Facebook's alleged monopolization of the social networking market enabled the company to decrease users' privacy protections and increase the number of ads shown to them, 48 attorneys general argue in papers filed Thursday with U.S. District Court Judge James Boasberg in Washington, D.C.

“Unlike traditional business models in which monopolists exercise their power by raising prices, the most effective way for Facebook to extract monopoly rents is by degrading the quality of its service,” the attorneys general write.

“Facebook has done just that, including by degrading privacy terms and protections and by increasing ad load, thereby profitably reducing the value of this exchange for users, effectively raising its price, and reducing output.”

The states' new papers come in response to Facebook's request to dismiss a lawsuit alleging that the company violated laws aimed at protecting competition by purchasing social media service Instagram (acquired for $1 billion in 2012) and messaging service WhatsApp (bought for $19 billion in 2014).

Late last year, attorneys general in 46 states, the District of Columbia and Guam sued Facebook over alleged antitrust violations. The Federal Trade Commission also brought a similar lawsuit.

The cases are proceeding separately, but both center on claims that Facebook illegally monopolized social networking services by purchasing competitive threats. The lawsuits came shortly after Democrats on the House Judiciary committee's antitrust subcommittee issued a report stating that Facebook used its “data advantage” to identify competitors and then “acquire, copy, or kill” them.

Last month, Facebook urged Boasberg to dismiss both complaints. The company made numerous arguments, including that the attorneys general couldn't show how the alleged purchases harmed consumers.

The states counter in papers filed Thursday that Facebook's alleged monopolization leaves people with no alternatives in the “personal social networking services” market.

“Facebook’s monopoly meant it faced little competitive constraint on its approach to privacy, leaving users and their personal data to the whims of whatever metric Facebook was focused on optimizing at a given time,” the states write.

They also argue that Facebook effectively degraded quality by increasing the proportion of ads in people's mobile feeds between 2015 and 2020.

Facebook also argued that the state attorneys general waited too long to challenge its purchases of Instagram and WhatsApp.

The states urge Boasberg to reject that claim, arguing that “the passage of time made clear the continuing anticompetitive effects of the Instagram and WhatsApp acquisitions.”

The FTC says in separate papers filed Tuesday that Boasberg should reject Facebook's request to throw out the lawsuit.

Among other arguments, Facebook said the FTC reviewed both acquisitions before they occurred.

The FTC counters that its decision to refrain from challenging the mergers in 2012 and 2014 doesn't preclude it from doing so now.

“Congress has explicitly provided that the FTC need not challenge an acquisition at its first opportunity to do so,” the agency writes.

The FTC adds that its lawsuit centers on “an ongoing course of monopoly maintenance that includes not only Facebook’s elimination of competitive threats through acquisition, but also the anticompetitive conditions that hindered other potential rivals.”

Email marketers trying to cope with the Promotions folder in Gmail and other hindrances to their mail being read now face another potential inbox barrier — if they don’t do their job well.

Twobird, a free email to-do-list from Ginger Labs, is now available for Microsoft Outlook email users. The app, which helps users simplify their inbox, had been offered for Gmail since launch last year,

The free app allows users to sort items under Reminders and Low Priority. In addition, they can clear out mail with Done and Unsubscribe. 

In addition, Twobird users can highlight upcoming events at the top of their inbox, and focus on content with hidden signatures and simple formatting, it says. 

Above all, email marketers should seek to avoid excessive unsubscribes to ensure their content is relevant and riveting. 

The company hopes to grow “access to our free platform," states Garrett Mitchell, director of Twobird. "By expanding beyond Google Mail, we are now able to reach millions of new users."

Ginger Labs, a productivity app, also offers the Notability.

An open letter to Alphabet and Google CEO Sundar Pichai published on Medium asks Alphabet to stop protecting harassers of employees who believe they have been victimized by others in the company.

“Alphabet does not provide a safe environment for those who face harassment in the workplace,” the letter begins. “Even when HR confirms harassment, no action is taken to make the reporter safe.”

The letter points to an opinion piece written by Emi Nietfeld, a software engineer who worked at Google from 2015 through 2019. It was published in The New York Times on April 7, 2021.

Nietfeld, who experienced homelessness and spent time in foster care during her high school years, pulled herself up from despair, got an education, and began working at Google. She treated the company and those who worked there as a surrogate family.

