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Submitted by NAI on April 26, 2013

As the agenda comes together for the first annual NAI Member Summit in NYC, we are looking forward to what is shaping up to be the must-attend event for third-party organizations that are interested in shaping in the future of our industry.  If you are sitting on the fence, here are just five of the many reasons you need to mark your calendar for May 21.

1. Keynote by Maureen Ohlhausen - Kicking off our half-day event, FTC Commissioner Ohlhausen, who has played an instrumental role in policy issues that affect third-parties, such as privacy, data security, and competition, will share her views on these and other critical issues with the NAI.

2. What Today's Headlines Mean for Third Parties Tomorrow - Do-Not-Track, life beyond cookies, browser moves and more.  The summit will debate and discuss the top stories, breaking news and latest policy decisions that are affecting third parties today. 

3. What Have We Done For You Lately?  The NAI will take members behind the scenes for a comprehensive update on what it is doing to serve its members.  From the development of mobile principles, to ongoing compliance efforts, to our work on the Hill educating policy makers, the NAI is working for you every day.  

4. Innovation and Thought-Leadership from Third Parties - Hear from your peers as NAI member companies and executives take the stage to discuss the important issues facing third parties and demonstrate the value they bring to the ecosystem.

5. Networking in the Heart of Internet Week - The Summit will take place in the beautiful Glass Houses venue in Chelsea, where attendees can overlook the city abuzz with online advertising activity and excitement during Internet Week.

What are you waiting for?  Register today.  

Tags: Summit
Submitted by Marc Groman on April 25, 2013

Yesterday afternoon, I attended the Senate Commerce Committee hearing titled “A Status Update on the Development of Voluntary Do-Not-Track Standards.” The four witnesses at the hearing were Lou Mastria, Managing Director of the DAA, Harvey Anderson of Mozilla, Justin Brookman of CDT, and Adam Thierer. You can find their testimony on the Senate Commerce Committee website. The hearing addressed a number of issues beyond Do-Not-Track that are important for NAI members, including the value of self-regulation, the need for enforcement to back up self-regulation, consumer privacy, the so-called technology arms race with browsers, the future of the dynamic ad-supported Internet, third-party cookies, the need to support small business, and competition.  

In total, seven Senators participated in the hearing yesterday. Chairman Rockefeller called for "Do-Not-Track to become a reality" and supported the efforts of browsers to take measures to protect consumer privacy. Senator Blumenfield echoed the Chairman's statements about Do-Not-Track and the potential need for legislation. Ranking Member Thune highlighted the positive economic impact and value of the digital economy. Interestingly, Senator Thune specifically noted that contextual advertising may work well for some websites, but may not work for other websites -- a critical detail that is often overlooked. He further expressed deep concern about the impact of Do-Not-Track and other policies on smaller publishers, innovation, and online businesses. Senator McCaskill also passionately affirmed that "[w]e don't want to end up with one, two or three giant companies on the Internet without any of the little guys." During his remarks, Senator Heller cautioned that any Do-Not-Track policy "must not pick winners and losers" and should not "pick business models."  In addition, Senator Heller asked about the use of PII for interest-based advertising, taking information directly from NAI's 2012 Compliance Report that found that no NAI evaluated members intentionally collects PII for interest-based adverting. He contrasted that with other advertising business models that rely on the use of PII.

Mastria's testimony highlighted the success of self-regulation for interest-based advertising, explained the commitment made by the DAA to extend industry choice mechanisms to include browser-based signals, expressed concerns about recent actions by Microsoft and Mozilla, and discussed the critical role and value of third parties in the online advertising ecosystem. The written testimony also showcased the role of NAI in bringing accountability to self-regulation, noting that "In addition to the oversight provided by the CBBB and DMA compliance programs, the NAI also has a strong compliance program. The NAI compliance program includes pre-certification reviews, ongoing technical monitoring of member companies' opt-out scripts, annual compliance reviews, mechanisms for accepting and investigating complaints alleging non-compliance, and annual reporting."

There was a vigorous and healthy debate during the question and answer session that I won't attempt to summarize here.  Questions were raised about what consumers understand and want, consumer harm, the distinction between first and third parties, the role of W3C, and the need for legislation.  Notably, Senator McCaskill repeated her concern that we may be engaged in a competitive battle between "big versus little," "browsers versus advertisers," and "first parties versus third parties." She cautioned against creating competitive disadvantages for small online businesses who one day hope to be the next big success on the Internet. That sentiment was shared by many. Moreover, it seemed to me that everyone cares about consumer privacy, but there are genuine disagreements on the core problems and appropriate solutions. I know that NAI and our membership care deeply about consumer privacy and work hard to develop, implement, and honor high standards every day. It's an ongoing process and we are committed to robust enforcement and expanding our Code of Conduct to cover evolving technologies, business models, and policy developments. 

Importantly, the topics addressed at yesterday's Senate hearing are the very same issues that we will be examining at the NAI Member Summit on May 21 in New York City. I strongly encourage every NAI member company to send at least one representative to the Summit and actively engage in this timely debate. These challenging issues will impact every third-party advertising company and intermediary in the ecosystem. Together we will explore the possible ramifications of future changes in the digital landscape and thoughtfully evaluate potential solutions and responsible responses.  Please join us.  

