Please, Please Be Proactive

Two leading advocacy groups filed a complaint today with the Federal Trade Commission in an attempt to force the FTC to take a "proactive stance."  Joining the Center for Digital Democracy in the complaint is the U.S. Public Interest Research Group. Those groups currently are pursuing an FTC complaint about behavioral targeting generally. They argue that marketers should not track people's Web-surfing activity for the purpose of compiling profiles about them without first obtaining their consent.  The Federal Communications Commission already prohibits marketers from sending text message ads to consumers without their opt-in consent, but some other types of nascent mobile ads--such as wireless application protocol banners or search ads--are not similarly restricted.  the Center for Digital Democracy hopes to influence policy now, while the mobile ad market is still in its infancy. Specifically, its complaint calls on the FTC to create a task force that will include consumer representatives and industry leaders to craft a marketing regime that gives priority to privacy.  Although, to me, this is just an empty gesture to get attention, it reinforces once again the nervousness regarding behavioral advertising. 

Be Good for Goodness Sake: Search Engines in Europe

The EU Working Party responsible for implementing Europe's Data Protection Directive, i.e. the infamous European privacy laws issued an opinion this month found that the EU privacy directive covers a broad range of garden variety search engine activities, e.g. long term caching (a la the Internet Archive), search histories (like the material subpoenaed by the US government at the end of 2007), and collection of IP addresses.  The Working Party also noted that behavioral advertising may not be permissible without users' consent. 

This could hamstring the next generation interactive advertising and, even some garden variety website activities.  One more reason to use care if you're a US company moving into another jurisdiction.

Targeted Ads are Creepy to Consumers

Reuters is reporting that almost 60% of Americansin a Harris Interactive poll were uneasy when Web sites use information about a person's online activity to tailor advertisements or content.  "There's a creepy factor and a fear of the unknown that people don't want to deal with," said Michelle Warren, senior research analyst at Info-Tech Research Group in London, Ontario. 
This is consistent with my experience.  I teach a class on digital media law and policy every year and I always ask the students what privacy intrusion worried them the most.  In the past, identity theft was far and away the overall winner.  This year, targeted advertising and online monitoring was the winner and the reason was clearly the "creepy" factor.
This suggests to me that companies will need to use great care when implementing targeted advertising solutions and that alleviating the "creepy" factor will be at least as important as creating tangible benefits to consumers.

My Life. My Card. My Slogan

A few years ago, American Express starting running the "My Life. My Card." campaign, featuring  De Niro, Tiger Woods and (my personal favorite) Wes Anderson. But who came up with the slogan? Stephen Goetz said he did. Goetz, a consultant for Mez Design at the time, sent Amex a proposal:

"`My Life, My Card' American Express delivers personalized cards to its cardholders!"

Goetz's idea, according to AP, was to "enable credit card customers to personalize a card by choosing a picture to be printed on the card's face." Amex went ahead with its own "My Life. My Card." campaign and sought a declaratory judgment that it wasn't trampling on any of Goetz's rights. Goetz counterclaimed for misappropriation and TM infringement. Goetz lost and appealed.

On Monday, the 2nd U.S. Circuit Court of Appeals found for Amex. Why?  According to the court,

"Goetz employed the slogan `My Life, My Card' to generate interest among potential licensee credit card companies and not to differentiate the origin of his goods or services."

The appeals court said the slogan served as "a mere advertisement for itself as a hypothetical commodity."

"There can be no trademark absent goods sold and no service mark without services rendered," the court added.

The entire story is here.

Making Money from Free Content

Chris Anderson gives a nice summary of revenue models for free content:

Here's my start at a list all the revenue models you can find in the media industry, all based around a core of free or almost-free content:

  • CPM ads ("cost per thousand views"; banner ads online and regular ads in print, TV and radio)
  • CPC ads ("cost per click"; think Google ads)
  • CPT ads ("cost per transaction"; you pay only if the customer brought to you from a media sites becomes a paying customer. Here's an example.)
  • Lead generation (you pay for qualified names of potential customers)
  • Subscription revenues
  • Affiliate revenues (think: Amazon Associates)
  • Rental of subscriber lists
  • Sale of information (selling data about users--aggregate/statistical or individual--to third parties)
  • Licensing of brand (people pay to use a media brand as implied endorsement)
  • Licensing of content (syndication)
  • Getting the users to create something of value for free and applying any of the above to monetize it. (Like Digg or our own Reddit)

UPDATE: Michael Cader suggests a few more good ones (some of which are exhibited in his own Publishers Marketplace)

  • Upgraded service/content (ed: aka "freemium")
  • Alternate output (pdf; print/print-on-demand; customized Shared Book style; etc.)
  • Custom services/feeds
  • Live events
  • "Souvenirs"/"Merchandise"
  • Co-branded spinoff

UPDATE2: Fred Wilson adds: (see his comments section for even more)

  • Cost Per Install (popular with top Facebook apps who can help others get installs)
  • E-commerce (selling stuff directly on your website)
  • Sponsorships (ads of some sort that are sold based on time, not on the number of impressions)
  • Listings (paying a time based amount to list something like a job or real estate on your website)
  • Paid Inclusion (a form of CPC advertising where an advertiser pays to be included in a search result)
  • Streaming Audio Advertising (like radio advertising delivered in the audio stream after a certain amount of audio content has been delivered)
  • Streaming Video Advertising (like streaming audio but in video)
  • API Fees (charging third parties to access your API)