Despite pushback from the ad industry, Microsoft says it has no intention of backing away from its decision to activate the do-not-track setting by default on the Internet Explorer 10 browser. Brad Smith, general counsel and executive vice president at Microsoft, says in a blog post that although the company is "listening" to the industry's reaction, it remains "steadfast" in its decision to enable do-not-track by default. He writes that the do-not-track technology is part of the company's "commitment to innovate around privacy to give consumers more control of their personal information online." Microsoft stunned many in the online ad industry in May, when it said it would automatically activate do-not-track headers in Internet Explorer 10. In August, the company clarified that it will turn the setting on by default for users who choose "express settings" during the Windows 8 installation process. That move drew criticism from many ad industry players, including the Association of National Advertisers. That group recently urged Microsoft to rethink its "ill-considered approach," which the ANA argues will harm online advertising. When activated, a do-not-track header sends a signal that users don't want to be tracked as they surf the Web. But the signals don't actually block tracking. Instead, it's up to ad networks and publishers to react to the signals. At this point, the industry hasn't agreed yet on how to respond to do-not-track settings. The Internet standards group World Wide Web Consortium is trying to forge a consensus, but participants have been unable to agree on critical issues -- including whether ad networks should stop collecting data from users who activate do-not-track, or merely stop sending those people behaviorally targeted ads. Even if the group can reach a decision about the meaning of do-not-track, it's not yet clear whether ad networks will honor that request when it comes from IE10 browsers. The ad industry self-regulatory group Digital Advertising Alliance said in October that it wouldn't require members to do so because Microsoft's do-not-track signal is set to "on" by default. Smith argues in his blog post that browser vendors "should have the ability to turn the DNT signal on or off when they release a product or service," but should also make it easy for users to change the setting. "There needs to be an easy and effective way for responsible advertisers and ad networks to inform consumers and obtain persistent consent for their services when the DNT signal is turned on," he says. Smith suggests offering consumers a mechanism to opt-in to data collection on a company-by-company basis while keeping do-not-track turned on. "We believe gaining explicit permission from consumers to collect their information ... is the right path forward for online behavioral advertising," he writes.
As part of its effort to cultivate small and medium-sized businesses, Facebook has introduced a new option that allows page owners on the site to more easily create ads to build their fan bases. Specifically, the new offering enables companies to create "PageLike" ads directly from their Facebook page rather than through the more complex Facebook ad system. In that way, they are similar to Promoted Posts, but instead of being used to reach existing fans, the Page Like ads are intended to attract new ones. Facebook said Thursday it took the step to simplify the process of running Page Like ads in response to small businesses and new page owners telling the company that driving new customers to their Facebook presence and growing their fan base are among the biggest challenges they face. Speaking at the BIA/Kelsey interactive conference last week, Dan Levy, Facebook’s lead for small business, said the company would look into supporting third-party companies providing services for small businesses on Facebook beyond those in its preferred marketing developer program. Overall, Facebook supports more than 13 million small and local business pages, with active pages up 40% this year. The number of local businesses on Facebook that bought advertising on the site has nearly doubled. Facebook COO Sheryl Sandberg called small businesses the “holy grail” of online advertising in October, suggesting the social network was well positioned to capture more of that spending. That’s due to Facebook’s local targeting capability. When it comes to running Page Like ads, companies can use their page administrator panel to set basic locating targeting by city, state or country. The budget size depends on how many people an advertiser wants to reach, with a minimum spend of $5. “The social network’s ad dashboard has become increasingly complicated with untraditional ad types like Sponsored Stories and page post ads, and for business owners that are unfamiliar with ad terms like bids, CPC and CPM, the tool can be overwhelming,” noted the Inside Facebook blog in a post Thursday.
