Cyrille Waguet Phone: +49 (0) 621 87 204 066 Address: Julius-Hatry-Str. 1, 68163 Mannheim Thank you for your interest in ADTELLIGENCE!

1. SOCIAL MEDIA ADVERTISING PLATFORM
DATA PROTECTION AND PRIVACY IN THE SOCIAL WEB
Michael Altendorf
Version 1 // 7.6.2010

2. Inhalt
1. About ADTELLIGENCE
2. The ADTELLIGENCE Social Media Advertising Platform
3. Data protection at ADTELLIGENCE
4. Privacy and online advertising in Social Networks
5. Conclusion
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

3. About ADTELLIGENCE
 ADTELLIGENCE is a high-tech company in the metropolitan Rhein-
Neckar region that offers the first Social Media Advertising Platform
 The technology offered by ADTELLIGENCE creates a foundation for
successful business models in Web 2.0 and mobile platforms,
increasing the competitiveness of social media services over
traditional media.
 The ADTELLIGENCE solution combines ad-serving, targeting,
business intelligence, and analytics in one platform that can be
accessed on the Internet.
 ADTELLIGENCE was founded in Mannheim (May 2009) by Michael
Altendorf and Dr. Cyrille Waguet, together with venture capitalists.
 The ADTELLIGENCE team includes experts from SAP, Google, and
IBM
Web: www.adtelligence.de | Email: info@adtelligence.de | Tel: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim

4. ADTELLIGENCE – Advertising in the Social Web
The ADTELLIGENCE Social Media Advertising Platform automates the delivery of ad campaigns. Campaigns are delivered only to
users who correspond to a chosen target group. Attention time can be measured, and multiple groups simultaneously tested. For
privacy reasons, onclusions about individuals are not available to the advertiser.
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

5. Impressionen
Interest Mixer
Business Intelligence
Targeting 2.0
Geo-Targeting
Self-Booking Platform
Analytics 2.0
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

6. Reporting, Recommendations & Analytics
 Each campaign is evaluated in detail. Only aggregated data can be used, thus privacy protection is ensured at all times.
 No personal data, such as the name or email of users, is stored by ADTELLIGENCE system. Identifying the user is not possible. Without an
active opt-in, user information will not be passed to third parties. The personal data of the user is always safe.
Age Language Gender
How old are the people who are What language are the people Men or women? Who prefers your product?
interested in your product? interested in your product speaking?
Country of Origin
In which land/city/region are the most people
clicking on your campaign?
Music Interests
Does your target group like music? We What do members of your target group do in
know what style! their free time?
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

7. Data Privacy at ADTELLIGENCE
This is our endeavor…. the employees of ADTELLIGENCE do
not want their private data distributed in the Internet either.
 ADTELLIGENCE has already directly developed a data protection report and has examined the legality.
 Dr. Ulbricht from www.rechtzweinull.de has conducted an investigation and confirmed the legality of the report.
The report can be downloaded at any time on the ADTELLIGENCE homepage: http://adtelligence.de/de/datenschutz
 We use no personal data! We are not able to receive names, email addresses, or telephone numbers. Even when a
Social Network like Facebook sends us a name, it cannot be processed by our interface.
 Our main concern is transparency. All privacy and security regulations must be clearly communicated. This is the only
way to generate acceptance.
 The targeting engine from ADTELLIGENCE does not store cookies and does not save IP addresses.
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

8. Data Privacy in Social Networks
Handling data: The tension between legal and
personal boundaries
Legal boundaries User Concerns
 Today, data protection laws provide that the  Data privacy is a critical success factor in
user must explicitly agree to the use of networks
personal data by third parties ("OPT-in")
 Users gladly and willingly give a lot of info for
 There are serious consequences for the re- a price. But if they feel ignored in the
use or violation of the use of personal distribution of their data, even with legal
information safety, they rebel.
 It is expected that in the future, these  In the case of semantic advertising in GMAIL,
provisions will be tightened. there is the question: “Is Google reading my
emails?”
 Re-Targeting – Who is surfing behind me???
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany 8

