Does the Internet need its own version of credit bureaus

Data Miners love data. The more data they have the better model they can build. Consumers do not love data so much and find sharing data generally a cumbersome task. They need to be incentivize for filling out survey forms , and for signing to loyalty programs. Lawyers, and privacy advocates love to use examples of improper data collection and usage as the harbinger of an ominous scenario. George Orwell’s 1984 never “mentioned” anything about Big Brother trying to sell you one more loan, credit card or product.

Data generated by customers is now growing without their needing to fill out forms and surveys. This data is about their preferences , tastes and choices and is growing in size and depth because it is generated from social media channels on the Internet.It is this data that can be and is captured by social media analytics.

Mobile data is also growing, including usage of location based applications and usage of Internet from the mobile phone is leading to further increases in data about consumers.Increasingly , location based applications help to provide a much more relevant context to the data generated. Just mobile data is expected to grow to 15 exabytes by 2015.

People want to have more and more conversations online publicly , share pictures , activity and interact with a large number of people whom they have never met. But resent that information being used or abused without their knowledge.

Also the Internet is increasingly being consolidated into a few players like Microsoft, Amazon, Google and Facebook, who are unable to agree on agreements to share that data between themselves. Interestingly you can use Yahoo as a data middleman between Google and Facebook.

At the same time, more and more purchases are being done online by customers and Internet advertising has grown much above the rate of growth of other mediums of communication.
Internet retail sales have the advantage that better demand predictability can lead to lower inventories as retailers need not stock up displays to look good. An Amazon warehouse need not keep material to simply stock up it shelves like a K-Mart does.

Our Hypothesis – An Analogy with how Financial Data Marketing is managed offline

Financial information regarding spending and saving is much more sensitive yet the presence of credit bureaus alleviates these concerns.
Credit bureaus collect information from all sources, aggregate and anonymize the individual components accordingly.They use SSN as a unique identifier.
The Internet has a unique number too , called the Internet Protocol Address (I.P)
Should there be a unique identifier like Internet Security Number for the Internet to ensure adequate balance between the need for privacy as well as the need for appropriate targeting?

After all, no one complains about privacy intrusions if their credit bureau data is aggregated , rolled up, and anonymized and turned into a propensity model for sending them direct mailers.

Advertising using Social Media and Internet

https://www.facebook.com/about/ads/#stories

1. A business creates an ad

Let’s say a gym opens in your neighborhood. The owner creates an ad to get people to come in for a free workout.

2. Facebook gets paid to deliver the ad

The owner sends the ad to Facebook and describes who should see it: people who live nearby and like running.

The right people see the ad

3. Facebook only shows you the ad if you live in town and like to run. That’s how advertisers reach you without knowing who you are.

Adding in credit bureau data and legislative regulation for anonymizing and handling privacy data can expand the internet selling market, which is much more efficient from a supply chain perspective than the offline display and shop models.

Privacy Regulations on Marketing using Internet data
Should laws on opt out and do not mail, do not call, lists be extended to do not show ads , do not collect information on social media. In the offline world, you can choose to be part of direct marketing or opt out of direct marketing by enrolling yourself in various do not solicit lists. On the internet the only option from advertisements is to use the Adblock plugin if you are Google Chrome or Firefox browser user. Even Facebook gives you many more ads than you need to see.

One reason for so many ads on the Internet is lack of central anonymize data repositories for giving high quality data to these marketing companies.Software that can be used for social media analytics is already available off the shelf.

The growth of the Internet has helped carved out a big industry for Internet web analytics so it is a matter of time before social media analytics becomes a multi billion dollar business as well. What new developments would be unleashed in this brave new world is just a matter of time, and of course of the social media data!

Ads Alliance on Internet

Just saw

the Digital Advertising Alliance’s (DAA) Self-Regulatory Program for Online Behavioral Advertising.

Multi-Site Data Collection Principles Broaden Self Regulation Beyond Online Behavioral Advertising
WASHINGTON, D.C., NOVEMBER 7, 2011

The new Principles consist of the following specific requirements:

Transparency and consumer control for purposes other than OBA – The Multi-Site Data Principles call for organizations that collect Multi-Site Data for purposes other than OBA to provide transparency and control regarding Internet surfing across unrelated Websites.
Collection / use of data for eligibility determination – The Multi-Site Data Principles prohibit the collection, use or transfer of Internet surfing data across Websites for determination of a consumer’s eligibility for employment, credit standing, healthcare treatment and insurance.
Collection / use of children’s data – The Multi-Site Data Principles state that organizations must comply with the Children’s Online Privacy Protection Act (COPPA).
Meaningful accountability – The Multi-Site Data Principles are subject to enforcement through strong accountability mechanisms.

http://www.aboutads.info/principles

The DAA Self-Regulatory Principles

The cross-industry Self-Regulatory Principles for Multi-Site Data augment the Self-Regulatory Principles for Online Behavioral Advertising (OBA) by covering the prospective collection of Web site data beyond that collected for OBA purposes. The existing OBA Principles and definitions remain in full force and effect and are not limited by the new principles.

