Google Doubleclick deal concerns Privacy Advocates

The Electronics Privacy Information Center (EPIC), The Center for Digital Dempcarcy (CDD), The U.S. Public Interest Research Group (U.S. PIRG) has filed a complaint with Federal Trade Commission (FTC) that Google’s acquisition of Double will compromise privacy of internet users. Read the complete detail of this complaint at http://www.democraticmedia.org/PDFs/google_complaint.pdf

I have been talking about Google and Behavioral Targeting even before the acquisition of Double click was announced. As I wrote in my first post on Google and Behavioral Targeting Google has been putting it’s footprint all of the internet even before Doubleclick acquisition. Acquisition of Doubleclick bought them way closer to building the biggest behavioral targeting network.

This is what these Privacy advocates are worried about.

According to CNET:

Privacy advocates are particularly worried that Google will merge the data from users’ search queries with DoubleClick’s records of people’s general Web-surfing habits in order to build a centralized database of consumer profiles.

Google executives have said that for now, the company does not plan to merge personally identifiable information such as names and e-mail addresses, with search histories and Web-surfing habits. Rather, it hopes to combine both companies’ (Google and Doublelclick) non-personally identifiable data, such as search histories and Web-surfing habits linked to a computer’s IP address, so that it could better target advertisements.
But EPIC’s argument is that an IP address can, with a little work, be linked to an individual, even if a name or address isn’t associated with the IP number.
“Identity can be inferred,” Marc Rotenberg, executive director for EPIC and author of the complaint, said in an interview with CNET News.com. “We believe that this complaint provides an opportunity for (the) FTC to look closely at whether the online-advertising industry provides adequate privacy protection for Internet users and (to) consider the privacy impact of non-personally identifiable information collected through search histories.”
Source: CNET

We will have to wait and see how Google responds to this complain and the next steps by FTC. I will keep you posted as I get more information.

So what is the solution to all these privacy concerns?

I believe that if consumers are provided proper education (I will write about consumer benefits in one of my future posts) than they can infect benefit from Behavioral Targeting. It will be a win-win situation for all the parties involved. Proper education and disclosures by advertisers, publishers and networks will ease the concerns regarding Behavioral Targeting. Consumers have the right to opt out of Behavioral Targeting but what is lacking is proper education on how to do so. The networks currently opt-in users by default; however, in my opinion the proper process should be opt-out by default and opt-in if user chooses to opt-in, just like we do for emails and newsletters. This process will move the burden from users to the advertisers, publishers and networks.

In short run this could result in a lower reach for BT providers. But if the benefits to consumers are properly stated then most of the consumers will be willing to participate. If you (network or advertiser) tell a consumer that he/she does not need to go looking for deals or offers of products/services that he/she is in the market for, these deals/offers will be provided to him/her based on her online behavior no matter where in the network she is in, I think consumer will love it. If a consumer knows the process and she knows that she is willingly participating in the BT, the click-through rate on the ads will be higher too. Why force users into Behavioral Targeting and raise privacy concerns when you can offer them what they want (when they want) and make them your raving fans.

 Originally posted on http://webanalysis.blogspot.com/2007/04/google-doubleclick-deal-concerns.html

Google and Behavioral Targeting Part III – Google Buys Doubleclick

Google buys Doubleclick for record 3.1 Billion.

Remember 1999 – 2000 when Doubleclick tried Behavioral Targeting but had to shut down efforts due to privacy concerns. Since then things have changed. Many Behavioral Targeting networks have sprung up. Dave Morgan, founder of Tacoda provided several reasons why BT will work now.

Will Google revive BT capabilities of Doubleclick? As I wrote earlier in my blog posts Google is preparing for the largest BT network (see my previous articles) and this is one of the biggest step deep into that direction and further confirms what I wrote in my article.
See my old posts at
Google and Behavioral Targeting
Google and Behavioral Targeting Part II

Here are quotes from Sergey Bin, Google’s Co-Founder & President, Technology and Eric Schmidt, CEO of Google on Doubleclicks’s acquistion. Source: Yahoo
“It has been our vision to make Internet advertising better – less intrusive, more effective, and more useful. Together with DoubleClick, Google will make the Internet more efficient for end users, advertisers, and publishers,” said Sergey Brin.
“DoubleClick’s technology is widely adopted by leading advertisers, publishers and agencies, and the combination of the two companies will accelerate the adoption of Google’s innovative advances in display advertising,” said Eric Schmidt.
So far Google analytics, Adsense, Google checkout codes were only available on small – medium size websites. With this deal the big brand sites will have Google code on their sites as well (DoubleClick Publishers and Advertisers). Obviously by having a code on virtually every site on the internet Google will have such a wealth of information about individuals (see my previous article) that it will be foolish for them to not use that information to target individuals with ads that match their interest shown by online (soon they will tie in offline with something like GoogleTV, Google Times, Google Radio and so on) behavior.

