So use that context to think about this news: Media6Degrees, a behavioral advertising technology start-up, has raised a $17 million funding round led by Menlo Ventures.

Earlier investors U.S. Venture Partners and Venrock, which had helped the 2-year-old company raise another $12 million before the new B round, are re-upping.

The money is targeted for general expansion, not M&A, says CEO Tom Phillips, who joined the company in 2009 after a three-year stint at Google.

Phillips says his company will end up booking $20 million in revenue in 2010. And he says that by Q4 it had ramped up to a $30 million annual run rate–that is, it will do about $7.5 million in the last three months of the year.

Media6 describes what it does as “Social Targeting,” which sounds as if it’s trying to find links between your various social networks. But the company’s work has nothing to do with your Facebook or Twitter profiles. While it doesn’t like the term “behavioral targeting,” that’s essentially what it’s doing.

In a nutshell, Media6 Web marketers track the surfing behavior of their existing customers, then try to find similar behavior patterns–a matching “social signature”–for other surfers, so they can show them ads.

Depending on your perspective, that’s either creepy or a common-sense strategy to help advertisers spend their money more efficiently. If it does weird you out, you can go ahead and opt out. But Phillips and his company would like you to know that the company never tracks individuals–only their anonymized browsers.

Still don’t want any part of this stuff? In theory, companies like Media6 will be in trouble if lots of surfers really do start opting out of data collection. They can do that by telling individual Web sites and ad networks not to track them–or, more ominously, by using browsers with “do not track” filters built into them.

But we’re a very long way from that kind of change. And the start-up’s investors seem to be betting that it’s never going to come.

Which means it would allow publishers, advertisers and their proxies to watch what you do on the Web, and serve ads to you based on your behavior, only with your explicit consent.

But the Web ad business insists that an opt-in solution is no solution at all and would stop the industry in its tracks. So a coalition of publishers and ad networks, including Google, Yahoo and AOL–everyone, really–is trying out gambits like this logo:

The technical name for this is the “Advertising Option Icon.” It’s supposed to let you know that you’re seeing ads served up through behavioral tracking. And that clicking on the image will tell you more and give you a link to a “Consumer Opt-Out Page, where consumers will be able to easily opt-out of some or all participating companies’ online behavioral ads, if they choose.”

Translation: Hey Washington! No need to step in and regulate us! We’re doing it all on our own!

It’s theoretically possible that the average consumer, who is already trained to ignore most online advertising to begin with, figures out what the logo means. But it’s not very likely.

And it’s even less likely that this one is going to satisfy privacy advocates and/or politicians who pay attention to them.

Next?

The Wall Street Journal’s What They Know series has documented the cutting-edge uses of the tracking technology used to create profiles of consumers’ habits. The 50 most popular U.S. websites installed 64 tracking files on average, the Journal study found.

Many of these are of the type used to develop profiles of users for behaviorally targeted advertising, but there can be other uses for such files.

Many sites use Web-analytics programs, for example, to evaluate the traffic coming to their own pages. Cookies from these programs can come from the site itself, in which case they are known as first-party cookies, or from another service, in which case they’re called third-party cookies. Such services are generally separate from ad networks, but there are no rules governing the sharing of such data.

Read the rest of this post on the original site

Web-browsing activity is tracked by “cookies,” “beacons” and “Flash cookies,” small computer files or software programs installed on a computer when a user visits some Web pages. Some are useful. But others are used by companies to track users from site to site and build profiles of their online activities.

All Internet users, whether adults or children, can limit tracking by adjusting settings on Web browsers and Adobe Systems Inc.’s (ADBE) popular Flash program. These settings can delete cookies and limit what types of cookies may be placed on the computer. For additional protection, parents also can install small programs, called “add-ons,” to a child’s browser. And parents can prevent children from seeing behaviorally targeted ads through tools provided by the ad networks.

Read the rest of this post on the original site

And who knows? That may still happen. But Google (GOOG) isn’t slowing down. Instead, the search giant is taking its “remarketing” program out of beta and opening it up to all of its advertisers. Here’s Google’s description of the process:

Let’s say you’re a basketball team with tickets that you want to sell. You can put a piece of code on your tickets page on your website, which will let you later show relevant ticket ads (such as last minute discounts) to everyone who visits that page, as they subsequently browse sites in the Google Content Network. In the same way, you can run ads across the Google Content Network to everyone who visits your brand channel on YouTube or who clicks on your YouTube homepage ad (if you have either of those).

That will sound fairly innocuous to many people.