In the opinion piece, Nietfeld describes how Alphabet human resources did nothing to protect her from her harasser.  

“The few people who’d worked at other companies reminded us that there was nowhere better,” Nietfeld wrote in the NYT op-ed piece. “I believed them, even when my technical lead — not my manager, but the man in charge of my day-to-day work — addressed me as 'beautiful' and 'gorgeous,' even after I asked him to stop. (Finally, I agreed that he could call me ‘my queen.’) He used many of our one-on-one meetings to ask me to set him up with friends, then said he wanted 'A blonde. A tall blonde.' Someone who looked like me."

Despite all the wonderful things people hear about Google, there seems to have been a long pattern of its parent company protecting harassers.

The letter posted on Medium -- which was drafted by several workers, including some with the Alphabet Workers Union (though it's not a union-branded letter” -- explains how the “person who reports harassment is forced to bear the burden, usually leaving Alphabet while their harasser stays or is rewarded for their behavior.”

The letter pointed to Andy Rubin, the creator of Android mobile software, who received a $90 million exit package after a woman accused him of coercing her into reportedly performing oral sex.

Amit Singhal, a former search executive, was awarded $35 million when he was forced to resign after a sexual assault investigation.

Tombert, who responded to the op-ed in a post on Reddit provided an interesting point of view. Seven years ago, Tombert worked at a close-knit startup, where the coworkers were friends with everyone from the CEO to the employees were fun to be around. After two years on the job, the company was hit with two lawsuits. Things changed, two-thirds of the company was laid off.

Tombert went from employed to unemployed overnight. “After that, I made a bit of a vow to myself to remember that a job is, at its core, a business transaction,” Tombert wrote. “You sell your time and expertise for compensation. It's great if you really like your boss and your coworkers, that'll help avoid depression, but remember at the end of the day, a company is not your family, and if they don't think you're creating enough value for them, they will end this transaction.”

The public letter addressed to Pichai calls on Alphabet to give employees the right to work in an abuse-free environment.

Petitioners ask Alphabet to remove reports from harassers. In other words, no harasser should manage or lead a team, directly or indirectly, including dotted-line reports or managing temps, vendors, or contractors.

Those who signed the letter also ask for mandatory team changes when claims of harassment are verified.

HR already has a process in place for romantic relationships that could create potential workplace problems. They should use the same process. Alphabet has stricter polices around consensual relationships than for harassment, according to the letter.

There are nearly 100 signatures, mostly from software engineers, at the time of this post.

22squared’s newly launched consultancy Dendro is poaching Phenomenon executive Ryan Stoner to serve as its first-ever head of strategy. This role — tailored specifically for him — will include leading its consulting efforts with clients as well as managing proposal development and playing an active role in business development.

Stoner will also be tasked with developing “thought leadership” to guide its strategic approaches and publishing efforts. He will report to Dendro's managing director Brandon Murphy.

Launched in late 2020, 22squared developed the consultancy to “go where advertising agencies cannot,” states an agency representative. Dendro is designed to service “upstream” strategy at larger companies before agencies are brought in, for turn-around work or optimization for brands with new ownership, as well as launch work for startups.

While at Phenomenon Stoner worked in a similar strategic role, including winning creative and strategy work from brands ABCmouse, DC Entertainment and TD Ameritrade Institutional. Earlier in his career, he led strategy at Publicis, where he helped launch the “Un-carrier” campaign for T-Mobile, leading to T-Mobile becoming America’s fastest-growing wireless company.

Ryan was also the founder of two startups: Switchcam where he was Head of Growth and MoPix where he was CEO and took the company from concept through launch growing to over 4,500+ filmmakers.

“Ryan has a unique combination of running a consultancy, working at an agency, and creating startups,” says Murphy. “He brings knowledge that allows us to work with a whole new set of companies from startups to established brands. His perspective will help us go north of advertising into market, category, and brand design and creation.”

Stoner will split his time between his home in Los Angeles and agency’s Atlanta location post-COVID.  

Apple enforcement of a tracking privacy rule -- where users of its products see a message asking whether the app can track their activity across other companies’ applications and websites -- is not entirely understood.

Once an app asks for this permission, it will serve up in the tracking menu, where users can toggle app tracking on and off, and a custom explanation from the developer will follow.

