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Profit over Privacy: Index

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table of contents
  1. Cover
  2. Half Title Page
  3. Title Page
  4. Copyright Page
  5. Dedication
  6. Epigraph
  7. Contents
  8. Introduction
  9. 1. The Revolution Will Be Commercialized
  10. 2. A Framework for Global Electronic Commerce
  11. 3. The Web Gets a Memory
  12. 4. The Dot-com Bubble
  13. 5. Surveillance Advertising Takes Shape
  14. 6. The Privacy Challenge
  15. 7. The Legacy of the Dot-com Era
  16. Acknowledgments
  17. Notes
  18. Index
  19. About the Author

Index

Abacus (data broker), merger with DoubleClick, 87, 102, 113, 125–27, 129, 133, 134

Abernathy, Penelope Muse, 7

Accipter, turnkey ad servers of, 64

Acxiom (data broker), Info-Base Ethnicity System, 104

Adauction, sale of remnants, 99

Adbot, sale of remnants, 99

AdForce (CMGI): ad serving capacity of, 89; CMGI’s purchase of, 174n104; partnership with Experian, 102. See also CMGI

advertising: brand, 12; mass, 61, 155n76; print, 11, 37, 62; regulatory environment for, 33; ROI problem, 94; spending data on, 81; waste in, 94, 176n5. See also digital advertising; internet advertising; marketing; radio advertising; surveillance advertising; television advertising; web advertising

Advertising Age (periodical): on children’s advertising, 120–21; on dot-com collapse, 135–36; on FAST Summit, 110; on intellectual property, 111; on interactive media, 34, 36; on Procter & Gamble, 109; on SME ratios, 81; on web advertising, 107

advertising agencies: advertising networks’ services to, 96; partnering with ad networks, 107

advertising campaigns: dot-coms’, 80; negotiations for, 60–61; proof of effectiveness, 107; speed of execution, 64

advertising industry: in dot-com boom, 80–81; freedom from censorship, 39; funding models of, 36–37, 38; interest in Framework for Global Electronic Commerce, 45; in internet commercialization, 39; inventory swapping in, 99; lobbying efforts, 6, 38, 121, 122, 132; opposition to legislation, 131; opposition to regulation, 118–19; outsourcing of sales, 61, 62; reorganization in late twentieth century, 13; response to interactive media, 36–39; self-regulation by, 16, 46–47, 48, 55, 114, 119, 147; strategic communications campaign, 131; subsidization of internet, 38–39; support of commercial mass media, 45; warnings on opt-in framework, 131. See also marketing complex

advertising networks: business model of, 57–58, 61; centralized ad serving, 63; centralized surveillance systems, 101; cookie use, 57–58, 67–68; courting of national marketers, 96; data aggregation capacity of, 111; discount, 99; embrace of platformization, 108; growth of, 64, 75, 83–90; infrastructure of, 61; logistical improvements of, 65; mimicry of broadcasting, 62; nonexclusive contracts of, 99; partnering with ad agencies, 107; platformization of, 100, 101; provision of marketer ROI, 107; as publisher/marketer intermediary, 61, 64, 111; publisher partners of, 100; purchase of competitors, 96; service to ad agencies, 96; site-to-site connections, 67; standardization of practices for, 60–66; supply-to-demand transition, 96; targeting algorithms of, 103; as third-party advertising, 64; tracking technologies of, 57; use of bundling, 62; web publishers’ outsourcing to, 63, 64

advertising trade press: on dot-com collapse, 135; on interactive media, 34, 35

Adweek (periodical), on tracking, 112

Alexander, Michelle, 29

Allen, Robert, 33

AltaVista (web portal): CMGI investment in, 90; disclosure practices of, 128; user base of, 85

America Online (AOL), 34–35; banner ads of, 139; on market-driven internet, 51; on private sector interests, 47; subscriber base of, 68

Anderson, Chris, 35

Andreessen, Marc, 31; anticommercialism of, 58; on market share, 77

Andrejevic, Mark, 106

Andrews, Lori, 104

Angwin, Julia, 4

Artzt, Edwin, 37; CASIE leadership, 38; on technological change, 93

asset valuation: dot-coms’, 78–79, 110; marketing-based, 79

Association of National Advertisers: on internet advertising, 95, 107; on privacy activism, 131

AT&T: banner ads of, 59; on Framework for Global Electronic Commerce, 47

Atari company, failure of, 25, 158n22

Aufderheide, Patricia, 49

Auletta, Ken, 139

Bain Capital, investment in DoubleClick, 89

banner advertisements: consumer avoidance of, 65; cookies in, 67; dot-coms’ use of, 82; enhancements for, 65; hyperlinked, 59; measurement of value for, 60; as measure of advertising development, 107; mouse click-through for, 60, 65, 94; networked model, 57; return on investment (ROI) from, 93–94, 100; sale of, 61; standardization of, 62; static, 59; traditional marketers on, 93–94

Beausejour, Denis, 109–10

Bennett, Colin, 115, 117

Berners-Lee, Tim: on consumer manipulation, 3; goals for World Wide Web, 7; on P3P technology, 119

Bezos, Jeff, 31, 92

BPA Interactive, audit data from, 101

Brenner, Robert, 12

Brewster’s Millions (film), 86

Brin, Sergey, 138, 141

British army, Facebook recruitment campaign, 6

broadcasting: advertising networks’ mimicry of, 62; versus internet advertising, 95. See also radio; television

broadcasting, commercial: advertising-supported, 9; federal regulation of, 8–9

broadcasting, public: licensing of, 8–9

Brown, Wendy, 24

Burnett, Leo, 45, 46

Bush, George H. W.: internet policy of, 26

Bush Administration (George W.), internet policy during, 133

Business Week: on Google/DoubleClick merger, 141; on internet investing, 91

Cambridge Analytica, 4; data harvesting scandal, 2

capital, risk: in dot-com bubble, 76, 82–84, 96; DoubleClick’s use of, 83–84, 88, 91; through IPOs, 78; in technology development, 88

capitalism: assimilation of internet into, 18; coercive power of, 109; digital transformation of, 8; expansion of, 51; influence on internet, 12; political economy of, 18; sites of expansion, 17; social division and, 106; social needs in, 10; surveillance, 10, 155n66

capitalism, global: neoliberal, 55; surveillance advertising in, 17

Carpenter, Candice, 91

Carter, Jimmy, 29

Cassidy, John, 83

Catlett, Jason, 128

Cato Institute, on civil liberties, 46

CD-ROMs, advertising on, 35

Center for Democracy and Technology (CDT), 115; campaign against DoubleClick, 127; on Framework for Global Electronic Commerce, 47

