Behavorial Advertising Takes Another Hit from Washington

This morning, Sen. Al Franken (D-Minn.) was named chairman of a new Judiciary subcommittee for Privacy, Technology and the Law. The list of activities that the committee will oversee is a long one and it includes the collection of information for behavioral advertising and privacy in social networks.

Says Franken:

“The boom of new technologies over the last several years has made it easier to keep in touch with family, organize a community and start a business. It has also put an unprecedented amount of personal information into the hands of large companies that are unknown and unaccountable to the American public. As chairman of this new subcommittee, I will try to make sure that we can reap the rewards of new technology while also protecting Americans’ right to privacy.”

All of this comes only days after two “Do-Not-Track” bills were introduced in Congress.

Jackie Speier, a congresswoman from California introduced the “Do Not Track Me Online Act of 2011.” The act would give the FTC the power to force companies to offer an option that allows consumers to opt-out of internet tracking. A statement from Speier’s office went so far as to say, “Failure to do so would be considered an unfair or deceptive act punishable by law.”

On Thursday, Rep. Bobby Rush reintroduced his privacy bill which would require companies to get consent from any consumer they wished to track.

And that’s not all. Washington watchers say that a few more Representatives and Senators will be submitting their privacy bills over the next week such as Rep. Ed Markey who will introduce a bill specific to online privacy for children.

Privacy on the internet has become an oxymoron and it is about time that the laws caught up to the technology. In the meantime, internet companies are taking it upon themselves to put privacy protections into place with browsers that allow for opting out of tracking and stricter rules regarding the use of collected data.

But with so many government officials spearheading their own agendas it’s hard to imagine that any one of them will succeed in putting a reasonable plan into place. Certainly not any time soon.

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Will You “Like” Facebook’s New Ad Format?

If you’re not a fan of Twitter’s new sponsored tweets ads, then you’re going to be somewhat grumpy by the time you get through reading this post.

You see, Facebook’s decided that it too would like to turn status updates into sponsored ads and is launching something similar. According to AdAge, advertisers will be able to convert a “like” or check-in–and some other kinds of brand interaction–into a Facebook ad.

How does that work? Here’s an example…

…if Starbucks buys a “sponsored story” ad, the status of a user’s friends who check into or “like” Starbucks will run twice: once in the user’s news feed, and again as a paid ad for Starbucks. Though clearly marked with the words “sponsored story,” the ad — which will includes a user’s name, just like the news feed — is not optional for Facebook users.

And another…

An application play works like this: If a user goes to the Coca-Cola page, and Coke has an app for users to upload photos, the sponsored story that shows up as an ad will read “John Smith used the Coke app to upload a photo.”

Advertisers will also be able to take one of its page updates and increase its distribution by converting it to an ad. If you were wondering how Facebook was going to achieve the estimated ad revenue goal of $4 billion, then here’s your answer.

I guess we’ll have to wait and see if this new ad unit becomes annoying for Facebook users. Based on my (limited) experiences with Facebook ads, I’m gonna bet that these will be a hit. Unlike Twitter, Facebook users seem to be surprisingly willing to accept ads that have connections to their network or their interests. Perhaps the key here is that Twitter’s ads have less personalization than Facebook’s.

What’s your take? A winner or a stinker?

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Commerce Department, Ma’am. Privacy Division

I can see it now. The black screen, the ominous ba bum sound and then the words, Law & Order: Privacy Division. They’re federal agents who put their lives on the line every day so that you, the internet user, can surf without fear of being molested by targeted Old Navy ads and free lunch coupons on your birthday. Sure they’re making it hard for the small business marketer to sell his wares, but hey, that’s the way the browser cookie crumbles. Get over it.

So, maybe it won’t be on next fall’s TV schedule, but it may be coming to a computer near you, if the federal government gets their way. Yesterday, the Commerce Department released the Internet Policy Task Force Privacy Green Paper which is loaded with recommendations “aimed at promoting consumer privacy online while ensuring the Internet remains a platform that spurs innovation, job creation, and economic growth.”

