Digital Privacy in Age of Transparency

1. Digital Privacy in Age of Transparency DMA Agency Summit 08’

2. Agenda S.W.O.T Analysis on Data and Transparency • Strengths most Agency already deploy: Policy • Weaknesses where most Agencies fall down: Technology • Opportunities in the Digital age of transparency: Social Media (90% here) • Threats to All Marketers: Legislation

3. Who I Am • Aaron Kahlow, Managing Partner for BusinessOnline • Board of Directors for Business Marketers Association • 180 Digital Marketing seminars • Worked with leading brands like: Chevron, Cisco, Kimberly-Clark, Tyco… • Author many columns (Search Engine Watch, BtoB, Electronic Retailer..) • BusinessOnline -Web Site Services (Have 500+ websites on servers) • Search Engine Optimization (SEO) • Web Site Usability and Customer Experience Optimization (CEO) • Web Design and Development • Website Strategic Planning Founder & Chair of the Online Marketing Summit • Not for Profit • Just for Marketers Wanting to Learn more on Best Practice Online Marketing • VENDOR LESS; NO Sales • February 21 – 23; Sunny San Diego, HIMA $979 • www.OnlineMarketingSummit.com

4. Who are You?

5. Your Challenges? • Biggest Digital Threat to Your Company ? • Biggest Digital Opportunity ? • Is Social Media Top of Mind ?

6. Quick Digital S.W.O.T.

7. Strength: Most have Policy in Place • Opt in Policy • Security Notification Breach Policy • Website Privacy Policy • SSL for secure information

8. Weakness: Technology of Data Security Need to Protect Data: Protecting: You need to guard against both high-tech and low-tech opportunists. If your business is not kept physically secure, anyone can walk in and steal unprotected customer data from your cabinets, drawers, and desks • Encryption: software or other technology that scrambles data to prevent unauthorized viewing. • Vulnerability Analyzers: software that performs checks to determine if a computer network's devices and software are properly configured, patched, and updated. • Host/Network-Based Intrusion Detection Systems: software that scans for network related suspicious activity. • Intrusion Prevention Systems: sensors that detect network security vulnerabilities. • File Integrity Systems: systems that provide intrusion detection and verify that files have not been tampered with. • Network Scanners: tools that identify network security holes that could give intruders access to your network Note: These tools are available commercially at most computer or business supply stores. * Source: Better Business Bureau

9. Threat: Legislation and Hackers • Pending Legislation (good news mostly on notification) • What data are covered by the security breach notification requirements? • What breach would trigger a requirement to notify consumers? • Is access and correction to data by consumers required? • Is there a right for class action suits? • Are state laws preempted? • Security Breach Already happening “Acxiom Corp., was struck last year by a hacker who downloaded sensitive information belonging to about 10 percent of Acxiom's corporate customers.”

10. Real Threat: Education Client and Internal

11. Answer in age of Uncertainty: The User The Golden Rule: Do unto others data, as you’d have done unto you

12. The Opportunity Much greater than the threat.. ..Enter Social Media

13. Social Media: What is it

14. What is Social Media? • Social media describes the online technologies and practices that people use to share opinions, insights, experiences, and perspectives with each other. • A few prominent examples of social media applications are Wikipedia (reference), MySpace (social networking), YouTube (video sharing), Second Life (virtual reality), Digg (news sharing), Flickr (photo sharing) and Miniclip (game sharing). These sites typically use technologies such as blogs, message boards, podcasts, wikis, and vlogs to allow users to interact.

15. Characteristics • Web is the Platform • Collaboration is the method • Simple: Point, Click, Publish • Syndication, Ubiquitous and Immediate

16. From the Beginning of time… • Word of Mouth • 42.6% Top Sales influencers • Viral Marketing (online) • Bulletin Boards of 1995

17. Social Media: Impact Why it’s Changed the Game

18. Marketing Starts at Behavior • Start: Core Behavior • Determine: How/Where we Communicate • Learn: The Buying Cycle Marketing Summation of 3

19. Human Behavior It has Changed!

20. Blackberry Cell phone Laptop Maslow’s Hierarchy of Needs Then Now… Facebook

21. Communication Has Changed…

22. One way vs. Two Way

23. Your own actions 1998 2008 Email Primary (Business) “Just email it to me Bob” Social Networking “Hit me up on LinkedIn” Go to www.mycatalog.com “Get Product Specs at…” Phone? • Phone Primary • Tell me about it • Fax Secondary • Fax me page of Catalog • Mail Tertiary • Send me Catalog

