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.
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