If the online industry wants to avoid government restriction, it must regulate itself. This is a good time to explore other attempts at industry self-regulation and its effects. Some self-regulatory efforts have been bureaucratic at best, while others have been completely ineffective. The medical industry’s most recent self-regulatory effort in the name of consumer protection around the HIPAA privacy law, is an example of good intentions spoiled by bureaucratic enforcement. It was actually reported in the New York Times that birthday parties in nursing homes in some states have been canceled for fear that revealing a resident’s date of birth could be a violation of the HIPAA law.

Other industry self-regulation attempts, like the Tobacco Industry’s “We Card” program, have been pointless. The program did little, if anything, to curb tobacco sales. When looking for a self-regulatory success story, the online industry should follow the example of the Motion Picture Association of America (MPAA).

Looking back at the history of Hollywood, there are similarities between the online ad industry today and the censorship of the film industry in the 1930s. In response to the threat of government intervention in 1930, the movie industry created a regulatory system around a “code of conduct” known as the Hays Code. The code was a set of restrictions on the content filmmakers could produce. The Hays Code was written with conservative and religious principles in mind, with restrictive clauses such as, “the clergy cannot be portrayed as comic characters or villains.” When the Hays Code came under scrutiny in the late 1960s for its strict rules and infringement on free speech, the industry ultimately dismantled it and created our current rating system.

A voluntary “code of conduct” is exactly what the Department of Commerce Internet Privacy Task Force is asking the online industry to create, and what industry trade groups are also espousing. What is most applicable to the online industry is the fact that the self-regulatory system the MPAA created and still uses today puts the user in charge of deciding what they are going to see.

The user-in-charge system is a concept that Apple’s Steve Jobs relates to. When asked to weigh in on the privacy issue at the recent D8 conference, he said, “Privacy means people know what they are signing up for in plain English. Some people want to share more data. Ask them. Ask them every time. Let them know precisely what you are going to do with their data.”

With the online world becoming more social than ever, user data is central to advertisers. Online marketers are no longer content with abstract metrics like clicks or impressions. They want to find out about individuals to give them a personalized experience. However, if advertisers want access to consumer data it should be done in a privacy-compliant way. This means the online ad the industry must develop clearer privacy practices and give users the ability to opt in to receive ads.

And as a start, users must be shown a clear way to opt out. For this reason, the issue of online privacy can’t be relegated to the legal team. The issue should be resolved by people who can design a user interface that is elegant, simple and crystal clear. The design and user interface teams must be involved at every step in the process so as to provide users with clear and transparent mechanisms to help them understand what data will be collected, what will be done with the data and how they can opt out of data sharing altogether.

If the industry wants to self-regulate to avoid being federally regulated, it should start by designing a clear, opt-in system that puts the user in charge. Let’s not wait for a giant carrot or a big stick. Self-regulation has worked before–there’s no reason it can’t happen now.

We’ll also see what they have to say about the Yahoo search partnership and its efforts to catch up with Google (and trip them up with antitrust headaches).

Liveblog

Okay. I’m onsite and nearly caffeinated. Yes, there are donuts, but Mobilized is going for the savory option.

10:03 am: Still waiting for things to get started here.

10:04 am: Microsoft search engineering head Satya Nadella comes out. “Okay, let’s get this thing underway.”

10:06 am: First up, some momentum stuff. Share is at 11.8 percent per comScore numbers released yesterday, up another 0.2 percent from October. Overall up 48 percent since launch. “We’re very, very happy with that growth.” Now over 90 million users, but the big deal, he says, is more heavy searchers. “We never had the fans of Bing and the heavy users,” Nadella says.

10:08 am: Nadella says Bing is still getting a larger percentage of 18- to 24-year-olds than its share of searchers as a whole.

10:09 am: “These are footholds that we have in the marketplace,” Nadella says.

10:11 am: Continued focus on specialized verticals (like travel, music, health, image search etc). Overall, such searches account for five percent of all queries, but specialized search makes up of 10 percent of Bing’s searches.

10:12 am: Partnerships: Yahoo is obviously the big one, but Nadella shows slide with Facebook, Twitter, Verizon., BlackBerry, Apple, Android, Foursquare and other logos.

There ave been 5.5 million downloads of the iPhone app.

Nadella says the toolbar deals are also important: They just give us a shot at acquiring the users. They have another one coming with Conduit. Also, they are now at least an option on iPhone and Firefox.

10:16 am: Nadella says the engineering team is focused on three areas, beyond the “arms race” of overall search quality–increasing the visual organization, task-centered nature and social elements of search.

“We’re neck and neck in terms of search quality and we are able to maintain it,” Nadella says.

10:18 am: Lots of talk about the ins and outs of search tech. Nadella says Microsoft has moved from a “neural net” approach to “boosted decision trees.” (No idea what that means.)