The cross-industry Self-Regulatory Principles for Online Behavioral Advertising was developed by leading industry associations to apply consumer-friendly standards to online behavioral advertising across the Internet. Online behavioral advertising increasingly supports the convenient access to content, services, and applications over the Internet that consumers have come to expect at no cost to them.

The Education Principle calls for organizations to participate in efforts to educate individuals and businesses about online behavioral advertising and the Principles.

The Transparency Principle calls for clearer and easily accessible disclosures to consumers about data collection and use practices associated with online behavioral advertising. It will result in new, enhanced notice on the page where data is collected through links embedded in or around advertisements, or on the Web page itself.

The Consumer Control Principle provides consumers with an expanded ability to choose whether data is collected and used for online behavioral advertising purposes. This choice will be available through a link from the notice provided on the Web page where data is collected.

The Consumer Control Principle requires “service providers”, a term that includes Internet access service providers and providers of desktop applications software such as Web browser “tool bars” to obtain the consent of users before engaging in online behavioral advertising, and take steps to de-identify the data used for such purposes.

The Data Security Principle calls for organizations to provide appropriate security for, and limited retention of data, collected and used for online behavioral advertising purposes.

The Material Changes Principle calls for obtaining consumer consent before a Material Change is made to an entity’s Online Behavioral Advertising data collection and use policies unless that change will result in less collection or use of data.

The Sensitive Data Principle recognizes that data collected from children and used for online behavioral advertising merits heightened protection, and requires parental consent for behavioral advertising to consumers known to be under 13 on child-directed Web sites. This Principle also provides heightened protections to certain health and financial data when attributable to a specific individual.

The Accountability Principle calls for development of programs to further advance these Principles, including programs to monitor and report instances of uncorrected non-compliance with these Principles to appropriate government agencies. The CBBB and DMA have been asked and agreed to work cooperatively to establish accountability mechanisms under the Principles.

Ajay- So why the self regulations?

Answer- Shoddy Maths in behaviorally targeted ads is leading to a very high glut in targeted ads, more than can be reasonably expected to click based on consumer spending. On the internet- unlike on television- cost is less of a barrrier to OVER ADVERTISING.

Google Webinar on Web Analytics

Google webinar on web analytics-

recommended for anyone with anything to do with the WWW

From

http://analytics.blogspot.com/2011/11/webinar-reaching-your-goals-with.html

Webinar: Reaching Your Goals with Analytics

Is your website performing as well as it could be? Do you want to get more out of your digital marketing campaigns, including AdWords and other digital media? Do you feel like you have gaps in your current Google Analytics setup?

We’ve heard from many of our users who want to go deeper into their Analytics — with so much data, it can be hard to know where to look first. If you’d like to move beyond standard “pageview” metrics and visitor statistics, then please join us next Thursday:

Webinar: Reaching Your Goals with Analytics
Date: Thursday, December 1
Time: 11am PST / 2pm EST
Sign up here!

During the webinar, we’ll cover:

Key questions to ask for richer insights from your data
How to define “success” (for websites, visitors, or campaigns)
How to set up and use Goals
How to set up and use Ecommerce (for websites with a shopping cart)
How to link AdWords to your Google Analytics account

Whatever your online business model — shopping, lead-generation, or pure content — these tools will deliver actionable insights into your buying cycle.

This webinar will be led by Joe Larkin, a technical specialist on the Google Analytics team, and it’s designed for intermediate users of Google Analytics. If you’re comfortable with the basics, but you’d like to do more with your data, then we hope you’ll join us next week!

Free Machine Learning at Stanford

One of the cornerstones of the technology revolution, Stanford now offers some courses for free via distance learning. One of the more exciting courses is of course- machine learning

http://jan2012.ml-class.org/

About The Course

This course provides a broad introduction to machine learning, datamining, and statistical pattern recognition. Topics include: (i) Supervised learning (parametric/non-parametric algorithms, support vector machines, kernels, neural networks). (ii) Unsupervised learning (clustering, dimensionality reduction, recommender systems, deep learning). (iii) Best practices in machine learning (bias/variance theory; innovation process in machine learning and AI). The course will also draw from numerous case studies and applications, so that you’ll also learn how to apply learning algorithms to building smart robots (perception, control), text understanding (web search, anti-spam), computer vision, medical informatics, audio, database mining, and other areas.

