1. Protect Your Brand by Protecting PrivacyEd Filippazzo Part-Time Lecturer Rutgers Business School Vice PresidentCompliance & EthicsAmerican Express

2. Todays Discussion Privacy issues and regulations important to marketers andproduct managers. Current legal and political environment and its impacts onproducts and marketing. Recent technology that continues to test the bounds of what isprivate and what is public. Leveraging Information to deliver customer value and enhanceyour brand.Oct-12 2 3. Digital Products What isnt a digital product these days? What products dont 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. Information Collection and Use Contact InformationBehavioral Information Lifestyle Name Transaction/Purchase History Salary/Net Worth AddressFrequent Shopper Memberships Home Value Telephone Number Family Structure Car you drive Email AddressNeighborhood Magazines Subscriptions IP Address Travel History Club Memberships Internet CookiesOnline Browsing Behavior Right Offer Right Time Right Person Right ChannelOct-12 Right Experience4 5. Sensitive InformationPersonally Identifiable InformationOther Highly Sensitive InformationConsidered Most Sensitive Healthcare InformationName Race/EthnicityAddress Religious AffiliationSocial Security Number Political ViewsPassport Number Age (Children Under 13)Tax IDFinancial Account NumberAddressEmail AddressPhone NumberAs data collection increases and the ability of analysts to combineinformation and identify individuals improves, even anonymous informationis getting increased attention from regulators and legislators.Oct-125 6. Introduction to Privacy Lets watch a quick video about how information can be used and misused?Oct-126 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,1967Recent inventions and business methods call attention to the next step whichmust be taken for the protection of the person, and for securing to the individualwhat Judge Cooley calls the right "to be let alone" . Instantaneous photographsand newspaper enterprise have invaded the sacred precincts of private anddomestic life; and numerous mechanical devices threaten to make good theprediction that "what is whispered in the closet shall be proclaimed from thehouse-tops.- Warren and Brandies, Harvard Law Review, 1890Oct-12 7 8. Business PerspectiveIn an interview with CNBC in December 2009, Google CEO Eric Schmidtsaid users who are concerned over Google retaining personal data mustbe guilty of unsuitable behavior. If you have something that you dont want anyone to know, maybe you shouldnt be doing it in the first place.Imagine this is extended from online to what you watch on tv, or whereyou were today just because technology facilitates the collection of thatdata.Oct-128 9. Consumer PerspectiveOct-129 10. Brand ImpactConcerns 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. 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. 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. 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-1213 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. Online AdvertisingOct-12 15 16. CookiesSession Stored only when user is connected to the particularWeb server. Deleted when user disconnects from theWeb site (e.g. shopping carts)PersistentSet to expire at some future point. Standard forauthenticating return visitors to Web Sites thatdepend on real time information. (e.g. local weatherreports)First Party A persistent cookie that is created by the Web siteyou are currently visitingThird Party A persistent cookie created by a Web site other thanthe one you are currently visiting; for example, by athird-party advertiser on that site. Oct-12 16 17. How Are Cookies Used? Site Customization To recognize return visitors/customers and present appropriate content Customer View Prospect ViewOct-12 17 18. Online Behavioral AdvertisingOnline Behavioral Advertising (OBA) is the tracking of a consumers online activities over timeacross unaffiliated Web sites to deliver advertising targeted to the consumers interests.Trackingpixel IP Address Pages Visited Ads Viewed Ads Clicked Tracking pixel Tracking pixelOBA includes advertising on multiple sites and site to site (re-targeting). Oct-12 18 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 consumers 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-1219 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-1220 21. Online Privacy Concerns Breadth and Depth of Data Collected Consumer Expectations and Awareness Providing Notice of Practices and Consumer Choice MisuseOct-1221 22. Information Collection and Privacy ConcernsData CollectedData Reach Players (Examples) Privacy Concern Single Site/ Site Pages VisitedSingle Web Site First PartyInformation Entered Low Site to Site If Partner Site Visited Sites in Partnership (Re-Targeting) Ad NetworksSites Visited Sites in the Ad NetworkAds Viewed Content Delivery Sites Visited Sites for which they provide Networks services Data Aggregators Site VisitedSellers and sites for whichSite Activity Datathey provide servicesOffline Data Web Browsers Sites Visited All Web Activity High Internet Service Sites Visited All Web Activity ProvidersContent Data Social NetworksOct-12 22 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 ISPsand Location Based ServicesProvidersOversight (Legislative and Self Regulatory)Oct-1223 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. 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. Marketing Using Social Media Data Leveraging Information collected via social media Monitoring social media for product feedback/commentsOct-1226 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-1227 28. Partnerships with Social NetworksTechnologies are allowing social networks to integrate with web site publishers.APIs Source: www.Weather.comSource:www.Google.com/Latitude Source: www.quotationspage.comSource: www.time.gov 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. 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 theirthe Online Privacy information collection and privacy practices.StatementMobile Apps that use Industry Best Practice and Guidelines requires notice, consentLocation Based Servicesand ongoing choice . Notice & Consent Ongoing ChoiceGuidelinesCTIA - Cellular Telephone Industries Association 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 consumers can understand Provide choices to consumers about how their information will be used