Blogpost (Digital Marketing)

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Week11-EthicsLegal.pptx

- The Dark Side: Ethics, Privacy and Consumer Data

MKTG:1415 Seminar 11

Presented by Torgeir Aleti

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The power of the Web is in its universality. Access by everyone regardless of disability is an essential aspect.

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Tim Berners-Lee: I invented the web.

Here are three things we need to change to save it:

We’ve lost control of our personal data

It’s too easy for misinformation to spread on the web

Political advertising online needs transparency and understanding

Source: https://www.theguardian.com/technology/2017/mar/11/tim-berners-lee-web-inventor-save-internet

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Bots and Fake accounts

By some calculations, as many as 48 million of Twitter’s reported active users — nearly 15% — are automated accounts designed to simulate real people, though the company claims that number is far lower.

Facebook disclosed to investors that it had at least twice as many fake users as it previously estimated, indicating that up to 60 million automated accounts may roam the world’s largest social media platform.

These fake accounts, known as bots, can help sway advertising audiences and reshape political debates. They can defraud businesses and ruin reputations. Yet their creation and sale fall into a legal gray zone.

Source: https://www.cnbc.com/2017/03/10/nearly-48-million-twitter-accounts-could-be-bots-says-study.html

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Three Types of Twitter Bots

A scheduled bot posts messages based on the time. The Big Ben bot tweets every hour.

Watcher bots monitor other Twitter accounts or websites and tweet when something changes.

When the United States Geological Survey posts about earthquakes in the San Francisco Bay Area, the SF QuakeBot tweets the relevant information.

Amplification bots, follow, retweet and like tweets sent by clients who have bought their services.

Source: https://www.cnbc.com/2017/03/10/nearly-48-million-twitter-accounts-could-be-bots-says-study.html

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The Influence Economy

The world’s collective yearning for connection has not only reshaped the Fortune 500 and upended the advertising industry but also created a new status marker: the number of people who follow, like or “friend” you. 

High follower counts are also critical for so-called influencers, a budding market of amateur tastemakers and YouTube stars where advertisers now lavish billions of dollars a year on sponsorship deals. 

According to data collected by Captiv8, a company that connects influencers to brands, an influencer with 100,000 followers might earn an average of $2,000 for a promotional tweet, while an influencer with a million followers might earn $20,000.

Source: https://www.nytimes.com/interactive/2018/01/27/technology/social-media-bots.html?action=click&module=Top%20Stories&pgtype=Homepage

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How many followers are fake?

“We’re working with completely unregulated, closed ecosystems that aren’t reporting on these things. They have a perverse incentive to let it happen,” said Mr. Essaid, the cybersecurity expert. “They want to police it to the extent it doesn’t seem obvious, but they make money off it.”

Source: https://www.nytimes.com/interactive/2018/01/27/technology/social-media-bots.html?action=click&module=Top%20Stories&pgtype=Homepage

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What is privacy?

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What is privacy?

‘Privacy’ is not defined in legislation, and providing a conclusive definition is difficult. Privacy relates to the principles of human dignity, human uniqueness, the importance of solitude, and has historically been described as ‘the right to be left alone’.

Privacy encompasses several overlapping notions, including secrecy, confidentiality, solitude of the home, informational self-determination, freedom from surveillance, and the protection of an individual’s intimate relationships.

In Victoria, a right to privacy is included in the Victorian Charter of Human Rights and Responsibilities Act 2006.

Office of the Victorian Information Commissioner (2018)

https://www.cpdp.vic.gov.au/menu-privacy/privacy-what-is

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What is personal information?

‘Information or an opinion about an identified individual, or an individual who is reasonably identifiable:

whether the information or opinion is true or not; and

whether the information or opinion is recorded in a material form or not.’

Explanatory Memorandum, Privacy Amendment (Enhancing Privacy Protection) Bill 2012, p 53.

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What would Google and Facebook say?

What personal information does your Google dashboard or Facebook account hold?

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What does Google and Facebook know about you?

How does it make you feel?

Were you aware the that these companies were collecting this data?

How can companies and advertisers harness this data? What are the implications?

Were you surprised by anything that they had? What surprised you?

If it made you feel uncomfortable, why did it make you feel uncomfortable?

Do you think that people in the general community are aware of how much information is collected and held?

Do you see any potential issues for these companies collecting and owning this data?

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Office of the Australian Information Commissioner (2017) Australian Community Attitudes to Privacy Survey

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Office of the Australian Information Commissioner (2017) Australian Community Attitudes to Privacy Survey

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Office of the Australian Information Commissioner (2017) Australian Community Attitudes to Privacy Survey

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Should we give up on privacy?

“Giving up smoking is the easiest thing in the world. I know because I've done it thousands of times.”

