The Social

Revamped privacy settings are coming soon to Facebook.

The social network's privacy controls had gotten so sprawling that they were distributed across six separate pages and 40 different settings, according to a conference call the company held on Wednesday.

"These can add up and pile up and not be as clean as one would like," Facebook chief privacy officer Chris Kelly said on the call. From what it sounds like, they'd gotten so complicated that many members just ignored them altogether--something that Facebook certainly doesn't want as it encourages its 200-million-plus members to post and share even more content.

As a result, Facebook's new controls will be more streamlined so as to offer easier and simpler controls about how much everything from entire profiles to individual pieces of content are shared. Users will be introduced to this through "transition tools" that allow them to toggle how open everything on their profile will be--totally public, friends-only, restricted to company or school networks, etc.

One of the biggest changes along with the new controls is that Facebook is getting rid of "regional networks," the opt-in way that members could designate themselves as residents of certain geographic areas. Only half of members even joined these networks, according to Facebook. It's a change that's been anticipated for some time, and privacy controls regarding regional networks have already been phased out.

"Networks were kind of the bedrock of privacy," product manager Leah Perlman said on the call. "When we expanded past college and work (networks), we created the concept of regional networks in order to have our privacy model expand." Members could share content selectively with members of their regional network, but representatives said that it was never quite clear as to exactly who else was in that regional network, and the delineation of networks was messy--some were defined by city, other by broader region or state, and others encompassed entire countries.

Facebook chief privacy officer Chris Kelly is also considering a run for attorney general of California.

(Credit: Kelly2010.com)

There were, for example, separate networks for each of New York City's five boroughs, but most residents just chose to join the broader "New York, NY" one instead. Facebook says that this shouldn't affect locally targeted advertisements: the company will be porting regional network data to its "Current City" field, and has already been using other data like IP address information to hone local ad targeting.

Facebook is keeping school- and company-based networks intact.

This comes in the wake of an announcement that Facebook would be tweaking its "publisher," the toolbar that lets members update their status messages or post content like individual photos and videos. The "publisher" will now have a privacy toggle for individual pieces of content, letting a user choose whether to make them available to friends only, custom friend groups, or--for the first time--to the Web at large. Making content available publicly will bring Facebook better in line with the thirst for real-time, searchable mass information that Twitter has captured so effectively thus far.

So how will this be handled? Facebook members will be guided through one of the aforementioned "transition tools," which representatives said will take one of two forms: either an ultra-specific set of granular, custom controls or a more no-brainer set of radio buttons. The new controls will first be tested with 40,000 users in the U.S. before rolling out to a bigger, international group of beta testers and then worldwide.

Last updated at 12:20 p.m. PDT.

Facebook's targeted advertising program is "materially different from behavioral targeting as it is usually discussed," Chris Kelly, the social network's chief privacy officer, said in remarks prepared for a Thursday morning hearing before two House subcommittees.

"In offering its free service to users, Facebook is dedicated to developing advertising that is relevant and personal without invading users' privacy, and to giving users more control over how their personal information is used in the online advertising environment," read the remarks for two subcommittees of the U.S. House of Representatives Committee on Energy and Commerce.

The hearing, titled "Behavioral Advertising: Industry Practices And Consumers' Expectations," was also slated to include testimonies from Jeffrey Chester, executive director of the Center for Digital Democracy; Scott Cleland, president of Precursor; Charles Curran, executive director of the Network Advertising Initiative; Edward Felten, director of the Center for Information Technology Policy at Princeton University; Anne Toth, vice president of policy and head of privacy at Yahoo; and Nicole Wong, deputy general counsel at Google.

Chris Kelly

(Credit: Kelly2010.com)

Kelly, a White House staffer under President Clinton, has announced an exploratory bid to run for attorney general in California.

Social-media sites like Facebook, where members fill out extensive personal profiles that can detail everything from their music tastes to travel plans to political leanings, are at the forefront of new developments in behavioral ad targeting. The Facebook Ads program lets advertisers fine-tune their campaigns to reach specific demographics and audiences. Kelly insisted that this does not constitute an invasion of user privacy, an Internet-wide concern that the Federal Trade Commission has been exploring at the request of privacy advocates.

"The FTC's behavioral advertising principles recognize the important distinctions made by Facebook in its ad targeting between the use of aggregate, non-personally identifiable information that is not shared or sold to third parties," Kelly's remarks read, "versus other sites' and companies surreptitious harvesting, sharing and sale of personally identifiable information to third party companies."

Privacy concerns are nothing new to Facebook. The social network went through a user backlash over the introduction of its News Feed in 2006, and a bigger one over the controversial Beacon advertising program. More recently, a revision to Facebook's terms of use prompted consumer advocacy blog The Consumerist to highlight language that it said meant that Facebook claimed ownership of user profile data and photos.

