Privacy & The Platform Marketer Privacy and... · © 2014 Merkle. All Rights Reserved. Confidential Agenda The Privacy Paradox

© 2014 Merkle. All Rights Reserved. Confidential

Privacy & The Platform Marketer

Understanding the Challenges & Increased Attention Being Paid to Collection and Use of Online Consumer Data. June, 2014

2014 Merkle’s CRM Executive Summit

© 2014 Merkle. All Rights Reserved. Confidential © 2014 Merkle. All Rights Reserved. Confidential

Platform Data

Platform Execution

Platform Enablers

Introducing the Platform Data Competencies

Consumer Privacy

Audience Management

Identity Management

Consumer Privacy: Finding balance between business needs and privacy expectations


Agenda

The Privacy Paradox

The Answer

The Action Plan

Key Takeaways


The mission for The Platform Marketer can also create some issues for the consumer if not handled well.

Addressability At Scale (AAS) – The Mission

Addressability At Scale is the application of data and analytics to drive to highly efficient individual level

targeting and personalization at massive scale.

Data Analytics

4


The Privacy Paradox

5

Wants to deliver those rich, personalized experiences and respects the concerns and preferences of the consumer

BUT that requires data and it’s collection, use and monetization to meet the consumer needs can be tricky

Platform Marketer

To respectfully reach and deliver value to customers regardless of channel or method but in full alignment with their expectations and preferences.

Goal

Want a personalized, tailored experience and multi-channel/device availability.

BUT generally, don’t want to provide (too much) information to enable that.

Consumers


The Privacy Paradox : Consumer Concerns Around Privacy

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59% saying that concern has

risen in the last 12 months

48% avoiding at least one type of online service/platform 64%

express concern about websites tracking their behavior

70% respondents believe businesses aren’t

transparent about how their information is used, 68% say there is not enough

transparency around what is being done with their information

87% Believe adequate safeguards are

not in place to protect their personal information



7 Source: What Misconceptions Do Consumers Have About Privacy? Ilana Westerman 6/3/2013



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Better news: Consumers want that change from the businesses they interact with the most

Good News: Consumers are looking for changes but not necessarily from government


Lots of others are concerned as well - “The Privacyscape”

Federal Regulators

State Regulators

Global Regulators

Certifications Organizations

Industry Trade Associations

Con

sum

er

Plat

form

Mar

kete

r

Standards Organizations

Privacy Advocates

Privacy Enforcement & Protection Unit

Associazione Italiana Direct Marketing

Global Legislative Stakeholders

U.S. Privacy Laws

SB 27 California Civil Code : Shine

the Light

U.S. Legislative Stakeholders

Senate Committee on Commerce, Science &

Transportation

Global Industry Trade Associations

CA Readers Privacy Act

CA SB 1386

© 2014 Merkle. All Rights Reserved. Confidential 10

Public statements made by regulators and privacy advocates gives us clear insight into their thinking and priorities

“It’s safe to promise you that 2014 will be just as

busy as 2013” - Julie Brill, FTC Commissioner

“We’ve spent a lot of time thinking not just about what is being

marketed to consumers but also how items are marketed,

especially in the mobile arena” - Jessica Rich, FTC 9/2013

“Today’s court judgment is a clear victory for the protection

of personal data of Europeans” - Viviane Reding May, 13, 2014 re: Google

“Right to Be Forgotten Decision”

“They should make all their data collection practices transparent,

permitting parents and other stakeholders to assess the scope

and potential impact of these techniques”

- Jeff Chester, CDD re: White House Big Data report 3/2014

.


Those statements can lead to attention and action

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U.S Regulatory & Legal Action FTC Enforcement Activity in 2013:

20 Consent agreements 17 compulsory audits 5-20yrs. TOTAL Fines = $64.3M

$9M

$20M

$9.8M

$3.8M

$22.5M

TOTAL EU FINES: $39,375,924M

Spain

–Italy

UK

Press Attention

$6M

2013 EU Enforcement Penalties Snapshot

$5.4M $5.3M

$28.6M


The Privacy Paradox : Marketers. What Do I do? How Do I Do It?

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• Opt In or Opt Out? • Centralized or decentralized • Notice: How much is too much? • Is what’s ok in U.S. ok in Canada? EU? Australia? • FTC or Privacy Advocates?


Agenda

The Privacy Paradox

The Answer

The Action Plan

Best Practices

Key Takeaways


At first glance it seems as if the Platform Marketer is at a disadvantage

Not so. The Platform Marketer has two key assets that can level the playing field & drive positive results:

The Platform Marketer is the only stakeholder that owns the other half of the customer relationship. That is a powerful asset through which to communicate and listen to the consumer.