And it’s certainly fairly common–remarketing is pretty much standard practice on the Web these days. But the fact that Google makes it very difficult to opt out of remarketing (good luck finding this page*, which gives you that choice) is telling. If this stuff is truly no big deal, it should be no big deal if you don’t want to play along.

*Google notes that each of its ads contains a link that will lead you to its preferences and opt-out page. So noted. But unless you know in advance what Google is up to, it won’t occur to you to look for it.

[Image credit: ogimogi]

Today’s example: Rubicon Project, a Los Angeles-based advertising-optimization start-up, has raised a $9 million C round led by Peacock Equity, the joint venture co-owned by GE Capital and GE’s (GE) NBC Universal. This follows a $13 million equity and debt round the company raised just a few months ago. Rubicon has raised $45 million since its 2007 launch.

CEO Frank Addante, whose company helps publishers manage their relationships with advertising networks, says he’ll use the new cash to acquire other ad-tech start-ups. Earlier this month, Rubicon picked up Others Online, a behavioral targeting company.

Keeping a close eye on all of this activity: Google (GOOG), Yahoo (YHOO) and Microsoft (MSFT), all of which are reportedly looking at ad-tech acquisitions themselves.

The coalition, which included the Electronic Frontier Foundation, Consumers Union and Privacy Rights Clearinghouse, singled out behavioral advertising, in which Internet users are tracked, analyzed and served ads based on the information gleaned from their movements, in its recommendations. Doing something about the practice has become more urgent as consumers go online for increasingly sensitive transactions, members of the group said on a call with reporters.

“We want consumers to be able to take advantage of all of the new technologies without the technologies taking advantage of the consumers. Right now, that balance is not there,” Pam Dixon, executive director of the World Privacy Forum, said.

Read the rest of this post on the original site

It is an extraordinary market play. And an unsettling one. For it seeks to place Google (GOOG), which already collects vast amounts of data about our Internet use, at the very center of our information experience.

The privacy implications are, of course, horrendous. And while Google will inevitably dismiss such concerns as paranoid and argue that any data the company might collect at the OS level will be used only to improve its services and benefit users, it should still give us all pause. Because when it is finally launched, Chrome OS will be yet one more deep well of consumer data to which Google will have access.

There are already quite a few such wells, including Google Search and Chrome, that profile user interests and surfing habits: Gmail, which gives the company access to our email conversations, and Google Voice, which gives the company access to our spoken ones. Add to this Google Street View and Latitude, a service that tracks the physical location of its users, and mobile and desktop operating systems and, well…that kind of consolidation of Internet-based services around a single dominant company should give us all pause.

Lest we forget, Google is in the behavioral targeting business. Why would people ever use an OS developed by a company whose business is based on meticulously recording and analyzing their online behavior? Because they enjoy using its other services, I suppose. But there is a privacy-vs-ease-of-use tradeoff here. And with Chrome OS, it is unprecedented. Further, while Google might tout its “don’t be evil” motto as reason enough to trust the company with our data, there are other entities that don’t always share that sensibility. Remember, it wasn’t so long ago that the federal government tried to force Google to turn over user search data to the Justice Department…

“Competition in the OS market should always be welcome, but Google is the special case,” Marc Rotenberg, executive director of the Electronic Privacy Information Center, told Digital Daily. “It has become dominant across many essential Internet services–search, mail, video, online apps, and advertising. Coupled with Google’s growing profiles of American consumers and reluctance to adopt meaningful privacy safeguards, we expect that antitrust authorities in the US and Europe will view Google’s entry into the OS market with enormous skepticism.”

Jeff Chester, executive director of The Center for Digital Democracy, echoed Rotenberg’s concerns. “Google’s new OS has to be placed under the data collection X-Ray by US and EU privacy regulators and advocates,” he said. “Any expansion into the marketplace by either Google or Microsoft should generate intense scrutiny, especially for the privacy implications. These two are engaged in a global data collections digital arms race, which has far-reaching implications for consumers and their information.”

That’s one takeaway you can draw from a new study commissioned by an Internet publishing trade group, which concludes, astonishingly, that Internet publishing is an important and vibrant industry.

The data are being served up via the Interactive Advertising Bureau, which tells us the advertising-supported Web industry “directly employs more than 1.2 million Americans with above-average wages in jobs that did not exist two decades ago, and another 1.9 million people work to support those with directly Internet-related jobs.”

Note the “advertising-supported” modifier in the above paragraph, because that’s the real thrust of the IAB’s study/press release: The trade group is trying to get Congress and Washington to let members like Google (GOOG), Yahoo (YHOO) and Time Warner’s (TWX) AOL regulate themselves when it comes to hot-button issues like behavioral targeting.

