Sunday, November 10, 2013

Blog #7 Ethics of Insights


There’s a lot of buzz about the digital marketing, behavioral tracking and consumer privacy. I think companies need to be respectful of consumer’s privacy.  Although I’m an advertising student, I’m very guarded about my privacy when it comes to advertising. I definitely have the privacy on my iPhone set to “Limit Ad Tracking”, and I clear cookies from my web browser regularly. I know that my data is out there, but I try to have some control over what I share.  
 As someone in the marketplace, I follow brands on Twitter. I rarely follow brands on Facebook. I actually think I recently cleared my likes to just 3 companies that I trust. I recently “liked” a Facebook page and took a quiz for this brand as part of a class assignment. Within 30 minutes of this, I started to be served ads in my newsfeed for this company.  I immediately “un-liked” the company.  I’m okay with being served an ad, but if it’s taking over my newsfeed, I’m done with the company.
 I also won’t use apps or online tools that ask for too much of my information or my permission to post on Facebook or Twitter on my behalf. No thanks! However, I understand the need for marketers and advertisers to gain insights from personal data in order to better target their customer segment. I do appreciate personalization and relevant ads, but I just don’t want my privacy to feel invaded. There’s a delicate balance to maintain between gaining valuable insights while still respecting an individual’s privacy.
I decided to take a Digital Metrics course this semester to become more knowledgeable about web analytics and behavioral tracking.  My knowledge was minimal going into this course, but I wanted to understand how my online and offline behaviors were being tracked. I also wanted to understand how to be a better advertiser because data driven advertising and marketing campaigns provide metrics and insights into the effectiveness of the campaign.  We’ve looked into some interesting metrics this semester, and I’ll further delve into that later in this blog post.
I think marketers can use insights about people if they are transparent about how and where this data is used.  I think most people assume that we are tracked when we make purchases online. However, tracking behavior for insights spans beyond the web to include in-store retailers. This isn’t something people always expect or know about. Personally, I find it creepy if you don’t know you’re being tracked in-store.
We were asked to discuss whether there should be a limit to all of our efforts as marketers or whether it is fair game to gather insights from people who share their information with us through various platforms. I’m going to discuss my opinion by each popular tracking platform.
Surveys
If you decide to take a survey, I think you realize that your personal data is going to be used. I think surveys should be responsible for being upfront with exactly how your data is used and whether your identity will remain confidential. I typically don’t take surveys for companies, but will take them for my graduate friends conducting research. My insurance company sends me surveys, and I actually will take them. I assume they have so much of my information already, but they have given me such great customer service that I want to give them good feedback. I had my phone stolen last year (talk about a freak out over someone else having all your data), but my renter’s insurance completely covered it. My insurance company was also extremely prompt and helpful during this time. I received a check in the mail and was able to purchase a new phone within a few days.  If a company provides a great customer experience, I don’t mind if they have more of my personal data. I think customers will be more likely to share their information if they have a positive experience with the company. 

Social Media
If you are using a platform where your information is public (Twitter, Facebook, LinkedIn), I think this is fair game for marketers to pull this data. On Facebook, I put where I have that I’m a graduate student at UT in my about section. I’ve noticed more UT apparel ads since adding this. If I’m served ads that are relevant to me, I don’t mind them as much.

However, The Wall Street Journal article that we read for class – They Know What You’re Shopping For highlights how Facebook data can match people’s identities with their web browsing activities. This article also stated that the “Like” button can send information back to Facebook whenever Facebook users visit pages that have the button, even if they don’t click it.

Facebook also lets advertisers know how Facebook ads increased sales – whether products were purchased online or offline. Facebook works with a company (Datalogix) that controls a database of information from people’s use of loyalty card programs.

They Know What You’re Shopping For article also stated “Google said it keeps its social-networking data separate from its ad-tracking network and doesn't use the data from unclicked Google+ buttons. Twitter says it analyzes the data from its unclicked buttons to recommend other people a user might want to follow, but not for other purposes. Facebook says it uses data from unclicked "Like" buttons only for security purposes and to fix bugs in its software.”

