Staying on the Right Side of the Fence when Analyzing Human Data

Susan EtlingerIndustry Analyst

ALTIMETER GROUP

Tim BarkerCEO

DATASIFT

Data Ubiquity and the Trust Imperative

What we’ll cover today1

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3

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Principles of Ethical Data Use

How Social Networks are changing to privacy-first approaches

Audience vs Individual Insights

Discussion / Q&A

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Susan EtlingerIndustry Analyst, Altimeter Group, A Prophet Company@setlinger

The Trust ImperativeA Framework for Ethical Data Use

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An Origin Story (2012)

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A Tipping Point (2013) “Paging through the catalog, we realized to our dismay that whoever had sent us this thing knew us. They’d nailed our demographic precisely. They even knew what kind of convertible car seat we’d want! Who were these people, or should I say, machines?!?”

− Alexis Madrigal

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“ “Legislation can’t keep up with technology, which makes it a

flawed vehicle to govern whathappens in this space.”

− Judy Selby,Partner, Information Governance

BakerHostetler

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1. Data Collection Has Become More Ambient—and Intimate

2. Consumers Don’t Control Their Personal Information

3. Consumers Report Distrust of Data Use4. Trust is a Major Concern for CEOs5. Distrust Has Quantifiable Impact on

Business Performance

Trust is a brand issue

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Consumers do not trust data use

10They feel “resigned”

“Most Americans disclose their personal data to companies for discounts because they believe that marketers will harvest the

data anyway.”

Joseph Turow, Ph.D., Michael Hennessy, Ph.D., NoraDraper, Ph.D., “The Tradeoff Fallacy: How Marketers are

Misrepresenting American Consumers and Opening them Up to Exploitation,” University of Pennsylvania Annenberg School of

Journalism, June 1, 2015.

11Lack of trust has clear consequences

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““Just complying with the law is not going to be nearly enough to make

consumers comfortable.”

− Jennifer Glasgow,Chief Privacy Officer, Acxiom

13Principles of Ethical Data Use*

* Developed by the Information Accountability Foundation (IAF)

Beneficial• Does our use of data benefit consumers as much as it benefits us?

Progressive• Do we have a culture of continuous improvement and data minimization?

Sustainable• Are the insights we identify with data sustainable over time?

Respectful• Have we been clear, transparent and inclusive?

Fair• Have we thought through the potential impacts of our data use on all interested parties?

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“Before conducting any type of new analysis, we ask ourselves whether it

will bring benefit to customers in addition to

the company. If it doesn’t, we won’t do it.”

Joshua Kanter, Senior Vice President, Revenue Acceleration, Caesars

Entertainment

Benefit in Action

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“Organizations should not create the risks associated with big data analytics if there are other processes that will accomplish the same

objectives with fewer risks.”− Information Accountability Foundation

Progressiveness in Action

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Senate Bill 576, “GPS Data Privacy for Mobile Devices,” (California)

“[R]equires that consumers get a clear notice explaining how their location

information will be used and shared when they install a new app.” It also ensures

that app users give express consent before their geolocation data can be

collected and shared.”

Legislating Progressiveness

17Sustainability in Action

18Respect in Action

19Fairness in Action

20A Framework for Ethical Data Use

21The Sunshine Test

What would happen if all the details of what you are doing were out in the open, in the light of day?

Photo: Madalena Pestana, CC 2.0

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“ “By knowing where the borders are, you can innovate more around

them.”

− Stefaan VerhulstCo-Founder and Chief Research

and Development Officer The Governance Lab (NYU)

How Social Networks are adopting privacy-first approaches

Tim BarkerCEODATASIFT.COM

#DSWebinar

April ’15Topic data provides

anonymized and aggregate insights into content and audiences on Facebook.

Nov ’15Instagram introduces platform policy change to restrict data

access to approved applications.

Trust is the currency of social networks.

May ’15Linkedin limits API access to select, approved partners.

API Changes in last 12 months to protect consumer data from misuse.

#DSWebinar

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It’s messySeparate Signal from Noise

It’s text-basedUnlock meaning from text

Challenges in Extracting Insights

It contains personal dataExtracting insights while protecting consumer privacy

Insights drive marketing investments in Social Networks.But it’s a Big Data challenge.

