Information is useful, knowledge is power, but if unrestricted and abused access and use of information can lead to unnecessary brand risks. Marketers and product managers need to leverage information collected about consumers to inform their strategies and drive successful outcomes. Using information responsibly, protecting consumer privacy and complying with laws and regulations can keep a brand safe and even be a brand differentiator. Privacy issues and regulations important to marketers and product managers. Current legal and political environment and its impacts on products and marketing. Recent technology that continues to strain the bounds of what is private and what is public. How to leverage information the right way to deliver relevant customer experiences (while sharing some examples of the wrong ways to use information). How using information responsibly can enhance your brand (irresponsible use can have the opposite effect).

1. Protect Your Brand by Protecting
Privacy
Ed Filippazzo
Part-Time Lecturer
Rutgers Business School
Vice President
Compliance & Ethics
American Express

2. Today’s Discussion
• Privacy issues and regulations important to marketers and
product managers.
• Current legal and political environment and its impacts on
products and marketing.
• Recent technology that continues to test the bounds of what is
private and what is public.
• Leveraging Information to deliver customer value and enhance
your brand.
Oct-12 2

3. Digital Products
What isn’t a digital product these days?
What products don’t leverage or even depend on data
collection, use or sharing?
• As core to the product
• For marketing the product
• To learn about customer use of the product
Oct-12 3

4. Information Collection and Use
Contact Information Behavioral Information Lifestyle
Name Transaction/Purchase History Salary/Net Worth
Address Frequent Shopper Memberships Home Value
Telephone Number Family Structure Car you drive
Email Address Neighborhood Magazines Subscriptions
IP Address Travel History Club Memberships
Internet Cookies Online Browsing Behavior
 Right Offer  Right Time
 Right Person  Right Channel
Oct-12
 Right Experience 4

5. Sensitive Information
Personally Identifiable Information Other Highly Sensitive Information
Considered Most Sensitive
• Healthcare Information
• Name • Race/Ethnicity
• Address • Religious Affiliation
• Social Security Number • Political Views
• Passport Number • Age (Children Under 13)
• Tax ID
• Financial Account Number
• Address
• Email Address
• Phone Number
As data collection increases and the ability of analysts to combine
information and identify individuals improves, even anonymous information
is getting increased attention from regulators and legislators.
Oct-12 5

6. Introduction to Privacy
Let’s watch a quick video about how information can be used and misused?
Oct-12 6

7. What is Privacy?
“Privacy is the claim of individuals, groups or institutions to determine for
themselves when, how, and to what extent information about them is
communicated to others”
– Alan Westin: Privacy & Freedom,1967
“Recent inventions and business methods call attention to the next step which
must be taken for the protection of the person, and for securing to the individual
what Judge Cooley calls the right "to be let alone" . Instantaneous photographs
and newspaper enterprise have invaded the sacred precincts of private and
domestic life; and numerous mechanical devices threaten to make good the
prediction that "what is whispered in the closet shall be proclaimed from the
house-tops.”
- Warren and Brandies, Harvard Law Review, 1890
Oct-12 7

8. Business Perspective
In an interview with CNBC in December 2009, Google CEO Eric Schmidt
said users who are concerned over Google retaining personal data must
be guilty of unsuitable behavior.
“If you have something that you don’t want anyone
to know, maybe you shouldn’t be doing it in the
first place.”
Imagine this is extended from online to what you watch on tv, or where
you were today just because technology facilitates the collection of that
data.
Oct-12 8

9. Consumer Perspective
Oct-12 9

10. Brand Impact
• Concerns over online data collection, use and advertising methods has
damaged the brands and reputations of several companies.
• In just the past few years, these companies have been exposed for
questionable methods of data collection and use and have had to quickly
change their methods.
Oct-12 10

11. Innovation and Customer Expectations
Innovations in Interactive products and marketing continue to change the
information we collect and how we use it. In addition, what customers
expect and how we inform them of our practices are also changing.
Are customers aware of: Basic Principles:
• What is being collected? • Set and Meet Customer Expectations
• Who is collecting information? • Provide Notice and Choice
• What it is being used for? • Provide Enhanced Notice When Needed
• Who it is being shared with? • Gain Consent for Some Purposes
Oct-12 11

12. Mass and Direct Marketing
Mass Marketing Direct Marketing
• Television • Direct Mail
• Radio • Telemarketing
• Newspapers • Email Marketing
• Magazines • Text Marketing
• Billboards • Digital Marketing
• Events • Customer Experience
• Online Behavioral Advertising
• Contextual Marketing
• Social Media Marketing
• Mobile Device Marketing
• Location Based Services
Oct-12 12

13. Digital/Internet Advertising
• The provision of free Internet services to consumers is largely
dependent on Web site publishers and content providers receiving
revenues from advertising.
• While some of this advertising is presented in the form of untargeted
online “billboards,” a growing percentage of the advertising
consumers see online is the result of online behavioral advertising.
Oct-12 13

14. Types of Digital Advertising
 Contextual Advertising
 Search
 Blogging
 Re-Targeting
 Behavioral Advertising
 Social Media
 Mobile Applications
 Location Based Services (GPS)
Oct-12 14