These rules are not limited to the Identifier for Advertisers (IDFA), as previously believed. When a user opts out, Apple expects developers to stop using any other identifiers to track users for ad-targeting purposes, and not to share that information with data brokers, according to one report.

The uncertainty has left brands scrambling to understand and meet Apple’s deadline for the change.

To prepare for a limited amount of data that would be available to marketers, Procter & Gamble continues to work on a technique being tested in China to gather iPhone data to target ads. The work is intended to give companies a workaround for Apple’s privacy tools, according to a report, which cites people familiar with the matter.

Using an algorithm, a technology called device fingerprinting can track users for the purpose of targeting ads in a way that Apple wants to prevent. The technique is called CAID.

P&G and dozens of Chinese trade groups and tech firms working with the state-backed China Advertising Association are testing to develop this technique.

P&G told The Wall Street Journal that it is providing input to the trade group to find ways to “deliver useful content consumers want in a way that prioritizes data privacy, transparency and consent. That means partnering with platforms and publishers — both directly and through our advertising associations across the globe.”

ByteDance, TikTok’s parent company, has also been involved with testing. Business units of accounting firms Deloitte LLP and PricewaterhouseCoopers as well as ratings company Nielsen Holdings have also been involved.

CAID is conducted through apps that collect user device data, such as the device start-up time, model, time zone, country, language and IP address. These attributes are not considered “personal information” based on China’s personal information security standards.

Through this method, the technology can generate a device ID with help from an algorithm and can achieve a similar tracking method. And, it can be used without having to obtain user consent.

The WSJ also reports that Apple has issued warning letters to app developers who use tools such as CAID, asking for their removal within 14 days.

Advertising tech veteran Doug Campbell will take on a new role as chief strategy officer at DoubleVerify, the digital media and analytics company that monitors media fraud.

He will be responsible for global strategy-corporate development and, in particular, fast-growing media channels, such as connected TV. Campbell will report to Mark Zagorski, CEO of DoubleVerify.

Last month, in its IPO filing with the SEC, DoubleVerify says revenue rose 34% to $244 million in 2020 -- coming from 1,000 advertising clients, 45 of which represent at least $1 million in annual revenue.

Some 61% of its transactions came from mobile-device activity, with 32% from desktop devices and 3% from emerging digital channels, which include CTV.

Previously, Campbell was chief strategy officer at Telaria, where he oversaw the merger with Rubicon Project and the acquisition of SpotX to form Magnite, the sell-side media platform.

Before that, he was senior vice president, global strategy-corporate development at Nielsen, overseeing digital media and consumer measurement acquisitions. He arrived after steering the sale of eXelate, the data management platform, to Nielsen. At eXelate, he was COO.

An Android device identifier that is used for ad targeting violates European privacy laws, Austrian activist Max Schrems alleges in a new complaint filed with the French data protection authority.

The Android advertising ID -- a re-settable alphanumeric string that ad-tech companies draw on to target mobile users across apps -- “is very similar to a tracking ID stored in a browser cookie,” Schrems' organization, Nyob (None of Your Business), says in a complaint submitted to France's data protection authority.

The watchdog argues that Europe's broad privacy laws require companies to obtain consumers' consent before storing tracking data on their devices, or allowing other companies to access that information.

Schrems' organization compares the Android identifier to a “digital license plate,” writing that the identifier serves a purpose similar to cookies stored in consumers' web browsers.

“Every action of the user can be linked to the 'license plate' and used to build a rich profile about the user and their preferences,” the complaint states. “Such profile and preferences can later be used to target personalized advertisements, in-app purchases, promotions etc.”

The organization recently made a similar complaint about Apple's Identifier for Advertising. (Apple plans to soon require app developers to seek consumers' consent before accessing that identifier.)

Nyob is asking the French regulators to fine Google and order the company to revise its practices.

Google and other tech companies are facing increasing scrutiny by privacy regulators in Europe. Late last year, the French National Data Protection Commission fined Google $121 million for allegedly setting non-essential cookies without obtaining users' prior consent.

Brand marketer interest in “iOS app marketing” has grown considerably in recent weeks. As with most things, the pandemic has had an impact on our consumption habits – and that includes the amount of time spent on mobile devices. Much attention has been paid as of late to the upcoming App Tracking Transparency framework, which will compel developers to get express permission to access the Identifier for Advertisers (IDFA), starting with the launch of Apple's iOS 14.5 version, if they want to track and share data for ad targeting purposes. 

