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Mobile Marketing Meltdown
 

Mobile Marketing Meltdown

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Hayden Creque made this presentation in March 2012 at Mobile March Twin Cities

Hayden Creque made this presentation in March 2012 at Mobile March Twin Cities

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  • . It’s also important to know with whom you can share that information, and to disclose how your app collects, uses and shares such data lawfully. If your mobile app is designed to collect data from the consumer (whether contact information, geolocational information, or other identifying data), monitor industry guidelines.Failure to take these steps can make a mobile app company and its individual owners the latest FTC target. If you think a settlement with the FTC isn’t too bad, you might want to reconsider. Take note that these FTC settlements will last for 20 years, and closely regulate all future business conduct concerning said mobile app (and potentially other mobile apps and business practices that a company and its owners wish to develop). Violations of an FTC settlement can also result in up to $16,000 per violation which, when calculated, can amount to millions of dollars in civil penalties.
  • . It’s also important to know with whom you can share that information, and to disclose how your app collects, uses and shares such data lawfully. If your mobile app is designed to collect data from the consumer (whether contact information, geolocational information, or other identifying data), monitor industry guidelines.Failure to take these steps can make a mobile app company and its individual owners the latest FTC target. If you think a settlement with the FTC isn’t too bad, you might want to reconsider. Take note that these FTC settlements will last for 20 years, and closely regulate all future business conduct concerning said mobile app (and potentially other mobile apps and business practices that a company and its owners wish to develop). Violations of an FTC settlement can also result in up to $16,000 per violation which, when calculated, can amount to millions of dollars in civil penalties.
  • The main takeaway: The FTC is monitoring mobile apps, and you don’t want yours caught in the scrutiny. Be proactive and take reasonable steps to make sure your mobile apps comply with the law.
  • If your app make use of data in a way that users might not expect you should make clear conspicuous and timely disclosures of that fact.
  • Sometimes you won’t even know that the organization’s values have been usurped.
  • If you plug someone else’s code into your application you are on the hook both legall and to users, with regard to the third parties you work with, and the analytics practices they engage in.
  • Use Good Judgment at All Times – NordstromsDon’t Be Evil -- GoogleBe the Number one or Number two Business in the Industry -- GE
  • Sometimes you won’t even know that the organization’s values have been usurped.
  • Sometimes you won’t even know that the organization’s values have been usurped.

