Thanks to third party tracking cookies, information concerning our browsing habits are logged each time we log on and browse the net. Whether this is a good or bad thing is debatable, as it depends on our own sense of privacy and the aggressiveness of marketers. It can be argued that tracking online behavior is good because it allows advertisers to deliver cost effective ads that are extremely focused and targeted that actually interest web users. If behavioral marketing were to bombard me with ads, I would definitely be more interested in finding out about upcoming events my area, cool night spots, good eats, and tech products that interest me, rather than male enhancement drugs, mystery cures, and political attack ads ...but then again were those target ads???
Behavioral marketing has at times made me wonder about the information that collected by 3rd party cookies. Like many internet users, I remain skeptical about the anonymity of the information collected, as there is always a way to trace information back to end users. It might be a good idea for users concerned with tracking tools to access their browser settings and block cookies, install additional browser extensions, or perhaps wait for the proposed "Do Not Track Tool" the FTC recently proposed that will allow users to opt out of online tracking. The proposed opt out button signals a move in the right direction by the FTC to protect online consumers. The proposal is just a small step in preventing online tracking of users, however, the it can definitely spur the movement for increased privacy settings in browsers that will ultimately protect online consumers. I hope to see the option for users to either completely "opt out" or choose specific types of targeted ads users can "opt in" to.
One major concern is that social networks, such as Facebook, with large personal information databases were ignored by the the FTC's new proposal for online privacy. In the mean time, while the FTC's proposal remains up for decision, Facebook users out there who are concerned about the information collected by 3rd party applications installed within the site should install Facebook Disconnect, a Google Chrome web-browser extension that blocks traffic from third-party sites to Facebook servers. Facebook is notified whenever a user visits one of the more than 1 million sites on the web that use Facebook Connect. According to the developers of the browser extension, Facebook has a history of leaking personal information to 3rd party apps. This browser extension is just a small tool that allows users to protect their browsing habits and privacy. As always, its important that internet users police themselves and make sure they are aware of the websites they visit and the applications they install.
- Derrick
Sunday, December 12, 2010
Friday, December 3, 2010
Google + Groupon = Gdeal
Shoppers in today’s economy are on the hunt for bargains, deals that will satisfy needs and thin pocket books. This trend has led to an online deals industry that has received increased attention over the past two years and especially within the last week. While rumors have swirled around a possible $5 to $6 billion Google acquisition of Groupon, Amazon.com quietly invested $175M in LivingSocial. Groupon is the number one socially fueled coupon site, dominating the industry; LivingSocial lags behind in second.
Compared to the plethora of coupon websites available online today, Groupon has been wildly successful. Its daily group-discount business model eclipsed the $1B revenue mark within its first two years of operation (the fastest e-business to accomplish such a feat). Yet what is distressing for a company like Groupon, and its potential investors, is that its business model is simple and can easily be duplicated. All that is needed is an email list and a deal. Internet clones have sprouted around the world; such competitors can easily sweep up the market share left behind by Groupon.
The daily-deal business model incites a frenzy among consumers and is part of what makes Groupon great, but is not without its drawbacks. Groupon now has a network of over 3,500 companies that find being featured on its site comparable to being selected for Oprah’s favorite things list.
Alhough some deals don’t result in a profit for businesses, small local businesses gain in the form of exposure. At the same time, companies are limited to publishing just one deal a day, which could pose a problem in the future if competitors decide to take aim at Groupon’s market share and sweep up deals not published by it.
If Groupon and Google strike a deal, the future of the couponing company has a better chance of continuing its fast paced growth if it lands on Google's search engine home page, than if it remains privately owned. Google’s web applications, along with its growing presence in the mobile phone industry with its Android OS platform and mobile apps for iPhone devices would instantly push Groupon deal awareness to the masses.
Sources:
Sunday, November 28, 2010
Facebook for Business Success
I hit the like button on posts all the time. I like your status update, I like your picture. I like the fact you had fun on your vacation. It doesn’t mean I want to get into a long involved conversation or see all your vacation pictures. Sometimes hitting the like button is just a lot easier than commenting and it has recently made it even easier to stay connected with small businesses.