Hence this quote from IAB boss Randall Rothenberg: “By understanding the total contribution of the Internet to the U.S. economy, we can more accurately assess the impact of potential legislative changes on the Internet’s operations, particularly the consequences of any actions that would alter ad-supported business models.”

OK. Fine. But regulation is tomorrow’s problem. Today, let us celebrate the fact that some of us have jobs! And also, according to the IAB, we’re providing the following:

• Universal access to an almost unlimited source of information
• Increased productivity (output per unit of capital or labor, or increased consumer utility at a lower cost)
• Innovation in business practices, consumer behavior, commerce and media
• Empowerment of entrepreneurs to start small businesses, find customers and grow
• Environmental benefits derived from saving natural resources lowering pollution through the reduced use of petroleum-based fuels and paper

Cool, right? And all this time I thought I was just blogging. You’re welcome! And please keep reading.

[Image credit: respres]

And I think that gap is going to trip up a lot of big players in the years to come.

For a reminder, head on over to NebuAd’s Web site, which no longer works. That’s because the targeting firm, which once employed 60 people, closed up shop on Friday, according to MediaPost.

NebuAd was supposed to work with various Internet service providers and track Web surfing behavior of the ISPs’ customers, then sell that data back to the ISPs. That plan blew up last summer when the company became the subject of congressional hearings, and by last fall just about all of its former clients had run screaming from the company.

The standard response here from ad folks is that NebuAd was a bad apple that practiced a particularly noxious version of targeting. And that the press, lawmakers and the general public don’t really understand how targeting works.

And all of that may be true! But even if it is just a perception problem and the online ad business has only the best intentions when it comes to collecting and using personal Web data, it’s a perception problem that the industry has done a lousy job of fighting.

So said my lunch date today, who’s a veteran of several big online publishing companies, and who tells me that the Interactive Advertising Bureau, the industry’s trade group, is petrified of more NebuAds because they will likely lead to regulation.

Recall that Rick Boucher, a conservative Democratic congressman from Virginia, has already promised to regulate behavioral targeting at the likes of Google (GOOG), Yahoo (YHOO) and Time Warner’s (TWX) AOL. If the thought of that sort of thing is so distasteful to the ad guys, they’re going to have to start selling much more persuasively than they’re doing right now.

For instance, BoomTown was in Rome earlier this week attending a conference on business, brand and innovation that happens only once every seven years–and one of the biggest takeaways? Hardly any Italians have heard of Twitter, and those who have don’t really use it. Well, that, and conversations with Arianna Huffington, Reid Hoffman, and several Italian business leaders. Mark Zuckerberg, though, is most definitely plugged into the white-hot microblogging service. This week, he used his Twitter account, plus an appearance on “Oprah,” as a platform to herald the launch of Facebook’s own Twitteresque homepage redesign. In other news, Time Warner (TWX) CEO Jeff Bewkes laid off AOL President and COO Ron Grant and Chairman and CEO Randy Falco. BoomTown interviewed Falco’s replacement, Google (GOOG) ad sales exec Tim Armstrong, who’ll start at AOL as Chairman and CEO on April 7.

MediaMemo had the full memo from Time Warner on the Falco/Grant-Armstrong transition and also spoke with Boxee CEO Avner Ronen this week. Boxee is the start-up that lets you watch Web video on your TV, basically bypassing your cable box. Which is probably why it’s caught up in a cat-and-mouse game with Hulu, the joint venture between GE’s (GE) NBC and News Corp.’s (NWS) Fox that would much rather have you watch TV on the Internet instead. Guess who’s the mouse? Still, Hulu is down two networks, ABC and CBS (CBS)–though presumably, the aim is to offer all three. (News Corp. is the owner of Dow Jones, which owns this Web site.) MediaMemo also noted that Google rolled out its behavioral targeting functionality this week and points out that we all might be hearing a lot more from a man named Rick Boucher in the near future as a result.

Behavioral targeting wasn’t the only thing that Google rolled out this week–it also launched Google Voice, the initiative based on the company’s acquisition of voice communications start-up GrandCentral. Digital Daily covered the story. Elsewhere in the telecom world, major Palm (PALM) investor Roger McNamee made some bold (read: crazy) assertions about iPhone users switching en masse to the Pre, which later needed to be clarified (read: backed away from) by Palm itself. RBC analyst Mike Abramsky is also bullish on the Pre and its WebOS, but in a less crazy way. He gave it a glowing write-up on Friday. For a product that hasn’t yet been given a price or a launch date, it’s certainly building itself some high expectations. Of course, it’ll need to fulfill them to compete with the ever-evolving iPhone, which for which Apple (AAPL) is having a press event Tuesday to announce version 3.0 of the device’s OS.

