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Similar to Behavioral Marketing - Ask for Permission or Beg for Forgiveness
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Behavioral Marketing - Ask for Permission or Beg for Forgiveness
- 1. Behavioral Marketing Ask for Permission or Beg for Forgiveness? Brian Kaeppner Web Analytics Wednesdays September 2, 2009 @ Bridge Worldwide
- 7. Overview $4.4 B $775 M
Editor's Notes
- You wouldn’t use my knife in a restaurant kitchen, but I’ll help you survive in the wilderness. Fountain Square Broomball is a blast, but visit www.cincinnatibroomball.org if you want to play for real.
- (Ask everyone to pass along their business card.)
- I might also dust them for fingerprints, run a DNA analysis, etc….
- 1 - Evolution of Technologies, Current State 2 – Notice & Choice, Global Treatment 3 - Government vs. Self-Governance, Where do you stand?
- The basic premise.
- The Internet is the most measurable mass media channel ever. Some folks use the funnel, the ladder… I prefer the spiral. Marketing is really a roller-coaster after all. According to estimates by eMarketer, spending for behaviorally-targeted online advertising will grow from $775 million in 2008 to $4.4 billion in 2012. (combined online spending ~ 10.9 billing in 2012) Can anyone name a company or client that doesn’t need to pay attention?
- Remember the net neutrality debate? Do you really know what that is really about? Have you heard of Deep Packet Inspection? Digital TV, frees up a lot of wireless spectrum (especially the kind that goes through walls) Verizon LTE – open access C-block for $4.74 billion Analog TV stopped on June 12 2009 Hey targeted consumer – Would you like a free smart phone? Would you like free service too? Not everyone is eligible, but you are. How many folks will ask, what’s the catch? Hey, what about me? Well, do you have disposable income and will purchase some of the products advertised to you? Sorry – no dice!
- Consider the following situation. While searching online for local dining options, you’re offered a half-off discount to an upscale restaurant that just opened a few minutes down the road. It’s no coincidence. Behind the scenes, the restaurant’s advertising network had done their homework. Just before you were displayed the offer, you had indicated interest by searching for “restaurant reviews”. Before that, you had visited an insurance website. Before that, you visited a financial website. Using your click-stream data and geo-located IP address, the targeting engine correctly guessed that you are an upper-class, educated home-owner living within 10 miles of the restaurant. Say you take advantage of the discount and make a reservation. As you approach the restaurant, your iPhone buzzes. You’ve just received a text message offering buy-one-get-one at a nearby coffee shop. That will be perfect for after dinner. What a deal! How’d they know? Realize this is all possible to do within the context of a single browsing session. What if we combine sophisticated A.I. and whole series of sessions for an individual?
- In Europe, there is a cultural difference when it comes to sharing personal data (stemming from WWII). You may have heard of all the laws designed to keep individual info within the borders of their country. We all understand the practical limitations of these laws, and specifics have been debated for over the last decade. In 2000, the US & European Union reached an agreement that basically stated that companies must post notice of their policies & practices. Those who violated these terms would be subject to prosecution by the Federal Trade Commission and states and would be publicly sanctioned. Basically, if you violate your own policy – you’re in big trouble. Just a few minutes ago, I gave you “notice” about my privacy policy. Then, I gave you “choice” as to whether or not we could move on with the presentation. The lowest common denominator remains N&C. Basically, we may do with your data whatever benefits the most and you’re OK with this since you checked the box. My privacy policy is meant to protect me, not you. Likewise, notice and choice is designed to protect the company, not the consumer. Fact is, most people don’t even read the privacy policy. They are more concerned with getting their media / offers when & where they want it. How quickly can I get past these check-box roadblocks?
- 1) Marketer converts advertising into sales more efficiently 2) Consumer receives fewer irrelevant adverts, takes advantage of targeted opportunities Do we need permission to generate value? Is your name and DOB your personal property? Aren’t these published facts? Should we instead refer to a Personal Secrecy policy? By going online, I submit that your behaviors, by definition, are not secret and cannot be “protected” in the strictest sense. You are essentially walking down the street in broad daylight. Google says “Don’t Be Evil”, but if you think about it, that’s a pretty low standard isn’t it? The key to raising two ships is consumer trust. Consumers need to trust the advertisers with information. That itself presents a question – which is more important, the reality that technical components exist to enable privacy –OR– the consumers’ perception of trust? Chicken or the egg… Since we are on the technical measurement side (generally), is there a way to hang a “do not disturb” sign on your data / browsing session? What about a “do not disturb, unless…” If there was an industry standard for this, who would enforce it? How & Who manages the … part? What is the “offer value” threshold for actually disturbing me?
- So, if we can agree that the advertising industry has a vested interest in pursuing Behavioral Marketing techniques – and the Government could not possibly intervene (for all practical reasons). 2006, The FTC had held public hearings dubbed “Protecting Consumers in the next tech-ade”. A year later, they published an official recommendation outlining several principles. This last spring, several large advertising groups published this list of 7 principles, the core of which were outlined in an FTC recommendation. Education – Actively inform the public about online behavioral marketing practices. Transparency – Clarify & enhance the notice regarding data collection and usage. Consumer Control – Expand consumers’ ability to choose what data is / isn’t collected. Data Security – Exercise reasonable guidelines for storage & retention of data. Material Changes – Seek consent before making significant changes to policies. Sensitive Data – Provide heightened protection for children, health and financial data. Accountability – Develop programs to monitor, advance and enforce these principles.
- Do not link Behaviors to PII or other sensitive information. Do not track minors. Establish limits, require consent, collect only relevant data, specify purpose up front. Let’s assume for a moment, that the government required marketers to provide info upon request? Think of the processes & systems needed to comply?
- If you’re a politician, wouldn’t you love the ability to target key voters / influencers? Do consumers really CARE? (recent AdAge article) Is that article short-sighted or self-serving? Who will inform our decision makers? How?