New Marketing Model Tracks Web Activity, Profiles User <http://www.sci-tech-today.com/story.xhtml?story_id=62004&page=1>New Marketing Model Tracks Web Activity, Profiles User By Jeff Smith September 23, 2008 7:21AM
Being served ads based upon recent Web searches is called "behavioral" marketing. Such targeting is stirring up controversy these days, in large part because of "deep packet inspection," a relatively new technology that can be used to examine the content of Internet transmissions rather than capture just a search query or Internet address. [] You've been browsing the Internet lately for information about carbon emissions to help your daughter with her climate change project at school. You've also done a little shopping in advance of the holidays, buying that more-than-you-really-wanted-to-pay-for digital camera for your spouse. Now, instead of that usual Staples banner ad on the online site of your local newspaper, you are getting ads about hybrid cars and high-definition TVs. You may be the recipient of "behavioral" marketing -- the practice of examining a person's activities on the Internet, building a profile of that consumer, and then delivering ads tailored to the individual. Such "behavioral" marketing or targeting is stirring up controversy these days, in large part because of "deep packet inspection," a relatively new technology that can be used to examine the content of Internet transmissions rather than capture just a search query or Internet address. "What's different about the new model is that ad networks can tap into data streams that ISPs (Internet service providers) have control over and use that information to build a profile (of the person)," said Alissa Cooper of the Center for Democracy & Technology. "In theory, they could be a party to everything you do on the Internet." The nonprofit center likens the technique to a phone company listening in on a person's calls and believes the practice may violate federal wiretapping laws. The technology theoretically can be used to collect sensitive information such as someone's medical records, religious preference or even private e-mails, although Internet providers insist that's not their goal. Traditionally, online advertisers have used "cookies," small text files placed on the hard disk of someone's computer, to remember certain information about a customer. For example, a bank might use a cookie to identify a customer's account log-in. The information also is used by big search engines such as Google to evaluate a person's interests from their search queries, and deliver certain ads. Privacy experts and lawmakers are concerned about that form of targeted advertising as well, although deep-packet inspection has become a central focus for concern. Industry officials at the Aspen Summit last month, sponsored by the Progress & Freedom Foundation, defended behavioral marketing in general as a way to deliver more relevant ads -- and therefore less "spam" -- to consumers. The key, they said, is disclosing tracking policies, making sure sensitive information remains secure, keeping data only as long as it's needed, and giving consumers the opportunity to "opt-out" of data collection programs. The Federal Trade Commission has echoed that in a draft set of principles and encouraged the industry to adopt voluntary standards. But Capitol Hill is skeptical of self-regulation. Concerned lawmakers investigated the issue this summer, and the hot-button topic is expected to be taken up again. As part of its inquiry, the House Energy and Commerce Committee asked 33 companies including Qwest Communications, Level 3 Communications, Douglas County-based TW Telecom and Comcast whether they were using deep-packet inspection technology to tailor online advertising to consumers. Those four companies said no, but some others such as Wide Open West, which provides Internet services to customers in portions of the Midwest, acknowledged testing such technology provided by NebuAd. Wide Open West maintained that NebuAd looks only at a "subset" of a person's Internet activity and doesn't collect data from password-protected sites, e-mail, instant messages or Internet telephone calls. British-based Phorm, another company using deep-packet inspection techniques, says on its Web site that it assigns random numbers to Internet users to keep them anonymous and immediately destroys the data. While most Internet service providers aren't using deep-packet inspection, cookie-related targeted advertising continues to flourish. Underlying the trend is money. As Mike Zaneis, vice president of public policy of the Interactive Advertising Bureau noted in Aspen, the online advertising business has reached $21 billion of revenue annually -- 40 percent from ads displayed or related to Internet searches. Knowing something about what a person does on the Internet is the most effective way for companies to advertise online, Zaneis and other industry officials said. Internet sites can charge more for ads that are effectively targeted to certain socio-economic groups. William Blumenthal, general counsel of the Federal Trade Commission, said the FTC