Walt Mossberg reviewed the new version of Apple’s ever-evolving iPod Shuffle this week, which has the distinction of being the first mp3 player to “speak.” His verdict was in Wednesday’s Personal Technology column. In Mossberg’s Mailbox, Walt answered questions about using a stylus with the iPhone and offered an explanation on how to change Apple’s Safari 4 beta so that it looks and works more like the previous version. And in this week’s Mossberg Solution, Katie Boehret took a look at iSkoot’s Notifier, an app designed to endow basic cellphones with smartphone-like capabilities.

More next week. And beware the Ides of March. Or not.

For instance, BoomTown was in Rome earlier this week attending a conference on business, brand and innovation that happens only once every seven years–and one of the biggest takeaways? Hardly any Italians have heard of Twitter, and those who have don’t really use it. Well, that, and conversations with Arianna Huffington, Reid Hoffman, and several Italian business leaders. Mark Zuckerberg, though, is most definitely plugged into the white-hot microblogging service. This week, he used his Twitter account, plus an appearance on “Oprah,” as a platform to herald the launch of Facebook’s own Twitteresque homepage redesign. In other news, Time Warner (TWX) CEO Jeff Bewkes laid off AOL President and COO Ron Grant and Chairman and CEO Randy Falco. BoomTown interviewed Falco’s replacement, Google (GOOG) ad sales exec Tim Armstrong, who’ll start at AOL as Chairman and CEO on April 7.

MediaMemo had the full memo from Time Warner on the Falco/Grant-Armstrong transition and also spoke with Boxee CEO Avner Ronen this week. Boxee is the start-up that lets you watch Web video on your TV, basically bypassing your cable box. Which is probably why it’s caught up in a cat-and-mouse game with Hulu, the joint venture between GE’s (GE) NBC and News Corp.’s (NWS) Fox that would much rather have you watch TV on the Internet instead. Guess who’s the mouse? Still, Hulu is down two networks, ABC and CBS (CBS)–though presumably, the aim is to offer all three. (News Corp. is the owner of Dow Jones, which owns this Web site.) MediaMemo also noted that Google rolled out its behavioral targeting functionality this week and points out that we all might be hearing a lot more from a man named Rick Boucher in the near future as a result.

Behavioral targeting wasn’t the only thing that Google rolled out this week–it also launched Google Voice, the initiative based on the company’s acquisition of voice communications start-up GrandCentral. Digital Daily covered the story. Elsewhere in the telecom world, major Palm (PALM) investor Roger McNamee made some bold (read: crazy) assertions about iPhone users switching en masse to the Pre, which later needed to be clarified (read: backed away from) by Palm itself. RBC analyst Mike Abramsky is also bullish on the Pre and its WebOS, but in a less crazy way. He gave it a glowing write-up on Friday. For a product that hasn’t yet been given a price or a launch date, it’s certainly building itself some high expectations. Of course, it’ll need to fulfill them to compete with the ever-evolving iPhone, which for which Apple (AAPL) is having a press event Tuesday to announce version 3.0 of the device’s OS.

Walt Mossberg reviewed the new version of Apple’s ever-evolving iPod Shuffle this week, which has the distinction of being the first mp3 player to “speak.” His verdict was in Wednesday’s Personal Technology column. In Mossberg’s Mailbox, Walt answered questions about using a stylus with the iPhone and offered an explanation on how to change Apple’s Safari 4 beta so that it looks and works more like the previous version. And in this week’s Mossberg Solution, Katie Boehret took a look at iSkoot’s Notifier, an app designed to endow basic cellphones with smartphone-like capabilities.

More next week. And beware the Ides of March. Or not.

So who’s the guy on the right, and why am I showing you his picture?

That’s Rick Boucher, a Democratic congressman from Virginia. And I’m pretty sure Google (GOOG) just ensured that you’re going to be seeing and hearing from him with some frequency.

That’s because Boucher, who heads the House Subcommittee on Communications, Technology and the Internet, has already drawn a bead on behavioral targeting. Last month, he called on Congress to start regulating the practice rather than allowing Yahoo (YHOO), Time Warner’s (TWX) AOL and everyone else promise to behave themselves.

At the time, Boucher said he didn’t have a timetable drawn up for his proposed online privacy bill. But Google’s announcement today surely means we’ll see it introduced sooner than later.

