Effective online business means gathering data; consumers are understandably reluctant to share data, fearing it will be used against them. A great way for digital advertisers and marketers to avoid regulation is for the industry to proactively regulate itself, and to empower consumers and users with control over their own data. And that's happening.
The Federal Trade Commission (FTC) issued a data privacy report with recommendations in December 2010 with specific recommendations. The Digital Advertising Alliance (DAA) responded with self-regulation principles and a recommended accountability mechanism.
Who is the DAA?
The DAA comprises these heavyweight digital advertising/marketing organizations:
the American Association of Advertising Agencies (4A’s)
the American Advertising Federation (AAF)
the Association of National Advertisers (ANA)
the Direct Marketing Association (DMA)
the Interactive Advertising Bureau (IAB)
the Network Advertising Initiative (NAI)
Online Behavioral Advertising Principles
The Education Principle calls for organizations to participate in efforts to educate individuals and businesses about online behavioral advertising and the Principles. Example: This blog post.
The Consumer Control Principle to provide consumers with expanded ability to choose whether data is collected and used for online behavioral advertising purposes. This choice will be available through a link from the notice provided on the Web page where data is collected. Internet Service providers (including Internet access service providers and providers of desktop applications software such as Web browser toolbars) must obtain the consent of users before engaging in online behavioral advertising, and take steps to de-identify the data used for such purposes.
The Data Security Principle calls for organizations to provide appropriate security for, and limited retention of data, collected and used for online behavioral advertising purposes. Example: Processes to control access to and expunge consumer data.
The Sensitive Data Principle recognizes that data collected from children and used for online behavioral advertising merits heightened protection, and requires parental consent for behavioral advertising to consumers known to be under 13 on child-directed Web sites. This Principle also provides heightened protections to certain health and financial data when attributable to a specific individual.
The Accountability Principle calls for development of programs to further advance these Principles, including programs to monitor and report instances of uncorrected non-compliance with these Principles to appropriate government agencies. The CBBB and DMA have been asked and agreed to work cooperatively to establish accountability mechanisms under the Principles.
Multi-Site Data Principles
Last week, the Digital Advertising Alliance (DAA) announced “Principles for Multi-Site Data” - specifically governing data gathered on one site used by another site or organization.
The Multi-Site Principles call for self-regulation and accuntability codify existing industry practices prohibiting the collection or use of Multi-Site Data for the purpose of any adverse determination concerning employment, credit, health treatment or insurance eligibility. Like the OBA Principles, the Multi-Site Data Principles provide specific protections for sensitive data concerning children, health and financial data.
Transparency and consumer control for purposes other than OBA. The Multi-Site Data Principles call for organizations that collect Multi-Site Data for purposes other than OBA to provide transparency and control regarding Internet surfing across unrelated Websites.Collection / use of data for eligibility determination – The Multi-Site Data Principles prohibit the collection, use or transfer of Internet surfing data across Websites for determination of a consumer’s eligibility for employment, credit standing, healthcare treatment and insurance.
Collection / use of children’s data. The Multi-Site Data Principles state that organizations must comply with the Children’s Online Privacy Protection Act (COPPA).
Meaningful accountability. The Multi-Site Data Principles are subject to enforcement through strong accountability mechanisms.
I frequently give presentations on the significance of social media, and strategies for business adoption and use. Gary Vaynerchuk, author of "Crush It" and "The Thank You Economy" gives similar presentations, to larger audiences.
I met Gary at South by Southwest a few years ago; he's a serial entrepreneur, now a social media consultant to large brands; he mastered social media through running, among other things, a wine business. I find Gary's style a bit sleazy, but I appreciate his knowledge and delivery, and he's got social media dead-on right. In this presentation, he is more direct and clear than I've ever seen him.
Highlights (I'm liberally paraphrasing here):
Social search will overtake SEO.
Near-field communication (NFC) will again transform how we do business; your mobile phone will deliver location-related offers based on recommendations and activity from your trusted social network.
Nobody cares about privacy, and in related news, without privacy everybody finds out what you're up to, so be good, ethical, and add value.
He nails the Inc. 500 crowd for not monitoring the social dialog for their brands.
He dismisses the notion that we need to prove the ROI of social, then turns around and shows that demonstrating ROI is more possible with Social than with other forms of advertising/marketing.
This is a culture shift, and buckle your seat belts, because there will be many more, coming at us faster.
I find myself evangelizing social media a good bit, and I was gratified to learn that Gary runs into the same misconceptions and arguments against social media that I do. I jammed on hearing Gary address many of the same objections and misconceptions.
I'm indebted to Jennifer Navarrete for making sure I didn't miss this.
If you're offended by profanity, give the clip a miss, it's got the f-bomb and several other curse words.
It's long. But I found it worth listening to the whole thing. The end is particularly good, so if you're going to bail out, listen to the last Q&A.
Let me know what you think. Have you read his two books? Thanks to Jennifer Navarrete for pointing this out to me - I'm grateful!
If you need this kind of talk delivered to a business audience – minus the profanity – I'd love to hear from you.
My dear friend Jennifer Navarrete of Brewing Media is the founder of NaPodPoMo, the National Podcast Posting Month, which is in turn based on NaNoWriMo, the National Novel Writing Month. The idea is, for the month of November, create ONE podcast every day, to get yourself into a routine, convince yourself it isn't that hard, and make enough progress to prove you can do it!
I've always intended to podcast, but kept stopping myself. Here are some of the ways:
I need a real microphone.
I'm not dressed for a video today.
I don't have the right equipment.
I can't decide which service to use to distribute it.
I need to make time to plan out a whole series.
Cinchcast took away my barriers - a simple iPhone app, from which I press "Record", talk to it, and then press Post, with the option of posting to Facebook, Twitter, or straight to my blog. It really WAS a cinch.
And Jennifer took away my barriers with the simple suggestion of "Just try it." Thanks for being a great role model and coach for fearless adoption and "fail fast" methodology.
Your Invitation to Firecat First Friday
Because I'm geeked about our upcoming Design Thinking workshop for Firecat First Friday, that's the subject of my first-ever Podcast - your invitation to come out, try coworking, and attend a free, high-value seminar that will get your creativity flowing.