Behavioral
advertising is a strategy that has become very common and essential for
companies to promote their products in the Internet. About 2.3 billion people around the world have access to the Internet, and as of
December 2011, Facebook had 845 million monthly active users. These statistics give us a clue of why companies are
so dedicated to e-marketing. It is good to mention the strategy introduced by Amazon,
in which in addition to the fact that the site is personalized for each of its
customers, the site generates a list of recommended
books based on the purchase history of the customer. Sellers also match the
individuals’ tastes and preferences with specific products by checking the
consumers’ Facebook profiles or the websites they browse. Now, some questions
can arise like, at what point can customized advertising become stalker advertising? Or when does
building a relationship with a customer through behavioral advertising become a
struggling relationship?
Beware of What You Ask for!
Many consumers are getting more
worried about their privacy in the Internet because of the data collection that
is needed by companies in order to customize advertisings. With the new privacy
matters related to Facebook and Google, we can see how many consumers are
rising up and complaining about how unsecured they feel, and how their privacy
is being violated. But have they thought about the fact that maybe is their
fault and not Google’s, or Facebook’s? Do they remember about the privacy agreement
they had to sign before registering in these sites?
Consumers have become addicted to
social networking Web sites, and also to the fact of publishing every aspect of
their lives: where they are at, what they are having for dinner, what they are
wearing, what country the visited for vacations, etc… How can they complain
about privacy when they are the ones divulging it?
Facebook and Google on the Attack!
Facebook and Google have a very
critical competitive advantage that any company would wish for: A BIG list of users. Both have been able
to become an essential part of each of their consumers and it is funny how
people complain about Facebook and Google, but you don’t see them leaving their services. These Web sites are in a point that they can do whatever
they want, and they will continue to do so. They will continue micro segmenting
the online population, and taking advantages of the tools they have available (the
data of their million users). They are doing a trade with consumers: their free
services for personal information. The following video refers to the concerns of the consumers when it comes to the new Google privacy policy. For those who are against the policy, what would be their solution? CLOSE their account.
On the Bright Side…
Data collection is not the problem,
but the methods online forces use. Behavioral advertising is beneficial to
consumers since they are being targeted with the products they
would mainly prefer or match their interests. Web site should though be a little more sensitive when it
comes to the privacy of online consumers in order to maintain peace, and maybe
don’t push consumers so directly, but smoother. The right targeting can bring
great effectiveness not only for advertisers, but also for the customer
experience.
Again, what would be the solution for consumers who claim for privacy? If you don't want them to know, don't spread it! Simple as that!
References:
"Internet Usage Statistics" (2011), Internet World Stats <http://www.internetworldstats.com/stats.htm>
Elias G. Carayannis and Jeffrey Alexander, "Electronic Commerce"
Before I begin, I wanted to let you know that I am very impressed in the dedication you put into your blog. It shows that you are very organized and well versed.
ReplyDeleteIt is an interesting fact that Facebook has probably over 845 million monthly active users. They must be really acquiring a lot of information from these users.
As I am reading your blog, it makes me happy I closed my account with Facebook because I hate when these companies cross that thin line between advertising and stalking.
I also agree with you 100% that behavioral advertising is not the problem. The real problem is the methods that these companies are using. They need to be more sensible with that type of information. Please check out my blog and let me know what you think about it. http://smartapproachtothebusinessworld.blogspot.com/2012/02/megapixels-on-each-individual-monitor.html
Thank you very much Javier!
DeleteAbsolutely, behavioral advertising is not the problem. It is and it always will be humanity.Humanity is used to always receive and receive and receive, but what they give, NOTHING! Now that this companies are highly disclosing that they will use their users info for advertising and to create better profiles through data everyone jumps and starts caring and mentioning about their privacy. Well if they care so much about their privacy don't Google anything and don't use any social sites. Even better throw away your computers, laptops, cellphones, and go back as everything was 20 years ago.Can't right? As well as you said it" If you don't want them to know, don't spread it! Simple as that!"
ReplyDeleteThis comment has been removed by the author.
ReplyDeletet is true that consumers that don't want their information been spread, they should not put it on their social media sites, but they also need to take a further step, by deleting their cookies history from their computers it will block advertisers to reach their information. The major problem is that consumers do not educate themselves and only complaint.
ReplyDeleteFor further reading go to: http://blogbustervideos.blogspot.com/
Hi Nicole,
ReplyDeleteFirst of all, great job on your blog post! I really enjoyed reading it.
Anyways, I completely agree with what you are saying. Users from both these websites do have to agree to certain privacy polices before using these services and most users don’t even bother reading them. I believe that companies like Google and Facebook have the right to continue doing what they are doing. If users on the internet are willing to provide the information then why not use it? Overall, I believe that users online have to be more cautious. They have to be more aware of what type of data these sites are tracking. People online MUST do their research and if someone really does have an genuine concern there are things that can be done. If you head over to my blog (http://developermarketing.wordpress.com), I go into detail about the steps that one can take in order to protect your data online (without actually pressing the logout button)
Keep up the good work!
-Alex
I am happy you enjoyed it!
DeleteHi Nicole,
ReplyDeleteI completely agree with you on everything you said. I strongly believe that if people do not want their information to be known, they should not share it at all. Also, like said in the video you posted, one does not have to use Google if one does not like their policy; there are plenty of other search engines like Bing or Yahoo. Of course, they might not be as complete as Google is (because Google IS the best), but at least they do not collect people’s information as Google will do soon. I really liked that you mention Amazon because I believe that what they do is a great idea too. They have already recommended me books that I needed to buy and in fact did. I trust in what Google and Facebook are doing, it is brilliant for their business.
Joanna
Hi Nicole,
ReplyDeleteGreat job on your blog. To be or not to be is one of the questions I asked on my blog. I agree that users have the choice to use these sites or not. What’s scary to me is that the sites are so popular and addicting that those users which have a problem with their privacy are still not willing to give up using them. I see it as a business. Let’s face it, Google and Face book are brilliant companies and they are going to use all the marketing information they can to raise profits.