Google Gets Into Behavioral Targeting, Launches “Interest-Based Advertising” Beta

Google today is launching a form of behavioral targeting advertising named Interest-Based Advertising. Interest-Based Advertising allows advertisers to deliver ads based on hundreds of interest categories and previous interactions with those users. The beta is opening to select advertisers at first but will be expanded in the upcoming months.

Brad Bender, Google’s Product Manager in display offerings on Google Content Network, explained that Google is looking to make ads “more interesting” to users and more effective for advertisers. Interest-Based Advertising allows Google to do that by giving users control over their interest categories and advertisers the ability to target based on those categories and user’s previous actions.

Interest based categories are based on the type of web site a browser visits. For example, if a user visits ESPN often, Google will know that user is interested in sports. Bender told me Google currently has 30 top line categories and about 600 detailed categories. In addition, users have control over these categories and can add or remove categories in the user ad preferences section at google.com/ads/preferences.

Previous interaction is the second area of Interest Based advertising where Google is able to show ads to users based on their browsers previous interaction with that advertiser. For example, if a user had a product in their shopping cart and did not check out, the advertiser can display ads on other sites, within the Google network, that promote that product or that product line. This is Google leveraging their DoubleClick technology from the acquisition in April 2007.

I asked Google how detailed can these ads get? I asked, can an advertiser pass along a specific ad to a specific user? For example, can I show an ad for the Sony HDR-XR200V if this user added the Sony HDR-XR200V to their shopping cart on my site but did not check out? Bender said yes, but ultimately it is up to the advertiser how specific they want to get with those ads.

Initially, those advertisers included in this beta will have a special portal to manage these ads. But ultimately, it is Google’s goal to build the solution directly into the AdWords console. A larger launch will be made later on in the year, after Google works out any bugs or kinks in the system.

The nice thing about this ad solution is that the end user has control over what ads they want to see. At the google.com/ads/preferences section, a user can add or remove interest categories to fine tune the ads they see, or they can completely opt out of these tailored ads. In addition, Google will have two opt out methods. The first is cookie based that will set a cookie on the browser that will opt out the user of these ads for as long as the cookie is on the computer. The second is a long term cookie based on a browser plugin that allows the user to opt out forever, as long as the browser plugin is active. This browser plugin is available for Internet Explorer and Firefox and is coming soon for Chrome.

As many of you know, Yahoo is big into display ads. Google is kind of new to this area and this may be considered Google’s big push into this area. This program does include both the display ad and text ad business, but is completely separate from search. That means, search history is not tied to these ads in any way. In addition, Google thinks they have ad advantage on the technology side. Bender told me Google has a lot of experience understanding the context of the page, plus they can use statistical algorithms to figure out the right frequency and recency and leverage based on buyer cycles. In addition, Bender told me, Google’s content network has a reach of 74% globally, according to comScore. Finally, Google is giving users control over the choice of the ads and privacy through the ad preferences area.

Here are some screen captures of the ad preferences screen:

Here is a screen capture of the advertising cookie opt-out plugin page:

If you want to be part of this beta, Brad Bender suggests you contact your Google account manager. The beta is a very limited test right now and Google does hope to expand it later on this year.

Finally, here is a four minute video on this new Google product:

Postscript from Greg: Google’s foray into behavioral targeting (BT) in the past had been limited to “previous query targeting,” where one might see text ads on Google.com results relevant to prior searches. As Barry discusses above, this move is an enormous step for Google, in my opinion, and it’s the fruit of the DoubleClick acquisition. It also seems like it means the beginning of the end for contextual targeting, which is going to be less effective in most cases.

No one should be surprised by this move, although it will trigger the usual “big brother” reactions. I don’t want to be dismissive of privacy concerns surrounding Google but stepping back, Yahoo and AOL have been using BT for a very long time. And Yahoo has stepped it up recently to incorporate search queries into the BT targeting mix.

To Google’s credit the ability to specify one’s interests and opt out of BT here are innovative and provide a bit more transparency to the program (something that Google must do given its position in the market). These features, to the extent they’re used, could also make the program more effective. I’m particularly interested in the ability to select ad preferences here and what it may represent for the future of online — and mobile — advetising.

