A self-described "avowedly non-partisan" digital political firm has a controversial patent for voter targeting, a new CEO -- and clients that are fighting against Obamacare even as other clients seek to implement it.
Audience Partners already is touting its voter-targeting ad system as "patented," and even is running Facebook ads to promote the news of the government seal-of-approval, obtained last month.
The patent, awarded in June, essentially covers ad targeting based on voter records enhanced with demographic and behavioral data. Several other companies serving political and advocacy advertisers also use voter data along with other information to target online ads, emails, mobile communications -- even set-top box tv ads -- to people.
Behind closed doors, the patent, which appears to be a first in the political ad-tech realm, is a subject of concern among companies that offer similar services.
One Democratic operative who asked to remain anonymous said cynically, "Why don't we go out and patent phone-banking, door-knocking and direct-mail based on the voter file. I'm honestly surprised that any company would choose a patent troll as its mascot."
Other execs at some of the largest digital ad firms working in the political space are reluctant to speak on the record about the patent or its implications for their businesses. Democratic ad firm Bully Pulpit Interactive and Republican-serving Targeted Victory declined to comment on the patent for this story, as did other companies that could be affected.
Audience Partners isn't exactly sure what it will do with the patent.
"We haven't spent a lot of time internally talking about the right way to proceed," said Audience Partners CEO David Helmreich, who plans to start his new role August 1. The company has not decided, for instance, whether to attempt to charge licensing fees to other companies it believes infringe on the patent, or to sue supposed infringers.
"It's a great situation to be in because what you've done has been recognized and documented," Mr. Helmreich added.
Invalid patent
But the patent itself may be moot.
"This patent, with very high likelihood, is invalid," suggested Brian Love, assistant professor at Santa Clara University School of Law, who focuses on patent law. Mr. Love referred to a recent U.S. Supreme Court ruling that some observers believe could delegitimize some software patents. The recently-decided Alice Corporation v. CLS Bank ruling indicates that merely repurposing a service or technology for application in the digital realm is not sufficient enough to warrant a patent.
"There's been a multi-decade debate about where is the right place to draw the line between a patentable piece of software and a piece of software that is just too abstract," said Mr. Love. "This patent actually fits pretty squarely into the box of what CLS Bank tells us is not patentable."
Still, even if legal observers believe the patent is not valid, Audience Partners could generate revenue from it through licensing fees or court settlements.
The company has at least one additional patent application in the U.S. Patent and Trademark Office hopper, according to USPTO data. Submitted in February 2013, it covers "Targeting online ads based on political demographics."
"It's not the last time that I think we will see an award from [the USPTO] on our patents," said Mr. Helmreich, who is taking a brief hiatus at his home in Alexandria, Va., shuttling his kids to tennis and swimming classes, before diving into his gig with Audience Partners. He's most recently been consulting since leaving Neustar in February.
Strange bedfellows
The patented technology itself will only be available for political
clients via Campaign Grid, said Mr. Helmreich. And that's where
things get a little strange.
Founded in 2005, CampaignGrid got its start alongside a handful of digital advertising and web services firms that sprouted in and around Washington before the 2008 Obama presidential campaign propelled digital politics into the mainstream. The company, based in Fort Washington, Pa., near Philadelphia, still is dedicated to serving candidates and organizations on the right.
When Audience Partners was founded in 2007, housing CampaignGrid, the parent firm took an agnostic view of potential clients even as its subsidiary maintained its Republican leanings. CampaignGrid founder Jeff Dittus would eventually serve as CEO of Audience Partners, and will become chairman of the board at Audience Partners as Mr. Helmreich steps into the CEO position.
Mr. Helmreich told Ad Age, "CampaignGrid handles political clients while Audience Partners handles commercial clients." Political clients comprise around 60% or 70% of the combined firms' overall clientele, said Mr. Helmreich, though "healthcare is rapidly growing."
But there are grey areas. Audience Partners considers health-insurance firms selling via state and federal exchanges in its commercial-client mix.
So while CampaignGrid's clients are on the attack against President Barack Obama's Affordable Care Act, Audience Partners is working for the Department of Health and Human Services and several state government departments, creating digital ad campaigns promoting health insurance signups under the Affordable Care Act.
In a May 7 press release, Audience Partners said it delivered 351 million online ad impressions pushing ACA related recruitment during the open enrollment period between October 2013 and the end of March in states including California, Maryland and New York. "We worked with HHS direct, as well as with [insurance] agent partners," Rich Masterson, chairman of Audience Partners, wrote in an email, adding that non-disclosure agreements prevent the firm from divulging any more details.