Center for Media Education (CME), 115–16; on Framework for Global Electronic Commerce, 48; Kids.com complaint, 116, 117, 120; Web of Deception, 116–17

Center for Media Legislation, lobbying of Magaziner, 46

Chester, Jeff, 115, 116

children: data collection from, 116, 117, 120–22; privacy activism for, 121–22, 132

Children’s Online Privacy Protection Act (COPPA, 1998), 122, 132

Clark, Jim, 80, 95–96

class rule, instrumental power of, 52–54

Clinton, Bill: conservatism of, 29; DLC chairmanship, 26; economic roundtable (1992), 32–33; market orientation of, 26; on private sector leadership, 31; reelection of, 31; as reformer, 27; on tech sector support, 31

Clinton administration: bipartisanship during, 30; Council of Economic Advisors, 28; Information Infrastructure Task Force of, 19; on information superhighway, 22–26, 49; internet advertising and, 34, 41, 45, 69–70; internet commercialization during, 41, 52, 134; internet policy of, 14, 22–34, 41–42, 52; laissez-faire internet agenda, 14, 23–26; marketing trade groups and, 114; negative policy of, 55, 73; neoliberalism of, 24, 32, 42, 52; policy agenda of, 43; privacy issues and, 34, 41, 45–46, 129; private sector development during, 113–14, 119; public/private partnerships during, 31; relationship with tech sector, 27, 31–32; response to economic stagnation, 52–53; self-regulation policy, 46–47, 55, 121, 125; support for children’s privacy, 121; tax hike on wealthy, 29; on transnational capitalism, 42; use of P3P technology, 119

CMGI: acquisitions of, 87–88, 90, 174n104; AdKnowledge service, 101; AdSmart network of, 88–89, 90; audience aggregator investment, 85; competitors of, 85, 86; expansion of capacity, 88–89; following dot-com collapse, 135, 141; fundraising by, 91; interlocking subsidiaries of, 85; investment in AltaVista, 90; investment portfolio of, 85–86; market capitalizations, 86; money-losing operations, 91; online advertising revenues, 90; public relations of, 86; risk capital use, 83, 84, 91; speculative investments of, 91; staff of, 88; strategic partnerships of, 86; unprofitability of, 90, 91; valuation of, 86, 87–88. See also Engage Technologies

Coalition for Advertising Supported Information and Entertainment (CASIE), 38, 60

commerce, electronic, 28; moratorium on taxation for, 51

Commerce Department, U.S.: data oversight negotiations, 125

commercialization, versus privatization, 26–27. See also internet commercialization

commodification: expansion of, 106; of information, 13, 17, 106; of interactive media, 42

communications: antidemocratic policy in, 49; insincere, 6; political economy of, 11

Communications Decency Act (1996), 180n18

communications revolution, effect on privacy, 19–20

compensation, CEO-to-worker ratio, 53

CompuServe (online service), 34–35

computers, personal: as gateways to interactive media, 58; limited power of, 58–59

Computer Systems Policy Project (CSPP), 32

Congress, U.S.: laissez-faire policies of, 133; online privacy investigations, 120, 129–30, 132

consumer data: ease of compiling, 20; European Union regulation of, 147; harvesting for, 55; marketers’ control over, 37–38; networked, 20; online/off-line merger of, 112, 113, 126–28, 133, 134, 144–45; private sector, 19; storage for, 112; threat to civil liberties, 46; transfer of, 143

consumer data collection, 4; affirmative consent for, 130; capture and exchange of, 17, 97, 112, 141; choices in, 21; contractual model of, 21; discursive capture of, 54; by DoubleClick, 68, 115, 98, 112, 129; Facebook’s, 17; Google’s, 17; infrastructure of, 4, 21; integration into ad delivery, 67; lack of regulation for, 9; manipulation of behavior, 3, 5, 10; from mobile devices, 145; NTIA on, 20–21, 46; opt-in, 16, 70, 114, 130, 143; opting out of, 114, 116, 125, 130, 132; partnerships among brokers, 101; without permission, 66–67, 113; private sector, 46; for targeted advertising, 57, 68, 95; transaction information in, 102; unification with ad delivery, 101. See also cookies, HTTP; surveillance, internet

consumer empowerment, 46; self-regulation and, 47

consumerism, global, 12

consumer profiles, 5; behavioral data in, 102–6, 126, 141–44, 186n32; on commercial internet, 20; discriminatory, 104–5, 111; ethnic data in, 104; generation of commercial messages, 104; integration of off-line information into, 112, 113, 126–28, 133, 134, 144–45; lack of precision in, 109; merger with ad serving, 89; passive collection of, 101–2; social opportunities and, 104; technical anonymity of, 126; unique IDs for, 102

consumers: classification of, 102–6; free market protection for, 70; grouping of, 103; information gathering on, 12; low value, 105; manipulation through data collection, 3; personalized ads for, 65; privacy decisions of, 21–22; profiles of, 5; sale of access to, 11; social worth of, 102–6; web’s recognition of, 65–66

consumer surveillance: abstention from, 106; awareness of, 112; centralization of, 144; costs and benefits of, 134; default status for, 113, 114, 115, 143; ease of participation in, 108; Google’s use of, 4, 16, 139, 140, 142–44; improved technologies for, 73; increasing scale of, 133; legalization of, 114; in mainstream advertising, 13; markets’ fostering of, 54; maximized returns for, 111; monetization of, 1; normalization of, 2, 134; private sector control over, 146; for ROI, 110; social costs of, 104, 105, 111; unchecked, 114. See also surveillance

cookies, HTTP, 67–69; in advertising networks, 57–58, 67–68; in banner ads, 67; in building user profiles, 67; default, 115; disabling of, 69–73; DoubleClick’s use of, 67, 68; flexibility of, 67; hidden, 115; identification of browsers, 66; IETF review of, 69–72; infrastructural, 72; integration into communication protocols, 73; Internet Advertising Bureau’s endorsement of, 66–67; media coverage of, 116; native deployment of, 73; normalization of surveillance, 73; privacy issues concerning, 69–73; public awareness of, 115; revised standards for, 69–71; user consent for, 69. See also consumer data collection; tracking technologies

