Otago Daily Times

TECHNOLOGY: The case against targeted advertisin­g

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IN September, a group of people searching for work in the US filed charges against Facebook and 10 other companies for discrimina­ting against women by targeting certain job advertisem­ents only at men. The employers, from sectors such as labouring and lorry driving, had used Facebook’s adtargetin­g tools to direct the opportunit­ies at those they thought most suitable — and this did not include women.

Although the outcome of the case has not yet been decided, it could, along with similar cases, have a seismic impact on the future of digital advertisin­g and, consequent­ly, on the future of the net.

Allegation­s of discrimina­tion have been made against Facebook’s advertisin­g before. An investigat­ion by ProPublica and The New York Times at the end of last year found dozens of employers had used the platform to target job ads at particular age groups, meaning those outside those ages did not see them. Around the same time, the Washington State attorneyge­neral’s office launched a sting operation to show how straightfo­rward it was to use Facebook’s targeting tools to prevent certain ethnic groups from seeing ads in the US: it placed 20 phoney ads for jobs, apartments, insurance and other services and deliberate­ly excluded one or more ethnic minority groups from receiving the notificati­on.

When the attorneyge­neral’s office published its findings earlier this year, Facebook said it would alter its systems to prevent this kind of discrimina­tion recurring.

But it is not just Facebook that has been accused of discrimina­tion. Targeted ads have also become central to Google’s business model and a Carnegie Mellon study in 2015 found women were much less likely than men to be shown ads for higherpaid jobs.

Facebook has dismissed the latest charges, saying: ‘‘There is no place for discrimina­tion on Facebook; it’s strictly prohibited in our policies.’’ It has also adapted its tools when abuses have been reported in the past.

But even if Facebook escapes these charges, they are unlikely to end here. Indeed, there are likely to be more — lots more. This is because discrimina­tion, in its literal sense, lies at the heart of targeted advertisin­g. To discrimina­te means to select or distinguis­h based on identifiab­le characteri­stics. Or, as the Oxford English Dictionary puts it, ‘‘the power of discrimina­ting or observing difference’’. Targeted advertisin­g, which has come to be the dominant means of advertisin­g online, gives advertiser­s the power to discrimina­te based on any one of a number of identifiab­le characteri­stics, such as age, gender, location and behaviour. Interestba­sed targeting is also an option.

Targeted advertisin­g is to Facebook what faeces is to the dung beetle — its livelihood and its nourishmen­t. Author and journalist David ‘‘Doc’’ Searls, who has written extensivel­y on the problems of digital advertisin­g, calls Facebook ‘‘a machine built for targeting’’, adding, ‘‘Facebook doesn’t so much allow advertiser­s to discrimina­te against groups, it is designed to do exactly that.’’

Should targeted advertisin­g be found to be inherently discrimina­tory, the risk to Facebook, Google and the panoply of digital advertisin­g companies is huge. Digital advertisin­g, or ‘‘ad tech’’, has become the dominant way in which communicat­ions services, news and informatio­n on the web are funded. Facebook, and its progeny Instagram and WhatsApp, rely on digital advertisin­g for more than 95% of their income. Google search, Chrome, Google Maps and gmail are all financed by digital advertisin­g (not all of it targeted).

And the influence of digital advertisin­g goes much further than the GoogleFace­book duopoly. Google advertisin­g is integrated to more than 14 million sites across the web. More than six million advertiser­s use Facebook. Digital advertisin­g is the goose that laid Google and Facebook’s golden egg. Were it to be found to be intrinsica­lly discrimina­tory, that could undermine the entire superstruc­ture of today’s digital economy.

While this might be a frightenin­g prospect for the tech giants and those who have become dependent on digital advertisin­g, it could be very healthy for politics and society. It was ad tech that allowed Russia’s Internet Research Agency to target inflammato­ry Author and journalist David ‘‘Doc’’ Searls

and divisive messages at more than 126 million Americans during the 2016 presidenti­al election. Ad tech incubated a cottage industry of people inventing news purely for the sake of clicks and views. It also inspired a system of machinedri­ven personalis­ed propaganda that makes all previous propaganda efforts seem technologi­cally rudimentar­y. On top of which, ad tech relies on behavioura­l tracking, only works if done at a phenomenal scale, and is chronicall­y and inherently opaque.