10:22 am: Effort to make search more social is important, but just beginning. “This is a journey we are at the very beginnings of,” Nadella says, but says social will change search in terms of how results are discovered, formulated and answered.

10:24 am: Nadella is talking about the importance of visual highlighting to call out various results as well as boosting interactivity, such as including forms within results so users can take action.

Still waiting for any new stuff, but we’re told it’s coming.

Nadella says the company has broken down a list of the tasks people are trying to do when they are trying to do more than just navigate to a particular site.

“We have a pretty granular understanding just looking at the query stream of what people are trying to get done.”

Microsoft has broken it down to some 150 categories, but here are some of the top ones: 4.6 percent of searches are music related, 1.8 percent clothing and shoes, 1.6 percent consumer electronics, 1.1 recipes, 1.3 percent home furnishings.

10:29 am: On to some new stuff.

New image search launching today, but first Microsoft is talking about visual search for things like finding movies and giving direct answers for some new types of queries.

10:31 am: Microsoft is talking about any sort of non-search result as “answers.”

In one case, an “answer” for the query “let’s make a deal” would be video episodes of the game show.

But Microsoft says that automatically putting it at the top is not necessarily best. What the company says it should do instead is put it below the first two results, such as the show’s homepage, which get more clicks than the video.

10:35 am: Also when a user searches flights from Denver to Las Vegas in June, Microsoft pre-populates the fields in a flight search with a guess at the dates, in this case the first weekend in June.

10:38 am: New image search represents first major changes in a year. Biggest shift is white space is gone with just a ton of tiles of images, with some categories at the top.

For example, search “Casablanca” and you get an option for the city in Morocco, another for the movie, a third for the style of wedding dress and another for the Casablanca Lily flower.

10:40 am: On to shopping. Quadrupled the number of products in its database.

10:43 am: Bing is adding a new focus on places as “destinations” with all the potential content from booking a flight or hotel to maps and attractions.

Which is nice, because I’m ready to go on a vacation right about now.

They use weather data to show times to go to and times to avoid a particular place.

10:45 am: Microsoft is beefing up event listings with partnership from FanSnap and other partners. You get ticket info, diagram of stadium, etc.

10:50 am: Back to social. Nadella says search can change by using one’s social graph to influence search results.

First example, you will start to see when your Facebook friends “Like” a page that is in search results.

For now, such results will only come up fairly infrequently, but Nadella says it will be a big deal when you do see pages that your friends have liked.

Search allows the data your friends share on Facebook to come to you when you actually want the information.

“In a way you are taking your friends with you,” says Microsoft’s Paul Yiu.

An example is when you are shopping for a product or going to visit a place–that’s a time when you really want to know what your friends think.

(Seems pretty cool, but wondering just how infrequently this will show up.)

10:57 am: Another example Yiu gives is a search one might do at 3 am for what will make your baby stop crying. There are lots of results, but one that your friend likes might be worth trying first.

11:00 am: Bing is also using one’s Facebook social circle to rank results in people search–i.e., if you have a friend in common, it will rank that “John Doe” higher than one you don’t know.

11:01 am: Nadella is back to talk about local and maps and how that integrates with mobile. Behind him Blaise Aguera y Arcas is pulling out several phones to do a demo. (And they look like iPhones.)

11:03 am: Aguera y Arcas takes the stage to show some changes coming to maps, first on the desktop. He notes the recent shift away from putting its most powerful map features on a Silverlight-powered site. Now it is moving that all to an HTML5-based site that needs no plug-ins.

11:07 am: Bing is bringing the “tasks” concept to searches within maps. A search for a restaurant now brings up not just a map, but more info on the eatery and also the ability to make reservations via OpenTable.

11:09 am: Aguera y Arcas switches to the iPhone. Shows how people can add their own panoramas to maps using a cellphone.

11:13 am: iPhone demo over 3G is going really slow. Aguera y Arcas asks how many of the reporters in the room are using 3G.

11:15 am: Although its going painfully slow, looks like Bing app starts to recognize a restaurant search and pops up options like types of cuisine and price. The goal is to save keystrokes.

Other options are things like get a map, make a reservation, menus, etc.

Still R-E-A-L-L-Y S-L-O-W.

“This bandwidth situation is really going to suck for what I have to demo next.”

He switches to a first-person StreetSide view, but all we see are dots.

“This is so sad,” Aguera y Arcas says, lamenting that we aren’t able to see all the cool stuff. There does seem to be some new StreetSide view stuff on the iPhone app that could be neat, assuming it runs faster on the street than inside this demo room.

11:23 am: We’ve reached a new low. “Close your eyes and imagine….” Aguera y Arcas says, and then describes what the app would do if we could see it.

11:23 am: And they have switched to Wi-Fi. “This is so exciting,” Aguera y Arcas says. Now he’s going back to StreetSide. “That’s so much nicer.”