Another effect of the widespread code of Google could be the death of companies like Alexa, Compete comscore etc. Google can provide the internet usage data that won’t be based on a sample of those who participate (voluntarily or by installing some kind of application such as a toolbar) but on the Google cookies which will be on almost every single computer connected to the internet. However, this business might not be so lucrative for them. Why would they want to let others know how people use internet when they can use it to make it Googlenet (formerly known as internet) or GWW – Google Wide Web (formerly know as World Wide Web).

You are about to enter the world of Targeting.

 Orginially posted at http://webanalysis.blogspot.com/2007/04/google-and-behavioral-targeting-part.html

Google and Behavioral Targeting Part II

In my last article titled “Google and Behavioral Targeting” I talked about how Google is putting its footprint all over the web and could be preparing for the largest Behavioral Targeting Ad network.

I got several emails in response to that article. Two main questions that were raised are:

1. Won’t there be technical challenges to aggregate all this data and make it meaningful for behavioral targeting?
2. Won’t there be privacy and trust issues if Google were to go that route?

This article is to address these two concerns.

1. Technical Challenges
   Yes technical challenges will be there but that’s why I believe if anybody can successfully do it today then it is Google. Last I head Google had a pretty good team of engineers. If all the best engineers can’t overcome these technical challenges then Google should change its hiring process. In my opinion technical challenges are not such a big deal. Even if you delete a cookie Google will be able to identify a visitor via their Google account. This is where Google has the biggest advantage over other BT networks such as Tacoda or Revenue Science.
2. Privacy and Trust Issues
   Privacy and trust issues are everywhere on the internet.
   Google will of course have to get a buyoff from all the parties involved i.e. consumer, advertisers, publishers etc. Below I show how they could get a buyoff from each one of them.

1. Consumers – How many consumers know what the cookies are? Not a lot. How many know that they are being targeted online in some way e.g. Google Personalized Search? Not a lot. How do Behavioral Targeting companies target the visitors on their network? They give visitor an option to OPT-OUT. Yes, they opt-in visitors by default and then give them an option to opt-out. Can’t Google do that? Sure. They could opt-in everybody, just like they opted me in on personalized search. Yes I can opt-out but how many visitors do know the meaning of opt-in or opt-out? So getting a visitors buy-in is simple. To calm any privacy and trust issues give users a tiny little link to opt-out.
2. Publishers – There are two avenues to sever ads today, these same avenues could be used to serve BT ads.
   1. Google Search – Their own search engine, they don’t need anybody permission to target ads here, they own the site.
   2. Adsense Publishers – How many Adsense publishers really know how Google chooses what Ads to show on their site? I don’t think anybody really knows. If Google starts showing behavioral targeted ads than what do Publishers have to loose? Nothing. Instead their click-thoughs will go up resulting in an increase in their revenue. It will be a huge win for them. No privacy or trust issues here.
3. Advertisers – They will benefit the most from this network. They will get quality visitors to their site. Visitors who are really interested in the advertisers offer will be targeted. These visitors will be determined via their behavior on the Google network. Easy buyoff here.
4. Providers of Behavior – These are the individual sites on which the behavior will be collected. Such sites include Google Search, those using Google Analytics, AdSense Publishers, Google Checkout Sites, and Advertisers etc. This will be the hardest to convince and this will be the main source of all the behaviors. Let’s take them one at a time
   1. Google Organic Search – Nothing new here, organic searches are easy to collect behavior on since nobody is paying for it. Google can do (and is doing – personalized search) whatever they want to.
   2. Advertisers – Advertisers will mind if the click behavior on their ads is used to help their competitors. However, if Google gave them a way to filter their competitors than they might have a lesser issue. To make it even better for them Google could provided them some free advertising in lieu of letting Google use the click behavior on their ads. Google can make up for all these free advertising by charging a higher rate for behaviorally targeted ads.
   3. Google Checkout Users – Same as advertisers, they might let you use the behavior only if you don’t empower their competitors with that knowledge. So if I am selling dress shoes, I don’t want you to empower somebody else selling dress shoes but you can use it for advertisers who are selling dress shirts. Again, Google will have to provide a way to filter out competitors or certain types of sites. You provide a good enough incentive and site might be ready to participate.
   4. AdSense publishers – A majority of the publishers are small content sites and they make their money via Google Adsense. They will let you use the behavior on their site if you provide them incentive. Well there are two incentives that I think will do the trick.
      1. Allow them to make more money from the Adsense network – Google will pay higher click-though for behavioral targeted ads (they will charge more) if the publisher agrees to allow them to use the behavior on their site for the behavioral ad targeting.
      2. They might be able to monetize those users who have left their site. Google might be able to provide a cut for their (Adsense publishers) traffic that they use in Behavioral Targeting, if I make a cent for every visitor I get on my site just by participating in Behavioral targeting network won’t that be great? Again, as long as I can filter out the sites I don’t want to benefit from my sites visitor behavior. How you can monetize when visitor leaves your site will be covered in detail in another post.
   5. Google Analytics User – Same as Adsense publishers if you provide them incentives a lot of them will be able to sign-up as long as it is not empowering their competitors. As mentioned above in 4 b, Google might be willing to pay for your visitors by having them use their behavior in the BT network. Alternatively Google might keep this tool for Free for only those who will allow them use their visitors’ behavior and charge a fee to others. Why will a company give anything for Free?

