Behavioural Targeting & Lajhh/secsem/2015/behavioural.pdf · The DoubleClick Ad Exchange is a...

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


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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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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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

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

Summary

Economist, 5 May 2011

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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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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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- No definition of privacy

- ‘Pragmatic, common-sense approach’

* Niemitz/Germany 1991 ** Botta/Italy 1998

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Art 8 Privacy 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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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


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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”

6

"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


Thank You!

Nijmegen 1 March 2013

Frederik Borgesius @FBorgesius

Behavioural Targeting & Lajhh/secsem/2015/behavioural.pdf · The DoubleClick Ad Exchange is a...

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