Automation continues to move deeper into Twitter's ad platform, taking it closer to offering services similar to Google and Bing. Marketers on Twitter can now select from several matching options when entering keywords: exact match, phrase match, basic keyword match, and negative keywords. The services offer targeting of more granular search terms for advertisers using Promoted Tweets. Negative keyword targeting allows marketers to restrict Promoted Tweets when users search for certain keywords. "For instance, if you sell bacon, you can now keep your campaigns more than six degrees apart from Kevin Bacon by using “Kevin” as a negative keyword," explains Kevin Weil, director of product management at Twitter. Negative keywords have advantages and disadvantages. The match types provide the system with another signal to serve up ads, based on searched words and phrases. One disadvantage points to filtering out wanted traffic if marketers are careful. Importing keywords from campaigns running on other sites saves marketers time and money. Twitter has also introduced an "Import multiple keywords" button for marketers. The tool accepts exported keyword lists from other search advertising platforms or a cut-and-paste from a document. Twitter has also introduced the ability to automatically match Promoted Tweets in search results to relevant trending topics. The feature relies on relevance signals about Promoted Tweets to help increase campaign coverage automatically. The tools rolled out worldwide.
Content producers and search marketers will need to have a better understanding of science and math in 2013, or risk failed campaigns. Datapop's white paper, "A Comprehensive Guide To The Art & Science of PPC Ad Optimization," released at the MediaPost Search Insider Summit Thursday, provides insight into why ads "suck." It explains how consumers have been bombarded with misplaced and irrelevant messages for years. "What do you have that deserves the consumer's attention?" asks Jason Lehmbeck, cofounder of Datapop, during a panel discussion on the importance of creative. Forrester Research Principal Analyst Joanna O'Connell says most agencies fear that data-driven technology firms will "eat their lunch." Some think it's an opportunity for companies to partner. The Datapop white paper takes search marketers through the process of full-scale ad optimization and provides insight into why creative optimization will drive long-term search success. It recommends a focus on story, not data. Mom Chan, senior director of user acquisition strategy at PriceGrabber.com, says marketers need technology to dynamically test and combine signals and tokens that relate to individual products or brands. The ability to identify what does and doesn't work is a huge step in search campaigns. As search becomes increasingly more competitive, marketers require strategies to stand out from the competition. But most are currently not testing their creative options, Lehmbeck says. "Process and technology need to come together to make art and science scale," he says. Many search marketers have seen lackluster results from their ad testing efforts because, per the white paper, they have committed one of "The 7 Deadly Sins of Ad Optimization," such as a lack of -- or poorly developed -- hypothesis, speaking to multiple intents in test ad groups, and overlooking device types in testing.
Few trends shaped 2012 as profoundly as the growth of mobile apps, and gaming apps in particular. This year, apps generated about $10 billion in revenue -- and a staggering 80% of this went to games, according to new estimates from mobile analytics firm Flurry. The financial success of gaming apps speaks directly to the popularity of “freemium” business models, which give consumers free access to the “core loop” of a game, but then charges for virtual goods and currency through micro-transactions. Indeed, this “free-to-play” strategy represents “the most prolific business model in the new era of digital distribution,” according to Dan Laughlin, senior director of Games Business Development at Flurry. Flurry also noted that with app consumption on iOS and Android “smart devices” -- i.e., phones and tablets -- consumers spend more than 40% of all their time using games. Driving growth, game makers like Electronic Arts and Zynga are also getting better at understanding different consumer behaviors based on game genres. “This level of understanding greatly informs a company’s app acquisition, retention and monetization strategies,” Laughlin said. Examining consumer behavior differences by app usage, retention and demographics, Flurry found that middle-aged females are particularly drawn to “social turn-based games,” as well as “evergreen” games, which can be played among friends. Older male gamers can be corralled with casino- and poker-type gamers -- while not surprisingly, younger males represent the most fickle demographic, according to Flurry.
