“Scumware” and Contextual Targeting

The term “contextual targeting” is one of the hottest buzzwords of 2003. Contextual targeting can be anything from syndicated search engine pay-per-click buys on editorial-related web sites to delivery of ads by way of software, typically downloaded by a user but sometimes surreptiously bundled in with another download. These software have earned the disreputable name of “scumware” or “theftware” because their ad serving tactics woo visitors away from one publisher’s site and over to another’s, hence taking with them the ad dollars the publisher might have otherwise earned.

What Exactly Is Scumware? (er, ah…Contextual Targeting Tools??)

As with most things in life, there are two sides to every story and these scumware have brewed up quite a bit of controversy. Ask a web publisher and, if they can say it in a nice way without cursing while they do, they’ll tell you that scumware are browser-embedded applications which serves *unwanted* advertising overlaid on their site, thereby defacing the site while worse yet, possibly diverting the user away.

Now, ask an advertiser employing these contextual targeting tools and you’ll get a very different answer. By using contextual targeting tools, an advertiser can run a campaign which places advertisements on, over, or *IN* a relevant or competitor’s site. The ad is served by the browser-based application with offerings ranging from simple pop-ups to in-browser ads to the highlighting of site content indicating links to advertisers with related content. By their very nature, these tools have been successful at driving highly targeted users to a site, in many cases yielding a profitable return on investment for the ad dollars spent.

So who’s in the right?

Who Is Scumware?

Before you decide which side of the fence you fall on, it’s important to know who the players are and what controversies have surrounded them. Bear in mind that all these tools must be downloaded somehow by the user.

Gator

Gator’s initial attraction to Internet users was (and probably still is) the fact that its software fills in online forms in one easy click. In exchange for free use of this eWallet, Gator then introduced ads and the free user must now allow themselves to be subjected to these ads; if the user prefers not to see the ads, they can purchase the no-ad version for $30.

Gator’s advertisements consist of pop-ups, “fly-ins,” “sliders,” and in some cases images that appear over the banner ads purchased on sites. It calls its ad programs Gator Advertising and Information Network (GAIN).

According to Gator, its ad programs receive “response rates of 5% on average, with some campaigns as high as 48%. GAIN users are 100-400% more likely to convert than consumers who are not.” From the sounds of it, Gator delivers results.

Gator in action:

eZula (TopText)

eZula TopText highlights words on sites and suggests definitions and information on such terms. Think of it as a browser-embedded dictionary. Not so evil.

On the other hand, what eZula also does is highlight words related to the advertisers working with eZula, creating a kind of misleading link. If an eZula TopText user clicks on one of these links, they are taken from the original site to the eZula advertiser’s site. Since eZula works on a CPC basis, these clicks earn revenue for eZula while stealing traffic and potential revenue from web site owners.

In the webmaster field, this practice is known as web site hijacking — having someone else alter the actual look and functionality of your web site without your permission.

Here’s WebAdvantage.net being hijacked by eZula’s Top Text!

WhenU

WhenU bundles with and installs itself through a variety of partner downloads including other software, MP3 players, screensavers, online games and shopping tools. It describes its contextual targeting solution as software examining “keywords, URLs and search terms currently in use on the consumer’s browser — without collecting or transmitting this data — and then select[ing and displaying] relevant and useful advertisements.”

WhenU works like Gator by suggesting advertising and offers on shopping sites like Amazon or eBay. Publishers have also accused WhenU of revenue stealing because WhenU ads are shown after an affiliate link to Amazon or another site has been clicked, which could potentially divert the user from the affiliate purchase which would in turn divert dollars earned from that purchase.

Court Battles Around Scumware
In July of this year, a Virginia court ruled that WhenU ads which broadcasted pop-ups over U-Haul’s web site were NOT illegal. This was a landmark ruling for contextual targeting ad companies, helping to both legitimize its methodologies and solidify this format as a true advertising medium.

There have been other court cases as well. Rather than litigate, Gator settled a case against them by media powerhouses including The Washington Post, The New York Times, Dow Jones and other digital publishers. And Overstock.com, Wells Fargo, and 1-800-contacts.com have also filed suit again WhenU, the outcome of which is still pending.

Google Starts and Quickly Ends Related Searches on its AdSense

Last week Google incurred the wrath of many smaller publishers who are part of its AdSense program by including but not announcing a new “Related Searches” feature in its AdSense text ads. AdSense publishers, who only generate revenue from Google when the AdSense ads on their site are clicked, were incensed that Google would try to bite the hand that helped feed them. Why show Google ads if Google itself was trying to divert traffic away? Google, in its sensible way, quickly responded to the uproar, removing the Related Sites feature after just one day.

Google then told its AdSense publishers, “Because we want this [Related Searches] to work for everyone, we’ve decided to temporarily disable this feature until we can better address the concerns. We’ll re-release this feature shortly with greater flexibility for web publishers. When we do, we’ll let you know.” Looks like Related Searches is not completely vanquished yet.

Call it scumware, theftware, contextual targeting, or call it what you will, as both Internet marketers and web publishers, we see both the harm and opportunity presented by this kind of advertising mediums. We hope there are some middle ground solutions that retain the positive benefits of contextual but at the same time address the uglier, less ethical side of this format.

If, in the meantime, you happen to find yourself an unwanted owner/victim of a scumware application on your computer, here is a resource to help rid you of it: http://www.thiefware.com/disabler

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RELATED INTERNET RESOURCES
Scumware.com
The Trouble with Ad Targeting, and a Solution
GeekVillage’s StopScum Forum
Special thanks to GeekVillage for helping with this article and providing screen captures!
geek/talk Forums @ GeekVillage.com
Quality Forums
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