Insights drive more marketing spend on social networks.

Insights drive marketing spend on Networks

#DSWebinar

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Enables an ecosystem of product-builders.

See datasift.com/partners for complete list.

ApplicationBuilders

Agencies

We help networks build an insights-driven ecosystem

FilterSignal:Noise

UnderstandMeaning

ExploreInsights

DataSift partners with Social Networksto help them build an insights-driven

ecosystem

Insights drive marketing spend on Networks

Transform raw feeds of activity data into insights into content,

engagement and audiences.

DataSift technology builds insights, protects identity

DataSift helps Social Networks build an insights-driven ecosystemHelps developers build compliant, compelling insights.

#DSWebinar

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DataSift platform connects to the real-time feed of Posts, Comments, Likes.

Facebook Topic Data: Privacy-First Approach to Insights

Surface Insights from activity across FacebookBuilt from posts, comments, likes Aggregate and anonymized results

#DSWebinar

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Anonymized and Aggregate approach.

Analysis that spans all of the available data.

Multi-Dimensional data analysis

Net-Positive for Consumers + Businesses

“Bigger Data” for Bigger Insights

Why a Privacy-First Approach Wins“Better Data” for Audience Insights

#DSWebinar

“Bigger Data” for Bigger InsightsComparison of volumes of engagement relating to an automotive brand across 7-day period.

FACEBOOK PAGES

~1,000Posts and Engagement on your own Facebook

Pages

TOPIC DATA

~70,000Brand-related

Posts and Engagement across all of

Facebook

#DSWebinar

“Better Data” for Consumer InsightsCreate Insights from Multi-Dimensional.

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Gender: MaleAge Range: 35-44Region: California, USA

CONTENT

NegativePositive

DEMOGRAPHICS

SENTIMENT

Automatic classification of related topics

e.g. Star Wars VII (Film)

TOPIC ANALYSIS

CONTENTLINKS

Analyze URLs shared

across Facebook

Engagement and Demographics around Likes, Comments and Shares

ENGAGEMENT

Can’t wait to take the kids to watch Star Wars VII

CONTENT

Privacy-safe aggregate analysis

of text

TEXT ANALYSIS

#DSWebinar

Advertising Agency for a Drink Brand

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Advertising Agency wanted to understand…How women engaged with their client’s beverage brand and with hot drinks.

Deeper understand of the media consumption / magazine stories which most engaged their target consumers

#DSWebinar

Identify the publications, stories & celebrities which drove most engagement amongst the target audience segment

Recommended Actions ๏ Look at featuring different drinks when advertising in different markets and to different demographic groups๏ Use story insight for media placement as well as for identifying potential influencers

1st

2nd

3rd

LATTE

HOT CHOCOLATE

ESPRESSO

HOT CHOCOLATE

LATTE

CAPPUCINO

CAPPUCINO

LATTE

ESPRESSO

USA UK GERMANY

Under 35s, as a % of brand’s total engagement

47%

Client Brand Competitor A Competitor B

31%

58%

Celebrity stories driving most engagement

There are big variations in preferences for hot drinks across nations and demographic groups

The brand found that they suffered with the lowest relative engagement amongst millennials

Insights into Content and Audiences

JENNIFER LAWRENCESHARON STONE

TAYLOR SWIFTKYLIE JENNER

JUSTIN TIMBERLAKE

#DSWebinar

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+WinLose

Zero-Sum Game Positive-Sum Game

WinWin+

- Data is anonymized to protect identity.

- Deeper audience-level insights possible by using demographics / interest-graph data added by social networks.

- Insights built on a foundation of data privacy and trust.

- To evolve from audience-level analysis to individuals, use a social-network opt-in to allow customers to control data they want to share.

Privacy does not have to be a zero-sum game

- For business to win, consumers have to lose.

#DSWebinar

Q&A

THANK YOU

http://bit.ly/ds-reasons

ResourcesBALANCING INSIGHT AND TRUSTAltimeter White Paper

http://bit.ly/insightvstrust

10 REASONS FACEBOOK TOPIC DATA WILL CHANGE YOUR WORLDDataSift eBook