Submitted by NAI on April 25, 2013

An Interview with Ben Plomion, VP of Marketing & Partnerships at Chango

Q: Who is Chango and what does your business do?

A: Chango is a Programmatic Marketing Platform (PMP) that allows marketers, agencies and publishers to organize their data and execute highly data-driven marketing campaigns.

Q: How long have you been an NAI Member, and what is the key reason for your membership? 

A: Chango has been an NAI member since 2011.

Like many NAI member companies, Chango is on the front lines of the behavioral advertising’s best practices.

Behaviorally targeted ads deliver greater relevance and a better experience. However, we do recognize that not all consumers want to be served behaviorally targeted ads. We want customers to be notified when data is collected and to understand that they have the ability to opt out. It’s about meaningful choice. As a fast-growing company, however, it’s hard to do all of that on our own. That’s where the NAI comes in. 

We have among the most stringent requirements on data partners in the industry. Our NAI membership is part of that. NAI's compliance review helps companies like us adhere to the NAI's Self-Regulatory Code of Conduct. The NAI reviews our data collection practices in great detail. The goal is to ensure that NAI members are complying with industry-wide best practices. It can be a tedious process, but it's worth the investment. It benefits everyone. 

Q: Since you work with publishers every single day, we are sure you are asked many questions about your data collection processes. Can you discuss this with our audience?

A: We speak to dozens of publishers every week, and you are right, they care a lot about data. The 5 most common questions on data collection we receive are listed below alongside our responses.  We hope the information will be useful to anyone interested in the subject, especially publishers!

 

1. What data do you collect?

A: As a leader in the Search Retargeting space, Chango helps advertisers find those browsers who have searched for certain relevant keywords, but who have not yet visited the advertiser’s site. 

When done correctly, search retargeting is very privacy friendly.  At Chango, we do not retain a browser’s full search history, and we do not collect or use any PII, such as name, street address, phone number, or email address.  We are only interested in keywords that are relevant to one of our campaigns, so we collect those keywords, such as “minivan” or “hiking boots,” along with some standard information such as IP address, browser type, etc.  We never link or merge the data we collect with information that would allow us to link a person with the search data we collect. In fact, that is one of the privacy benefits of this model.  No PII is ever needed, used, or retained and we never link our data to a specific individual.  

 

2. How is the data being captured?

A: There are a few ways to collect data. The primary method that we use is to place a JavaScript in the global footer of the publishers' page. Data collection is real-time. Our JavaScript is asynchronous and hosted on Akamai to avoid any page load delay.  

The keywords we collect are associated with a non-PII cookie, so the next time that browser comes across one of our exchange partners, we know to show an ad associated with that keyword.  Again, no PII or sensitive information is involved in the process.  This is what makes our model so privacy friendly; we only have a random cookie ID that is matched to some keywords and standard header data sent by the browser.  We don’t know who the browser belongs to, where they may live, or any other information about the consumer.

 

3. How is the data is being used?

A: We use search data to run search retargeting campaigns. Search Retargeting is a highly effective prospecting tool.  Browsers that are actively searching for a keyword in the search engine are expressing a strong intent to buy. We capture search terms and retarget the browser with a display ad across more than 18 ad exchanges. 

 

4. What change needs to be made to my privacy policy?

A: We ask publishers to change their privacy policy in accordance to the NAI’s guidelines – to disclose data collection for behavioral advertising, and to link to an opt out mechanism. It’s important to us that consumers get notice of data collection as well as the option to opt out from behavioral advertising. 

Chango reserves the right to terminate the agreement should we deem the data notice or choice options to be insufficient.

 

5. Is there any other thing I should know about consumer privacy?

A: We provide myriad options for users to opt out. Consumers can opt out of our ads is by clicking on the “”i" icon on any ad that we run. This link takes the consumer to the aboutads page, where they can opt out from behavioral advertising by some or all participating companies.  We are also host our opt out on the opt-out page, which consumers can access directly or through links in our partners’ privacy policies. Consumers can also opt out from our website.

Submitted by James Campbell on April 22, 2013

Recently, the DAA announced the results of a poll that surveyed 1,000 US adults on their attitudes and opinions regarding online advertising and interest-based ads.  The survey findings indicate that US Internet users are becoming more savvy about Internet advertising and the massive amount of content it supports, and are largely comfortable with the value-for-value exchange that interest-based advertising represents.  

By substantial margins, poll respondents valued free content, and reaffirmed their preference for the advertising-driven economic engine that supports that content. 

Another thing that’s clear is that, when given the choice, Americans prefer to see ads that reflect their interests. The fact that Internet users prefer ads that reflect their interests over Internet ads for random products and services only makes effective industry self-regulation more important.  That's where groups like the NAI and DAA come in. The NAI's role is to ensure the health of the online ecosystem by maintaining and enforcing high standards for data collection and use in online advertising. 

To see the complete results of this important survey, visit: http://www.aboutads.info/resource/image/Poll/Zogby_DAA_Poll.pdf 

For more information about the NAI's Self-Regulatory Code of Conduct and Compliance Program, visit: http://www.networkadvertising.org/about-nai/about-nai