behavioural targeting & lawjhh/secsem/2012/behavioural_targeting.pdfthrough an online broker,...

Behavioural Targeting & Law

Nijmegen 16 March 2012

Frederik Borgesius PhD researcher, Institute for Information Law

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Contents

1. Behavioural targeting 2. Audience buying 3. Right to privacy 4. Right to data protection 5. Facts + Law

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1. Behavioural Targeting

(i) Tracking people online (ii) Building profiles (iii) Targeted advertising

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Example - Tracking

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Tracking

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Targeting

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Targeting

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Targeting

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Advertising Network

Adapted from www.cdt.org

Third Party

Tracking

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Tracking - Health Site

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Tracking - Debt Problems Site

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•  [ I agree ]

Gomez et al (2009) www.knowprivacy.org, Berkeley

Combined coverage Google trackers

(400.000 domains)

Tracking

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Tracking - Mobile

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Tracking - Mobile

Tracking - Mobile

Warden & Allan 2011, iPhone tracker

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Tracking - Mobile

Wall Street Journal – What They Know Mobile - 2010

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Behavioural Targeting


Profiles

Facebook data centre, Wired 1 December 2011

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Profiles

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“750 MM anonymous consumer (...) profiles”

“2.5 MM attributes to define your ideal segment”

Profiles

www.valueclick.com

www.laredogroup.com

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“Over 35 world-class data providers (…) integrated into profiles.”

Profiles + offline data

www.collective.com

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Targeting -Advertising

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Targeting –News

http://visualize.yahoo.com/core/

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Audience Buying


2. Audience Buying

Economist, 5 May 2011

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Audience Buying

“Advertisers are buying audiences with data.”

http://collective.com/about

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Website Publishers & Advertisers

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Audience Buying

- Website publisher: audience seller

- Advertiser: audience buyer

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Auction / Real Time Bidding

“Advertisers place bids on reaching specific users dynamically, and on an impression-by-impression basis.”

Pubmatic, Audience selling for publishers, 2010

Audience Buying – Auction

The DoubleClick Ad Exchange is a real-time marketplace to buy and sell display advertising space.

By establishing an open marketplace where prices are set in a real-time auction, the Ad Exchange enables display ads and ad space to be allocated much more e!ciently and easily across the web. It’s just like a stock exchange, which enables stocks to be traded in an open way.

Who participates in the Ad Exchange?Again, imagine the Ad Exchange as a stock exchange. Only the largest brokerage houses actually plug into, say, the NYSE. In the Ad Exchange world, those are:

The large online publishers (sellers)—websites like portals, entertainment sites and news sitesAd networks and agency holding companies that operate networks (buyers)—companies that connect web sites with advertisers.

But it’s not just the direct participants who benefit. As an individual investor, you can buy and sell shares on the stock exchange through an online broker, without needing to plug in to the NYSE mainframe. It’s the same for AdWords advertisers and AdSense publishers who get access to the extra publishers and certified ad networks in the Ad Exchange, through their AdWords or AdSense interface. Similarly, advertisers who use other participating ad networks can get the benefits of the Ad Exchange.

What does the Ad Exchange mean for the display advertising ecosystem?Sellers in the Ad Exchange:

Can make the most money for their ad space, every time a page on their site loads with an ad (called an “impression”). In the past, too many sellers had inventory unsold or sold for a price below its potential market value.

Get access to many more advertisers, while still being able to control who can advertise on their site.Benefit from simplified reporting and payments—a single exchange manages it all.

Buyers in the Ad Exchange:

Get access to many more websites and more ad space.Can use technology that allows them to bid for ad space in real time, depending on how much they value a particular ad impression.Have more controls over where their ads run and don’t run.

Google AdWordsTM advertisers:

Have easy access to the websites in the Ad Exchange, as well as all the existing websites in the Google Content Network—all through their AdWords interface. Google AdSenseTM publishers:

Have their ad space available to certified ad networks in the Ad Exchange. This means more quality display advertisers competing for their ad space and higher returns. AdSense publishers get the benefit of this through their AdSense interface, without having to log in to the Ad Exchange itself.

DoubleClick Ad Exchange Overview

The DoubleClick Ad Exchange

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Auction / Real Time Bidding

Audience Buying – Auction

07/03/2012 2:58 PMAnnouncing Real-Time Bidding… | Blog - Mobclix

Page 1 of 2http://blog.mobclix.com/2010/11/16/announcing-real-time-bidding/

Announcing Real-Time Bidding…

First-ever mobile auction model gives advertisers complete control over every impression and

publishers the ability to achieve eCPM lifts of 40 to 85%.