When it comes to the rise of two-screen viewing, much of the discussion has focused on tablets as the second screen. But a new study shows that most people watching video on mobile phones are doing so at home (63%), rather than on the go. More than a third (36%) of this viewing takes place in a room where a TV, PC or tablet is also available for watching video. The findings come from a new report by the Interactive Advertising Bureau and its Mobile Center of Excellence. In terms of time spent, two-thirds of people spent more than an hour a week watching video, with music, movie trailers and how-to videos being the most popular formats. The vast majority (85%) also favor videos under 10 minutes long, given the limitations of the small screen size. Most videos (55%) were watched on apps versus the mobile Web (41%). The study showed that nearly all (92%) of mobile video watchers share material they’re watching, with 56% of those doing so via Facebook or other social media and 44% by simply showing others content on their phone. Texting, email, YouTube and Twitter were among other means of sharing. Most video viewing on phones takes place during the week and tends to peak in the evening, which coincides with prime-time TV. And about a fifth (22%) of those using other media while watching mobile video were watching TV. When it comes to advertising in mobile video, the largest proportion (30%) of survey participants was neutral. The majority (53%) was either neutral or receptive toward advertising, while 46% dislike seeing ads while watching videos on their devices. Those views stem mainly from watching 10- to-15-second pre-roll ads -- the most commonly encountered format. Among other ad metrics, 44% recalled seeing an ad while watching a video, with short clips the most likely to be remembered. If they had to watch ads, people said they preferred 10- to-15-second spots either before (42%) or after (40%) videos. Other ad types such as sponsorships, TV commercials, pop-up ads and overlays found less favor. In addition to pre-rolls or post-rolls, the study also suggested people prefer ads related to the video they’re watching (43%) as opposed to as based on their local area, sites they have visited before, recent video history or favorite brands. So contextual ads trump behaviorally targeted ones for mobile video watchers. Asked about what could mobile video better, faster downloading/streaming speeds was the area where most (51%) want to see improvement, followed by a desire for more free video (45%).
A Twitter Tracker tool created by the digital experts supporting "VH1 Divas" scheduled to air live on Sunday should stir up some social conversation around the show. The tool will show viewers the celebrity Twitter buzz on desktop and mobile, allowing them to click through for more information. The site will show the popularity based on the number of retweets. Another tool allows viewers to track and view photos in real-time as the show airs. Fans determine the way photos get organized, rather than VH1's editorial group, according to Jonathan Mallow, executive producer for VH1 Digital. "It's about consuming content while the show runs, but the social universe determines the order." For VH1, it's about bringing the fans closer to the artists and talent they love. Last year, VH1 live streamed a photo shoot around a show that had come back from hiatus with two new cast members. Fans opt-in to receive the content. "These types of campaigns give us get a better sense of what resonates with the audience," said Dan Sacher, VP of digital of VH1. "It can help us better entertain the audience." VH1 broke records in social engagement surrounding a show called "Love & Hip Hop," which ranked No. 1 as the social show of the summer by Trendrr. While VH1's digital team builds the content, the network's marketing group monitors what's trending and buying keywords that match with the performance that occurs on live shows, such as "Divas." It completes the circle. Rather than lead people back to a page, the strategy matches keywords and content. The VH1 Red Carpet Web cast preshow on VH1.com will debut the Twitter tracker hosted by some of the other network's talents.
Automotive was the fastest-growing ad category on the Millennial Media ad network in the third quarter, with spending up nearly sixfold. That finding echoes data just released by Nielsen showing that auto saw the biggest ad-spending gains overall in the quarter, up 26% to $2.7 billion, fueled by year-end promotions. Other big categories on the Millennial network, travel, education and sports categories were each up more than four-fold in the quarter. Telecom remained the largest industry advertising vertical overall, followed by retail and restaurants, finance, automotive and travel. Since telecom has been the top category throughout the year, Millennial took a closer look at audiences being targeted within the vertical. Given that everyone uses telecom services, campaigns spanned a wide variety of audience types including vacationers, fashionistas, parents, business travelers, and movie buffs. Beyond audience targeting, the mobile ad network also shed light on options that advertisers include in ads after a click-through. The opportunity to get more product or other information from a company site was the most common post-click feature, used in 41% of campaigns. The option to download an app appeared in almost a third of campaigns. Other prevalent post-click ad features included social media, m-commerce and the chance to subscribe to a service or other offering. In terms of mobile operating systems, Android generated more than half of the impressions on the network, with iOS accounting for 34%. Among tablets, the iPad again led the way in generating impressions, followed by a quartet of Android-based devices. Millennial says its network serves ads overall in more than 38,000 apps across 7,000 different device types that reach an audience of about 150 million in the U.S. and 380 million globally each month.