Crain’s New York Business, on DoubleClick, 68

customer relationships, data analysis for, 94–95

DART (Dynamic Advertising, Reporting, and Targeting) system, 68

data, expansion of aggregation, 103. See also consumer data

data collection, children’s, 116, 117, 120–22; parental consent for, 122

De Forest, Lee: on radio advertising, 161n100

Deloitte & Touche, on commercial internet, 33

Democratic Leadership Council (DLC), neoliberal platform of, 25

Democratic Party: communications sector donations to, 30; election meddling strategies, 3; free market ideology of, 29; internet agenda of, 22–26; neoliberalism of, 25–26, 29, 30–31, 133; New Deal, 25; technological orientation of, 22–26; working-class base of, 25

Democrats, Atari: internet agenda of, 24–25; successors to, 26

Democrats, New: on commercial technology, 30; compliance with instrumental power, 52; conservatism of, 29; information superhighway of, 22–26; internet policy under, 30; Old Republicans and, 30; politics of growth, 53; on public–private partnerships, 48; on role of government, 50; technology sector’s support for, 30–32

Department of Commerce, privacy working group of, 55

deregulation: government supported, 51; for information superhighway, 33–34; of telecommunications, 28–29

digital advertising: in disinformation operations, 4; effectiveness of, 153n38; effect on democratic society, 1; erosion of autonomy, 1, 70; in global economy, 10–11; internet surveillance surge in, 113; microtargets of, 3; psychological profiles in, 4; technologies of, 1. See also internet advertising; web advertising

digital enclosures: restraints on, 146; surveillance advertising as, 106

digital networks: influence capacities of, 2; techlash against, 2–4. See also advertising networks; social media

digital sublime, myth of, 82

Direct Marketing Association: on consumer empowerment, 46; privacy policies of, 125

Disney company, children’s privacy work, 121

Doctorow, Cory, 5

Doerr, John, 30–31, 86

dot-com bubble, 16; advertising industry during, 80–81; collapse of, 75, 95–96, 129, 135, 143; competitive pressures of, 111; domination of U.S. economy, 132; investor losses in, 91; new economy discourse of, 82; political legacy of, 146; profit versus growth in, 83; risk capital in, 76, 82–84, 96; sociotechnical systems of, 145; surveillance advertising in, 15, 73, 75–76, 78, 92, 98, 113; unprofitability of, 90–92; volatility of, 95–96; Wall Street’s driving of, 92; web advertising during, 107, 108–9

dot-coms: advertising by, 78, 80, 81; asset valuation for, 78–79, 110; data storage needs, 112; follow-on stock offerings, 77; funding of marketing communications, 81; “get big fast” strategy of, 76, 96; IPOs for, 76, 80, 81, 83; market capitalization of, 84–85, 86; media publicity for, 80; mimicry of Microsoft, 97; number of start-ups, 170n9; profitability standards of, 79; public relations of, 78–79, 80; SME ratios of, 81; television advertising, 81; use of banner ads, 82; use of marketing communications, 79; VC investment in, 76–77, 79–80

DoubleClick (firm): accountability of partners, 128; acquisitions of, 87–88, 90; ad sale representation, 63; ad serving / consumer profiling merger, 89, 129; advertising network model of, 98; banner ad sales, 61, 63, 107; behavioral profiling by, 103, 126; behind-the-scenes presence of, 128–29; Boomerang application, 100; business model of, 143; as business-to-business company, 137; capitalization of, 75; civil suits against, 133; client roster of, 98, 99; “Closed Loop Marketing Solutions,” 100; competitors, 85, 86; cookie use, 67, 68, 72; on cooperative business practices, 110; customer base of, 87; DART technology of, 68, 98–99, 100; data collection by, 68, 115, 98, 112, 129; in Direct Marketing Association, 127; downsizing of, 140; exclusive partnerships of, 98; expansion of capacity, 88; external advisory board, 131; following dot-com collapse, 135, 137; follow-up ads of, 100; FTC complaint against, 127, 133; fundraising by, 91; Google’s acquisition of, 16, 111, 140–42; growth of, 64, 75, 83; identifiable information of, 128; international operations of, 88, 89; invisible tracking codes of, 101; IPO of, 84, 88, 91, 125; linking of online/off-line data, 128, 133; link to web browsers, 67, 168n46; market capitalizations, 86; market power of, 68, 98; market share of, 85; merger with Abacus, 87, 102, 113, 125–27, 129, 133, 134; merger with IAN, 63; mimicry of broadcasting, 62; money-losing operations, 91–92; negative publicity for, 127–28; NetGravity subsidiary of, 87, 111; Netscape’s contract with, 62; notice and choice rhetoric of, 128; OPA membership, 127; opt-out tool of, 128–29; outsourcing to, 64; political challengers for, 112; post-click functionality of, 100–101; pricing structure of, 98, 138; privacy activists on, 126; privacy officer of, 131; private financing of, 84; profile database of, 68; protoplatformization of, 97–98, 111; public complaints to, 128; public relations efforts, 127–28; public relations of, 73, 84, 86; publishers’ network, 68; remarketing application, 100; removal from stock market, 138; reorganization of, 97; rivals of, 71; sale of surveillance advertising, 108; SEC filings, 91; server architecture investment, 88; service to web publishers, 97; speculative investment in, 83, 92; stand-alone services of, 99; stock-based transactions of, 87; strategic partnerships of, 86; surveillance advertising of, 15, 16, 108, 136–37, 140–41; suspension of data merging, 129; unprofitability of, 90–91; use of risk capital, 83–84, 88, 91; web browsing data collection, 115