"In February of this year, we looked to revise our Terms of Use, simplifying them to cut out as much legalese as possible and explain them in plain language," Kelly's remarks explained. "When we released a first version of our new terms, a blog misinterpreted our simplification of our copyright license, claiming that it meant we were seeking to own user content. The user reaction was predictably swift and severe, and we needed to choose among weathering the storm, revising the language, and introducing an entirely new process that would directly involve users in the governance of the site."

Facebook ultimately underwent a "notice and comment period modeled in part on the federal government's rulemaking procedure...(with) a user vote at the end of the process."

The points he tried to drive home the most: that Facebook members have extensive control over their personal information and that Facebook does not allow advertisers access to "personally identifiable" data in the Facebook Ads program.

Kelly also included a general mea culpa of sorts: "Perhaps because our site has developed so quickly, Facebook may have sometimes been inartful in communicating with our users and the general public about our advertising products," he stated. "We learned many lessons about the importance of user education and extensive control from the imperfect introduction of our Beacon product in 2007. As a result, Facebook continues to be dedicated to empowering consumers to control their information in both the noncommercial and the commercial context because we believe that should be the future of advertising."

A few other interesting tidbits from Kelly's remarks: out of Facebook's 200-million-plus active users, about 65 million are in the U.S.; more than 10,000 sites are using the Facebook Connect universal log-in product; and Facebook plans to continue the discussion-and-feedback-period strategy on any future changes to its "critical site documents."

MySpace has unveiled "MyAds," an advertising technology focused on small businesses and individuals rather than the huge brand advertisers that the News Corp.-owned social network is best known for. It's a platform in which an advertiser can allocate exactly how much to spend--between $25 ad $10,000--and target its audience using the HyperTargeting system that MySpace debuted just under a year ago.

With HyperTargeting, MySpace says that there are more than 1,100 specific ways to target an ad based on geography, demographics, interests, and other information sourced from public profile data. Advertisers can then keep tabs on performance through online analytics.

MyAds is currently restricted to MySpace in the U.S., where it has about 76 million members.

The "self-service" model is similar to what Facebook has done with its own ad platform--create an ad, choose how much to spend, select a target audience. But MySpace has a more obvious clientele in mind: bands. The MyAds homepage explicitly recommends the service for band promotion, something that gets very close to MySpace's roots as an independent music hub.

Promotional campaigns for bands, films, and other indie creative projects may have a more natural home on MySpace than Facebook, where the focus is less about media and more about communication.

BuzzLogic, a start-up that , has pushed its ad network out of beta to a full release.

The "Conversation Ad Network" debuted in beta mode in June and uses BuzzLogic's influence-tracking technology as a way to draw in both advertisers and bloggers. Advertisers are promised access to the most influential bloggers in their niches, and bloggers with that influence are offered more lucrative deals.

Prior to launching the ad network, BuzzLogic purchased ActiveWeave, manufacturer of browser plug-in BlogRovr, to shape it into a tool for clients. Then, during its beta period, the BuzzLogic network enticed bloggers to join by offering them guaranteed $2 CPM (clicks per thousand impressions) ad rates.

"We've seen a strong correlation between campaign effectiveness and the quality blogs our technology is able to surface since launching our targeting platform last year--now we're expanding our targeting approach to our own network of sites," BuzzLogic CEO Rob Crumpler said in a release. "In this fragmented media environment, it has become clear that a popular site isn't necessarily influential when it comes to niche subject areas. Many lesser-known blogs have the capability to deliver great advertising results, they're just not getting paid for it."

There are seemingly zillions of ad networks out there, but BuzzLogic's technology for niche influence targeting gives it a leg up. The company said that over 500 sites have already joined the network in its beta phase.

Discount retailer Target has signed a deal with photo-sharing service Photobucket, adding it to the small collection of online partners for its in-store photo-printing service.

Through the partnership, members of Photobucket can directly order photos for pickup at most Target stores (presumably any Targets that don't have photo-printing stations would be the exception). Typically, the photos will be ready within an hour.

Photobucket, a unit of News Corp.'s Fox Interactive Media, is the third current partner for the retailer; Target already has partnerships in place with Shutterfly's and Kodak's online photo services.

Last week, Photobucket announced a partnership with start-up Scrapblog to make it easier for members to put their photos into online (and eventually print) scrapbooks.

Lotame, a targeted-ad start-up that focuses on social sites, announced Tuesday that it has raised $13 million in a Series B venture round. The lead investor is Emergence Capital Partners, and existing investors Battery Ventures and Hill Crest Management also contributed. The money, per a release, will be used for "product enhancements, marketing, and business development efforts." Nothing surprising there.

The company's primary offering is a technology called "Crowd Control," which pinpoints discussions on social-media sites related to a particular brand or its niche, and helps that brand get its name on the relevant discussions.

