Marketing Roadmaps

Data privacy. A competitive advantage?

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I have always been interested in the intersection of public policy, business outcomes and consumer interest. While I didn’t set out to weave this interest into my career, I largely have worked at the leading (and sometimes bleeding) edge of the Internet, digital and social media, so it sort of worked out that way. Internet safety, personal privacy, email regulation, HIPAA, FTC endorsement guidelines, FDA advertising regulations, net neutrality.

And now data privacy. From GDPR and the California Privacy Law to the European e-privacy directive, I have been deeply interested in both the challenges and opportunities of data privacy. I wrote some posts on the topic last spring as the GDPR deadline approached in May 2018. Short version: as consumers care more and more about data privacy, innovation incorporating best practices for privacy could become a significant competitive advantage.

As the conversation swirled around the new rules and their impact, I then collaborated with my colleagues in the Marketing & Communications Research Center of The Conference Board, where I am a Senior Fellow, to field a research project to explore executive attitudes toward privacy, innovation and regulation as a indicator of how businesses might respond as stricter laws such as California and the e-privacy directive (which impacts use of cookies) take effect. We don’t have a crystal ball, and can’t truly assess the impact of future events, but we can gain a better understanding of how people think and how those opinions might impact their decision-making.

The research paper, authored by me, Innovate or Hunker Down: What Executives Think about Data Privacy, Security, and Regulation, was published last week and is available for free download from The Conference Board .

Topline

  • Organizations value data privacy and security, in no small part because consumers increasingly value them.
  • Compliance is part of company marketing messaging; however, few companies are deploying innovation around regulatory needs as a competitive advantage.
  • Attitudes shared in this survey offer evidence that corporate responses may shift to place higher value on innovation, but the driving force will most likely be consumer expectations, rather than a proactive response in anticipation of consumer demands.

We have some examples in the paper, but if you have case studies or anecdotes, either of companies that have successfully innovated in the face of regulation or that have eliminated products or services in the face of compliance challenges, please drop me a note at sgetgood@getgood.com.

Two Truths and a Lie: trust, #ad and privacy

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Gregarious Narain is on vacation until the end of the month. We’ve got a couple guests lined up to join me in his absence, but this week was a little hectic so (truth) I did not have time to prep them properly, so this week it was just me, and a slightly shorter show.

Would you like to join us on the show? It’s pretty easy. We broadcast live on Fridays at noon eastern for about 20 minutes. I send you a link to connect to the broadcast platform in the morning along with any show notes we’ve prepared and you log in by 11:50 am for an AV check. Sometimes you’ll be joining Greg and me, other times it is just me.

What will we talk about? We are open to discussing any topic related to marketing writ rather large — digital and social media, advertising, influencer marketing, technology , but also Internet culture, consumer behavior, digital fraud, privacy, artificial intelligence. If YOU have a topic you’d like to bring to the table within that rather large brief, we’d love to build a conversation around it with you. Email me at sgetgood@getgood.com or message me on Facebook.

Now to this week’s topic — consumer attitudes and trust. Joining me are my two guests this week, Mr. Rogers and Captain Rogers, two icons of honest integrity.

I only have 2 topics this week, because both are both truth and lie. The first is that consumers don’t like or engage with sponsored content the same way that they do so-called organic content. I wanted to discuss this (again) this week after reading a great op ed in Ad Age, In Defense of the Lowly Hashtags #ad and #sponsored by Natalie Zfat. Written in response to the statement “nobody likes the hashtag #ad” at an industry panel (filled with marketers), she shared her pride in using #ad because it meant she was able to successfully monetize her content while creating valuable content for readers.

This strikes a chord with me because I think treating sponsored content as a second class citizen is lazy thinking. Fact: transparency and best practice would dictate that we disclose relationships that might impact an endorsement even if the FTC Guidelines did not. But also Fact: the FTC guidelines in the US and similar guidelines in other countries DO dictate that we disclose when the content we create is sponsored or influenced by payment, business relationship or free product. And finally FACT: people are not as black and white in their consumption of content as the conceit organic:good, sponsored:less good makes it seem. I have seen more than a little organic content that is AWFUL and quite a lot of amazing sponsored content.

It is not that we don’t like advertising. It’s that we don’t like bad advertising. Whether an ad or a sponsored Instagram image. It is incumbent upon us as content creators to create quality content, full stop. When it is sponsored, we disclose, because it is the right thing to do. Cap agrees!

