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Tuesday, June 22, 2010

Data Responsibility: It's Still Job One!

There’s a part of me that thinks Facebook’s mea culpa earlier this month was most admirable. You could, and should, give Mark Zuckerberg kudos for acting quickly to reverse some bad decisions on the “Like” program and the virtual takeover of shared data.

From a sales perspective, I continue to stress to clients that Internet targeting, as we know it in all its forms, can be very effectively executed without the amount of personal data that Facebook, MySpace and other sites collect and use. I don’t think a major CPG advertiser, for example, is limited by targeting “moms who use coupons and shop for groceries three times a week.” That kind of non-personal profiling gives any company access to a campaign that will achieve superior ROI. Can that CPG company do better with names, addresses, birthdays, and names of friends? I don’t think so. That CPG company would certainly be limited by targeting only “moms.” That’s a big universe that has been defined in a far more scientific fashion.

This business has reached a tipping point with consumers because of the Facebook overreach and the Google wifi data grab. It’s unfortunate, because I do believe that responsible use of personally identifiable information will help consumers become smarter and more economically efficient when it comes to couponing, financial services and even government operations. According to the Pew Internet Project, for example, 40% of adult internet users have gone online for raw data about government spending and activities. But the events of the past month will understandably put consumers on guard.

For brand advertisers, its time to keep the momentum when it comes to targeting. I’ve always said that if consumers saw one day of the Internet experience without any targeting technology, they would be so disappointed with the irrelevant content and advertising that they would want the targeting back in a hurry. That momentum for right now needs to be with behavioral targeting rather than a blind run to gather as much personal information as possible.

It’s also important right now to restore consumer confidence. Data breaches will be magnified now. Data responsibility, while using it for good business purposes, is still job one.

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