Draper, Nora A., 182n47

Duck Duck Go, contextual advertising of, 145–46

economy, global: digital advertising in, 10–11

economy, U.S.: dot-coms’ dominance in, 132; effect of informational practices on, 170n15; industrial, 12; “long downturn” of, 12–13; mass production in, 12; “new,” 82–83; recession of 1990s, 14

Edgar Online (website), 6

Eisenhower, Dwight: interstate highway system of, 23

Electronic Data Systems, on Framework for Global Electronic Commerce, 48

Electronic Privacy Bill of Rights Act (1999, proposed), 183n84

Electronic Privacy Information Center (EPIC), 54, 115, 116; complaint against DoubleClick, 128

Engage Technologies (CMGI): client roster of, 99; consumer databases of, 90; consumer interest profiles of, 103–4, 112; on cookie privacy issues, 71; creation of, 85; innovation for marketers, 98; international operations of, 89; Next-Generation Profiling service, 104; Real-Time Visitor Intelligent service, 99. See also CMGI

E-Stamp (retailer), IPO of, 80

European Union, Data Protection Directives, 121, 125, 147, 187n54

Experian, partnership with AdForce (CMGI), 102

Facebook: advertising spending of, 6; data collection by, 17; exploitation of vulnerabilities, 5; growth of, 140; “likes,” 5; non-user profiles of, 5; platform monopoly of, 96; public relations crisis of, 2–3; socially destructive aspects of, 7–8; surveillance networks of, 4; techlash management, 146; Trump campaign’s use of, 2–3

Fair Information Practices, 21; of Framework for Global Electronic Commerce, 45; FTC recommendations, 130; in marketing, 47; notice and choice in, 128, 147

FAST alliance, 110; ad-buying power of, 96. See also Future of Advertising Stakeholders (FAST) Summit

Fast Company, web hosting by, 63

Federal Radio Commission, 8–9

Federal Trade Commission (FTC), 146; adjudication of privacy disputes, 117–18; authority over privacy violations, 132; charges against GeoCities, 120; complaint against DoubleClick, 127, 133; on consumer surveillance, 108; European data protection and, 121; fair information recommendations, 130; on internet advertising, 22; online privacy study, 120; privacy complaints to, 115, 117; privacy workshops of, 117–19; support for privacy legislation, 129; support for self-regulation, 119; on web privacy, 69

Flichy, Patrice, 82

FlyCast (media buying platform), 174n89; ad serving capacity of, 89; auctioning of advertising inventory, 99; CMGI’s purchase of, 174n104

Forbes, on cookies, 68

Foroohar, Rana, 3

Fortune magazine, on dot-com advertising, 83

Fortune 1000 companies, lack of diversity in, 54

Fourth Amendment, search and seizure restrictions of, 117

Framework for Global Electronic Commerce (Clinton administration, 1997), 14, 28, 41–55; access to policy making in, 53; advertising interests in, 45; antidemocratic policy-making for, 47–52; civil interests on, 47–48; corporate input into, 43–44; drafting of, 42–47; fair information practices of, 45; final version of, 55; free market policies of, 42; global capitalism in, 55; instrumental power in, 52–55; intellectual property interests in, 44; market-led approach of, 47; multinationals input for, 44; neoliberalism of, 41–42, 50, 55; policy formation processes, 53–54; privacy issues in, 45–46; private sector comments on, 47; private sector dominance in, 46, 48, 51–52, 119; public/private sector roles in, 43, 47–48, 51; public release of, 48; structural imperatives of, 52–55; technology CEOs on, 48–49; trade association input, 44

Freedman, Des, 55

From, Al, 25

Future of Advertising Stakeholders (FAST) Summit (Cincinnati, 1998), 93, 94, 95, 109; ad industry representation at, 96; cooperation following, 110. See also FAST alliance

Gandy, Oscar, 105; The Panoptic Sort, 102–3

Garfield, Bob, 18

Gates, Bill: on Framework for Global Electronic Commerce, 48–49

Geismer, Lily, 25

gender, in access to policy making, 53, 54

General Foods, children’s privacy concerns of, 117

GeoCities network, 85; FTC charges against, 120

geofencing, mobile: antiabortion groups’ use of, 6

Ghosh, Dipyan, 4

Gillespie, Tarleton, 72

Gingrich, Newt, 30; technology policy of, 32

Gizmodo, on Google surveillance, 142

Gmail, personal information gathering from, 142

Goldberg Moser O’Neill (ad agency), dot-com clients of, 80–81

Goldfarb, Brent, 76

Goldman, Janlori, 116

Google: acquisition of DoubleClick, 16, 111, 140–42; acquisition of YouTube, 139, 140; Adsense program of, 139, 141; advertising spending of, 6; behavior profiling initiative of, 143–44, 186n32; collection/exchange of consumer data, 17, 141; competitors of, 139, 141; consumer surveillance by, 4, 16, 139, 140, 142–44; contextual search advertising by, 137–38; cost-per-click pricing, 138, 184n10; default advertising service of, 142; “Don’t be evil” objective, 138, 143; “growth trap” for, 139; interest-based advertising service, 141–42; IPO of, 137, 138; lobbying by, 6; market leadership, 140–41; platform monopoly of, 96; privacy policies of, 142; profitability of, 138; search engine of, 136, 137; supply/demand side clients, 140; techlash management, 146; universal user tracking, 142; use of keyword searches, 137; user base of, 136; web advertising leadership, 138

Google Maps, personal information gathering from, 142

Google Plus social network, 142

Gore, Al, 19; advocacy of public internet, 32–33; as Atari Democrat, 24; information technology advocacy, 22; neoliberalism of, 25; as reformer, 27; support for deregulation, 33–34; on universal internet service, 39