has accepted that there's a benefit to the economy from behavioral targeting and that a balance has to be struck. "We're awfully reluctant to take a heavy-handed approach," he said. Blumenthal noted that advertising based on a consumer's behavior is done "offline" as well. A typical homeowner gets deluged by direct-mail offers from mortgage brokers, who use public records to collect data about a homeowner's mortgage. Dan Jaffe, executive vice president of government relations for the Association of National Advertisers, said advertisers don't need to know a consumer's identity, just the behavior. But he acknowledged there's an issue of whether an anonymous consumer later can be identified. That's precisely what happened in 2006, when AOL mistakenly briefly posted 19 million Internet search queries made by more than 650,000 of its customers. The New York Times investigated and was able to identify AOL user No. 4417749 as 62-year-old Thelma Arnold of Georgia by the hundreds of searches she had conducted over a three-month period including queries for "landscapers in Lilburn, Ga." Google and other large search engines such as Yahoo and <http://www.cio-today.com/accuserve/accuserve-go.php?c=7979>Microsoft<http://www.cio-today.com/accuserve/accuserve-go.php?c=7979> in general support the FTC's principles, as well as an industry draft code of conduct, which includes limiting the use of sensitive information to create profiles of individuals. But they don't want to have new laws imposed on them. Hal Varian, Google's chief economist, maintained the online advertising industry wouldn't function well without using cookies to examine what's happened before. He said that's what enables a company to have a relationship with a customer on the Internet. Google, in its response to the House Energy and Commerce Committee, said it doesn't deliver advertising based on deep-packet inspection. But the world's largest search engine said it does provide ads that relate to the context of someone's search on the Internet. For example, if a user searches for asthma, Google said it might provide an ad that relates to the treatment of the condition. Varian also said Google, through its DoubleClick acquisition, is using cookies to enable advertisers to limit the number of times a user sees an ad through a "frequency capping" program. If a consumer is searching for cars, for instance, Google might deliver an ad showing a red car six times, then change it to a blue car so the consumer doesn't develop a "terrible disease called ad blindness," Varian said. Variety makes advertising more relevant, more interesting, he said. "If you don't have relevance, you don't have good advertising." While Google doesn't currently use deep-packet inspection, it told the House Committee that it believes behavioral advertising in general "can be done in ways that are responsible and protective of consumer privacy and the security of consumers' information." What consumers are most concerned about is the unintended use of the data, Varian said. "I think that's primarily a security issue." Cooper of the Center for Democracy & Technology credited Internet companies such as Google for making its tracking systems more transparent, and said the FTC's draft principles are a start. But she said the industry has yet to serve adequate notice to consumers about possible tracking, or provide robust consent/opt-out controls. "Do people understand how much data they are surrendering?" she asked. Many privacy experts want a law that would require Internet service providers to get a customer's explicit consent before tracking Web-browsing activity. Mark Cooper, research director for the Consumer Federation of America in Washington, D.C., takes an even harder stance, suggesting that an outright ban might be in order. "I believe that behavioral advertising is inherently deceptive," Cooper said. <*}}}>< <http://www.holypostage.com/>Holy Postage ~ Share your faith <*}}}>< <*}}}>< <http://www.flickr.com/groups/holypostage/>Holy Postage on <http://www.flickr.com/groups/holypostage/>Flickr <*}}}>< <*}}}>< <http://holypostage.mofuse.mobi/>Holy Postage on your Mobile <*}}}>< Holy Postage ~ Share your faith <http://holypostage.mofuse.mobi/> Lord, may everything we do begin with Your inspiration and continue with Your help, so that all our prayers and works may begin in You and by You be happily ended. We ask this through Christ our Lord. Amen. <*}}}>< <http://www.holypostage.com/>Holy Postage ~ Share your faith <*}}}>< <*}}}>< <http://www.flickr.com/groups/holypostage/>Holy Postage on <http://www.flickr.com/groups/holypostage/>Flickr <*}}}>< <*}}}>< <http://holypostage.mofuse.mobi/>Holy Postage on your Mobile <*}}}>< Holy Postage ~ Share your faith --~--~---------~--~----~------------~-------~--~----~ Please note that I do not send or open attachments sent to this list. You received this message because you are subscribed to the Google Groups "Catholics on Fire" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/Catholics-on-Fire May the blessing of Jesus and our Blessed Mother be with you -~----------~----~----~----~------~----~------~--~---
