With the recent Facebook fiasco, privacy is yet again coming to the forefront of users’ minds.  As Scott McNealy said, “You already have zero privacy - get over it”.  And yet, we hope that that is not true.

On my personal laptop I restrict third party cookies and am selective about the sites from which I accept first party cookies. I accept first party cookies when I perceive that there is a benefit to doing so.  Because I don’t see the benefit in third party cookies, I never accept them.

I am willing to trade privacy when I am receiving a valuable service in return. Thus, I accept cookies from Amazon because of the perceived value to me — the ease in ordering, the suggestions for additional purchases, and the ability to add to my wish list. However, I decline first party cookies from a running website that requires cookies. The website serves up running routes in my area but I don’t value this service. Yet, the website will not function unless cookies are enabled. It frustrates me whenever I forget this fact and try to measure the distance I ran. As a result, I typically go to this site once or twice a year by mistake. By restricting access, the website is trading off brand awareness in the hopes of better measurement and personalization of content. I personally don’t think the trade-off is worth it.

I believe that users should have the ability to turn off and on cookies as they wish. Further, there needs to be more education about cookies and about a user’s digital footprint in general, particularly with the advent of behavioral targeting. I have provided a link to a Wikipedia page but perhaps an example would be best. Companies can use data from your cookies to serve up targeted ads. Providing you with ads that are targeted to your needs and preferences sounds great. But what if those ads are wrong because you share a computer with someone else for example? For some this could be annoying but for others it may be offensive. There is also the question of who has access to that data and how long it will exist. Further, what if your digital footprint is combined with your off-line behavior?

Personally, I think that advertising companies, in particular, should be required to ask for permission to use your data for behavioral targeting purposes similar to opt-in requirements for e-mail marketing. Best practices calls for consumers to be considered opt-outs for e-mail communication unless they expressly opt-in. Requiring the same for behavioral targeting will encourage advertisers to educate users in the hopes of increasing opt-in rates. In the US, the Federal Trade Commission (FTC) is advocating self-regulation but I think they should push for express consent by users. Most users don’t read privacy notices and those that do find that they are usually full of legal jargon making them difficult to understand. There’s a report from the FTC called Protecting Consumers in the Next Tech-ade: A Report by the Staff of the Federal Trade Commission from March 2008 in case you want to read more about it

The question I am increasingly asked is how do you measure social media and what is its ROI?  Given the economy there has been an increased demand for accountability and measurement.  The question is how do you apply this to a channel that is about brand awareness? 

There is the question of source material.  In many cases this translates into what web sites do you follow?

1. Your company web site(s)
2. Social media web sites (e.g., Facebook, Twitter)
3. Individuals’ personal blogs

What metrics do you measure?  Below are just some ideas.

1. Number of tweets
2. Number and ratio of positive comments
3. Number Facebook fans and Twitter followers
4. Links to personal sites that fans and customers have added to their web sites and blogs
5. Level of engagement with your company web site

Lastly, how do you establish causality?  It is difficult to determine if events in the social space are affecting purchasing behavior in the bricks and mortar space.  As my Statistics Professor said so often, “correlation does not mean causation”.

One of my clients is focused heavily on e-mailing his customers.  However, it is only part of the equation.  Consumers are increasingly online 24 hours a day, 7 days a week.  Yes, they are still checking e-mails but they are also on Facebook, Twitter and blogs. 

It used to be that the question was direct mail or e-mail?  Now the question is not what channel to use but rather which channels to leverage.  The direct marketing strategy needs to consider traditional direct channels, such as e-mail and direct mail, as well as social networking sites.  The need for integration of branding and messaging has become even more important as consumers have a multitude of ways to learn about your company and its products and services. 

The other challenge with the plethora of channels that have evolved is that consumers are bombarded with information.  Some are abandoning their e-mail accounts because they are overwhelmed by their inboxes.  Others ignore their inboxes in favor of communication channels they control.  I don’t bother sending my sister e-mails anymore because they disappear into the black hole that is her inbox.  However, she will respond instantaneously to a text message and will e-mail me on occasion, when it is the best channel for her to communicate with me.   

As marketers, we need to go where our customers are and offer them relevant and honest information.