Online & New Media Marketing

SNC-MKTG350November 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-track-you/92E525EB-9E4A-4399-817D-8C4E6EF68F93.html#!92E525EB-9E4A-4399-817D-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

Desire for relevant ads/discounts based on real-life scenarios

Tailored ads 53%Tailored discounts 86%

Source: Consumer Attitudes TowardRelevant 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