On social media, there is no situation where you do not have to disclose that the content is sponsored. Not even for celebrities. The reason for this is that on social, we have none of the cues that inform us that the endorsement is an advertisement that we have in other media. When we see a celebrity on Ellen, we know she is pitching her new movie because that is inherent in the talk show format. When we see an athlete in logo gear, we assume that he or she is sponsored by the brand, because that is how sponsorship works at that level. When we see the same celebrity promote something on Twitter or Instagram, her post looks just like all her other posts, and just like all the other posts of all the other people using the platform. There are no cues to clue us in that this post is sponsored. When an advertisement doesn’t look like an advertisement, it must be disclosed. Just this week I ran across another article about celebrities failing to disclose, this time in the UK. This is one time where wishing won’t make it so. Wishing you didn’t have to disclose or inventing all sorts of reasons why it doesn’t apply to you won’t change the facts. Because it is all about trust. Right, Mr. Rogers?

So, while it is true that people do treat sponsored content differently, the difference, in my opinion, is largely in the minds of the creators. If we stop assuming that people view sponsored content differently, create amazing quality content and honor the trust of our readers by being honest about our business relationships, we can be proud of #ad.

This week’s other part truth part myth is also related to trust. In this case, our trust in the social platforms and websites. Axios Media Trends reported this week on Census Bureau Data that indicates Americans are less worried about online privacy, largely, the report surmised because we have become accustomed to trading it for access and services.

Photo: Protest Stencil
Photo: Protest Stencil

But we are still concerned about data privacy, security and integrity. Witness the Twitter storm caused by the fake billboards in London last week.

They struck a chord because there is an underlying cognitive dissonance between the value consumers perceive they get from Facebook and the value they are increasingly aware Facebook gets from them. GenZ is already replacing it, including on college campuses, with new “facebooks” coming online, also reported in Media Trends this week.

I have been following the digital privacy conversation for more than 20 years, sometimes closely, sometimes less so but I am convinced we are finally at the inflection point where it matters as much to consumers as it does to advocates and geeks, and it is an increasingly informed consumer who understands that there are 3 issues: privacy security and integrity. Being willing to give up a little personal data in exchange for access is a fair trade but we are no less concerned about the protection of that data.

So. The truth is Americans may be less worried about privacy in general, but it is because they have become more informed. And we are very likely still very worried about how our information is used, whether information is true and whether bad actors can breach the walls. We just are more willing to accept the risk.

Two Truths and a Lie: the “if it seems too good to be true” edition

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This week we opened the show with a brief rundown of the BlogHer Creators Summit, and then moved to the main event, our discussion of fraud, the responsibility of the social platforms to remove hate speech and meme accounts.

It was my 14th BlogHer (not counting food, business etc., the offshoot shows of which I missed a few) but just the “main” summer event. The format was a bit different than past, with most of the action on the main stage throughout the day. Some of the highlights were: Christy Turlington Burns and Kirsten Gillebrand discussing maternal health and the need to VOTE, P&G exec Shelly McNamara on her experiences as an out gay executive in corporate America, Mattel’s new career Barbies and meeting Voice of the Year honoree Dr. Alaa Murabit.

Fraud is still very much in the digital media news. Instagram fraud had the headlines a few weeks ago, and likely will again (!) but last week saw an expose in the New York Times about YouTube fraud and concerns from advertisers about GDPR fraud in the form of false consent strings.

Truth number 1 this week is that if it seems too good to be true, it probably isn’t. True. 

Impressions, views, page views are all important starting points to understand DELIVERY but we need to focus on the engaged audience, and our results in that context. Looking at engagements instead of reach starts to counteract the fraudsters. Not completely, but a start. Artificial Intelligence cuts both ways. It is easier for the bad guys to create fake accounts and fake comments, but it is also getting easier to spot them. When we remove the suspicious activity from the results, we can look at the legit activity and engagements, for a better answer.

At long last, this month the platforms began (finally) to take action against hate monger Alex Jones. Apple removed it from podcasts, Spotify, Facebook and YouTube took action, removing content and deactivating accounts but there is still a great deal of inconsistency within the platforms. And Twitter did nothing.

Truth #2 is that while we should be grateful for less Alex Jones on the Internet, we need to hold the platforms accountable to do more.

Any action by the social platforms to reduce the volume of hate speech and lies by bigots like Alex Jones is a GOOD thing, no matter how excessively long it took them to get there or how incomplete the response. There is LESS Alex Jones on the Internet today and for that we should be grateful. But…. it did take far too long and we must hold them accountable. They do not get a pass on resolving the inconsistencies among their different services.