24. Observation: Have we made the Shift? “We goin’ to party (market) like it’s 1999”

25. Buying Cycle How we consume information and Research

26. Where we spend our time Source: ITA Toolbox/ Social Media Index via Web Strategist blog

27. Most Individuals’ Media Consumption is Dominated by Internet and TV On average, how many hours per week do you conduct each of the following activities? (Please type in the number of hours, if none type in ‘0’) JupiterResearch/Ipsos-Insight Individual User Survey (7/06), n = 4,182 (US only)

28. Time Spent in Week

29. Top Sales Influencers… • Internet 39% • TV 18% • Radio 12% • Magazine 3% • Newspaper 2%

30. So how does this compare with Marketing Spend? Percent of Budgets

31. The Future is Now Generation gap 2010 100% Internet High school Grads Customer Expectation Shift When and how I want AND NOW (like a teenage daughter) User will have complete control TV Print vs. Online Biggest Competitors will be the delete or back button

32. How we Market Brand, PR, Lead Gen and Medium

33. Brand: How this starts to affect brand • Not about the Brand Push; Emotional Brand Experience • No more asking for personal Data; Value Prop for partnering on Data • Handshake rarely happens first .. Interaction online will be first touch • Restaurant analogy & BA Example

34. Let’s take an British Airways for example Print Advertisement for New Sleeper service in NY Times Magazine Landing page www.ba.com/clubworld Overview high-end travel, but want to learn more about sleeper service … Click on Home page button … Lost in the morass of corporate site

35. PR: Blogs vs. Traditional

36. Readership of UGC Increasing with Older Adults; Creation Still Skews Young Which of the following activities have you conducted monthly or more frequently in the past year? (Select all that apply) JupiterResearch/Ipsos-Insight Entertainment and Media Consumer Survey (09/06), n=2,168 (US only)

37. KnowledgeStorm / Universal McCann Emerging Media Surveys Key Findings: Blogs & RSS Survey 80% of users surveyed read blogs at least once a month 63% said blogs are equal to or more credible than news outlets 56% said blogs are equal to or more credible than analyst reports Generally speaking, are blogs more or less credible compared to the following information sources? How often do you read blogs?

38. Social Media overlaps all areas Social Media Q3. In a typical week, what percentage of the time you spend online is spent on each of the following activities? JupiterResearch/Ipsos-Insight Entertainment and Media Consumer Survey (09/06), n=2,168 (US only)

39. Social Media: Who’s Using it? Closer look

40. Who is the Social Customer • Active & Passive • Loyal vs. Advocate • Consumer & Contributor

41. Who’s The Social Customer What do they Say? • I want to have a say • I want to know when something is wrong • I want to help shape things I find useful • Don’t want to talk to salesperson • Want to buy things on my schedule • I want to tell you when you are screwing up • I want to do business with Transparent Companies * Chris Carfi Blog

42. Breakdown of Social Customers * Source: Forrester Benchmark Survey

43. Social Media: What to do about it?

44. Well, not much so far… • 64% Joint Online & Offline experience for meaningful engagement • 84% have not started mapping out touch points • 95% personalized experience essential • But, 37% not doing any personalization • 32% of businesses “Fully” Engaged in Web 2.0 Strategy * BPT Partners & Information Week Competitive Advantage?

45. What are you afraid of…? How do I respond to that on our Blog? @!%#*

46. Top 5: Business applications • Blogs • Forums • Communities • Video Sharing • Wiki’s

47. Blogs • A blog is a user-generated website where entries are made in journal style and displayed in a reverse chronological order. • Examples of Success: • iLounge • HackingNetflix • StarbucksGossip

48. Forums • An Internet forum is a facility on the World Wide Web for holding discussions and posting user generated content, or the web application software used to provide this facility. • Success Example: • ItToolBox

49. Community (Social Networks) • A social network is a social structure made of nodes (which are generally individuals or organizations) that are tied by one or more specific types of relations, such as financial exchange, friendship, hate, trade, web links, or airline routes. • Success Examples: • LinkedIn

50. Wikis • A wiki (IPA: [ˈwɪ.kiː] or [ˈwiː.kiː][1]) is a website that allows visitors to add, remove, edit and change content, typically without the need for registration. It also allows for linking among any number of pages. This ease of interaction and operation makes a wiki an effective tool for mass collaborative authoring. • Example of Success: • Wikipedia