As for directions, Bing now has bus directions with schedule info in addition to driving and walking directions. “It’s about time,” he says. “I’ve been waiting for this one myself.”

Another feature reminds you to do something when you reach a certain place, like call someone or check-in to FourSquare or Facebook.

11:29 am: Aguera says we are in Search 2.0–where you do more than just search and get results.

Image search is an example. Shows the coming ability to search for something by using a camera to start a search. Basically you can shoot a picture of a page and use any of the terms there to start searching (It uses character recognition in the background).

Questions and Answers

11:32 am: How big a deal is Google Instant?

“We are absolutely studying Google Instant,” Nadella says. Says they could match it. It’s a question of whether it makes task completion easier. “Is it a value or a distraction?” Doing studies and so far Microsoft’s research says it is mixed at best.

“It’s not a game changer. It’s a nice feature at best.”

He hedges a bit on whether it is something Microsoft needs to match.

11:39 am: Mobile features were demoed on iPhone. So when will they come to Windows Phone 7 and other platforms?

Nadella says they now have software for most major phone operating systems, including Android.

“The different devices have different schedules,” he says.

11:42 am: And we’re out of here….Thanks for tuning in.

But here’s a data set that seems to belie that: New statistics from Nielsen that seem to show that people are spending less time on their browsers than they did a year ago.

If you believe Nielsen’s stats, Web users are heading to their PCs a little less often (sessions per person–down 11 percent)  and doing less once they get there (domains visited per person–down 20 percent). Except when it comes to clicking, which they’re happy to do (Web pages per person–up 11 percent).

I can understand the boost in Web pages, since many publishers are getting more strident about demanding extra clicks from their visitors, in the form of slideshows and other tricks. Everything else, though, leaves me puzzled.

Note that in addition to the usual salt you want to consume alongside Web-use metrics like these, there’s a bonus variable here. Nielsen changed its reporting process in last June, which makes year-over-year comparisons even trickier.

But Nielsen says this stuff should at least be directionally correct, so take a look for yourself (click image to enlarge):

I’ve seen stories touting big traffic spikes at Time Warner’s (TWX) TMZ, which broke the story; Wikipedia, which apparently was flooded with Wikipedians squabbling over the details of Jackson’s demise; and Gawker, which lives for this sort of thing. At some point, the man-bites-dog story will be a site that doesn’t report a huge spike in Jackson traffic.

In any case, here’s the latest one I’ve seen: Yahoo (YHOO) boasting that Jackson’s demise has been its good fortune. Here are the data, per Yahoo PR:

Yahoo! News:
· Yahoo! News set a record in unique visitors with 16.4 million UV’s in a day. Our previous record was on election day when we had 15.1 million visitors.
· Yahoo! News had 4 million visitors come to the site between 3-4 pm, setting an hourly record.
· Yahoo! News recorded 175 million page views yesterday, our 4th highest day after the Inauguration and Hurricane Ike.

Front Page:
· On our front page, the story “Michael Jackson rushed to hospital” was the highest clicking story in our history. It generated a whopping 800,000 clicks within 10 minutes and news of his death saw 560,000 clicks in 10 minutes. Also, the news area on our front page experienced five times the amount of traffic it normally receives.

Yahoo! Music
· Yahoo! Music’s blog post on Michael Jackson has generated 21K comments in under a day.

UPDATE: Here’s some boasting from CBS’s (CBS) Web group. Happy to keep adding to this if anyone else wants to do a little chest-beating.

· Since the news broke, Last.fm saw a huge surge in users streaming music tracks by Jackson. On average, users were streaming 43,000 Jackson tracks per hour. The Michael Jackson artist page has received heavy traffic with more than 30 page impressions per second as fans log on to pay their respects to the pop icon. The traffic for the artist page continues to increase, and the site continues to see more than 45 times the normal traffic.

· TheInsider.com reported record traffic for June 25, with an increase that was close to double compared to the previous week. Prior to yesterday, the record for high traffic was held on May 5 when the site shared revealing photos of former Miss California Carrie Prejean.

· Within 12 hours of the announcement, CBS.com saw 100% aggregate growth over the same day last year as fans turn to CBS.com for breaking news about the tragedy, as well as to link to CBSNews.com and THE EARLY SHOW for their streaming coverage.

· CBSNews.com traffic tripled during the hour in which Jackson’s death was officially announced (3 p.m. PACIFIC/6 p.m. EASTERN) on June 25 as people turned to the site to learn more about the circumstances involving his death.

And yes, this is the third Michael Jackson post I’ve written today. Which gives me an opportunity to embed a third Michael Jackson video. This one is the intro to the “Jackson 5ive” animated series from the 1970s, procured by our eagle-eyed Beth Callaghan. Enjoy.

[Image credit: Library of Congress]