Tag Archives: Data collection

Who Owns You?

Foodie Friday! I installed a couple of the food-delivery apps on my smartphone this week. Some of my favorite local places use the delivery services to expand their business and I thought having the ability to order in might be a nice option. Of course, that got me thinking about what exactly the restaurants got besides the additional order (at a lower price when you factor in the service’s cut but no service cost). The answer, as it is with almost everything today, should have been data but as it turns out, not so much.

The reality is that the delivery apps hang on to the data. They “own” the customer, not the restaurant, and that’s a problem, or it should be. Restaurants are giving up the direct connection to their customer by not getting that data and they have no way to combine it with their offline, real-world data gathered when I actually show up to eat as well as with the data they might get from a reservation service such as Open Table.

Ownership of the customer is an enormous issue no matter what business you’re in. For example, your car spits out reams of data about your location, your driving habits, and many other things. How many? A report by Consumer Reports said that “There are more than 200 data points in cars today, with at least 140 viable business uses.” Who owns the data and, therefore, the customer? The dealer who sold you the car? The manufacturer? I, of course, think the right answer is that YOU own the data until you give it to someone for a specific purpose.

Think about how many things around you gather data these days. Your TV, refrigerator, heck, even your toothbrush might be collecting information about you and your habits. Who owns you as a customer? I bought my TCL TV through Best Buy. It has Roku built in. Who “owns” me? What’s being shared?

It’s a question you need to ask as a business person when you partner or work with a third party. I think customer ownership is a fundamental issue and it’s only going to become more important. Of course, as a consumer, you ought to be every bit as concerned but we’ve talked about privacy a lot here so not today (84 posts and counting in the last 11 years!).

I really don’t care much about DoorDash or GrubHub. Without the restaurants they serve, I wouldn’t ever install or use them. I’m not their customer in any real sense – they provide a nice service but it’s the food I’m after, right? So why do they think they have a right to own me? Are you asking that question at all? Maybe you should!

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Filed under food, Thinking Aloud

We’ve Been Robbed

An important, thought-provoking piece today from Roger McNamee in the NY Times. It’s entitled A Brief History of How Your Privacy Was Stolen and it raises some disturbing issues which concern – or should concern – us all. Mr. McNamee is a long-time tech investor and author. “Zucked: Waking Up to the Facebook Catastrophe” is his book and I think the title gives you a sense about his concerns, especially since he was an early investor in and advisor to Facebook.

This is the gist of his position:

Why it is legal for service providers to comb our messages and documents for economically valuable data? Why is it legal for third parties to trade in our most private information, including credit card transactions, location and health data, and browsing history? Why is it legal to gather any data at all about minors? Why is it legal to trade predictions of our behavior?

Good questions, and if you’re not concerned by the answers or the implications of the questions themselves, here are a few things to consider. First, go to Facebook, click under “settings” and look at the “Ads” tab. Scroll down a bit and open up the line that says “advertisers and businesses.” There you will see a list of all the companies that uploaded your email or phone onto Facebook so they could serve you ads. The companies listed have run ads in the last 7 days containing your information. Scroll down and keep opening the “see more” rows. I quit when I got over 500 companies. Most were companies – car dealers and realtors – with which I’d had no dealings. Why do they have my information? Of course, I’m aware of list brokers but why would a car dealer in Arizona pay for my information? That’s their issue; mine is that they have it.

I’m willing to bet that you’ve given Facebook and others way more information than I have. I use the DuckDuckGo search engine so my search history is private. I’ve locked down my browser so the “bugs” from Facebook, Twitter, and others don’t follow me. You can start by disabling the “ad settings” on the Facebook “ad” tab you’re on. That’s only a small part of the issue.

Anyone who is paying attention to China has seen the rise of a totalitarian “Big Brother” state built around constant surveillance. In 2015, the Chinese Ministry of Public Security announced it was looking to implement an “omnipresent, completely connected, always on and fully controllable” network using facial recognition systems and CCTV hardware. It’s largely in place. What does this have to do with you?

Google, Facebook, and others know pretty much everything about you. Where you’ve been, your friends, your shopping habits, etc. McNamee’s point that “Platforms are under no obligation to protect user privacy. They are free to directly monetize the information they gather by selling it to the highest bidder” underscores the problem. What happens when the highest bidder has nefarious intent? What if it’s the government? What if your insurance company wants to raise your rate because you’re buying fast-food and cookies?

I make it a point to do unpredictable things every so often to mess with whatever algorithm is paying attention. That can be as simple as shopping for products in which I have no interest or “liking” something that I really don’t. Sometimes I wish that we could put the tech genie back in the bottle, even if it’s a bottle I had a hand in opening in some small way.

Read the McNamee piece and tell me what you think, ok?

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Filed under digital media, Huh?, Reality checks

What Kind Of Cold Cut Are You?

It’s Foodie Friday, which means that the weekend is upon us. Maybe you’ll use the downtime to catch up on your reading or non-work web activity. I’ll bet you might even fall into the trap of taking one of those online quizzes.