The Instructor

Professor Andrew Ng is Director of the Stanford Artificial Intelligence Lab, the main AI research organization at Stanford, with 20 professors and about 150 students/post docs. At Stanford, he teaches Machine Learning, which with a typical enrollment of 350 Stanford students, is among the most popular classes on campus. His research is primarily on machine learning, artificial intelligence, and robotics, and most universities doing robotics research now do so using a software platform (ROS) from his group.

When does the class start?The class will start in January 2012 and will last approximately ten weeks.
What is the format of the class?The class will consist of lecture videos, which are broken into small chunks, usually between eight and twelve minutes each. Some of these may contain integrated quiz questions. There will also be standalone quizzes that are not part of video lectures, and programming assignments.
Will the text of the lectures be available?We hope to transcribe the lectures into text to make them more accessible for those not fluent in English. Stay tuned.
Do I need to watch the lectures live?No. You can watch the lectures at your leisure.
Can online students ask questions and/or contact the professor?Yes, but not directly There is a Q&A forum in which students rank questions and answers, so that the most important questions and the best answers bubble to the top. Teaching staff will monitor these forums, so that important questions not answered by other students can be addressed.
Will other Stanford resources be available to online students?No.
How much programming background is needed for the course?The course includes programming assignments and some programming background will be helpful.
Do I need to buy a textbook for the course?No.
How much does it cost to take the course?Nothing: it’s free!
Will I get university credit for taking this course?No.Interested in learning machine learning-
Well here is the website to enroll http://jan2012.ml-class.org/

Interview Zach Goldberg, Google Prediction API

Here is an interview with Zach Goldberg, who is the product manager of Google Prediction API, the next generation machine learning analytics-as-an-api service state of the art cloud computing model building browser app.
Ajay- Describe your journey in science and technology from high school to your current job at Google.

Zach- First, thanks so much for the opportunity to do this interview Ajay! My personal journey started in college where I worked at a startup named Invite Media. From there I transferred to the Associate Product Manager (APM) program at Google. The APM program is a two year rotational program. I did my first year working in display advertising. After that I rotated to work on the Prediction API.

Ajay- How does the Google Prediction API help an average business analytics customer who is already using enterprise software , servers to generate his business forecasts. How does Google Prediction API fit in or complement other APIs in the Google API suite.

Zach- The Google Prediction API is a cloud based machine learning API. We offer the ability for anybody to sign up and within a few minutes have their data uploaded to the cloud, a model built and an API to make predictions from anywhere. Traditionally the task of implementing predictive analytics inside an application required a fair amount of domain knowledge; you had to know a fair bit about machine learning to make it work. With the Google Prediction API you only need to know how to use an online REST API to get started.

You can learn more about how we help businesses by watching our video and going to our project website.

Ajay- What are the additional use cases of Google Prediction API that you think traditional enterprise software in business analytics ignore, or are not so strong on. What use cases would you suggest NOT using Google Prediction API for an enterprise.

Zach- We are living in a world that is changing rapidly thanks to technology. Storing, accessing, and managing information is much easier and more affordable than it was even a few years ago. That creates exciting opportunities for companies, and we hope the Prediction API will help them derive value from their data.

The Prediction API focuses on providing predictive solutions to two types of problems: regression and classification. Businesses facing problems where there is sufficient data to describe an underlying pattern in either of these two areas can expect to derive value from using the Prediction API.

Ajay- What are your separate incentives to teach about Google APIs to academic or researchers in universities globally.

Zach- I’d refer you to our university relations page–

Google thrives on academic curiosity. While we do significant in-house research and engineering, we also maintain strong relations with leading academic institutions world-wide pursuing research in areas of common interest. As part of our mission to build the most advanced and usable methods for information access, we support university research, technological innovation and the teaching and learning experience through a variety of programs.

Ajay- What is the biggest challenge you face while communicating about Google Prediction API to traditional users of enterprise software.

Zach- Businesses often expect that implementing predictive analytics is going to be very expensive and require a lot of resources. Many have already begun investing heavily in this area. Quite often we’re faced with surprise, and even skepticism, when they see the simplicity of the Google Prediction API. We work really hard to provide a very powerful solution and take care of the complexity of building high quality models behind the scenes so businesses can focus more on building their business and less on machine learning.

Free online education by Stanford and MIT

One more reason American education is the best in the world- it has a big heart.

Stanford just announced free courses starting from Jan 2012- and they are online (so no visa blues) and free( as in speech and free as in beer) and just the same as actual courses (yes , the homework will have to be done, and the dog cannot eat the homework)

http://www.venture-class.org/