Although in the beginning this feature is unlikely to be heavily used, conceptually it represents potential solution to the privacy problems that have dogged BT recently. The FTC has (for now) left it up to the industry to self-regulate guidelines on BT and privacy. But it has effectively said we’re still on the case and watching closely. And in a more regulation friendly political climate things could change over the course of the next year.

There are lots of privacy studies that show consumer discomfort with tracking and targeting (despite consumer desire for only relevant ads). Most recently Burst Media (n=4,000 US adults) found that consumers are now almost paranoid about tracking and don’t like BT:

  • Over 60% of respondents are aware of the tracking, collecting and sharing of information that occurs as a result of online activities.
  • Respondents do not see value in ads targeted to them based on their web surfing behavior – even if it improves their web surfing experience

Burst found that “based strictly on a description – advertisements more relevant to interest – only one-in-five (23.2%) respondents would not mind if non-personally identifiable information was collected if ads were better targeted.” This is one survey but the results are generally supported by other surveys in the recent past.

There remains a big disconnect then between the intensifying use of BT by publishers and search engines and consumer concerns about privacy. The Google approach offers a potential reconciliation of that divide but we’ll have to see how it works out in practice.

Postscript From Danny Sullivan: I’m off today, so I might come back and add more commentary to this huge change for Google in the future. For now, two notes.

This is a further extension of Google’s “ads everywhere” changes over the past few months (see Drill, Baby, Drill: Google Finance Gets Ads; Google News Testing Them). Google could have been doing behavioral targeting long ago, even without DoubleClick, but the company has seemed hesitant to do so in my opinion because the privacy worries it would have raised weren’t worth the potential revenue.

Indeed, back in 2007, from Google: Not Ready To Behaviorally Target, Google’s position then was summarized as “shying away” from building profiles, with Google’s Susan Wojcicki saying:

“We believe that task-based information at the time (of a user’s search) is the most relevant information to what they are looking at,” she said. “We always want to be very careful about what information would or would not be used.”

But by the following year, Google took part in an FTC hearing about behavioral targeting. Despite the fallout ISPs that wanted to behaviorally target have taken, Google seems like it can no longer afford to ignore this area.

The ads in the current program do not appear to be using past search data as part of building profiles. However, Google confirmed in a session I moderated at the Omniture Summit last month that they have tested behaviorial targeted ads using past search history data. Again, that doesn’t seem to be part of this release, but it could come in the future.

Finally, the use of an opt-out is important. It should help save Google from the fire ISPs took, given that their customers didn’t have an easy option. How clearly that opt-out is displayed will be crucial to help it navigate through the inevitable privacy concerns that will come up.

Related Topics: Channel: SEM | Features: Analysis | Google: AdSense | Google: AdWords | Google: DoubleClick | Top News

Sponsored


About The Author: is Search Engine Land's News Editor and owns RustyBrick, a NY based web consulting firm. He also runs Search Engine Roundtable, a popular search blog on very advanced SEM topics. Barry's personal blog is named Cartoon Barry and he can be followed on Twitter here. For more background information on Barry, see his full bio over here.

Connect with the author via: Email | Twitter | Google+ | LinkedIn



SearchCap:

Get all the top search stories emailed daily!  

Share

Other ways to share:
 

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. Comments may also be removed if they are posted from anonymous accounts. You can read more about our comments policy here.
  • msanders

    Thank you for the great post! Judging from coverage elsewhere, the correct URL for Google’s Ads Preferences appears to be http://www.google.com/ads/preferences

  • http://www.seroundtable.com/ Barry Schwartz

    Yea, fixed… I misheard and thought it was ad and not ads. But I fixed at about 5:45am.

  • http://www.crearecommunications.co.uk/ Martyn

    As far as I can see this is going to be a huge benefit to google and I really look forward to seeing the targeted adverts in action. At least the adverts that will be on display are going to reflect something of interest and although people will have the initial big brother syndrome I do believe this will be an advantage for both consumer an advertiser.