The crux of the long report is that it’s okay for the industry to self-regulate as long as the government has the power to come in and slap them when they don’t do it right. Huh? That’s like asking someone to get you a coffee then docking their pay when they bring you a café latte instead of a café mocha.

There’s no question that privacy is an issue on the web. As the report points out, global transactions run around $10 trillion annually. More people than ever are working on the internet, many handling sensitive data, and then there are the kids who think nothing of providing personal information to anyone who asks. Yes, rules would be good. But making them voluntary kind of defeats the purpose, doesn’t it?

Here are the key recommendations from the report:

Consider Establishing Fair Information Practice Principles comparable to a “Privacy Bill of Rights” for Online Consumers

They’re looking to establish a reasonable set of principles governing how information can be collected and used. They’re also advocating more transparency when it comes to informing consumers of their rights. Those read and check privacy pop-ups that everyone checks but doesn’t read, aren’t cutting it.

Consider Developing Enforceable Privacy Codes of Conduct in Specific Sectors with Stakeholders; Create a Privacy Policy Office in the Department of Commerce

They want to establish a special government office to handle internet privacy. They’ll have badges and secret decoder rings and the right to shut down abusive websites in a single bound.

Encourage Global Interoperability to Spur Innovation and Trade

Basically, this is the ‘can’t we all just get along’ section which suggests we find a “practical means of bridging differences in our privacy frameworks.” It is a small world, after all.

Consider How to Harmonize Disparate Security Breach Notification Rules

I love the use of the word “harmonize” here. Makes it sound like the groups from The Sing-Off will be employed to go door-to-door to announce whenever Facebook accidentally sells their private data to a game company. Could work.

Review the Electronic Communications Privacy Act for the Cloud Computing Environment

Ah, cloud computing. Like harmonize, it makes it sound all sweet and fluffy. But this section is all about making sure that the laws keep up with the growth in location-based services. This is the one place where they really get tough. “As technology and market conditions change, ECPA continues to appropriately protect individuals’ privacy expectations and punish unlawful access and disclosure of consumer data.”

Punish! Now we’re getting to the heart of this thing. But as harsh as that may sound to you, the marketer, consumer watchdogs say it’s a gift.

In a recent press release, John M. Simpson of Consumer Watchdog had this to say;

“The Commerce report starts off on the wrong foot with the title, ‘Commercial Data Privacy…’ We are talking about consumers’ data and their right to privacy, not about a business commodity. This is an early Christmas gift to the data collection industry.”

I wouldn’t ever say that government involvement in anything is a “gift” but he does have a point. This lengthy Commerce Department report is all about how the US government wants to protect the people, but the whole thing sounds like a giant game of Mother, May I. Yes, Facebook, you may take two giants steps toward the finish line.

Want to read the whole report. Good for you. Go download a copy at http://www.commerce.gov/node/12471.

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Super Bowl Ads and the Evolution of Online Marketing

Do you remember Pets.com? Back in 2000, the internet company made a big splash with a clever Super Bowl ad that had pet owners rushing to the site to buy dog food. Actually, not the second part. Like a lot of companies during the dot.com boom, the Super Bowl ad was the first and final hurrah for Pets.com.

While you won’t see the return of the dot.com dandies this Super Bowl, Advertising Age is predicting a big run on ads that are digitally and socially enhanced. Go read the article. I’ll wait.

(Insert “The Girl from Ipanema” here.)

Back? Great. Pete Blackshaw makes a reference to a POEM framework: paid media, owned media and earned media. It’s his contention, and I totally agree, that the successful brands will find a way to balance the golden POEM triangle in order to get the very most out of every ad dollar.