But this time, Morgan has abandoned the Web for TV.

And Morgan’s Simulmedia, which just announced a $4 million funding round led by Union Square Ventures and Avalon Ventures, isn’t even going after the TV of the future.

Instead, it’s chasing an odd niche that exists today: television commercials for television shows–e.g., the ads NBC runs during “The Office” to try to get you to watch “30 Rock.”

Morgan says this is a $10 billion business, and argues that most of the money spent on it is wasted. He says his company can solve that with software that swaps

out different spots depending on factors like geography, timing, and even weather. Weather? Well, in advance of last Sunday’s snowstorm in New York, he says, his clients-to-be could have run ads letting parents know about all the kids’ programming available on their cable system.

This sounds similar to lots of other efforts to make TV advertising more Web-like by serving up different ads to different viewers based on who they are and what they watch. Basically, a variant of the behavioral targeting technology that made Tacoda worth $275 million to Time Warner’s (TWX) AOL, which bought the Morgan’s company in 2007.

But Morgan, who spent less than five months at AOL as an EVP before bolting, says his start-up is chasing a different market, using different techniques. He explains why in this interview:


[ See post to watch video ]
]]> http://allthingsd.com/20090306/a-web-ad-guys-third-act-better-tv-ads-for-tv-shows/feed/ 0 http://allthingsd.com/20090213/rep-boucher-calls-for-internet-ad-regulation/ http://allthingsd.com/20090213/rep-boucher-calls-for-internet-ad-regulation/#comments Fri, 13 Feb 2009 22:35:12 +0000 Emily Steel http://voices.allthingsd.com/?p=8529 In an interview Friday, Rep. Rick Boucher, (D-Va.) called for Congress to take a tougher stance in regulating online ad-targeting, despite the FTC’s endorsement of industry self-regulation.

“I am coming to believe (industry self-regulation) is not sufficient,” said Rep. Boucher, chairman of the House subcommittee on communications, technology and the Internet. He noted that there is a need for a set of laws that dictate parameters for how companies collect, share and use online data about their consumers.

In its report, released Thursday, the FTC laid out a number of principles to guide practices for online behavioral targeting, in which a company tracks consumers’ online activities, such as the searches they perform and the Web sites they visit.

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]]> http://allthingsd.com/20090213/rep-boucher-calls-for-internet-ad-regulation/feed/ 0 http://allthingsd.com/20080812/legislators-apparently-unaware-of-adblock-plus-trackmenot/ http://allthingsd.com/20080812/legislators-apparently-unaware-of-adblock-plus-trackmenot/#comments Tue, 12 Aug 2008 20:08:37 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=3148 Well, it’s about time. On Aug. 1, four top members of the House Committee on Energy and Commerce sent letters ordering 33 cable and Internet companies, including Google (GOOG), Microsoft (MSFT), and Yahoo (YHOO), to explain in detail their privacy standards. Of particular concern to the Committee was “the growing trend of companies tailoring Internet advertising based on consumers’ Internet search, surfing or other use,” i.e., behavioral targeting.

To date, 27of the 33 have responded, among them Google and Yahoo, whose replies are of particular interest given the proposed advertising deal between them. In response to the Committee’s query, Yahoo admitted it did engage in some form of behavioral targeting, but volunteered that it would henceforth allow users to turn off targeted advertising on its Web sites.

Yahoo claims it had been planning this revision to its policy for months. What a happy coincidence that it was enacted in time to be included in the company’s letter to the Committee.

Google also acknowledged using targeted-advertising technology without explicitly informing customers–hence, its $3.1 billion acquisition of DoubleClick. And it too suddenly offered its users a way to opt out of targeted advertising. Another happy coincidence, I suppose, in the works for months and entirely unrelated to the company’s pact with Yahoo, which would reportedly grant Google control over more than 80 percent of the search market.

Still, it’s good news for consumers–or rather those consumers who actually pay attention to such things. And for those who don’t, a word of advice: It might be time to start. Because Google, which already controls more than 70 percent of the search market in the states, clearly sees quite a bit of behavioral targeting in all our futures. “Though it is not the focus of our business today, we also believe that behavioral advertising can be done in ways that are responsible and protective of consumer privacy and the security of consumers’ information,” Google wrote in its letter to the Committee. “To ensure the continuation and proliferation of responsible behavioral targeting practices, we are supportive of efforts to establish strong self-regulatory principles for online advertising that involves the collection of user data for the purpose of creating behavioral and demographic profiles.”

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