  • http://dorthy.com jimanderson

    It’s interesting that the largest search engine in the world decided to take this targeted approach through Cookies and not their own search functionality. I’m all for giving people relevant information but how are they going to make it a good experience when they’re still not really getting to the root of what people are looking for?

  • http://www.interestmatrix.com alexdruk

    I would like to add that according to Aitan Weinberg, Google Product Manager (http://googland.blogspot.com/2009/03/g-new-ways-to-reach-right-audience-on.html) to participate in Google beta you have to fill out the form http://adwords.google.com/support/bin/request.py?display=form&f=audience
    I believe this is very important step in the evolution of search! The era of keywords is almost over! Era of interest-based advertising just started.
    People search the internet according their short or long term interests. Therefore all searches ( and keywords) are just expression of these interests. Interests are the driving factor of search on the Internet.
    However it is only a very preliminary step to interest-based advertising. Partially because Ads Preferences Manager approach is completely inadequate. For example it lists only 3 hobbies! 600 listed is nothing compared to the tens or even hundreds thousands (according to interestmatrix.com) of human interests.

  • http://www.rankfirst.info/newmarketing simleon

    this is a very important news. Google needed to do something similar to Yahoo! as behavour targeting is a very effective way of advertise with a good ROI.

  • http://www.perfectmoney.com About-PM

    if this is another action from Google to counter the “the emerge of new search ads,like twitter search.perhaps Google has something better then today adwords,however .following the present hit of crisis,I really don’t agree that Google checkout increasing there rate,at today recession before this behavioral target happen

  • http://www.searchenginelisting.org roughest

    This is only one of many steps Google is taking to toward individualized search. You can bet they will be applying this method toward natural search in the near future. The emergence of interest based individual search results will do away with keywords and force sites to define the user segments, what they want, and tailor the site content to profiles likely to produce desired results. Individual Micro Silos.

  • privacychooser

    Services like this one will emerge that enable those consumers who want to opt out to opt out easily.

    http://www.privacychoice.org

    It will be interesting to see how many consumers care when they can understand and act other than by going deep into their browser preferences. (The browser makers have little incentive to make these choices prominent or easy — since they are also ad networks, in the case of Microsoft/IE and Google/Chrome, or supported by ad networks like Google, in the case of Firefox.)

  • http://advertual.com acgrindl

    Google is still lost in comparisons. Even if the ads are directly targeted at what was in your shopping cart that is still a direct comparison. Google is also still trapped by staying and doing everything online. For marketing to really work on the Internet it has to break out of the computer box and integrate itself into daily lives. Google is making people more and more responsible for their advertising. I never knew I was actually going to have to work for the advertising I received. Who’s job is it to show me the advertising I want, me or the advertiser? Well if it is me, I’m not going to work that hard, but I do want a system that knows me. And by all means that isn’t based on my surfing behavior because to tell you the truth I’m not shopping that much on the Internet. If something could incorporate my daily life with my Internet experience and save me money, I would be interested. But I will say I have the G1 phone and it seems to be doing this, however I’m in China and actually haven’t seen these new tools work yet, in June it should be working here they say. I doubt though that every item I ever purchase I’m going to scan. But back to the Internet, ads no matter how targeted are offensive and people really don’t click on them. They don’t save them money and they aren’t even relevant to deal with at this exact moment even if they are in your interest. Saving ads for later is actually what is needed, when you have time to yourself to review them. I call this the Clickboard. For more details go to advertual.com. I feel Google is actually making it more difficult to shop, browse the Internet, and search for what is relevant.

Get Our News, Everywhere!

Daily Email:

Follow Search Engine Land on Twitter @sengineland Like Search Engine Land on Facebook Follow Search Engine Land on Google+ Get the Search Engine Land Feed Connect with Search Engine Land on LinkedIn Check out our Tumblr! See us on Pinterest

 
 

Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States

Europe

Australia & China

Learn more about: SMX | MarTech


Free Daily Search News Recap!

SearchCap is a once-per-day newsletter update - sign up below and get the news delivered to you!

 


 

Search Engine Land Periodic Table of SEO Success Factors

Get Your Copy
Read The Full SEO Guide