Customer Relationship

The Platform Marketer likely has a set of resources within the organization including, privacy, legal, data security and PR that can be marshaled and used to effectively establish a strong value exchange with the consumer.

The Team


Answer: Building on the Customer Relationship

The Platform Marketer is the only stakeholder that owns the other half of the customer relationship. That is a powerful asset through which to communicate and listen to the consumer.

Customer Relationship

Treat the relationship like a communication channel through with the PM is messaging that “transparency “ will generate “trust” which builds on the value and drives engagement.

IDEAS: • include a short “TRUST” message in each outbound email campaign

designed to tell your story over time. • Create or leverage existing icon or image that you include in

messaging and on key pages on your site designed to tell your story over time.


The Team – Everyone Has a Role to Play

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• Quarterly Assessment . Where are we? Can we handle new/non-traditional sources of data?

• Establish regular review sessions as new data sources and/or categories are leveraged.

• Are our defensive measures to guard against tomorrow’s threat not just yesterdays?

Data Security

• Risk evaluation against business objectives • Legal solutions for data transfer (e.g. safe harbor) • Establish regular review of state, federal/sectoral and

global privacy laws – what’s the impact?

Legal

• Establish peer group – not just industry based. • Assess for gaps in privacy policy for what we “say” against

what we “do” or plan to do. • Establish mechanism to track & understand regulatory

policy & enforcement priorities. • Identify & Interpret impact of key privacy regulations

against business objectives. .

Privacy & Compliance

• Leverage as a resource to change/maintain marketplace perceptions

• Establish regular “check –in” on the message. • Are we tracking privacy & data security mentions about

the company across key media? • Do we have a privacy & data security story to tell?

PR

© 2014 Merkle. All Rights Reserved. Confidential © 2014 Merkle. All Rights Reserved. Confidential

Key Deliverables: Operating procedures for online & offline data collection, use practices, outsourcing, and partnering arrangements that support business objectives.

The Team

Defense vs. Offense

Changes in Consumer Behavior

Customer Expectations

Advances in Technology

Multi-jurisdictional Regulatory Attention

Assessment of Existing Operational Privacy Procedures

Review Existing policies for relevance, clarity and ability to operationalized

Develop Privacy Operating Procedures


How Does the Platform Marketer Leverage the Team? An Example

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Each resource is a subject matter expert. Are you getting full value from that?

FTC 2012 Privacy Report

FTC .com Disclosures – How to Make Effective Disclosures in Digital Advertising (March 2013)

Consumer Protection & Competition Regulation in High-Tech World: Discussing the Future of the FTC (Dec. 2013)

FTC Strategic Plan for FY 2014 to 2018

Team Summer Reading List

Does the Platform Marketer’s TEAM have a strong understanding of the regulatory climate in which the organization is operating?

Privacy & Compliance


Agenda

The Privacy Paradox

The Answer

The Action Plan

Key Takeaways


The Platform Marketer Action Plan

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• Engage the Team, early & often

• Improve Team IQ – ad tech, acquisition & retention goals and strategies

• Task them with being your eyes & ears in the marketplace & the regulatory environment.

• Know the policy priorities & enforcement actions of the regulator(s) that impact your space.

- Know the FTC’s definition of “Sensitive Data” now & how it may evolve.

• Ask the question and know the answer: “Is there a gap between what we say we do & what we actually do” relative to consumer data.

- Do you have a “map” of your customer data?

• Can your privacy policy be simpler? easier-to-read? better laid out? Updated more frequently? Can you leverage short-form video to better convey your privacy message?

• As more sources of data become available consider creating or upgrading your Customer Preference Center. (Transparency & control)

• Operationalize your privacy promises. Not just words on a page.

Knowing that these themes are central to the current FTC regulatory priorities: • Transparency (it’s the new notice) • Control (it’s the new choice)


Agenda

The Privacy Paradox

The Answer

The Action Plan

Key Takeaways


Summary

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Key Takeaways

Addressability at Scale (AAS) presents marketers with a tremendous opportunity to create & sustain competitive advantage that includes incorporating consumer privacy & compliance issues.

1

Having world-class data & data quality processes are critical not just to recognize the AAS opportunity but also to drive value into the customer relationship through the lens of consumer privacy.

2

The global playing field has lots of stakeholders that can insert themselves between the Platform Marketer and the consumer, but the PM has 2 key assets to counter those forces – the customer relationship and the Team.

3

Incorporating “thinking like your customer” into your data strategy alongside “acting locally” in a globally-driven environment is plan for success. 4


Presenter contact information: Bennie Smith [email protected]

Thank you!

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Privacy & The Platform Marketer Privacy and... · © 2014 Merkle. All Rights Reserved. Confidential Agenda The Privacy Paradox