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Protect Your Brand by Protecting Privacy

Information is useful, knowledge is power, but if unrestricted and abused access and use of information can lead to unnecessary brand risks.

Marketers and product managers need to leverage information collected about consumers to inform their strategies and drive successful outcomes. Using information responsibly, protecting consumer privacy and complying with laws and regulations can keep a brand safe and even be a brand differentiator.

Privacy issues and regulations important to marketers and product managers.
Current legal and political environment and its impacts on products and marketing.
Recent technology that continues to strain the bounds of what is private and what is public.
How to leverage information the right way to deliver relevant customer experiences (while sharing some examples of the wrong ways to use information).
How using information responsibly can enhance your brand (irresponsible use can have the opposite effect).

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Protect Your Brand by Protecting Privacy

  1. 1. Protect Your Brand by Protecting Privacy Ed Filippazzo Part-Time Lecturer Rutgers Business School Vice President Compliance & Ethics American Express
  2. 2. Today’s Discussion • Privacy issues and regulations important to marketers and product managers. • Current legal and political environment and its impacts on products and marketing. • Recent technology that continues to test the bounds of what is private and what is public. • Leveraging Information to deliver customer value and enhance your brand.Oct-12 2
  3. 3. Digital Products What isn’t a digital product these days? What products don’t leverage or even depend on data collection, use or sharing? • As core to the product • For marketing the product • To learn about customer use of the productOct-12 3
  4. 4. Information Collection and Use Contact Information Behavioral Information Lifestyle Name Transaction/Purchase History Salary/Net Worth Address Frequent Shopper Memberships Home Value Telephone Number Family Structure Car you drive Email Address Neighborhood Magazines Subscriptions IP Address Travel History Club Memberships Internet Cookies Online Browsing Behavior  Right Offer  Right Time  Right Person  Right ChannelOct-12  Right Experience 4
  5. 5. Sensitive Information Personally Identifiable Information Other Highly Sensitive Information Considered Most Sensitive • Healthcare Information • Name • Race/Ethnicity • Address • Religious Affiliation • Social Security Number • Political Views • Passport Number • Age (Children Under 13) • Tax ID • Financial Account Number • Address • Email Address • Phone Number As data collection increases and the ability of analysts to combine information and identify individuals improves, even anonymous information is getting increased attention from regulators and legislators.Oct-12 5
  6. 6. Introduction to Privacy Let’s watch a quick video about how information can be used and misused?Oct-12 6
  7. 7. What is Privacy? “Privacy is the claim of individuals, groups or institutions to determine for themselves when, how, and to what extent information about them is communicated to others” – Alan Westin: Privacy & Freedom,1967 “Recent inventions and business methods call attention to the next step which must be taken for the protection of the person, and for securing to the individual what Judge Cooley calls the right "to be let alone" . Instantaneous photographs and newspaper enterprise have invaded the sacred precincts of private and domestic life; and numerous mechanical devices threaten to make good the prediction that "what is whispered in the closet shall be proclaimed from the house-tops.” - Warren and Brandies, Harvard Law Review, 1890Oct-12 7
  8. 8. Business Perspective In an interview with CNBC in December 2009, Google CEO Eric Schmidt said users who are concerned over Google retaining personal data must be guilty of unsuitable behavior. “If you have something that you don’t want anyone to know, maybe you shouldn’t be doing it in the first place.” Imagine this is extended from online to what you watch on tv, or where you were today just because technology facilitates the collection of that data.Oct-12 8
  9. 9. Consumer PerspectiveOct-12 9
  10. 10. Brand Impact • Concerns over online data collection, use and advertising methods has damaged the brands and reputations of several companies. • In just the past few years, these companies have been exposed for questionable methods of data collection and use and have had to quickly change their methods.Oct-12 10
  11. 11. Innovation and Customer ExpectationsInnovations in Interactive products and marketing continue to change theinformation we collect and how we use it. In addition, what customersexpect and how we inform them of our practices are also changing. Are customers aware of: Basic Principles: • What is being collected? • Set and Meet Customer Expectations • Who is collecting information? • Provide Notice and Choice • What it is being used for? • Provide Enhanced Notice When Needed • Who it is being shared with? • Gain Consent for Some PurposesOct-12 11
  12. 12. Mass and Direct Marketing Mass Marketing Direct Marketing • Television • Direct Mail • Radio • Telemarketing • Newspapers • Email Marketing • Magazines • Text Marketing • Billboards • Digital Marketing • Events • Customer Experience • Online Behavioral Advertising • Contextual Marketing • Social Media Marketing • Mobile Device Marketing • Location Based ServicesOct-12 12
  13. 13. Digital/Internet Advertising • The provision of free Internet services to consumers is largely dependent on Web site publishers and content providers receiving revenues from advertising. • While some of this advertising is presented in the form of untargeted online “billboards,” a growing percentage of the advertising consumers see online is the result of online behavioral advertising.Oct-12 13