Today we announced the launch of the mobile industry’s first supply-side platform for real-time bidding (RTB) of ad

inventory. Now, demand-side platforms (DSPs) and RTB ad networks can bid for individual ad impressions in real-

time, giving advertisers and agencies dramatically better targeting and increased performance. The RTB system will

give publishers complete control over every impression so they can maximize revenue, monetize relevant audiences

beyond typical strategies and achieve eCPM lifts of 40 to 85 percent over non-bidded inventory.

“The shift toward real-time bidding inventory is already happening online,” says Krishna Subramanian, Mobclix co-

founder. “A recent Mobclix survey of marketers and ad networks revealed that early adoption for RTB on mobile will

garner more traction due to the success seen online. We expect total mobile inventory bought with RTB to be 10

to15 percent of total ad buys for 2011.”

Expectations for the industry are high. Recently, a Google executive revealed that real-time transactions on the

DoubleClick Exchange more than tripled in the past year, and predicted that at least 50 percent of all targeted online

display advertising will be bought through real-time platforms by 2015. Real-time bidding is the market maker for

display and search advertising; now the same advertisers can apply this technology to reach the mobile audience.

“Real-time Bidding has made a tremendous impact for our online publishers and advertisers in 2010,” said Marc

Theermann, Admeld vice president of Mobile. “We are thrilled that our partner Mobclix is as excited about RTB as we

are, and together we are looking forward to making 2011 the year of RTB on mobile.”

“Given the huge potential for mobile ads and the market opportunity they represent, [x+1] is excited to partner with

Mobclix to bring the power of RTB capability to the mobile space,” said John Nardone, [x+1] chairman and CEO.

“Now we can continue to deliver on the promise of true multichannel marketing, delivering personalized, highly

relevant content to consumers in an integrated fashion across digital channels – via websites, display media, e-mail,

video and mobile.”

How Real-Time Bidding Changes the Game

Real-time integration and decision making exists between the serving systems. Rather than passing an impression

off to the next system, the sell-side determines if the buyer wants to display that ad and how much they are willing

to pay. Advertisers purchase these impressions from DSPs or ad networks. With auctions and delivery being

November 16, 2010 | Posted By : Laura In : Advertising, Mobile Industry

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Online Privacy & Recht

Summary


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3. Right to Privacy


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European Convention of Human Rights: Privacy

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European Convention of Human Rights 1953

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Art 8 (1) Privacy

Everyone has the right to respect for his private and family life, his home and his correspondence

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Art 8(2) Restrictions on Privacy

- in accordance with the law

- necessary in a democratic society

- for: - national security etc

- protection of the rights and freedoms of others

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Privacy in European Convention

1) Right to private life

2) Restrictions only with very good reasons

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European Court of Human Rights

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- No definition of private life

- Dynamic interpretation - “Pragmatic, common-sense

approach”

* Niemitz/Germany 1991 ** Botta/Italy 1998 www.echr.coe.int - Hudoc database

**

*

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Art 8 Private Life European Court of Human Rights

Klass/Germany 1978

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Peck/United Kingdom 2003

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Copland/United Kingdom 2007

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Right to Data Protection

1. Behavioural targeting 2. Audience buying 3. Right to privacy 4.  Right to data protection 5. Facts + Law

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Data Processing 60s – 70s

IBM 1964

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EU Data Protection Directive 1995

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EU Charter of Fundamental Rights 2009

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Protection of Personal Data (art 8)

Everyone has the right to the protection of personal data

concerning him or her

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Protection of Personal Data (art 8)

Data processing must be -  fair and lawful -  for specified purposes -  on the basis of consent -  or other basis laid down by law

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Personal Data

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Personal Data Definition

- Any information relating to an identified or identifiable person

- Identifiable: directly or indirectly

- identification number etc.

Art 2(a) Data Protection Directive

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Facts + Law


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Personal Data?

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Personal Data

New York Times 9 August 2006

Personal Data?


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Right to Data Protection

“Such data must be processed fairly for specified purposes and on the basis of the consent of the person concerned or some other legitimate basis laid down by law.”

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Informed Consent?

•  [ I agree ]

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Whatever Button

•  [ I agree ]

Whateverbutton Borra & Stevenson 2007

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Informed Consent?

“By using our Services, you are agreeing to these terms.”

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Informed Consent?

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Summary


Thank You!

Nijmegen 16 March 2012

Frederik Borgesius www.twitter.com/FBorgesius

behavioural targeting & lawjhh/secsem/2012/behavioural_targeting.pdfthrough an online broker,...

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