If you go on a site like Buzzfeed, you won’t have to read very far before you’ll encounter a food-related quiz of some sort. “We’ll Guess Your Exact Age If You Take This French Fry Quiz” or “Your Subway Order Will Determine Where You Should Live.” By the way. according to them, I’m a 23-year-old who should be living in Seattle…

Food quizzes and others are all meant to be good fun, or are they? When Facebook asks me what Harry Potter character I am, don’t I really want to know? Actually, no, I don’t. Let’s think about the “innocuous” quizzes cited above. Asking me about my preferences in fry style, favorite fast-food fry outlet or condiment provides a great deal of information both in the aggregate and about me personally when it comes to targeting me with ads. How can they do that when they don’t know who I am since I didn’t log in? Well, I really did sort of log in since both the Facebook pixel and Twitter pixels are active on the site. They can sell the aggregated information to producers of fries and condiments and fast food chains and they can sell my “pixel” to advertisers of the same.

Then there are the quizzes that ask you to give them an email to send you the results. They’re even more dangerous, as are the quizzes that ask you to answer questions that might be used as security questions (Where did you go to middle school or what was your first car?). We need to understand that since we’re living in the age of surveillance capitalism, everything we do is worth something to someone other than ourselves. Since we don’t have any control much of the time over who is collecting – and selling – our data, we need to be especially wary of every action we take. A “like” is a vote, a “share” is an endorsement. If you don’t believe me, go to your Facebook ad settings and check out what they think your interests and other tidbits are.

What kind of cold cut are you? The kind that gets sliced quite thinly and sold by the pound. Forewarned is forearmed!

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Filed under food, Helpful Hints, Reality checks

You Want Anonymity With That?

It’s Foodie Friday and today we have yet another example of how privacy is dead, this time from the food world. OK, I might be a little paranoid here but I think I can see the future in how McDonald’s sees the future and it scares me. Let me explain and then you can weigh in on my thinking.

What Mickey D has done is buy an Artifical Intelligence company. They intend to use the AI to adjust the menu in the drive-through as you pull up. The thinking is that these adjustments will cause you to buy more. You know – promoting cold drinks on hot days or suggesting items that are faster to prepare if the kitchen is in the weeds to keep food orders flowing. It gets scary when the menu changes as you order, suggesting sides after you order your burger.

Now you may see nothing wrong with this. After all, Amazon does this all the time. So does Netflix, suggesting things to you that you should find of interest based on your past behavior. That’s not scary until McDonald’s installs license plate readers and begins associating your food order with your vehicle. Of course, it’s also possible that they could obtain a listing of every device that was in their drive-through. By the hour. Cross-reference that to available phone directories and automobile registrations and NOW how do you feel?

It’s yet another step down the road to full surveillance capitalism, at least in my paranoid mind. There are benefits, no doubt, to McDonald’s, and I’m sure they will be followed by others (maybe even others buying their systems from McDonald’s AI company). Do you really think there are benefits to us, however? I think trust and privacy are going to become even bigger issues for consumers and regulators over the next 12 months and if you’re not thinking that way, you just might be making a mistake.

What happens when Mickey D sells their frequency of use data to the insurance company who then raises your rates because you eat fast food all the time? Sure, when you roll into The Golden Arches while you’re 250 miles from home, it might be nice that they already know what you’d like, but I’d rather have anonymity. You?

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Filed under food, Huh?

Facebook, Sears, and Kodak

When I was a lad several decades ago, many Americans did their shopping at Sears and took their pictures with Kodak film (I can explain “film” to you youngsters if need be). More recently, my kids might have shopped at American Apparel or Claire’s. What all of those formerly huge companies have in common is that they are all nearly dead. The reasons for that range from bad management to dumb financial deals to changing tastes to the digital revolution. In every case, however, I think there is a common thread of a failure to understand their customers in the context of the customers’ changing world.

We have something similar going on in my mind with Facebook. It’s huge and seems invulnerable but one might have said the same thing about Kodak or Sears 50 years ago. First, think about how the world is changing for their customers. Privacy has moved from something that digital folk like me were babbling about many years ago to something that is on everyone’s mind. In an April survey of 1,051 US adult internet users by Janrain, most respondents said they are not in favor of websites or apps using what they learn about them online to target ads. In fact, 70% of them want some very restrictive laws, similar to the E.U.’s GDPR, passed here. I don’t think there is any doubt that a tech backlash is going on and the more consumers and lawmakers find out about the sloppy (at best), invasive, and maybe criminal (at worst) data use by large tech companies, the greater that backlash is going to become.

Facebook’s entire business is built around invading your privacy. Two points from eMarketer:

More people are becoming suspicious of sharing data through third parties. In a March 2018 survey from Raymond James, more than eight in 10 US internet users said they were at least somewhat concerned about how their personal data is being used on Facebook. Similarly, in a Gallup survey of 785 Facebook users in April 2018, 43% said they were very concerned about invasion of privacy. That’s an increase of 30% in 2011.

What has resulted is that people, especially young people, are sharing less content. The entire reason Facebook is valuable for most people is that content that their friends, classmates, and family post. It’s the network effect – that value of the network relates to the number of people on that network.

