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Behavioural Targeting & Law
Nijmegen 1 March 2013
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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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
Coverage Google trackers
Tracking
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Tracking - Mobile
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Tracking - Mobile
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Tracking - Mobile
Wall Street Journal – What They Know Mobile - 2010
Tracking - Mobile
Warden & Allan 2011, iPhone tracker
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Behavioural Targeting
(i) Tracking people online (ii) Building profiles (iii) Targeted advertising
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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Behavioural Targeting
(i) Tracking people online (ii) Building profiles (iii) Targeted advertising
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Targeting - Advertising
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Targeting –News
http://visualize.yahoo.com/core/
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Targeting – Politics
26 Campaigngrid.com
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Targeting – Politics
‘Targeting fathers aged 35-44 in Texas who frequent gun enthusiast websites’
www.retargeter.com
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Targeting – Dynamic Pricing?
‘Easy for companies to track customers' behavior and adjust prices accordingly’
Harvard Business Review, February 2001
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Behavioural Targeting
(i) Tracking people online (ii) Building profiles (iii) Targeted advertising
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Audience Buying
1. Behavioural targeting 2. Audience buying 3. Right to privacy 4. Right to data protection 5. Facts + Law
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
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
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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Real Time Bidding Mobile Ad Exchange
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Online Privacy & Recht
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x
Summary
Economist, 5 May 2011
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3. Right to Privacy
1. Behavioural targeting 2. Audience buying 3. Right to privacy 4. Right to data protection 5. Facts + Law
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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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Privacy in European Convention
1) Right to privacy
2) Restrictions only for good reasons
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Art 8(2) Restrictions on Privacy
- in accordance with the law
- necessary in a democratic society
- for: - national security etc
- rights of others
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European Court of Human Rights
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European Court of Human Rights
- No definition of privacy
- ‘Pragmatic, common-sense approach’
* Niemitz/Germany 1991 ** Botta/Italy 1998
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European Court of Human Rights
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Art 8 Privacy European Court of Human Rights
Klass/Germany 1978
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Art 8 Privacy European Court of Human Rights
Peck/United Kingdom 2003
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Art 8 Privacy European Court of Human Rights
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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Personal data processing:
- fair and lawful - for specified purposes - on the basis of consent - or other basis laid down by law
Art 8 EU Charter of Fundamental Rights
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Personal Data
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Personal data definition
Any information relating to
identifiable person
Art 2(a) Data Protection Directive
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Territorial scope Jurisdiction
Use of equipment situated in EU
Art 4 Data Protection Directive
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Territorial scope Jurisdiction
Use of equipment situated in EU
Data Protection Authorities: ‘cookie + device = equipment’
Art 4 Data Protection Directive
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Facts + Law
1. Behavioural targeting 2. Audience buying 3. Right to privacy 4. Right to data protection 5. Facts + Law
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Personal Data?
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Personal Data
New York Times 9 August 2006
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Court of Justice EU
IP addresses: personal data
(case concerned ISP)
CJEU, Scarlet/Sabam, 24 Nov 2011
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EU Data Protection Authorities
Nameless profiles = personal data
Can be used to ‘single out’ a person
WP29, behavioural advertising opinion 2010
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Right to Data Protection
‘Personal data must be processed fairly for specified purposes and on the basis of consent or some other legitimate basis laid down by law’
Art 8 EU Charter of Fundamental Rights
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Consent
- freely given - specific - informed - indication of wishes
Art 2(h) Data protection directive
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“Consent”
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"Your continued use of [the service]
following changes to our terms
constitutes your acceptance of our
amended terms."
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“Consent”
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"Your continued use of [the service]
following changes to our terms
constitutes your acceptance of our
amended terms."
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EU Example Consent
• [ I agree ]
Article 29 Working Party (WP100)
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Consent tracking technologies
Consent for storing and reading information in device
Exceptions: necessary for communication / requested service
Art 5.3 e-Privacy Directive
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Consent – indication of wishes?
Interactive Advertising Bureau
“We believe that default web browser settings can amount to ‘consent’”
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Informed Consent?
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Dutch public broadcaster
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Consent
- freely given - specific - informed - indication of wishes
Art 2(h) Data protection directive
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Volkskrant
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Whatever Button
• [ I agree ]
Whateverbutton Borra & Stevenson 2007
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After consent
- fair and lawful - data minimisation principle - security principle - ... - Data protection directive
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Do Not Track
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Do Not Target / Do Not Track?
www.w3.org
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Summary
1. Behavioural targeting 2. Audience buying 3. Right to privacy 4. Right to data protection 5. Facts + Law
Thank You!
Nijmegen 1 March 2013
Frederik Borgesius @FBorgesius
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