GoTo.com (search engine), 184n10; paid search advertising model, 136

Greenstein, Shane, 27

Greylock Partners, investment in DoubleClick, 89

Grove, Andy, 48–49

Hacker, Jacob, 25

Hardy, Jonathan, 12

Harvey, David, 24

HealthExtra, IPO of, 80

Herbold, Robert, 39

Hesmondhalgh, David, 32

Hollings, Fritz: Consumer Privacy Protection Act proposal, 130

Holt, Jennifer, 24; on antidemocratic policy, 49

Hoofnagle, Chris, 118, 132

Horowitz, David, 28

incarceration, in U.S., 29

influence peddling, data-driven, 4

information: commodification of, 13, 17, 106, 146; fair practices of, 21; free flow of, 20; global infrastructure for, 42–43; media control over, 5

information, networked: early failures in, 34–35

Information Infrastructure Task Force (IITF), 19–20; on consumer surveillance, 54; on data collection, 20–21; privacy issues in, 46; privatization/commercialization policy of, 27–28

information superhighway: ad-free, 39; Clinton administration on, 22–26, 49; deregulation for, 33–34; economic/cultural opportunities in, 23; lack of understanding about, 38; non-profit threats to, 33

information technology: in Clinton campaign (1992), 22; social benefits of, 23

Information Technology Industry Council: on Framework for Global Electronic Commerce, 47; lobbying by, 31–32

intellectual property, sharing of, 111

Interactive Advertising Network (IAN), merger with DoubleClick, 63

internet: advertising industry’s subsidization of, 38–39; broadband diffusion of, 139; capitalism’s influence on, 12, 18; democratic accountability for, 147; free market orthodoxy for, 52, 86; indecent content on, 32; market-oriented approach to, 28; mergers in, 86; political foundations of, 10; popularity of, 109; private sector development of, 9, 23, 113–14; public–private partnerships in, 14, 24; socialism of, 58; speculative investment in, 77, 83, 91, 92; universal, 39; VC investment in, 76–77. See also World Wide Web

internet, public: business opposition to, 33; noncommercial, 17, 109

internet advertising: ad exchanges in, 143; versus broadcasting, 95; Clinton administration and, 34, 41, 45, 69–70; closed-loop, 100, 110; contextual, 145–46; cost per thousand ad impressions (CPM), 94; critical mass in, 89–90; delivery services for, 15; denialist rhetoric of, 118, 120, 130; dot-coms’, 78; early demand for, 75; FAST Summit on, 93; following dot-com collapse, 135–36; formative movements of, 17; government inaction on, 21–22; increases in capacity, 88; investment capital in, 75; IPOs of, 89; logistical solutions of, 15; market discipline in, 138–45; marketers’ expectations for, 95; versus mass marketing, 95; mergers in, 141; micro-targeting in, 89; opposition to regulation, 118–19; percentage of U.S. spending, 81; performance-based pricing, 94; privacy policies of, 133; regulatory environment for, 33, 113; remnant auction market, 99–100; speculative investment in, 75, 83, 95; technical capacity for, 57; traditional marketers’ use of, 82; venture capital in, 15; video, 139; web funding and, 70

Internet Advertising Bureau, endorsement of cookies, 66–67

Internet Archive, Wayback Machine, 104

internet commercialization, 1, 26–28, 34; advertising industry in, 39; capital investment in, 24; during Clinton administration, 41, 52, 134; competition in, 27–28; consumer profiling in, 20; instrumental power in, 53; market-based data collection in, 145; neoliberal ideology of, 53, 54, 55, 115; NII on, 26; politics of, 39; private sector control of, 23

internet development: advertising industry in, 36; business models of, 15; exclusion of civil society from, 14; industry/government partnership in, 42; marketing complex’s influence on, 60; neoliberal capitalism and, 55; power in, 51; private-sector, 113–14; public funding for, 33

Internet Engineering Task Force (IETF): cookie review of, 69–72; deliberative process of, 71; mailing list of, 169n63; “social engineering” complaints against, 70; on user privacy, 70

internet policy: antidemocratic, 14, 47–52; business influence in, 33; Clinton administration’s, 26–34; corporate interests in, 42; discursive capture of, 54; federal, 19–22; neoliberal, 53, 54, 55, 115, 147; under New Democrats, 30; of 1990s, 19–22; third way, 26–34

interstate highway system, 23

IP addresses, user analysis using, 66

I/PRO (ad metrics company), information gathering by, 66

Jackson, Jesse, 26

Jim Crow, “new,” 29

Jobs, Steve, 31

journalism: evisceration of, 7; revenue crisis of, 1

Junk Busters (advocacy group), 128

J. Walter Thompson Company, sale of ad space, 62

Kamp, John, 39

Katzenberg, Jeffrey, 59

Kelly, Kevin, 82

Kesan, Jay, 71

keyword searches, 136, 138, 185n18; Google’s use of, 137

Kids.com, CME complaint against, 116, 117, 120

Kim, Young Mie, 3

Kirsch, David, 76

Klein, Naomi: No Logo, 17

Kleiner Perkins Caufield & Byers (venture capital firm), investment in Netscape, 76–77

Kristol, David: cookie development specifications, 69–70, 72

land enclosure, in transition to capitalism, 106

Leonsis, Ted, 58

Lepore, Jill, 30

Levin, Gerald, 36

Levine, Yasha, 144

LinkExchange, small-traffic websites of, 99

Lycos (search portal), 85

Madison Avenue, ad industry of, 59

Magaziner, Ira: on capitalist expansion, 51; citizen correspondence to, 50; draft of Framework for Global Electronic Commerce, 41–55; engagement with corporations, 43; interaction with civil organizations, 43; lobbying of, 44–45, 46, 47; on opt-out lobbying, 132; on release of Framework draft, 49

magazines, market segmentation in, 12

Malone, John, 36

marketers: ad agency proxies of, 96; advertising problems facing, 37; branding by, 95; control over consumer information, 37–38; direct consumer engagement, 65; First Amendment rights of, 118; increased web advertising, 107; interest in interactive media, 45; online data collection by, 92; political mobilization of, 38; privacy officers of, 131; use of remarketing, 100–101; on web shortcomings, 109. See also marketing complex

marketers, traditional: on banner ads, 93–94; use of internet advertising, 82

marketing: brand, 12; contested processes of, 156n80; customer relationships, 13; fair information practices in, 47; feedback loop with finance, 75; in industrial economy, 12; sales-to-marketing (SME) ratio, 81; trade groups, 16, 70, 114. See also advertising; internet advertising