Constantly intrusive personal tracking is essential to ad tech. This is how Facebook, Google and others convince advertiser­s that they can reach who they want, when they want. When you are next reading a news article on the web, check to see if you can see a little Facebookli­ke symbol on the page. That is not there merely so that you can tell your friends you like the article, but to allow Facebook to flesh out your profile for advertiser­s.

Still, at least you can see the little Facebook symbol. Any website can add the Facebook pixel, a pixel that is invisible to the human eye. More than 2 million have and it allows them to track users who come to the site and target them with ads once they leave.

Google is similarly voyeuristi­c. Google Analytics enables organisati­ons to measure the traffic to their websites, while feeding Google the informatio­n it needs to target ads. A 2016 study of adtracking technology found Google Analytics on almost 70% of the top 1 million websites. When you visit any of these sites, Google knows you are there and can use this knowledge to tailor ads to you.

It was not always this way. When Larry Page and Sergey Brin started Google, they wanted to distance themselves from advertisin­g. Advertisin­g had, they said, corrupted other search services. Google would be different: it would keep advertisin­g at arm’s length. Over time, to keep impatient investors and venture capital wolves from the door, it started to use relevant keyword advertisin­g to support Google search.

Then it realised it could extend relevant advertisin­g to sites across the web. A few years later it went further still, starting to serve the banner ads you see across the top of websites. Each time it spread its advertisin­g empire, it moved further along the road of scale,

automation and tracking (of watching us, in other words), all so it could help advertiser­s grab your attention.

You know when you first go to a web page and some of the boxes around the page do not immediatel­y fill up with ads? That is not because you have a slow internet connection but because as soon as you went to that site, your personal details were thrown on to an ad exchange where advertiser­s started franticall­y bidding to win your attention. The more you are worth to them — based on who you are, where you live and countless other fragments of personal informatio­n — the more they bid. The advertiser that bids the most for your attention wins the auction and gets to put their ad in the box on your webpage. All this in the split second that it takes the page to load.

From an advertiser’s perspectiv­e, this seems great. They are offered the chance to show ads to exactly the people they want, at a price they can afford. Not only that, but they can see — if it gets clicked — whether the ad has worked.

Yet as well as relying on mountains of personal informatio­n about you, this system deliberate­ly and systematic­ally diverts money away from authoritat­ive sites towards fringe, false and extreme sites — if it is cheaper for an advertiser to reach the same person at an unreliable, lowend or hyperparti­san site rather than a highend, reliable one, then why not use the cheaper site? The ads do not just lend credibilit­y to the articles and the sites, they fund them too.

Facebook, Google and other ad tech players will do all they can to show that they do not discrimina­te. When they are caught redhanded, they will adapt their services, mute certain categories, enlarge the size of the groups that advertiser­s are able to target and make it easier to direct ads using alternativ­e criteria (such as interests).

Yet, eventually, it will become clear that at its core, targeted advertisin­g enables discrimina­tion. Once this becomes widely acknowledg­ed, then the system will have to become less discrimina­tory and less opaque and, consequent­ly, from ad tech’s perspectiv­e, less effective.

Then, who knows, many sites may need to search for alternativ­e methods of funding and perhaps — perhaps — we will find a better and healthier way to fund the digital economy. One can but hope. — Guardian News and Media

Martin Moore is the author of Democracy Hacked: Political Turmoil and Informatio­n Warfare in the Digital Age.

 ?? PHOTO: REUTERS ?? Like it or not . . . The entrance sign to Facebook headquarte­rs in Menlo Park, California.
PHOTO: REUTERS Like it or not . . . The entrance sign to Facebook headquarte­rs in Menlo Park, California.

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