Let’s look at the Super Bowl. The ads have become as important as the game. They’re the only reason I watch. But in the past, even the most ingenious ads had a short shelf life. Today, that doesn’t have to be the case. That clever ad can now rest on a company’s home page or Facebook page. People can leave comments on it and share it with friends. Before the game is even over, viewers will likely be Tweeting about their favorite ads and if you’ve done your job right, they’ll mention the brand. Remember herding cats? Do you remember the company behind the ad? No one does.

With the proper mix of TV, social and digital marketing, a single Super Bowl ad can live on through the Stanley Cup finals and beyond. As Blackshaw says, “Google never forgets.” Just like I was reminded of Pets.com and EDS (the herding cats people) when I looked up the history of Super Bowl ads. Once it’s out there on the net, it’s there to stay.

Now you’re saying, ‘wonderful, but I’m not a big brand name. I can’t afford a Super Bowl ad.’  To that, I say, it’s the principle not the Super Bowl that matters. Too many companies segment their efforts instead of working together to create a cohesive message. Banner taglines should match Twitter posts and Facebook updates and, as we’ve said before, each effort should drive traffic to the others.

What’s also important is that you take advantage of short trend windows and brand hype. If the Tweeters are all a Twitter about a new running shoe, then maybe it’s a good time to Tweet about your patented running shorts or granola bars for quick energy.

You don’t have to run a Super Bowl ad to benefit from the ad hype. Create a short YouTube vid and call it, the “Super Bowl ad” I would have made if I had the money. If it’s clever enough, it could go viral and for a fraction of the cost.

It’s time to get creative people, and to get your creative people all on the same page. Whatever the size of your company or budget, use the ads and the social media campaigns of the big boys to inspire you to step up your game.

Have a favorite Super Bowl commercial or a great idea for an ad of your own? Tell us about it.

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Cause Marketing Creates Consumer Loyalty

Ford announced yesterday, that it’s teaming up with Web radio station Pandora for a new cause marketing campaign involving Jewel and John Legend. The program surrounds Ford’s new Sync system that allows you to stream audio from a mobile device through the car’s speakers. When consumers visit Pandora they’ll be asked to share songs from either of the two artists and for each song shared, Ford and Pandora will make a donation to charity.

According to a survey by Cone LLC, as reported on by Adweek, this move will help endear Ford to car buying consumers. 41% of the people surveyed this past July said that they’ve purchased a product or service because it was associated with a cause. 85% went so far as to say “When a product or company supports a cause I care about, I have a more positive image of the product or company.” More than half the people said a donation to a cause would make them willing to “try a new brand or one they’ve never heard of.” That’s a huge kick to brand loyalty.

But where cause marketing used to be a nice thing companies did now and then, it’s becoming more and more expected, even in this tough economy. 31% of the people surveyed said it was even more important for companies to support a cause while doing business. Those surveyed also made it clear that the full amount of the donation should be part of the cost of doing that business, not something that is passed on to consumers.

When it comes to choosing a charity, 46% of those surveyed wanted companies to focus their energy on local efforts, then national efforts before going abroad. Economic development, hunger, education, disaster relief, homelessness and the environment all ranked high on the list of causes consumers wanted to see addressed.

Though all efforts were appreciated, more than half the respondents said they prefer a company to make a “long-term commitment on its own to a focused issue it will support over time.” Programs such as Box Tops for Education, McDonalds and Ronald McDonald House Charities and Yoplait SaveLids to Save Lives all fall into this category.

Overall, consumers thought that companies were doing a good job at sharing the wealth with those in need. Alison DaSilva of Cone says;

“We know that even as some companies were in a tailspin, other leaders quickly stepped up to address societal and environmental needs as they unfolded, namely hunger, poverty and disaster response. . . . And certainly, the number of cause-marketing promotions and communications exploded. It was a time that allowed companies to show their true colors, and consumers were paying attention.”

For a more detailed look at the report by Cone, read the article from Adweek.

Has cause marketing influenced your decisions to purchase a product? Do you use cause marketing in your business? Tell us about it in the comments below.

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