"Forty percent of Internet use is on social networks. This is no longer a wild frontier, and will soon be the primary use of the Internet," CEO and founder Andrew Monfried said in a statement. "Until Lotame, the basics of Internet advertising had not changed to address the unique challenges and opportunities presented by social media. Now advertisers can take full advantage of the basic premises of social networks--the user sets the content agenda and connects other users to ideas." That's a lot of new-media speak, but Monfried now has $13 million backing him up.

Some of Lotame's existing customers include the Huffington Post, Flixster, Fotolog, and ad agency Media Kitchen.

Marketers ought to be aware that some consumers are suspicious about the phenomenon known as "behavioral targeting," a new report from eMarketer says.

Called "Behavioral Targeting Attitudes: The Privacy Issue," the report released Friday explores the digital ad strategy, which collects consumer information and uses it to serve up ads that they may find interesting or relevant. This has been the basis for high-profile programs like Facebook's Social Ads and MySpace's HyperTargeting, as well as Google's extraordinarily successful AdSense. (That's why you'll see ads for vacation homes in Gmail after you've been e-mailing back and forth with your friends about wanting a weekend getaway.)

The takeaway point from the report: "Consumers want ads that are relevant to their needs, but they have mixed feelings about how that relevancy should be determined."

eMarketer cited a TrustE study which found that 70.5 percent of Internet users polled seemed to be decently aware that their browsing activity could be tracked by third parties for advertising. But only about 23 percent of them said that they were OK with having their behavior monitored, even if they were assured that the data would not be shared and no personal information would be divulged.

Targeted advertising is an extremely sensitive subject, with privacy advocates on both the left and right ends of the political spectrum voicing concerns. Internet service providers have been criticized for behavioral-targeting campaigns, questions of legality continue to arise, and top executives at tech companies have been brought into the debate.

The study suggested that advertisers should ensure that consumers are educated on the fine print of behavioral targeting, and that they're offered an opt-in choice. "One way to ensure that consumers welcome rather than reject behaviorally targeted ads is to ask them to give their consent to receive them," a release about the report wrote. "Tell them about the real benefits of saying yes, including more-relevant advertising." That's what the Internet Advertising Bureau has recommended, too.

But perhaps a more serious issue for the ad industry is accuracy. The TrustE numbers cited by eMarketer said that only 12.6 percent of respondents said that more than a quarter of the targeted ads they were delivered were relevant. Ouch.

Its name might be wacky, but some investors with deep pockets think it's the real thing: SodaHead.com, a polling and answers site, announced Wednesday that it has raised $8.4 million in Series B venture funding. The money comes from new lead investor Mission Ventures, as well as existing investor Mohr Davidow Ventures.

The company's previous round, with veteran investor Ron Conway and Tech Coast Angels contributing, had totaled $4.3 million.

SodaHead was founded by Jason Feffer, former vice president of operations at MySpace, and his childhood friend Michael Glazer. Feffer describes the site as "the Internet's modern day town square," and has said that polling records produce so much information about user preferences that they're a dream for advertisers.

Currently, SodaHead has about 600,000 subscribers. The new venture money will be used, according to a release, to get the word out, support a growing user base, and make some "strategic hires."

InterActiveCorp mogul Barry Diller may be getting rid of brands like Ticketmaster, LendingTree, and HSN, but he still wants to sell ads on them.

The sprawling media company announced Monday that it will launch an ad network to handle inventory across all its brands, such as Evite and Citysearch, as well as the ones that Diller and his executive team are opting to spin off into separate publicly traded companies.

"Maybe we're not brothers and sisters, but we're cousins," IAC Advertising Solutions president Rich Stalzer told AdAge about the companies it will spin off. The AdAge article also reported that IAC currently serves only a small percentage of its own ad inventory, outsourcing the rest.

IAC's new ad strategy focuses on targeting consumers in nine "cubes": youth (18 to 34 years old), men, women, "affluents," parents, active shoppers, active travelers, homeowners, and sports fans. More cubes are on the way. But of particular priority to IAC is the "affluents" niche, which can draw in far higher click-through rates because of those consumers' likelihood to spend larger amounts of money.

For once, IAC's arguably scattershot and unfocused array of retail and media brands could be helping it move forward.

That's because there are many ways that IAC could identify Web users as "affluents" (or anything else, for that matter) through the sheer variety of properties the conglomerate owns, as well as the ones that it is spinning off.

"We're in a unique position in that we can corroborate multiple kinds of data," Stalzer explained in a release, "including declared information users offer about themselves; transactional, online purchasing activity; and inferred, such as what they do offline like attend concerts or go on dates, from the diverse portfolio of IAC sites to more precisely identify users as part of a particular audience segment."

Someone who makes pricey purchases at the company's Gifts.com, for example, or who repeatedly queries Citysearch for restaurants of the Jean-Georges and Nobu variety, could be classified under the high-income "cube."

And Diller, well known as a yacht aficionado, is even more deeply connected to the luxury-brand market than your average CEO: He's married to fashion legend Diane von Furstenberg.