lithium is more than just an “online marketing company†described by the Times. It provides advertisers a broad range of digital tools to deliver precision advertising and marketing, via its “ad network†of online content providers (called publishers). Blue Lithium touts the power of its technology to drive change in consumers, something called “conversions.†Advertisers using Blue Lithium can count on it “identifying the right people, based on tracking user actions and interests, then bundles those individuals up into a highly-receptive audience for your messages.†[Many other companies engage in such behavioral techniques via ad networks].
As consumers are attracted to Blue Lithium connected websites to view consumer generated video content, they will be targeted with a variety of multimedia ads. AdRoll, explains Blue Lithium, permits advertisers to “[L]ayer with advanced targeting capabilities to refine the focus of your video campaigns, reaching those consumers with certain demographic profiles…†AdRoll’s network of publishers permits advertisers to engage in “behavioral retargeting,†which means that consumers will see a refined video pitch from the same advertisers as they travel to entirely different websites. Blue Lithium notes that such retargeting “has been show to improve click-through and conversion rates by [more than] 300%.
The A-B and Blue Lithium deal involve the latter’s “MingleNow,†called an “online/offline social network.†MingleNow, launched in December, “is dedicated to connecting users to their favorite clubs and bars and the people who go there.†It’s worth checking out the various functions of MingleNow’s approach to social networking and marketing. According to its press release (Google cached for now): “MingleNow is built along three fundamental dimensions: Profiles, Places and Events. Once users indicate which bars and clubs, they frequent, their photos show up on the Place page of that establishment and they become part of the community that goes there to share photos and video, trade comments, plan events and in person meetings. MingleNow has over 900,000 place pages representing the most popular drinking, clubbing and socializing establishments in the U.S. Event pages enable users to see what’s going on in their area or publicize their own event. Profile pages give users a place to share information about themselves, feature their favorite people and places, make plans, upload video and more. In order to create an open social network, MingleNow allows users to import feeds and data from other social networks, and export feeds from MingleNow to other networks.â€
In another example of techniques to engage users, MingleNow lets you “earn VIP points†as you bring others in to join it. Such rewards can be used for free drinks. We don’t know whether MingleNow is using behaviorally targeting nor the extent of its deal with A-B. But we think both companies need to be candid about what is going on.