In the SNCR fake news survey last fall, marketers said that platforms had a responsibility to resolve the problem of unsafe, untrue content. Part of the response must include clear consistent policies across all services and enforcement thereof.

The myth or lie —
Bots and Meme accounts can replace authentic influencer content, and since they are much easier to control, are a good alternative to customer activation. No, no, a thousand times no.

If you want to make a SOCIAL BOT or use chat BOTs in your strategy, that is a legitimate choice, and can be very successful, but be honest about it. If you are mimicking actual human SOCIAL engagement, the consumer deserves to know she or he is chatting with a bot. It won’t matter to many, especially Gen Z that is already so accustomed to engaging with digital avatars. But they should be informed.

As far as memes go, by all means use them. They are a crucial tool for earned social shares. But don’t think  meme accounts can replace the voice of your customer as an influencer, not just a re-share. Use them alongside influencers but not instead.

Two Truths & a Lie about Brand Safety

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This summer is flying by. We skipped Two Truths last week, largely because I was at the BlogHer Creators Summit for 2 days and the atmosphere was bustling! Way too noisy to record a Facebook Live show with my minimal equipment. I’d probably forget to plug in the mic again 😉

When I started pulling together the posts for tomorrow’s episode, I realized I never posted the August 2d one. So, here it is, very late, but oddly the content is still timely.

The Truths
1. Both YT and FB blocked Alex Jones this week, but it seems like a drop in the bucket for the fake news problem and advertisers concerned about the context in which their ads might appear. Brand Safety is cited by advertisers as a top concern; consumers care about fake news / want to trust social platforms. but FB and Twitter both took a hit in their stock price because user growth dropped and resources were applied (however grudgingly) to these areas. This implies that taking an action / stance on privacy/data integrity has a cost beyond simply the expense of doing the “thing.”

2. Influencer platforms are rushing to release their “fraudometers” to show the integrity/quality of their networks. We discussed some of the models, but there is no standard for this. Everyone’s just applying their own opinion, whether human or machine derived, to define “fake” follower. In the end, it is also the wrong question. Understanding the fraudulent followers is an exercise to tick off a box. What we really want to understand is what percentage of an audience engages with the content, and then if we are a brand, what percentage of THAT engages with us.

Myth
Brand Safety is a myth. You cannot control all aspects on digital and social. You can get closer with advertising with ad tech tools and things like ads.text, private marketplaces, and guaranteed programmatic, but on social media? People are messy. You can’t control the comments or reshares and sometimes even your influencers go off script and do wacky stuff. Think PewdiePie and Logan Paul. On social, relationships are the keys to brand safety.

Resources mentioned in the show: Five Charts Explaining the State of Brand Safety

Two Truths and a Lie: The FTC Disclosure Guidelines

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Tom Chernaik, the CEO of CMPLY, Inc. joined me as our guest on Two Truths and a Lie this week. Greg Narain was traveling and could not join the conversation. We dropped some truth about the FTC disclosure requirements and hopefully dispelled a few myths.

Please forgive some of the technical difficulties at the beginning of the episode. It was our first program “on location,” I got a little lost on my way to Tom’s office downtown (I ALWAYS GET LOST BELOW WALL STREET) and in my rush to start on time, I forgot to plug in the Blue Yeti mic. Hey, it’s live, right??

About Tom
For more than 20 years, Tom Chernaik has worked with leading brands focusing on innovation and insight in marketing, law, social media, privacy and big data.

With a vision for addressing marketer concerns regarding compliance, Tom launched CMP.LY in 2009. He grew the company – rebranded as CommandPost – into the world’s leading social media disclosure solution and expanded the offering to include cross-platform social media measurement of audience and engagement. CommandPost was named a Gartner “Cool Vendor in Social Marketing” for 2015.

Tom holds multiple patents for his work developing innovative solutions for monitoring social network content for compliance, measurement and activation of offline processes. His work in the areas of disclosure and privacy has bridged the gaps between policy and practice with practical technology solutions.

Prior to launching his company, Tom spent more than 15 years in leadership and marketing roles for leading entertainment and media brands including XM Satellite Radio, All Indie (which he co-founded) and Gotham Records. He holds a BA in Liberal Arts from NYU and a JD from Yeshiva University’s Cardozo School of Law. Tom was also the Co-Chair of the Ethics Committee at the Word of Mouth Marketing Association from 2011-2017.

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For more posts about the FTC Guidelines, please review the FTC Category and the Ethics Category in the archives.