Tag Archives: Digital marketing

Known Side Effects

I watch a lot of news on TV. If you do that, you are inundated with ads for drugs that promise to cure everything from asthma to zits and everything in between. One thing that most of these ads have in common is that a significant percentage of each ad drones on and on about potential known side effects. The side effects often are quite serious and death is sometimes one of them. Then again, I guess death cures the disease.

I thought about side effects this morning as I was reading my usual collection of articles about the media and marketing businesses. There have been an awful lot of changes, some for the good, many for the bad. Nearly every one of them has some side effects too. On a most basic level, it’s great to stay in touch with family and friends via social media, but a known side effect is the reduction or disappearance of your privacy. It’s wonderful to have a communications device on you but a known side effect is that you’re tracked everywhere by your phone provider and everything you do with that device is watched and recorded. But those aren’t business issues.

Take, for example, what’s going on in TV sales at the moment. The digital revolution brought with it programmatic buying and selling. In theory, this made the entire process quick and way more efficient. It also had the side effect of advertisers and publishers paying huge “tech taxes”, fees to the providers of the technology that runs the process. Another side effect is rampant fraud and an overall increase in the number of bad actors who suddenly found a way into what had been a relatively closed process.

TV buying and selling are suddenly undergoing the same sort of change. Having sold TV for many pre-digital years, I think many of the same side effects will manifest themselves as the closed, carefully run process opens up. Of course, the biggest side effect will be yet another purge of salespeople and the failure of many rep firms. As eMarketer reported:

Overall, 46% of respondents felt that the tech advancements happening in the TV industry are a threat to their organization’s existence. Again, the fear was highest among reps, with 87% saying that tech changes threaten their firm. There is no doubt concern that the expansion of programmatic TV could extinguish traditional methods of brokering inventory.

TV reps as coal miners? Who would have thought that? Then there are the so-called influencers. The movement to trusted voices as sources of product information is, I believe, generally a good one. The problem is that word “trust.” Fake reviews run rampant. Since influence is often measured by the number of followers, fake followers and/or bought followers are a massive problem. The side effects of establishing trust are numerous and can potentially make the marketing challenge worse if they’re ignored. 

The cure is sometimes worse than the disease. It’s worth remembering that and searching out the possible side effects as we make our marketing and media plans. It’s great to become more efficient but not at the expense of killing the patient. Make sense?

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Filed under digital media, Thinking Aloud

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

We Are At An Advertising Turning Point

Unless you never use the internet, you’re aware that something is happening in the next few days because every service and site you use is updating their terms of use. You may be wondering why you’re getting lots of emails to that effect or why sites are putting large banners to that effect on their homepage. It’s due to the start date of the GDPR. In case any of you don’t run digital businesses (which I suspect is most of you), the GDPR is a regulation that pertains to privacy and data protection for all citizens of the E.U. Because the internet is a global thing, many digital publishers and stores are extending the protections of the GDPR to their non-European consumers as well. I, for one, am very glad even though there is a good chance that it will force the ad tech business to change dramatically. It’s a big effing deal and we are at a turning point.

Let me preface this by saying that I got fed up with the ridiculous amount of tracking going on quite a while ago. Like many people, I think that tracking someone without their permission or a court order is wrong. I think it slows down the user experience and unbalances the trade of content for attention toward the publisher since tracking me beyond your content is infringing on some other entity’s territory. Besides that, it’s creepy. I don’t want to see a few weeks’ worth of ads for an item I looked up for a friend in which I have zero interest. I don’t care about ad personalization, frankly, although I know for many people it’s a much better user experience. I think only showing me ads for products and services that you think I might care about excludes product discovery and I have proof in that I’ve made many purchases based on content-based marketing but very few based on served ads.

I installed a browser extension called Cookie Auto Delete which wipes out cookies as you surf. That’s on top of Ghostery which blocks ads and other trackers. Because of that, I don’t see ads other than those targeted to things such as geography that don’t require cookies (actually, I don’t see a lot of ads period). Am I hurting my friends in digital publishing? I don’t think so since most of the cookies placed these days are not by publishers but by ad tech services that I think undermine the value of great content. They value eyeballs, not what lures the eyeballs.  Ads served directly by publishers and embedded in their content value the content. They’re not based on your ability to track me.

Am I overly sensitive? Not when I’m joined by billions of people who have installed ad blockers. If ad tech was doing a great job, that wouldn’t be happening. Would GDPR be necessary if ad tech companies respected consumers’ privacy? Of course not and I think it’s going to cripple any business that doesn’t respect its customers enough to work in the customer’s best interest. Tracking them like Big Brother doesn’t do that, does it?

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Filed under digital media, What's Going On

Selling Sneaky Vs. Selling Right

I got called an idiot this morning. OK, not in those exact words, but I was reading an article on social media marketing and a pop-up asked me to download a whitepaper. The choices I was given via the two buttons were “YES, sign me up” or “No, I don’t want the latest research.” It’s a classic example of what is called “confirmshaming”. This is the act of guilting the user into opting into something. If you choose not to, the option to pass is worded in such a way as to shame you into compliance. You can see numerous examples of it here.