In February of 2009, Facebook added the “Like” feature to not only incorporate liking friends’ posts but also Facebook Pages that “allow entities such as public figures and organizations to broadcast information to their fans.” Simply put, Facebook Pages are created by companies and public figures who seek to build an online presence and engage with their fans and customers.
Small businesses complained in the past that their target market didn't exist on the social networking site, and consequently saw no point in investing its time on the site. The above statement was once true, when the site was solely geared toward college students, however, it has since grown to include over 500 million active users around the world. Facebook should no longer be ignored by small businesses, as it is definitely capable of producing a ROI. According to Pingdom, 61 percent of Facebook users are over the age of 35, the average user spends about seven hours a month on the site. Alternatively, online users spend around two hours using Google. If connecting with customers and building relationships serves no value, then a reevaluation of business goals is necessary. The last time I checked, the ultimate goal of marketing is to create and maintain perceived mutually beneficial exchange relationships between target organizations and its various customers. Facebook offers no better vehicle for small businesses to achieve this goal, because Facebook Pages provides administers detailed analytics, information about the demographic breakdown of its fan base with the “Page Insights" feature. Small businesses can benefit most by building brand awareness, engaging in conversation and furthering relationships.
Some users, myself included, prefer to keep their profile pages as barebones as possible. I try to not give more information than necessary; as much as I hit the like button for my friends’ posts, I try to stay away from liking Facebook pages because I can’t stand being bombarded with constant updates. Nevertheless, the few pages that I have "Liked" in the past keep me connected to the things I care about most, yet, there are other users that will share a greater degree of information than me and will “like” a whole lot more pages.
Sources:
Saturday, November 20, 2010
Neuromaketing
Computer users have grown accustomed to the browser cookies used by online advertisers that remember our browsing interests to show related ads as we surf the web. Furthermore, online marketing has become increasingly integrated over the years, as websites require users to log into a personal account that builds on the shopping history of a customer to suggest related content. The effect is a deeper customer relationship that provides an extremely customized shopping experience. Neuromarketing, a new and controversial field of marketing, attempts to make this consumer relationship an even tighter one by utilizing brain waves to measure the effectiveness of advertising, packaging, and messaging to ultimately incite desired consumer responses. Neuromarketers focus on understanding the subconscious needs and desires of consumers to return a profit.
As you look into your computer screen to read this post, it is also stares right back at you. Okay, it doesn’t really look back at you, but it could one day. If the small eye, I mean camera lens, located at the top of laptop screens today were able to measure pupil dilation, it could easily provide neuromarketers with the potential to observe your response to advertising elements that flash on your screen and assess your relationship with a brand. In the past, companies surveyed groups to measure the effectiveness of their advertisements. Today, researchers don’t ask questions; they evaluate one’s reactions to advertisements.
What do you think of the advertisement below? Does it warm your heart? Does it bore you?
Was the sigh you just released a product of a good story line, or did neorumarketers aptly influence your feelings? Don’t feel paranoid now, but companies have always created ads like the one above to fill consumers with fuzzy feelings that unconsciously associate their customer loyalty to the brand. Neuromaketing steps in to evaluate consumer response and whether or not the ad is well received.
The future of neuromarketing is not limited to back-room research studies; in fact, the possibility of collecting and presenting data to consumers in real time is endless. Have an iPhone4? Did you think that the front facing camera on the phone was just for video chat? Apps that can use the phone's front facing cameras to detect hand-motion commands are currently under development. So it is not hard to believe that retina scanning is in the near future. Imagine discussing where you want to go out to eat with a friend within a text message and a banner ad suggests the perfect place for you. Sounds like the perfect world right? Or is it that creepy? The fact is that neuromarketing will play a bigger role in the near future, whether it is in electing politicians, buying consumer products, or choosing blind dates.
The company Neurofocus is a market leader in bringing neuroscience expertise to marketing, and its products and services range from billboard ads to market analysis. Its website also includes videos of case studies which explain the role of neuroscience in the marketing of certain products.
Ultimately, it is up to us as consumers to know better, trust ourselves and be sensible. We should not fear neuromarketers, after all there is nothing more annoying than boring advertisements.
-Derrick Padron
Sources:
Khanna, Ayesha. “Neuromarketers Know You Better Than You Know Yourself.” http://bigthink.com/ideas/24840
Related Material:
Neuroscience explains why The Gap failed at executing its new logo design.
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