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Online & New Media Marketing
SNC-MKTG350
November 18, 2013
Tonight’s Agenda: Privacy
• Quiz
• Class Discussion:
– Privacy in online marketing
• Behavioral tracking
• Impact of privacy
• Our responsibilities as online marketers
How do they track you?
• Cookies
– Other sites you visited and purchased at
– Browsing history

• Behavioral targeting
How do they track you?

http://live.wsj.com/video/how-advertisers-use-internet-cookies-to-trackyou/92E525EB-9E4A-4399-817D-8C4E6EF68F93.html#!92E525EB-9E4A-4399817D-8C4E6EF68F93
Cookies and Super Cookies
• Piece of data left on your computer other sites
can recognize to deliver specific info
• Can be removed by users
• Can be blocked by browsers
• Flash provides means to “regenerate” a
removed cookie (2011)
What privacy?

http://www.ted.com/talks/gary_kovacs_tracking_the_trackers.html
Online
Behavioral
Advertising
Privacy Parties
• First Party Online Behavioral Advertising:
– Company you have a direct relationship with looks
at history to offer some additional product/service
– Generally acceptable

• Third Party Online Behavioral Advertising:
– An unrelated site gathers info about sites visited
– Generate ads in response to your path
– Use cookies
Why do companies do this?
• Make money by predicting what you’ll buy
next and selling it to you
• Make money by selling your information so
someone else can sell to you
Is this OK?
What do you think?
Public Opinion
“If I found out Facebook was sending me
ads for political candidates based on my
profile information, I would be angry.”
•47% strongly agreed
•38% agreed
(Annenberg School for Communications study, July 2012)
Public Opinion
“86% of Americans do not want political
campaigns to tailor advertisements to
their interests.”
•Regarding ads that are tailored: 61%
•Discounts tailored to interests: 46%
(Annenberg School for Communications study, July 2012)
OBA can be good

Tailored ads
Tailored discounts

Desire for relevant
ads/discounts based
on real-life scenarios
53%
86%
Source: Consumer Attitudes Toward
Relevant Online Behavioral Advertising:
Crucial Evidence in the Privacy Debates, 2102
Corporate Defense
• “we only collect data in aggregate”
• “we’re providing a service to the consumer
providing them with relevant advertising”
• “we’re providing a service to companies to
help them place advertising more efficiently.”
Who owns what?
• Facebook has a license to use your content in any
way it sees fit, with a license that goes beyond
operating the service in its current form.
• Facebook can transfer or sub-license its rights
over a user’s content to another company or
organization if needed.
• Could use that content to deceptively suggest
your friend “Likes” something to influence you.
Who owns what?
• Facebook’s license does not end upon the
deactivation or deletion of a user’s account
• Content is only released from this license once
all other users that have interacted with the
content have also broken their ties with it
– for example, a photo or video shared or tagged
with a group of friends
Consumer Defenses
• FTC is proposing regulations
– Limit sales of business lists
– Regulations on collection

• Asking advertisers to provide notification
• Asking browsers to allow preferences,
blocking and opt-outs
Next session:
• We decide:
– Public Policy or
– International Digital Marketing

• Week of Nov 22: No class/Thanksgiving
• Week of Dec 2: Workshop your plans in class
• Dec 16: Final presentations

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Mktg350 lecture 11182013

  • 1. Online & New Media Marketing SNC-MKTG350 November 18, 2013
  • 2. Tonight’s Agenda: Privacy • Quiz • Class Discussion: – Privacy in online marketing • Behavioral tracking • Impact of privacy • Our responsibilities as online marketers
  • 3. How do they track you? • Cookies – Other sites you visited and purchased at – Browsing history • Behavioral targeting
  • 4. How do they track you? http://live.wsj.com/video/how-advertisers-use-internet-cookies-to-trackyou/92E525EB-9E4A-4399-817D-8C4E6EF68F93.html#!92E525EB-9E4A-4399817D-8C4E6EF68F93
  • 5. Cookies and Super Cookies • Piece of data left on your computer other sites can recognize to deliver specific info • Can be removed by users • Can be blocked by browsers • Flash provides means to “regenerate” a removed cookie (2011)
  • 8. Privacy Parties • First Party Online Behavioral Advertising: – Company you have a direct relationship with looks at history to offer some additional product/service – Generally acceptable • Third Party Online Behavioral Advertising: – An unrelated site gathers info about sites visited – Generate ads in response to your path – Use cookies
  • 9. Why do companies do this? • Make money by predicting what you’ll buy next and selling it to you • Make money by selling your information so someone else can sell to you
  • 10. Is this OK? What do you think?
  • 11. Public Opinion “If I found out Facebook was sending me ads for political candidates based on my profile information, I would be angry.” •47% strongly agreed •38% agreed (Annenberg School for Communications study, July 2012)
  • 12. Public Opinion “86% of Americans do not want political campaigns to tailor advertisements to their interests.” •Regarding ads that are tailored: 61% •Discounts tailored to interests: 46% (Annenberg School for Communications study, July 2012)
  • 13. OBA can be good Tailored ads Tailored discounts Desire for relevant ads/discounts based on real-life scenarios 53% 86% Source: Consumer Attitudes Toward Relevant Online Behavioral Advertising: Crucial Evidence in the Privacy Debates, 2102
  • 14. Corporate Defense • “we only collect data in aggregate” • “we’re providing a service to the consumer providing them with relevant advertising” • “we’re providing a service to companies to help them place advertising more efficiently.”
  • 15. Who owns what? • Facebook has a license to use your content in any way it sees fit, with a license that goes beyond operating the service in its current form. • Facebook can transfer or sub-license its rights over a user’s content to another company or organization if needed. • Could use that content to deceptively suggest your friend “Likes” something to influence you.
  • 16. Who owns what? • Facebook’s license does not end upon the deactivation or deletion of a user’s account • Content is only released from this license once all other users that have interacted with the content have also broken their ties with it – for example, a photo or video shared or tagged with a group of friends
  • 17. Consumer Defenses • FTC is proposing regulations – Limit sales of business lists – Regulations on collection • Asking advertisers to provide notification • Asking browsers to allow preferences, blocking and opt-outs
  • 18. Next session: • We decide: – Public Policy or – International Digital Marketing • Week of Nov 22: No class/Thanksgiving • Week of Dec 2: Workshop your plans in class • Dec 16: Final presentations

Editor's Notes

  1. Let’s say I had some notes here.