• 3 companies to pay $615,000 in NY attorney general investigation over faked net neutrality comments
    https://ca.finance.yahoo.com/news/3-companies-pay-615-000-185001622.html
    https://media.zenfs.com/en/the_canadian_press_business_130/7f7e7eb66e6a5dd55e66e35421a8fefc

    Le noyau central des fake news ne provient pas des usagers, mais bien des tactiques commerciales, politiques et géopolitiques d’influence. Le renouveau du lobbying avant l’expression directe via les médias sociaux. A méditer.

    The Canadian Press
    Wed, May 10, 2023 at 8:50 p.m. GMT+2·2 min read

    ALBANY, N.Y. (AP) — Three companies accused of falsifying millions of public comments to support the contentious 2017 federal repeal of net neutrality rules have agreed to pay $615,000 in penalties to New York and other states, New York’s attorney general said Wednesday.

    The penalties come after an investigation by the New York state Office of the Attorney General found the fake comments used the identities of millions of consumers, including thousands of New Yorkers, without their knowledge.

    “No one should have their identity co-opted by manipulative companies and used to falsely promote a private agenda," said New York Attorney General Letitia James in an announcement Wednesday.

    Two of the California-based companies, LCX Digital Media and digital marketing company Lead ID, LLC., were hired by the broadband industry to enroll consumers in a campaign to support repeals to Obama-era net neutrality rules. Instead, they each independently fabricated responses for 1.5 million consumers. The third, marketing company Ifficient Inc., supplied more than 840,000 fake responses.

    All three companies provide digital lead-generation services, meaning they collect personal information from consumers and then sell it to third parties for leads to generate business.

    Messages left for the three companies were not immediately returned.

    The investigation also found the companies worked on other unrelated campaigns to influence public officials and regulatory agencies like the Environmental Protection Agency.

    This is the second series of agreements secured by James with companies that supplied fake comments to the Federal Communications Commission. The nation’s largest broadband companies had funded a campaign to generate more than 8.5 million of fake comments submitted to the FCC, with more than half a million fake letters sent to Congress, her office said.

    The FCC, a government agency, is supposed to use the comments it receives, from industry and public-industry groups and the public, to shape how it makes its rules.

    Net neutrality is the principle that internet providers treat all web traffic equally, without blocking, slowing down, or giving preference to any content. Regulations for net neutrality were designed to prevent internet service providers like Verizon, AT&T, Comcast and Charter from favoring some sites and apps over others.

    LCX and its principals will pay $400,000 to New York and $100,000 to the San Diego District Attorney’s Office. Lead ID, LLC., and its principal will pay $30,000 to New York. Colorado-based Ifficient Inc. will pay $63,750 to New York and $21,250 to Colorado.

    #Fake_news #Influence #Lobbying

  • Vass Bednar: Digital ads are a desperate gamble in a fantasy economy
    https://ca.finance.yahoo.com/news/vass-bednar-digital-ads-desperate-163558047.html
    https://media.zenfs.com/en/financial_post_articles_610/07c92d7b4ca7e6725f456de8b3c0c3a3

    Digital advertising brings in billions of dollars in revenue to Meta Platforms Inc.’s Facebook and Alphabet Inc.’s Google in Canada, with Amazon.com Inc. also emerging as a significant third player, according to recent research from Carleton University’s global media and internet concentration project. Advertising on Google’s search engine and YouTube brought in an estimated $6.2 billion, or $162 per Canadian, in 2021. Meta earned just under $4 billion last year across Facebook, Instagram and WhatsApp, claiming one-third of Canada’s online advertising market, and derives almost all of its revenue from such ads globally. Amazon, a more recent entrant, made an estimated $1.2 billion in revenue from advertising, or almost 10 per cent of all online advertising in Canada. Together, these three tech conglomerates accounted for around 90 per cent of the online advertising market and more than two-thirds of all ad money in Canada.

    The online advertising industry is clearly profitable for massive platforms. But we should not confuse its profitability with effectiveness. Platforms earn money when an ad is viewed or listened to by a captive consumer, but that digestion doesn’t guarantee a purchase will occur. Indeed, that elusive purchase is nothing more than a reverie, and we’re all crushing the Kool-Aid in believing it’s a sure thing.

    Other research demonstrates that micro-targeted digital ads simply don’t work. As former Google employee Tim Hwang said in his 2020 book Subprime Attention Crisis, ad tech could be the next internet bubble. Further, the returns on investment in digital marketing have been proven to be embarrassingly poor for the companies advertising. One study found that ad-tech middlemen are substantially enriched by the online advertising game, sucking up as much as 50 per cent of all online spending. Another study found that automated micro-targeting performed slightly worse than random guessing. Meanwhile, digital ads are often credited for purchases that would have been made anyway, making them “the most widely used shell game in business today,” writes Sinan Aral in The Hype Machine.

    Nonetheless, the ability to collect information about people as they prowl the internet predicates online giants’ ability to command advertising dollars for totally random results. That’s led to a company policy knife-fight between Apple Inc. and everyone else after the tech giant forced developers to obtain explicit consent from users. This has resulted in even less accurate micro-targeting — Facebook’s recent software update practically begs people to subject themselves to being tracked. Apple’s change means online advertising now generally costs more, translating into increased costs for small businesses hoping to reach new and relevant audiences online, on top of the digital fees extorted from developers on mobile application stores. All of this expenditure and effort hinges on the promise that advertising expenditure is richly rewarding, a necessary investment for e-commerce players.

    Maybe it is time we start seeing online ads for what they really are: a desperate gamble in a fantasy economy.

    #Tim_Hwang #Publicité