That’s just one of the sneaky things marketers do. The worst, of course, is tracking you without your permission. Did you ever hear of a company called InMarket? Me neither, but if you installed one of 800 apps, they’re tracking your every move without your permission. You can read a very well done piece about it in Adweek. Is it legal? No one seems to be sure. Is it ethical? Oh hell no, not in my book. 

Marketing has never really been held up as a paragon of ethical behavior but I’m not sure why many of the folks in the field decided to head for new lows. Maybe it’s because digital tools have made it all much easier, maybe it’s because there aren’t enough grown-ups in the room when these decisions are made, maybe it’s because the drive for money has overtaken common sense. Witness the ongoing effort to force “influencers” to disclose when they’ve been paid to say nice things about a product or service. Besides that requirement being the law, it’s also the right thing to do.

Some more examples? Designing a website or email to focus your attention on one thing in order to distract your attention from something else such as an opt-out button. Asking you to upload your contacts to give you some sort of social or informational benefit but using your address book to spam your friends. Not posting all of the charges and fees until the very last step in checkout or, even worse, hiding them in such as way that they’re hard to find. I think I’ve seen examples of those things just in the last few days. They’re not rare.

Why is there an aversion to the truth? Why can’t we call advertising by its name rather than some misleading name such as “sponsored content” or “special section”? Why can’t we treat consumers as we would a family member rather than a mark?

I’m not naive and I realize that this is about selling stuff. Given the high cost of getting caught, both in dollars (millions of dollars in fines!) and in reputation (check out the latest 20 Most-hated companies and why), those sales derived from the methods described above and others probably aren’t worth it in the long run. That’s my take – what’s yours?

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Filed under Huh?, Thinking Aloud

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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Today We Say I Told You So

I was at a startup event last evening and of course, the topic of Facebook‘s data problem came up. I’m sure you’ve heard something about it but what you’ve heard might not be accurate since many of the reports I’ve watched on TV are pretty off the mark. Since I’ve written a lot of not nice things

Facebook logo Español: Logotipo de Facebook Fr...

(Photo credit: Wikipedia)

about Facebook here on the screed, let me add my two cents here. I also want to taunt you, politely, by reminding you that not of this should be a surprise. I won’t retell the story of what’s been going on but you can read it here if you’re not familiar.

First, the inaccuracies. This wasn’t a data breach nor a data hack. It isn’t a bug – it’s a feature. The whole point of Facebook’s business is to collect a lot of data from and about its users and sell that data along with ads to marketers. They’re not alone in this. If you use Google, they pretty much know what Facebook knows and a lot more. Like Louis in Casablanca, you might profess to be shocked by this but you knew about it all along, didn’t you? After all, you agreed to let it happen when you clicked through the app install or joined the service some other way. You didn’t realize that using a Facebook or Google sign in on other sites meant they could track you? Hmm…

What’s inaccurate is that many reports say Facebook was collecting voice calls and texts from Android phones. First, it’s not the actual calls or texts, it’s the metadata – who you called or texted. Second, that was a feature of some versions of Android that allowed that to happen and Facebook just scarfed up was available and THEN, only because YOU said ok when you installed Messenger. Please don’t be mad at them for doing what they said they were going to do and don’t be shocked the data is in your file.

I downloaded my Facebook data, Other than seeing a few photos I don’t ever recall uploading to the service (which makes me wonder if they’re just grabbing stuff off my camera roll), I wasn’t surprised. No metadata from my phone because I never granted the permission for them to have it. No weird ad stuff because I go through my Facebook settings fairly regularly to clean out things I don’t want them to store. You should too. In fact, you should do that with ALL your digital stuff – check your Google activity, your ad profile, etc. Go through every app on your phone and check the permissions you’ve granted. Why would a game need access to your camera? Why does a barcode scanner need your location? You can probably revoke the permissions individually and if it breaks something in the app, turn it back on. Better safe than sorry. You want Facebook to know less? Delete the app and only use it from a desktop.

Now the “nyah nyah” part. I wrote a post in 2010 about Facebook and their privacy practices (or lack thereof). I wrote another one in 2012 about how Facebook might go the path of AOL or MySpace. I wrote then:

Like AOL long ago, there are some other underlying factors that might portend bad things.

  • Just 13 percent say they trust Facebook completely or a lot to keep their personal information private.

  • A large majority (59 percent) say they have little or no faith in the company to protect their privacy.

I think what’s happened over the last 10 days has me convinced that I was right then. Facebook are no angels but you shouldn’t be surprised at any of this. Unless and until each of us takes control over our privacy, which means understanding that data is currency and you wouldn’t just throw your currency around, this will happen over and over again. Make sense?

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