9. The Use of Data in Practice
Today and Tomorrow
 Clear and open communication that ensures there is no personal data being passed on is expected by users.
 Social Networks must clearly communicate that data is evaluated for the purposes of advertising. Users will accept this if
the data is not personal, and if they can avoid premium usage charges by doing so.
 The current legal situation allows for the anonymous storage of data for advertising purposes.
 Anonymizing services and providers of opt-out offers in compliance with all provisions are continuing to gain ground.
 eCommerce providers such as Amazon personalize offers for their buyers. If an eCommerce provider stores data from a
user of a social network, it is not without the explicit opt-in of the user. Purchase information cannot be mixed with
information from social networks without the consent of the user.
 For the delivery of ads on social networks, cookies are not necessary, as opposed to with behavioral targeting.
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

10. User profiles store different demographic
and psychographic information
Legal Boundaries User Input
1. Personal data
 What was unimaginable a few years ago is now
2. Demographic data: age, occupation, income, etc.
commonplace
3. Interests such as music, movies, books, sports,
 People freely write about themselves, their and quotations
interests, and their desires on the Internet 4. Geographic data like residential or study locations
and destinations
 This information is no longer kept secret; it is seen
as a means of communication with others. 5. Friends and social graph
6. Group activities
 User-generated content is thus voluntarily
generated in Social Networks. 7. Wall posts and comments
8. Photos
9. Specials such as blogs or video podcasts
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

11. A complete user profile can be very large
An example from MySpace
 This is the MySpace profile of MySpace co-founder Tom Anderson
 Tom is automatically the “the first” friend/contact after registration in
the social network MySpace
 Like almost all other users of a social network, he describes his
interests, his taste in music, what movies he loves, how old he is,
where he lives, and much more.
 The adjacent profile is not unique in its detail.
 The younger the user, the more data the so-called “digital natives”
maintain.
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

12. Not all data in a social network should be
used. Data use from a data protection
point of view:
Possible uses of data from user profiles
NO GO  1. Personal Data
OK  2. Demographic data: Age, profession, income etc.
OK  3. Interests like music, movies, books, sports, and quotes.
OK  4. Geographic data like residential or study locations and
destinations
Only with the consent of the user  5. Friends and social graph
Only with the consent of the user  6. Group activities
Only with the consent of the user  7. Wall posts and comments
Photos are a very critical point  8. Photos
Only with the consent of the user  9. Specials such as blogs or video podcasts
Message content ok?  see Gmail
 Further use of voluntary information from a user profile can only take place in accordance with data protection laws
 User concerns are taken into account in addition to data protection laws.
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

13. Single Sign-on and Facebook Connect
New opportunities for online advertising vs. a new
challenge for data protection
Services like Facebook Connect, the new graph API, and OpenSocial allow the
personalization of offers from outside communities.
2 principle distinctions:
 With user opt-in:
With opt-in, the user is asked by an eCommerce shop, for example, whether he (and his Facebook data) want to
log in. If the user agrees, his data is read from Facebook (via the Connect interface).
 Without user opt-in
Without opt-in, the user‟s personalized data may not be shared. It is possible to use pseudonymous data
temporarily, for example gender and age can be used to tailor the online shop to men or women.
Example: The new Facebook Graph API allows the processing of gender or age (no name or email). This only
works if the user is logged into Facebook.
 Sites use user data for stastical or promotional purposes, but here the respect of the privacy policy is especially
important.
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

14. Conclusion – Transparency is the key to
resolving the debate about data privacy in
Social Networks
New opportunities for online advertising in social networks offer many benefits, both for platform operators and for users. Amazon
and Apple, for example, make much use of them. This is precisely why open communication is of particular importance when
dealing with user data. Transparency leads to lasting acceptance.
Facebook and Google are dealing primarily with negative headlines in the media because they don„t tell their users what they are
doing. Three scenarios are described:
With consent/ opt-in of
Anonymization Pseudomization
users
 No name or email may be  Only temporary storage  User actively agrees to transfer
shared  No personal data their data – everything must be
 Advertising to groups, not to  Example: eCommerce Shop used.
individuals personalized like the new Levis  Example: Facebook Connect
 Only aggregated data Shop
 No opt-in for advertising possible
Web: www.adtelligence.de | E-Mail: info@adtelligence.de | Phone: +49 (0) 621 87 204 066 | Julius-Hatry-Str. 1 | 68163 Mannheim, Germany

15. Questions? Write us an email at:
Datenschutz@adtelligence.de
Web: www.adtelligence.de
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Contact: michaelaltendorf@adtelligence.de