Monday, May 26, 2008

Behavioral targeting in the spotlight

The Federal Trade Commission is reviewing behavioral targeting, the practice of sending ads to Internet users based upon their online habits. While proponents claim that such anonymous targeting protects free web content (and drives ad revenue, since advertisers pay more for personalized audiences), opponents believe that tracking online reading habits, search engine queries and shopping patterns opens the door for unscrupulous marketers to track individuals.

"It is not anonymous if the companies are tracking the same user over time," said Ari Schwartz of the Center for Democracy and Technology. Of particular concern are the cumulative effects of tracking across multiple sites over prolonged periods of time -- activities that decrease anonymity, according to opponents.

While ethical considerations are the first and most prominent criticism of behavioral targeting, they are not the only considerations. The Newspaper Association of America has expressed concern that the FTC's proposed voluntary rules allowing users to opt out of tracking may violate the First Amendment. The association claims that if users don't want to be tracked, they can avoid certain sites.

An interesting critique of behavioral targeting is raised by Jack Jia. Ethics aside, Jia questions whether the practice is effective:

"Beyond privacy concerns, there are accuracy and quality issues with BT that all marketers may not be aware of. Traditional BT struggles precisely because it tries to discern what I want now based on my past behaviors...This is the pitfall of profiles. In a given month, an individual will have thousands of roles. Knowing my past is not necessarily a better way to predict my future. In fact, this phenomenon has been known by psychologists and other scientists for years - humans are animals of context and situations, much less so of our historical profiles or roles."
Jia suggests that the user's intent, such as ads posted on current Google searches, is more relevant than a past profile.

With government regulation hanging over the heads of marketers, it may be time to reevaluate behavioral targeting. Can marketers reap the benefits from a neutered targeted, where opt out mandates are strengthened? Could intent-based advertising, as Jia proposes, fill the void?
Whatever the outcome of the FTC rules, or the implications of Jia's critique, the onus is on marketers to use data more wisely to avoid the pitfalls of overreach and wrong assumptions, respectively.

Saturday, May 24, 2008

New Media are the Message

“Never before in history has innovation offered promise of so much to so many in so short a time.” -- Bill Gates, Founder, Microsoft Corporation

Microsoft is as good a starting point as any in our study of new media as marketing communications tools, considering the company's symbolic and ubiquitous role in the consumer and business technology landscapes. In January 1975, the Altair 8800 microcomputer, a computer kit geared for electronics hobbyists, appeared on the cover of Popular Electronics.



In response, soon-to-be Microsoft founders Paul Allen and Bill Gates developed and licensed an interpreter for the BASIC programming language that could be run on the Altair. The interpreter was stored on a tape that the Altair could read.



Flash forward to May 2008. Microsoft unveils Touchwall, a large touch screen display panel that includes the use of laser and infrared technology.



"We think it's time to amend our slogan of 'A computer on every desk,' because with this, we want a computer in every desk,"Gates said recently. In 30 years, Microsoft's technologies evolved from algorithms punched into paper rolls to virtual touch screens and embedded digital technologies.

How does this relate to new media? New media are not only byproducts of this technology revolution, but components of it. New media are innovations in their own right.

Consider, for instance, newspaper ads and blogs. Ads exist, and have always existed, as marketing and promotional tools, while blogs are intent and content driven -- and may have nothing to do with persuasion. And yet, digital media like blogs are rewriting the rules of marketing communications.

As society becomes increasingly segmented and distributed (in large part thanks to digital technologies), media become increasingly segmented and distributed as well. The most effective message is ultimately the most personalized, and digital technologies enable this personalization as never before. Forty years later, Marshall McLuhan is still right: the medium is the message.