marketing, mass: and dissolution of mass audience, 105; versus internet advertising, 95; origins of, 12

marketing complex, 10–11; advertising funding model, 59, 134; anti-regulation lobbying, 122; competition within, 11; copyright protection for, 51; defeat of opt-in measures, 132; discriminatory profiling by, 105; at FAST summit, 93; federal support for, 13, 14; generation of consumption, 106; influence on internet development, 60; interactive media and, 34–35, 38; on internet utility, 110; lobbying efforts, 131; mass production in, 12; media changes and, 13; media lobbying campaign, 38; neutralization of privacy activism, 134; online advertising norms for, 57; political mobilization of, 59, 71; private sector institutions of, 11; public relations efforts, 131; reorganization of, 13; self-regulating, 51, 114, 122; shaping of public policy, 114; shared internet surveillance by, 97. See also advertising industry

marketing research, consumer information in, 20

markets: fostering of consumer surveillance, 54; multi-sided, 96; neoliberal mechanisms of, 50–51; self-regulation of, 47; supply and demand sides of, 98

Markoff, John, 23

MatchLogic, profile cache of, 112

May, Thornton, 131

McCain, John: internet privacy bill of, 130

McChesney, Robert, 6; on antidemocratic policy, 49; on government regulation, 28

McNamee, Roger, 9; “A Brief History of How Your Privacy Was Stolen,” 8

media: advertising-funded, 51; antidemocratic policy in, 49; autonomy of, 13; free market orthodoxy for, 52; market imperatives of, 156n80; role in stock market, 78; state policy on, 8–10

media, interactive: access through personal computers, 58; advertiser–audience relationship in, 35; advertising industry’s response to, 36–39; advertising trade press on, 34, 35; commodification of, 42; consumer control of, 35; consumer persuasion in, 35–36; global audience of, 45; household ads in, 35; marketers’ interest in, 45; marketing complex and, 34–35, 38; as opportunity, 34–39; print publishers’ use of, 59; as threat, 34–39; user tracking in, 58; web browsers in, 58

MediaMetrix (online ratings service), 101

MediaWeek, on web advertising, 61

metadata, user analysis using, 66

Microsoft: acquisition of aQuantive, 141; control of ad market, 71; in-house ad service of, 68; platform monopoly of, 97; “privacy wizard” tool, 125; product ubiquity of, 77; search engine of, 139; software design decisions, 71

mobile devices, location data from, 145

Montgomery, Kathryn, 115; on children’s internet privacy, 121; on COPPA, 122; on FTC, 118

Montulli, Lou, 71; cookie development specifications, 69–70, 72

Morgan Stanley (firm), on dot-com economy, 79, 80

Mosco, Vincent, 82

mouse click-throughs, for banner advertisements, 60, 65, 94

NAFTA, neoliberal agenda of, 52

“nanny state,” 51

Napoli, Phillip, 103

National Economic Council, on privacy regulation, 55

National Information Infrastructure (NII), 19–20, 35; advisory council for, 31; on internet commercialization, 26

National Information Infrastructure: Agenda for Action (IITF, 1993), 27–28; on role of government, 51

National PTA, children’s privacy work of, 121

National Security Agency, mass surveillance by, 144

National Telecommunications and Information Administration (NTIA): on consumer surveillance, 54; on data collection, 20–21, 46; on privacy protection, 21; telecommunications hearings (1995), 164n35; universal service hearing, 39

neoliberalism, 13; antidemocratic policies of, 14; of Clinton administration, 24, 32, 42, 52; of Democratic Party, 25–26, 29, 30–31, 133; of Framework for Global Electronic Commerce, 41–42, 50, 55; of internet commercialization, 53; in internet policy, 53, 54, 55, 115, 147; market mechanisms of, 50–51; political economy of, 51; state/private sector relationships of, 42

Neptune Capital Management, 83

NetGravity: DoubleClick’s acquisition of, 87; integrated services of, 111; turnkey ad servers of, 64

NetRatings (online ratings service), 101

Netscape: contract with DoubleClick, 62; control of ad market, 71; cookie use, 69, 71–72; financial market successes, 78; Frontline on, 77; “get big fast” strategy of, 76–77; IPO of, 77, 79, 80; media acumen of, 80; Navigator graphical browser, 58, 71–72, 76–77; software design decisions, 71; VC investment in, 76–77; web browser market, 77

networking, computer: consumer information in, 20; free market approaches to, 29; of 1990s, 23. See also advertising networks; digital networks

Networking Advertising Initiative, 125

Network World, on cookies, 66

newspapers, decline of, 6–7

New York City, “Silicon Alley” district, 84, 89

New York Times: on banner ads, 94; DoubleClick advertising in, 128; in-house ad service of, 68; on online privacy, 130

Ngu, Ash, 142

Niesen, Molly, 131

Nisenholtz, Martin, 36, 95

O’Connor, Kevin, 68; on banner advertising, 107–8; on data merging, 129; on market share, 85; on micro-targeting, 89; on privacy, 126; on public relations, 84, 86; on reintermediation, 97; on stand-alone services, 99

Ohmann, Richard, 62

Online Privacy Alliance (OPA): member list, 122–25; privacy disclosures of, 125; self-regulation efforts of, 132

online services, computer-based, 34–35; anticommercialization mythos of, 58; web browser functionality in, 58

Open Profiling Standard (OPS), user consent in, 119

Oracle (systems provider): on data storage, 112; on Framework for Global Electronic Commerce, 47