- Mark Twain

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What is happening to our data?

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What is misuse of personal information?

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What is misuse of personal information?

Office of the Australian Information Commissioner (2017) Australian Community Attitudes to Privacy Survey

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What are the Stakeholders?

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Self Regulation and the Advertising Industry

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Ethical Behaviour?

Self Discipline

Advertising Standards Bureau

Public

Media

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Use Data Responsibly

1.1 Comply with all relevant regulatory provisions relating to the collection and use of data.

1.2 Consider the appropriateness of communications to consumers taking into account the target audience, the purpose of communication and the delivery method of the communication.

1.3 Take reasonable steps to ensure that they have appropriate technical and organisational measures so that data is not collected or used unlawfully or without authority, and is protected from unauthorised access, unauthorised disclosure, loss, destruction and damage.

Association for data-driven marketing & advertising (2018), Code of Practice

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Use Data Responsibly

1.4 Only use Sensitive Information for marketing purposes with the consent of the consumer concerned.

1.5 Where relevant, ensure all staff, agents, partners, suppliers, contractors and any other third parties (Agents) are aware of the Code and the Member’s obligation to act in accordance with the Code, and take reasonable steps to ensure that when Agents are acting on the Member’s behalf that they in turn take reasonable steps to comply with the Code.

Association for data-driven marketing & advertising (2018), Code of Practice

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Use Data Responsibly

1.6 Take reasonable steps to ensure Personal Information used for marketing communications has been properly sourced, permissioned and cleaned.

1.7 Take reasonable steps to ensure that Personal Information collected is relevant to one or more of the purposes for which it has been collected.

1.8 Take reasonable steps to ensure that Personal Information is accurate, up- to-date and not kept for longer than necessary.

Association for data-driven marketing & advertising (2018), Code of Practice

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Ethics and data-driven advertising

Not all issues can be regulated.

An advertising or promotion action may be legal, but not considered ethical.

Advertisers must make decisions about the appropriateness of their actions.

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Ethical issues and data-driven advertising

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Cookies

When you visit a site that uses cookies for the first time, a cookie is downloaded onto your device.

The next time you visit that site, your device checks to see if it has a cookie

that is relevant to the site.

The site then ’knows’ that you

have been there before,

and in some cases, tailors

what appears on screen.

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Cookies

The good…

They can help save website preferences.

Save shopping carts.

Remember what you have already seen.

They are great for often-visited sites.

…and the bad

Information is being stored about you.

The are often seen as “sneaky”

They can be used for tracking, which some users don’t want.

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Geo-tracking

Uber has been known to use geo-tracking even when you are not in the application.

Why would this be useful?

What are the issues?

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Opt-in versus opt-out

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Buying Influence

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Internet of Things

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Artificial Intelligence (AI) and Advertising

With AI we have the ability to transform vast amounts of complex, ambiguous information into insight into consumer behaviour.

There are nearly 2 billion Facebook users globally. About 200 billion tweets are shared on Twitter every year. Google processes 40,000+ searches every second.

We can assess the entirety of an individual's social activity: every word, every picture, every emoji.

… add to that geo- and transactional data and advertisers have the potential to be highly effective.

(Jercinovic, 2017)

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When does persuasion become manipulation?

Persuasion

Manipulation

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Most people would agree that it would be ok to use AI to target a consumer who has an interest in sports cars.

… but what if you also knew that consumer was deep in debt and lacked impulse control, had multiple moving violations, and had a history of drug and alcohol abuse. Is it still ok to market a fast car to this person?

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What are the consequences of unethical practice?

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Creepy or cool?

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Creepy or cool?

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Creepy or cool?

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Creepy or cool?

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http://www.adweek.com/adfreak/bruised-woman-billboard-heals-faster-more-passersby-look-her-163297

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Because you just don’t.

What is trolling?

Trolling involves deliberate, deceptive and mischievous attempts to provoke reactions from other online users.

little discussion about what trolling actually is and how marketers should respond to it.

Consumers who engage in trolling (i.e. trolls) are ‘unwilling to cooperate with the service provider, other customers, industry regulations, and/or laws’

Source: Maja Golf-Papez & Ekant Veer (2017) Don’t feed the trolling: rethinking how online trolling is being defined and combated, Journal of Marketing Management, 33:15-16, 1336-1354

5 signs you’re dealing with a troll

They’ll try to make you angry

They act entitled

They exaggerate

They make it personal

They often can’t spell

Source: https://blog.hootsuite.com/how-to-deal-with-trolls-on-social-media/

9 tips for handling trolls on social media

Establish a policy

Ignore them

Respond with facts

Diffuse with humor

Block or ban them

Correct mistakes

Don’t be baited

Don’t delete their posts

Build a supportive, friendly community