I’m not shorting Facebook stock today but I’m not so sure that unless they get their privacy house in order that won’t be a bad play down the road. Less content means fewer active users which leads to less revenue. Will they all move to Instagram (a Facebook company)? Maybe, but probably not since that’s not what’s occurring now. As each day brings a new headline involving a bad actor and data, another nail gets pounded into the coffins of companies that don’t respect their customers’ privacy and wishes. Privacy and data use are no longer just food for geek chats. They’re on the front page. How long can Facebook or any company last if they don’t figure this out? Longer than Sears or Kodak?

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Filed under Consulting, digital media, Reality checks

Flying Blind

I almost called this post “Nobody Knows Anything” but that might have been overkill. I’ll say what I have to say and let you be the judge. Let’s say that you buy a friend’s newborn a gift. You have it shipped to your house. The data says, correctly, that you bought an infant gift. That might also lead to an inferred piece of data that places your household into the “presence of infant” bin, leading to you seeing lots of ads for diapers. If you’re the one placing the ads for those diapers, you’re wasting money.

Lots of the data marketers routinely use is of that sort. It’s inferred. You can see that some thinking at work if you’re a Netflix user: the recommendation engine infers what you might like based on your past viewing. Of course, if your kids or someone else in the house watch something in which you have no interest, the accuracy of those recommendations is diminished (which is part of why there are separate profiles available when you log in). Inaccurate data is, sadly, more the norm than an aberration. Since this data is really what’s behind personalization and targeting, that inaccuracy is a big problem. Any business that buys data from third parties – and an awful lot do so – may be putting garbage into their system. Unfortunately, most don’t know that because there is little transparency in the data business and it’s impossible to verify what’s good and what’s not.

What should you do? Invest in collecting your own, first-person data. You can also demand transparency in any other data you use (good luck with that) with respect to how it was gathered and what it really represents. Is it inferred or does it come directly from consumers (did someone tell you they had a baby in the house or did you guess they did because they bought one infant item?). Who owns the data and was it gathered with the consumer’s permission?

When Facebook tells its customers (marketers) that they have data on 41 million adults aged 18-49 in the US and there are only 31 million of those adults living in the US, you know much of the data is inferred and also that we have a problem. A recent study that found that 70% of marketers believe that the customer data their organizations are using for marketing is low quality or inconsistent. Why bother to market at all when you’re just flying blind?

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Filed under Consulting, Huh?

Zuckerberg Unbound

Philip Roth wrote a series of books in the late 1970’s and early 1980’s. The middle one is called Zuckerman Unbound and deals with the relationship between an author (Roth’s alter-ego Zuckerman) and his creations. It’s not a great relationship although it is a pretty good book. Roth’s character seems to express regret for the books his younger self brought into the world, and at one point he finds out that a book he wrote has caused his mother a great deal of pain and suffering.

English: Mark Zuckerberg, Founder & CEO of Fac...

(Photo credit: Wikipedia)

I thought about Zuckerman as I watched (and am watching as I write this) another Zuck – Mark Zuckerberg of Facebook – testify before Congress about how his creation, designed to bring people together, has morphed into something that has blown many people and institutions apart. I doubt any of you reading today’s screed touch billions of people every day the way Facebook does, but I think there are some lessons to be learned here.

One thing that rings hollow for me is the apology offered to the committees. I and many others have been writing about Facebook’s lack of privacy and transparency for years. This isn’t something new nor is it something about which Facebook was unaware. One might suppose that they, like so many others in business, were of the mindset that it’s better to beg for forgiveness than to ask for permission. Bad call, and they’ll be doing a lot of begging as the inevitable new regulations on the use of data are put into place. That’s lesson one.

My favorite moment of yesterday’s hearing came when one senator informed Mr. Zuckerberg that Facebook’s “user agreement sucks.” It does, but it’s far from alone. I’d also argue that any “simple” agreement that links out to a dozen other pages for further explanations of things not explained in the initial policy is far from simple. I doubt I could pass a quiz on what Facebook can and can’t do with my information and I’ve been on the platform since 2006. Anyone that generates data that you’ll use to benefit your business should understand what they’re giving you and why. Lesson two.

I do know that Facebook gives the user a lot of control over who sees what although it really doesn’t do so by default. I’m less clear as to what they gather although I’ve downloaded my data and gone through it. Some of what is in there comes from activities off of Facebook, probably either through my use of a Facebook ID to log in or via the Facebook Beacon. How many users understand that they might be tracked EVERYWHERE by Facebook and not just when they’re using the service? Facebook would argue that you’re using the service when you use your Facebook ID to log in elsewhere but I think that’s specious. Yet another lack of transparency, and lesson three.

I wonder where Facebook goes from here. As far back as 2010, it’s been under attack for its privacy failures. It’s a business founded by a man who called users “dumb f^&ks” for giving him their information. Maybe like Zuckerman, he’ll come to realize that he needs to be unbound, cut loose from everything that made him what he was and fix the problems in a way that fulfills the promise of connecting the world that he espouses. At the moment, it appears that others may step in and take steps that alter his world forever.

What’s your take?

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