15. Online Advertising
Oct-12 15

16. Cookies
Session Stored only when user is connected to the particular
Web server. Deleted when user disconnects from the
Web site (e.g. shopping carts)
Persistent Set to expire at some future point. Standard for
authenticating return visitors to Web Sites that
depend on real time information. (e.g. local weather
reports)
First Party A persistent cookie that is created by the Web site
you are currently visiting
Third Party A persistent cookie created by a Web site other than
the one you are currently visiting; for example, by a
third-party advertiser on that site.
Oct-12 16

17. How Are Cookies Used?
Site Customization To recognize return visitors/customers and present appropriate content
Customer View Prospect View
Oct-12 17

18. Online Behavioral Advertising
Online Behavioral Advertising (OBA) is the tracking of a consumer’s online activities over time
across unaffiliated Web sites to deliver advertising targeted to the consumer’s interests.
Tracking
pixel
• IP Address
• Pages Visited
• Ads Viewed
• Ads Clicked
Tracking
pixel
Tracking
pixel
OBA includes advertising on multiple sites and site to site (re-targeting).
Oct-12 18

19. Industry Growth
• Online behavioral advertising represents a small but rapidly
growing part of the online advertising market. Market research firm
eMarketer reported that of the $23.4 billion to be spent advertising
online in 2008, spending on behaviorally targeted online
advertising was expected to reach $1 billion and to quadruple this
year.
• As this industry grows, so does the amount of information collected
about consumer’s online activities. As a result, the risk for misuse
of this information grows, as well as the scrutiny over how the
information is collected, used and shared.
Oct-12 19

20. Information Collection
• In most cases, the information collected for online behavioral
advertising is not personally identifiable.
• Most collection and tracking methods utilize “cookies” to track
customers and build profiles to determine the interests or
preferences of an individual based on prior online activity at a
computer or device level.
• Cookies are assigned to a device and not to the individuals
who use those devices.
Oct-12 20

21. Online Privacy Concerns
• Breadth and Depth of Data Collected
• Consumer Expectations and Awareness
• Providing Notice of Practices and Consumer Choice
• Misuse
Oct-12 21

22. Information Collection and Privacy Concerns
Data Collected Data Reach Players (Examples) Privacy Concern
Single Site/ Site Pages Visited Single Web Site
First Party Information Entered
Low
Site to Site If Partner Site Visited Sites in Partnership
(Re-Targeting)
Ad Networks Sites Visited Sites in the Ad Network
Ads Viewed
Content Delivery Sites Visited Sites for which they provide
Networks services
Data Aggregators Site Visited Sellers and sites for which
Site Activity Data they provide services
Offline Data
Web Browsers Sites Visited All Web Activity
High
Internet Service Sites Visited All Web Activity
Providers Content Data
Social Networks
Oct-12 22

23. Industry and Regulation
As federal and state governments continue to wrestle with the issue, we have seen
web site publishers, service providers and social networks introduce new and more
comprehensive forms of tracking and information use.
Social Networks
Web Site Publishers Service Browsers and ISPs and Location Based Services
Providers
Oversight (Legislative and Self Regulatory)
Oct-12 23

24. OBA Self Regulation and Proposed Legislation
As legislation is proposed, the FTC and several industry groups have provided guidance
which leads industry practice.
Notice:
• Disclosure Practices
– Typically via Online Privacy Statement
• Provide Enhanced Disclosures When Appropriate
Choice:
• Provide Choice for Users to Opt-Out of OBA Tracking
• Gain Consent for:
– Material changes to policies/practices
– Use of Sensitive Data
– Linking Anonymous Data to Personally Identifiable
Oct-12 24

25. OBA Enhanced Disclosures and Choice
By the summer of 2010, advertisers are expected to offer notification on all
banners that are collecting and leveraging data for OBA.
Oct-12 25

26. Marketing Using Social Media Data
• Leveraging Information collected via social media
• Monitoring social media for product feedback/comments
Oct-12 26

27. Marketing Using Social Media Data
Sources • Information is sourced from social networks, blogs,
forums, review sites, newsgroups, message boards.
• Information is publicly available
Data • Social Network Profiles
• Comments
• Who Your Friends Are
Use • What Product Offers You Receive
• How Offers are Presented to You
Oct-12 27

28. Partnerships with Social Networks
Technologies are allowing social networks to integrate with web site publishers.
APIs
Source: www.Weather.com Source:
www.Google.com/Latitude
Source:
www.quotationspage.com
Source: www.time.gov
Source: www.facebook.com
With APIs, multiple parties may be collecting information when a consumer visits a
web page and their uses of that information may differ. Consumer Awareness
regarding who is collecting information can vary.

29. Mobile Apps & Location Based Services
Increasingly marketers are looking to leverage mobile technology to deliver value to customers.
Mobile Apps are Subject to All Mobile Apps must provide a statement disclosing their
the Online Privacy information collection and privacy practices.
Statement
Mobile Apps that use Industry Best Practice and Guidelines requires notice, consent
Location Based Services and ongoing choice .
Notice & Consent Ongoing Choice
Guidelines
CTIA - Cellular Telephone Industries Association

30. Guidelines for Privacy and Brand Protection
When collecting, using and sharing consumer information for marketing purposes:
 Consider consumer expectations
 Collect and use the minimum amount of information necessary
 Properly protect all consumer information
 Disclose your practices in a way consumer’s can understand
 Provide choices to consumers about how their information will be used