Page, Larry, 138, 141

Palihapitiya, Chamath, 7–8

“PayPal mafia,” 8

Perlstein, Rick, 29

Perot, Ross, 48

personal information: commercialized, 21; private sector use of, 20. See also consumer profiles

personality traits, data prediction of, 5

Pickard, Victor, 7, 54

Pierson, Paul, 25

Pitofsky, Robert, 118; on self-regulation, 129

Platform for Privacy Preferences (P3P), user consent in, 119

platformization: advertising networks’, 100, 101, 108; centralized monitoring in, 108; in surveillance advertising, 16. See also protoplatformization

platform monopolies, 97, 111, 143; Google’s, 96

political economy: of communications, 11–12; of surveillance advertising, 10

Pope, Daniel, 12, 155n76

Postman, Neil, 10

power, accountability for, 1

power, instrumental: of class rule, 52–54; in Framework for Global Electronic Commerce, 52–55; in internet commercialization, 53; New Democrats and, 52; of private sector, 42

print advertising in, 11, 37, 62

print publishers, use of interactive media, 59

privacy: broad legislation on, 122; U.S. policy on, 117

privacy, online: advocacy network for, 115, 117, 180n7; asymmetrical loss of, 106; Clinton administration and, 34, 41, 45–46, 129; congressional investigation of, 120, 129–30; cookie issues concerning, 69–73; developers’ opposition to, 69–73; discursive capture of, 54; effect of communications revolution on, 19–20; erosion of, 1, 4; federal agency for (proposed), 54–55; Federal Trade Commission on, 69, 120, 133; Framework for Global Electronic Commerce’s treatment of, 45–46; fundamental right to, 146; jurisdiction over, 117; laissez-faire approach to, 9; legally enforceable rights to, 116; legislation for, 129–30; market-based controls of, 22, 125, 182n47; negative policy approach to, 55, 73, 114, 133; notice and choice paradigm of, 128, 147; NTIA on, 22; opt-in/opt-out measures for, 130; politicization of, 114–19; private sector defeat of, 114; public awareness of, 115, 129; public debates over, 16, 114; risks on commercial internet, 20; self-regulation guidelines, 118; social goods of, 20; universal regulatory framework for, 54; web configurations of, 58

privacy activism, 9; for children, 121–22; on DoubleClick, 126; failures of, 134; fight against business enterprise, 132–33; marketing complex’s neutralization of, 134; marketing lobbyists and, 113; opposition to data mergers, 126; partnership with children’s welfare groups, 121; pleas to shareholders, 126; successes of, 133

PrivacyChoices.org, 128

private sector: consumer data collection, 19, 46; control of internet commercialization, 23; control over consumer surveillance, 146; defeat of online privacy, 114; development during Clinton administration, 113–14, 119; development of internet, 9, 23, 113–14; on Framework for Global Electronic Commerce, 47; instrumental power of, 42; leadership in surveillance advertising, 14; use of personal information, 20

privatization, versus commercialization, 26–27

Procter & Gamble, online advertising budget of, 109

Prodigy (online service), 34; use of advertising, 58

profiling. See consumer profiles

Progressive Policy Institute, 25

protoplatformization, 92, 95–98, 111; digital enclosure in, 106; of DoubleClick, 97–98, 111; sociotechnical infrastructure of, 96–97. See also platformization

public policy: concerning surveillance advertising, 8–10, 145–47; market-based, 23; marketing complex’s shaping of, 114; negative policy, 55, 73. See also Clinton administration; Federal Trade Commission

race, in access to policy making, 53

radio, commercial: citizen opposition to, 9

radio advertising, 11, 37; market segmentation in, 12; muting mechanism for, 162n100

Raging Bull (financial information site), 90

Reagan, Ronald: supply-side tax cuts of, 23

RealMedia, ad serving capacity of, 89

redlining, 104–5

Republican revolution (1994), 29–30

resignation, culture of, 182n47

ROI (return on investment): ad networks’ services for, 107; consumer surveillance for, 110; enhanced, 96; from internet advertising, 93–94, 100; internet shortcomings concerning, 109

Rorty, James: Our Master’s Voice, 11

Rotenberg, Marc, 54, 114

Rushkoff, Douglas, 10, 139

Russia, election manipulation by, 3

Ryan, Kevin, 84, 90; on transaction information, 102

Sand Hill Road (Silicon Valley), venture capitalist enclave of, 83

Sandvig, Christian, 72

San Jose Mercury News, on cookies, 116

Schaut, Paul, 109

Schiller, Dan, 13, 109

Schiller, Herbert, 51

Schmidt, Eric, 162n3; input into Framework for Global Electronic Commerce, 44

Schneider, Jerrold, 24

Schneier, Bruce, 4

Schulman, Stacy Lynn, 144

Scott, Ben, 4

Secure Online Communications Enforcement Act (2000, proposed), 183n84

Shah, Rajiv, 71, 72

Shen, David, 61

Shepherd, Tamara, 105

Shiller, Robert, 78

Silicon Valley: Clinton’s meetings with, 30–31; moral failures of, 8, 9–10; ownership class of, 1; scandals of, 2

Simon, Leslie David, 30, 31; on CSPP, 32

Sinclair, John, 11

Smythe, Dallas, 45

Snowden, Edward, 144

social forces: in capitalism, 10, 106; policy produced by, 53

social media: influence peddling in, 4; targeted ads of, 140; techlash against, 3; user-created profiles in, 139–40. See also Facebook

Software Publishers’ Association, on information superhighway, 49

Srnicek, Nick, 96

Starr, Paul, 8, 30

Stiglitz, Joseph, 26; on Framework for Global Electronic Commerce, 44; on New Democrats, 30; on telecommunication deregulation, 28–29

stock market: dot-com transactions in, 77, 87; DoubleClick’s removal from, 138; news media’s role in, 78. See also capital, risk