Mobile Marketing Meltdown Mobile Marketing Meltdown Presentation Transcript

  • Mobile Marketing Meltdown Privacy Monetization Design Best PracticesBusiness | Employment | Internet | Privacy | Information SecurityInternet Business | Employment | | Privacy | Information Security
  • Business | Employment | Internet | Privacy | Information Security
  • Here’s What It’s About• Privacy -- Privacy by Design: Advocates embedding privacy considerations at the requirements phase of development projects• Monetization -- Including In-App Purchases -- Its Novelty is Both its Strength and Downfall A Few Thoughts on Application Design Business | Employment | Internet | Privacy | Information Security
  • Why Should You Care• There have been 3 FTC mobile application related settlements already announced, others are ongoing• Several players in the ecosystem have been the target of called for Congressional investigations• IN SHORT THE LIABILITY EXPOSURE – add class actions, and state investigations – IS REALLY FREAKING HIGH Business | Employment | Internet | Privacy | Information Security
  • Announced FTC Settlements Business | Employment | Internet | Privacy | Information Security
  • KEY FTC INVESTIGATIONTAKEAWAYS• Advertising claims need be truthful. That means both literally and what your advertising claims implicitly• Important terms of the app need to be stated clearly and upfront• Tune in to privacy. There are a number of privacy laws, and emerging restrictions on the type of personal data your app can and should collect from users Business | Employment | Internet | Privacy | Information Security
  • THE MAIN TAKEAWAY: There is a lot of scrutiny of mobile apps. Beproactive and take reasonable steps to make sure your mobile apps comply with the law Business | Employment | Internet | Privacy | Information Security
  • Let’s Talk PrivacyThe amalgamation of so much behavior richinformation in a single very personal deviceopens the possibility of radical innovations inmarketing Location Information Access to a Network of (Consistent Broadcast) Pre-Qualified Users (Think Stored Contacts) Lots of Behavioral Tid-Bits Personal Financial and Health Information 1:1 User Corollary Common SDK’s Create Emerging Interesting Business | Employment | Internet | Privacy | Information Security Possibilities
  • But There Are Risks Business | Employment | Internet | Privacy | Information Security
  • Several Privacy Guidelines OutThere Future of Privacy Forum Mobile Marketing Association Business | Employment | Internet | Privacy | Information Security
  • Its Still About Choice, Consent &Control Choice – Collection, Storage, & Transfer Consent – Obtain Control – Utilization Agreement Business | Employment | Internet | Privacy | Information Security
  • You Got To Have a Privacy Policy• Even if you do not believe you are collecting or using data that would trigger privacy concerns• Provide a link to it in each app store listing, on your own site. If your app has a settings page put a privacy policy link there as well• Make sure that it can easily be read on a mobile device Business | Employment | Internet | Privacy | Information Security
  • Get The Disclosures Rights Business | Employment | Internet | Privacy | Information Security
  • You Have to Timely DiscloseUnanticipated Uses Business | Employment | Internet | Privacy | Information Security
  • Don’t Forget Security• Ensure reasonable security measures are in place• Encrypt data in transit (SSL / TLS)• Encrypt sensitive information stored including for example passwords• Protect user application data Business | Employment | Internet | Privacy | Information Security
  • Good Housekeeping• Stay within the boundaries of your disclosures – don’t use or collect data if you haven’t explained the practice to the user• Don’t access or collect data unless your app requires it• Delete old data• Provide users with a way to contact you and respond to their questions and concerns Business | Employment | Internet | Privacy | Information Security
  • Use Reputable PartnersKeep in mind that many, if not most, privacyissues for application developers come frominserting…SDKs – such as those fromadvertising networks and analytics providers –into your app Business | Employment | Internet | Privacy | Information Security
  • Let’s Talk In-App PurchasesThere is a value proposition disconnect that is inpart because of the novelty of the platform Business | Employment | Internet | Privacy | Information Security
  • Food for Thought http://bit.ly/sLWOp6 Business | Employment | Internet | Privacy | Information Security
  • Another Class Action Suit Business | Employment | Internet | Privacy | Information Security
  • The Quid Pro Quo• It’s got to make sense• Its not all about the “Benjamins” Business | Employment | Internet | Privacy | Information Security
  • Get The Disclosures Rights• Disclose the Existence of In-App Purchase FunctionalityAlthough this application is free to download and playcertain features functionality, may require an in-apppurchase.• Avoid confusion: Price points like $.99, $9.99 and $99.99 Business | Employment | Internet | Privacy | Information Security
  • Consider Documenting YourPricing Strategy• Calibrate using established revenue models: Think console gaming and associated marketplaces (i.e. the Wii)• Incorporate average user revenue data overtime and tweak pricing to maintain reasonableness No this is not a mechanism that limits an apps revenue potential. Rather we have fixed the per user revenue variable, the obvious then to increase revenue is to acquire more users. This then drives better quality into the marketplace and culls inferior apps over time Business | Employment | Internet | Privacy | Information Security
  • Consider Limits• Daily Spending Caps• Time Based Purchase Limits• In-App Purchase Confirmation Alerts Business | Employment | Internet | Privacy | Information Security
  • Let’s Talk In-App MonetizationApple thinks incentivization is a dirty word Business | Employment | Internet | Privacy | Information Security
  • Food for Thought http://on.mash.to/zloUCV Business | Employment | Internet | Privacy | Information Security
  • How It Works Established Apps Incorporate 3rd Party SDK’s to Enable Monetization App Promotion Services Charge On A Per Unit Basis For Installs and Split Revenue with App Developer who installed SDK New Apps Promoted Sometimes with Intent to Achieve Top 25 App Store Ranking Business | Employment | Internet | Privacy | Information Security
  • You Cannot Game The System Business | Employment | Internet | Privacy | Information Security
  • Thoughts on App DesignA little conservatism in the face of uncertaintyisn’t a bad thing. Business | Employment | Internet | Privacy | Information Security
  • These Work in App Design, Privacyand Monetization Business | Employment | Internet | Privacy | Information Security
  • CONTACT MEHAYDEN CREQUEp. 320-247-3439e. hayden@crequelaw.comTwitter@haydencrequeWebwww.crequelaw.com Business | Employment | Internet | Privacy | Information Security