The American Heart Association, American Academy of Pediatrics and Consumers Union are among a coalition of nearly 60 groups that are urging the Federal Trade Commission to issue new regulations banning marketers from sending behaviorally targeted ads to children. "These rule changes are not only essential, but also urgent, addressing a variety of techniques that are swiftly becoming commonplace, including: 'cookies' and other 'persistent identifiers' for following a child online, mobile and geolocation tracking, facial recognition software, and behavioral advertising." the organizations say in a letter sent to the FTC on Thursday. The groups contend that the FTC needs to update its rules implementing the children's Online Privacy Protection Act, in order to account for recent advances in technology. COPPA broadly bans Web site operators from knowingly collecting personal information from children under 13 without parental consent, but empowers the FTC to define key terms, including Web site operators and personal information. The FTC recently proposed broadening the definition of personal information to include unique identifiers that can track a user across more than one site, including certain types of cookies, device serial numbers, and in some cases, IP addresses. The agency also proposed that any third parties that collect data -- including companies that offer social plug-ins, ad networks and other service providers -- also should be covered by the restrictions. The Interactive Advertising Bureau opposes the proposed changes. The IAB argues that tracking cookies and other "persistent identifiers" are anonymous and only identify particular devices, not users. Current self-regulatory principles limit the use of online behavioral advertising techniques on children, but those principles aren't the same as legally binding regulations that would apply to all companies.
The other day, my wife and I were talking about her trip with my daughter for a college visit. As I am wont to do (because I am, yes, that guy) I asked what route she took to get there; was it this interstate vs. that interstate? She stared back blankly, clearly unable to recall any of the major highways between here and there. You don't have to be our ages to have a "senior moment." Who among us are not flummoxed when we fail to recall an actor in a movie we have seen 20 times, or the name of the guy that cousin Sarah married? But I suspect there is something more profound at work in this case of Failure to Recall: GPS. Since my wife is of the female persuasion, she dutifully enters her destination into the car's GPS system before setting out and avoids the male scenario of yelling at a frightened co-pilot “Why did you let me miss that goddamned exit!!" because said co-pilot couldn't shuffle the road atlas fast enough, or couldn't get a cell signal for Google Maps (welcome back, iPhoners). While Failure to Recall: vGPS may not seem like the end of the world, it becomes alarming when you consider how technology has now erased all memory of other things like phone numbers and street addresses. There was a time you could spout off dozens of addresses down to the precisely correct ZIP code, and knew nearly everybody's phone number by heart. But thanks to Failure to Recall: vEmail and Failure to Recall: vSmartphone, you can't even call your grey-haired old mum without accessing her contact information. Although I am decidedly not a Facebooker, I am confident than many of you rely on its technology to remind you of a relative’s or VIP’s birthday (and some even let FB send the greeting, however impersonal it may seem to the birthday boy or girl). All of the romance and satisfaction of getting a handwritten letter -- or, worse but still acceptable, a snarky birthday card -- is fast disappearing in the technology age. We all remember the cartoon of the guy staring at his computer screen and saying into the phone:"And how is your wife living at 245 Ocean Drive and her 2.5 children?" Not so far-fetched from where we are heading. While the ability to collect information about customers (both on and off line, thank you again WSJ) is unparalleled in history, what good is it when a customer you used to be on a first name basis with suddenly walks through the door -- and you haven't a clue what that first name is anymore? I experienced a little of that at a car dealer recently where I was greeted with the usual utter indifference until someone realized I had bought two cars from them in the past. Suddenly everyone puckered up to kiss my ass. Since they had fair warning via some Internet-enabled back-and-forth before I showed up for a test drive, you would have thought SOMEBODY would have read my file before I hit the door. Apparently not. Technology has enabled me to do so much more, but without having to learn so much more. For example, when my kids give me songs for my MP3 player at the gym and someone asks me who the artist is, I have no idea. Not even the name of the song, because the entire transaction was electronic and at no point required that I read anything about the music. Want to have some fun to break the holiday monotony? Take your kid to the local library and tell him or her to find a book without asking for help. Save a trip, ask them to quickly find a foreign affairs story in the A section of the newspaper. When they are keyless, they are clueless. It seems to me the more we rely on technology, the more our ability to remember fades away. With our kids growing up utterly dependent on technology for everything from homework to social interaction, there will come a day when you ask them if they remembered to buy a birthday card for Grandma -- and they won't know who she is until they access your online genealogy.