Stole, Inger, 131

surveillance, internet: anonymous, 168n46; as integral feature, 72–73; interactive spaces of, 106; shared, 97; third-party, 70; unaccountable, 147; as web default, 113

surveillance, mass: by National Security Agency, 144; targeted persuasion in, 17

surveillance advertising: barriers to, 108; business models of, 3, 4–7, 71; capital accumulation in, 10; civil society challenges to, 115; construction of, 15–16; continuity in, 145; cooperative, 110; creators of, 2; DART software for, 68; to desirable customers, 105; as digital enclosure, 106; in dot-com bubble, 15, 73, 75–76, 78, 92, 98, 113; DoubleClick’s, 15, 16, 108, 136–37, 140–41; economic roots of, 2; effect on marginalized communities, 6; exploitation of emotions, 5; first generation of, 16, 55; in global capitalism, 4, 17; improved technologies for, 73; intersecting forces of, 1; legal foundations of, 146; versus legitimate advertising, 70; lobbying by, 6; market forces propelling, 111; measures of development for, 107; origin story of, 1–2; outgrowths of, 4; persuasive power of, 5; platformization in, 16; political economy of, 10–14; political roots of, 2, 7–10, 57; pressure to implement, 144; private sector leadership of, 14; public policy concerning, 8–10, 145–47; public scrutiny of, 129; receding market shares in, 138; regulatory foundations for, 9; rhetoric of precision, 109; social relations of, 102–6; sociotechnical infrastructure for, 16; speculative investment in, 75; structures of privilege in, 105. See also advertising; consumer data; internet advertising

TBWA/Chiat/Day agency, dot-com clients of, 80

techlash: against digital networks, 2–4; executives’ accounts of, 7–8; against social media, 3

Technology for America’s Economic Growth, 26

technology sector: effect of private regulation on, 119; lobbying by, 31; manipulation models of, 8; outpacing of government regulation, 29; political involvement of, 7–10, 25, 30; public opinion on, 2; regulation for, 7–10; relationship with Clinton administration, 27, 31–32; support for New Democrats, 30–32; surveillance models of, 8

Telecommunications Act of 1996, 32, 86

telecommunications industry: deregulation of, 28–29; free market orthodoxy for, 52; lack of competition in, 21; NTIA hearings on (1995), 164n35; political contributions from, 30; reform of, 28

teletext, 34

television, cable, 79

television, interactive (iTV), 21, 35, 109; Time Warner in, 36

television advertising, 13; consumer aversion to, 37; dot-coms’, 81; networks’ inventory of, 62; online video and, 139

Thiel, Peter, 8

Thrift, Nigel, 79

Time Warner Cable, investment in interactive television, 36

tracking technologies: of advertising networks, 57; DoubleClick’s, 101; Google’s, 142; necessity for web advertising, 70. See also cookies, HTTP; surveillance, internet

trade associations: on Clinton administration, 49; comments on Framework for Global Electronic Commerce, 44–45; lobbying of, 16, 48–49, 114, 119, 122–25; on privacy, 119, 122–25, 131

Trump campaign (2016), use of Facebook, 2–3

TRUSTe (privacy seal program), 119

Turow, Joseph, 14; on advertising audience, 35; on consumer profiling, 103, 104; on customer relationships, 94; on internet privacy, 133, 182n47; on web advertisers, 60

24/7 Media: ad serving capacity of, 89; profile cache of, 112

USA Today, on DoubleClick, 127

ValueClick: ad serving capacity of, 89; DoubleClick’s stake in, 87, 174n104

Varner, Christine, 132

Veblen, Thorstein, 12

venture capital firms (VCs): advertising expenditures of, 83; dot-com investment, 76–77, 79–80, 83; doubling of, 170n9; influence of, 83

videotext, 34

Violent Crime Control and Law Enforcement Act (1994), 29

Wall Street, driving of internet commerce, 92

Wall Street Journal: on advertising relationships, 108; on CMGI, 85; on dot-coms, 83; on DoubleClick-Abacus merger, 126–27; on internet privacy, 130; on online consumer recognition, 66

Wanamaker, John, 94

Warzel, Charlie, 142

Washington Post: on DoubleClick, 127; on television advertising, 37, 38

web advertising: commitment of resources to, 59–60; cultural barriers to, 58; distribution in, 61; during dot-com bubble, 107, 108–9; early adopters of, 59; economies of scale in, 62; first three years, 57; Google’s leadership in, 138; guessing in, 60; interactive media dominance, 93; keyword searching in, 136, 138; loop between consumer actions and, 101; necessity of tracking for, 70; outsourcing to ad networks, 63, 64; personalization in, 65; post-click analysis of, 100–101; purchasing space for, 60; “rich media” experiences of, 65; standardization of, 60; targeted, 3, 17, 57, 68, 89, 95, 100, 137, 138; technological limitations of, 58–59. See also internet advertising; World Wide Web

weblining, discrimination in, 104–5

web publishers: communication channels of, 101; online advertising auctions for, 99–100; outsourced ad services to, 97; partnerships of, 98, 100, 108; as terminals of surveillance, 111–12

WebRep (firm), banner ad sales, 61

web technology: amalgamated elements comprising, 63; anonymity in, 7; communication protocols of, 58, 63, 65

Weinberg, Gabriel, 147; contextual advertising model of, 145–46

Wetherell, David, 85, 86

White House Council of Economic Advisors, lobbying of, 44

White House Office of Management and Budget, privacy working group, 55

Williams, Raymond, 10

Wirth, Tim, 24

Wojcicki, Susan, 141–42; on behavior profiling initiative, 143–44

Wolff, Michael, 91

World Wide Web: advertising trade press on, 35; anonymous browsing of, 65; business priorities in, 11; commercial monitoring in, 2; goals of, 7; history of, 166n2; low bandwidth problems, 65; marketing complex and, 13; open protocols of, 58; third-party surveillance on, 70; user recognition capacity, 65–66. See also internet; web advertising; web technology

Yahoo: search engine of, 139; use of NetGravity system, 64

YouTube, Google’s acquisition of, 139, 140

Zuboff, Shoshanna, 5, 8; on surveillance capitalism, 10, 155n66

Zuckerberg, Mark, 140; congressional testimony of, 3; on regulation, 146–47; wealth of, 7

Zuckerman, Ethan, 82

Zucman, Gabriel, 53

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Open access edition funded by the National Endowment for the Humanities

Portions of chapter 4 are adapted from “Financial Markets and Online Advertising: Reevaluating the Dotcom Investment Bubble,” Information, Communication, and Society 17, no. 3 (2014): 371–84. Reprinted by permission of the publisher (Taylor & Francis Ltd., http://www.tandfonline.com).

Copyright 2021 by the Regents of the University of Minnesota

Profit over Privacy: How Surveillance Advertising Conquered the Internet is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0).
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