  14. 14. Types of Digital Advertising  Contextual Advertising  Search  Blogging  Re-Targeting  Behavioral Advertising  Social Media  Mobile Applications  Location Based Services (GPS)Oct-12 14
  15. 15. Online AdvertisingOct-12 15
  16. 16. Cookies Session Stored only when user is connected to the particular Web server. Deleted when user disconnects from the Web site (e.g. shopping carts) Persistent Set to expire at some future point. Standard for authenticating return visitors to Web Sites that depend on real time information. (e.g. local weather reports) First Party A persistent cookie that is created by the Web site you are currently visiting Third Party A persistent cookie created by a Web site other than the one you are currently visiting; for example, by a third-party advertiser on that site. Oct-12 16
  17. 17. How Are Cookies Used? Site Customization To recognize return visitors/customers and present appropriate content Customer View Prospect ViewOct-12 17
  18. 18. Online Behavioral AdvertisingOnline Behavioral Advertising (OBA) is the tracking of a consumer’s online activities over timeacross unaffiliated Web sites to deliver advertising targeted to the consumer’s interests. Tracking pixel • IP Address • Pages Visited • Ads Viewed • Ads Clicked Tracking pixel Tracking pixel OBA includes advertising on multiple sites and site to site (re-targeting). Oct-12 18
  19. 19. Industry Growth • Online behavioral advertising represents a small but rapidly growing part of the online advertising market. Market research firm eMarketer reported that of the $23.4 billion to be spent advertising online in 2008, spending on behaviorally targeted online advertising was expected to reach $1 billion and to quadruple this year. • As this industry grows, so does the amount of information collected about consumer’s online activities. As a result, the risk for misuse of this information grows, as well as the scrutiny over how the information is collected, used and shared.Oct-12 19
  20. 20. Information Collection • In most cases, the information collected for online behavioral advertising is not personally identifiable. • Most collection and tracking methods utilize “cookies” to track customers and build profiles to determine the interests or preferences of an individual based on prior online activity at a computer or device level. • Cookies are assigned to a device and not to the individuals who use those devices.Oct-12 20
  21. 21. Online Privacy Concerns• Breadth and Depth of Data Collected• Consumer Expectations and Awareness• Providing Notice of Practices and Consumer Choice• Misuse Oct-12 21
  22. 22. Information Collection and Privacy Concerns Data Collected Data Reach Players (Examples) Privacy Concern Single Site/ Site Pages Visited Single Web Site First Party Information Entered Low Site to Site If Partner Site Visited Sites in Partnership (Re-Targeting) Ad Networks Sites Visited Sites in the Ad Network Ads Viewed Content Delivery Sites Visited Sites for which they provide Networks services Data Aggregators Site Visited Sellers and sites for which Site Activity Data they provide services Offline Data Web Browsers Sites Visited All Web Activity High Internet Service Sites Visited All Web Activity Providers Content Data Social NetworksOct-12 22
  23. 23. Industry and RegulationAs federal and state governments continue to wrestle with the issue, we have seenweb site publishers, service providers and social networks introduce new and morecomprehensive forms of tracking and information use. Social Networks Web Site Publishers Service Browsers and ISPs and Location Based Services Providers Oversight (Legislative and Self Regulatory)Oct-12 23
  24. 24. OBA Self Regulation and Proposed LegislationAs legislation is proposed, the FTC and several industry groups have provided guidancewhich leads industry practice. Notice: • Disclosure Practices – Typically via Online Privacy Statement • Provide Enhanced Disclosures When Appropriate Choice: • Provide Choice for Users to Opt-Out of OBA Tracking • Gain Consent for: – Material changes to policies/practices – Use of Sensitive Data – Linking Anonymous Data to Personally IdentifiableOct-12 24
  25. 25. OBA Enhanced Disclosures and ChoiceBy the summer of 2010, advertisers are expected to offer notification on allbanners that are collecting and leveraging data for OBA.Oct-12 25
  26. 26. Marketing Using Social Media Data • Leveraging Information collected via social media • Monitoring social media for product feedback/commentsOct-12 26
  27. 27. Marketing Using Social Media Data Sources • Information is sourced from social networks, blogs, forums, review sites, newsgroups, message boards. • Information is publicly available Data • Social Network Profiles • Comments • Who Your Friends Are Use • What Product Offers You Receive • How Offers are Presented to YouOct-12 27
  28. 28. Partnerships with Social NetworksTechnologies are allowing social networks to integrate with web site publishers.APIs Source: Source: Source: Source: Source: www.facebook.comWith APIs, multiple parties may be collecting information when a consumer visits aweb page and their uses of that information may differ. Consumer Awarenessregarding who is collecting information can vary.
  29. 29. Mobile Apps & Location Based ServicesIncreasingly marketers are looking to leverage mobile technology to deliver value to customers. Mobile Apps are Subject to All Mobile Apps must provide a statement disclosing their the Online Privacy information collection and privacy practices. Statement Mobile Apps that use Industry Best Practice and Guidelines requires notice, consent Location Based Services and ongoing choice . Notice & Consent Ongoing Choice GuidelinesCTIA - Cellular Telephone Industries Association
  30. 30. Guidelines for Privacy and Brand ProtectionWhen collecting, using and sharing consumer information for marketing purposes:  Consider consumer expectations  Collect and use the minimum amount of information necessary  Properly protect all consumer information  Disclose your practices in a way consumer’s can understand  Provide choices to consumers about how their information will be used