“Roadblocking” was among the most-searched terms recently among brands and agencies, as measured by Bombora Company Surge. Roadblocks, which take over marquee digital real estate, carry a lot of potential. They’re unlikely to generate a lot of clicks, but an immersive ad experience will create a ton of impressions with your unique audience. This will often combine rich-media elements with advanced streaming technology to create high-visibility content that captures your audience’s attention. Done well, takeover ads can tell a powerful and impressive story in eight seconds or less.

Intent data for “lead matching” was up again this week, as companies ramp up their outbound demand-generation efforts. Lead-matching technologies use AI to match leads to the proper account when they are registered in a system – eliminating repetitive data and duplicate leads. In addition to saving the time and valuable resources otherwise spent in manually matching and routing leads, machine learning and AI-driven tools in the matching process also give businesses cleaner and more accurate data within their CRM platforms. Inaccurate data can be detrimental to loyalty. So it’s vital that the data being extracted and stored is of good quality and high fidelity. Conversely, if the data is incomplete, you run the risk of trying to appeal to too broad an audience — and customer targeting will suffer as a result.  

Hulu has launched a comprehensive new brand design and marketing campaign in a push to differentiate itself with consumers and advertisers amid the growing array of streaming service options.

A new cross-functional design system, dubbed “One Hulu,” aims to unify branding, marketing and product experience for the Disney-controlled service.

The mission of the cohesive branding and the ad campaign — which spans TV, online, social, outdoor and mobile — is to establish Hulu as the service that connects people with all of the content they love, and the starting place for their streaming experiences.

Hence the campaign theme: “Start With Hulu.”

A TV ad (below) shows a man frustrated by trying to decide what to watch being advised by his companion to “Start With Hulu.”

Celebrities including Kris Jenner of “Keeping Up With the Kardashians,” actress Andra Day and L.A. Ram Aaron Donald are then featured in a montage highlighting the wide variety of content available through the service. 

Closing message: “Time to have everything you love. Time to have Hulu.” 

This creative will give way to a focus on Hulu’s original content this summer, followed by promotion of new fall content.

The brand redesign relies heavily on the bright green color already associated with Hulu, which was confirmed as a “source of power in brand cues” during the consumer research conducted for the redesign.

The research also indicated that consumers use symbols to navigate to things that “move them from stress to relaxation”; and that they expect Hulu to be “fun, modern, simple and straightforward.”

Shaping and conveying a unified brand message is the next challenge for Hulu, which was hamstrung for years by ownership shared among four giant entertainment companies.

Since Disney took full operational control of the streamer following its acquisition of 21^st Century Fox in March 2019, Hulu has undergone an overhaul that has included integrations of other Disney properties and brands, including FX and Searchlight; a major ramp-up of its own original content; and a redesigned user interface.

Hulu, along with Amazon Prime Video, have been growing as Netflix’s U.S. growth rate slows. Disney has already invested in marketing to accelerate Hulu’s momentum, including a 2020 Super Bowl ad featuring New England Patriots quarterback Tom Brady.

As of February, Hulu reported having 39.4 million total subscribers, including 4 million to its livestreaming Hulu + Live TV bundle.

Hulu currently claims a 13% share of the market, ahead of much-newer streamers HBO Max and Disney+, and behind Netflix and Amazon Prime, according to Ampere Analysis.

Hulu, along with ESPN+, is part of the “Disney+ bundle” that now costs ?7.99 per month. As a standalone, Hulu costs $5.99 with ads and $11.99 without ads, while Hulu + Live TV costs$64.99 with ads and $70.99 without ads.

Disney has said that building Hulu’s advertising is key in the strategy for Hulu and Hulu’s place within the company’s overall streaming plan. Hulu will be an important element in Disney’s upcoming upfront pitch.  

Disney described the green frame around Hulu in the new brand design as a “’vessel” or “holder of precious things, to help elevate brand and content campaigns.”

As previously reported here, in January and February, Hulu drew 873 ads, according to MediaRadar. Ad spend on Hulu tends to be concentrated in specific categories, such as media and entertainment and technology and retail, but February’s top 10 were fairly diverse: DraftKings, Samsung, Mercari Mobile App, Verizon, Kia, Taco Bell, T-Mobile, TurboTax, Hello Fresh and Geico.