As an advertiser, I think it’s awesome that Facebook can link online and offline sales to an ad. This is a great metric to be able to provide because it doesn’t seem like many other companies are able to currently do this accurately. As a consumer, this doesn’t seem nearly as awesome. I also don’t think many consumers are aware that their web browsing activities can be paired with their Facebook data.  I think the content consumers provide to social media sites are fair game for marketers to target, but I think a consumer’s activities beyond the social media site seem more personal and invasive to privacy. I believe consumers should always be able to opt-in or opt-out of sharing their data.
Mobile
With the majority of people carrying their cell phone with them at all times, mobile is an attractive place to track people. As advertisers, we talk about location-based advertising and geo-fences as a means of influencing purchases by pushing discounts. I think these types of advertisements should only be used if consumers opt-in. Otherwise, I think it’s creepy and is invasive to privacy. Mobile payments have also become popular, and there are more means of mobile tracking.
Another article we read for class The Economics of Surveillance by Jennifer Valentino-Devries calls cellphones as a personal sensor that you carry with you at all times. iBeacon technology, discussed below, talks more about how this sensor is used for in-store purchases. 


Shopping Online
Whenever I shop online, and abandon my shopping cart, I always seem to get ads that follow me around the Internet. I also get sent emails like “Limited time offer for the item you were just looking at.” As a consumer, I expect to be tracked. Although I may be annoyed that ads follow me around the web or into my inbox, I’m more aware of the tracking that takes place.
As an advertiser, online tracking proves the effectiveness of a campaign and an e-commerce website. Key Performance Indicators such as the bounce rate, unique visitors, conversion rate and time on site are all valuable in optimizing a website. 
 
Shopping In-store
With in-store shopping, I realize that there is in-store surveillance. I also realize that the company has my data when I opt-in to a loyalty program. However, I would not expect to have a mannequin spying on me. As a consumer, I found the Bionic Mannequins Spy on Shoppers to Boost Luxury Sales extremely creepy.  Unless the company is transparent about this, I feel like consumers will lose trust in the company. It also raises ethical and probably legal questions. Consumers don’t know exactly how their data is being used, and haven’t consented to this type of tracking.
Another interesting in-store tracking mechanism that has been in the news lately is Apple’s iBeacon. This technology could replace near field communication (NFC) where consumers could use an online wallet to make a payment in-store. iBeacon uses Bluetooth, and iPhones with iOS7 can use this technology.
Apple’s Secret Retail Weapon Is Already in Your Pocket by Sam Grobart of BloombergBusinessweek further discuses iBeacon technology. This sums up the use of the new technology:
“Now a store could tell if you’ve walked in. Once you have, it could, if you wanted it to, alert you to what was on sale in that location. Not only that, but if you said, “Yeah, that sweater looks boss, and I dig that it’s 30 percent off. Where is that fly garment?” that store’s app, with an assist from iBeacon, could guide you right to it. With stored credit-card information on your phone, payment could also be conducted via iBeacon. Your phone wouldn’t even have to leave your pocket for the transaction to take place.”

This type of technology would really track a consumer both on a mobile device and in-store. Consumers might be willing to give up more of their personal information for the sake of convenience. I’m curious to see what happens when this technology is out in the marketplace. I would probably try to use this if I knew it my privacy and security wasn’t at stake.




Overall

I think consumers and companies (marketers/advertisers) have a responsibility in protecting data. I believe consumers need to protect their privacy by opting-out of programs they don’t wish to be a part of. I also think consumers should be aware of the different types of behavioral tracking in the marketplace. I think that marketers and advertisers bear the most responsibility. Although it is important to track people to gain insights, there must be ethical ways to do so.  Companies shouldn’t be able to sell data to third parties, or use data beyond how they stated they would. Anonymity is still imperative to consumers, and there should be regulations on companies to ensure personal information isn’t revealed. Digital advertising has taken off in the last decade, and I’m interested to see what the next decade brings in terms of standards for behavioral tracking.

References & Interesting Articles about Behavioral Tracking:


References:
Martinez, J. (2010). Can Marketers Behave Themselves?. CRM Magazine, 14(5), 16.
In-store analytics. Double standard online offline.

Shelton, D. (2012, September-October). Online behavioral advertising: tracking users: gold mine or land mine? Landslide, 5(1), 26+. Retrieved from http://go.galegroup.com/ps/i.do?id=GALE%7CA317596852&v=2.1&u=txshracd2598&it=r&p=AONE&sw=w&asid=391d757940a3ba0005ab1f56774de38b

1 comment:

  1. Wow, Megan - this was awesome. You covered so much territory here and it was all very well organized and written. You definitely have a good grasp of the breadth of issues on this and it's clear you've done a lot of reading in this area. Great job!

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