This is my view on how Google could get all different players involved in their BT network and build the largest BT network.

I welcome any comments.

Origian Post: http://webanalysis.blogspot.com/2007/04/google-and-behavioral-targeting-part-ii.html

Search Retargeting: My View

 recently read an article on ClickZ by Robin Neifield title Search Retargeting It’s ready. Beahviroal Targeting networks currently selling search retargeting include Advertising.com, BlueLithium, and Revenue Science.Basic concept behind Search Retargeting is to target Visitors who come to your site via search and then leave without converting. The idea is to reintroduce them with relevant message on the network once they leave your site.
For example a Visitor searches for cellphone arrives at your site (that cells cellphone and other electronics) but than leaves without buying one. Sometime in future (next day or whenever) visitor arrives to a news site (which does not cell phone), the visitor is shown a targeted message from your company trying to bring the visitor back to your site so that visitor can purchase the cellphone.

In a nutshell what these networks selling Search Retargeting are implying is that the fact that visitor searched something on a search engine and then clicked on paid or organic listing to arrive at a site is a strong indication that a visitor is interested in a particular products/service. I agree that such a behavior (searching for a keyword) indicates strong interest.

But isn’t the fact that visitor who arrived to the site (no matter how) and looked at product pages (cell phone in above example) indicates the visitors strong interest? Isn’t the whole idea of behavioral targeting based on determining visitor intent via their behavior on site or on the network? So why only target those visitors who arrived via search? Is search stronger indication than on-site behavior? Maybe it is, I don’t think Behavioral Targeting companies will agree with that. By just focusing on retargeting the user who arrived via search only you will be missing out an opportunity to fully utilize Behavioral Targeting. So why do I think so?

Let’s look at a scenario of a visitor:

A visitor searches “cell phone” on a search engines and lands on your site. As soon as visitor arrives on your site you should make an attempt to engage the visitor by having a well designed and optimized landing page. If the landing page is generic then you should use the tactic I described in my article title “Follow the search”. Granted not everybody buys in the first session and so you need to target them with right message based on their behavior (intent to purchase cell phone in this case) even after they leave your site, this is behavioral targeting.

Now there are two scenarios after the visitor arrives on your site.
1.Visitor looks further into the site – Great you landing page probably has done its work. Which leads into the following two scenarios
a.Visitor converts
b.Visitor does not convert
2. Visitor leaves the site without looking further than landing page – Your landing page or the offers are not enticing enough for this visitor.

Let’s analyze each of these scenarios one at a time

1a. If Visitor looks around and converts then no more targeting need. Mission accomplished.

1b. Visitor looks deeper into the site and then leaves without converting– In this case you need to target them. But the question is – How is this visitor different from those visitors who did not come via search and then browsed you site for cellphones? Didn’t their behavior showed that they were interested in cellphones and need to be retargeted?

So my point is that weather a visitor comes from search or some other way, if they have looked around on your site for a particular category or product and their behavior (on site usage) show they are in market or aremost likely to buy a product then they should be retargeting (if you are going to invest time an money in retargeting). How does it make a difference how they arrived to the site? Search is one more element of the behavior but on site behavior (BT Company’s core strength) is suggesting the same thing. By Offering Search Retargeting are BT companies indicating that search is better indicator than on-site behavior so we should only target those visitors who came via search? Does not make sense to me because this goes against their core offering which was based on the premise that onsite behavior is a better indicator of visitors interest.

2b. If a visitor leaves the site without going any further then you have a bigger problem which won’t be solved by search retargeting. It won’t matter how user arrived at your site. It requires landing page optimization and over all product/or service that your company offers. No matter how much you retarget if your landing page sucks or you don’t have the products or services that Visitors want then you are not going to convert.

If BT networks are going to place their bets on search retargeting (by showing that search is a better indicator than onsite behavior) than they better watch out because Google, Yahoo or MSN will have a more understanding and control of Search than them. For example, Google knows a lot more about visitor’s search behavior (I am not talking about Google and Behavioral Targeting that I talked about last month). Google knows not only which keyword drove visitor to your site but also which other sites the visitor clicked on before and after. Google also know what kind of keywords and keyword combinations (e.g. cellphone battery or buy a cellphone) Visitor searched before or after she searched “cellphone” to reach to you site, this is far better information for retargeting than just knowing “cellphone” keyword drove them to your site. Google can easily target the Visitor with their “Personalized Search” or Adsense network.

What do you think? I would like comments from BT providers as well as those who have tried search retargeting.