Web users are becoming wary of the online ad industry when it comes to data privacy. Marc Guldimann, founder and CEO of Enlinken, looks at how to bring back confidence in the online ad world.
Consumers, governments and marketers are becoming wary of the online advertising industry. Web users are realizing that personal information is bought and sold without their permission. Policy makers are stepping up to defend their constituents’ rights to privacy.
Meanwhile, brand managers are still waiting for the promised yields from online behavioral advertising (OBA).
Before resorting to legislation, cookie blocking or giving up on the potential of OBA altogether, we should consider a simpler solution to the host of issues surrounding data-driven marketing.
Give consumers a seat at the table.
At Enliken, we call this solution Good Data: putting consumers in control while still allowing the industry to enjoy the efficiencies of targeted advertising.
Good Data means:
Opt-in. The most important aspect of Good Data is that users choose to share willingly. According to a study by PwC, 73% of adults are willing to share data for “benefits [they] get in return.” 80% of adults will share personal information with a company that “asks upfront and clearly states use.” With the right incentives and a little politeness, spying isn’t necessary.
Broad and Complete. No matter how great its quants are, no company knows more about you than … you. Better data beats better algorithms, every time. Good Data is valuable because it comes from you, not from what a website thinks it knows about you.
Less is more. Unfortunately, some people in online advertising think we should collect as much data as possible. Trackers claim hundreds of millions of profiles, each thousands of data points deep. Good Data means collecting the minimum data required to realize a marketing goal and discarding that data as soon as possible.
Simplicity. Internet privacy tools have to be simple or they won’t get used. Good Data means people should be entitled to continue to use the web the same way they always have, without having to compromise their privacy.
Good Data is what the online ad industry needs to realize the promise of data-driven marketing unencumbered by regulation. With Good Data, all the important players in the advertising ecosystem stand to gain.
Consumers win because they wrest control of their data away from data aggregators. When consumers begin selling the information they are comfortable sharing, marketers lose incentive to buy data from those who gather it surreptitiously through back channels. Consumer’s also benefit from seeing more relevant advertising and by capturing some of the value of their data when they sell it themselves.
Publishers win because their ads generate more revenue. Websites, app developers and content creators will see more demand (and higher prices) for their ad slots as better information about their audience helps marketers target more efficiently.
Advertisers win from of the efficiencies gained by up-to date and complete data – they now have a 100% opt-in picture that includes search, ecommerce and social – all points of an individual’s digital life. Advertisers can show the same ads without feeling like spies. With opt-in data, advertisers reach customers who understand why they’re seeing a particular ad, not customers wondering how an advertiser knows their interests.
Consider the following ‘real-life’ analogy: a company digs through your trash and says, “Hey! We found an old pair of running shoes. Would you like to buy a new pair?” Pretty intrusive, right? With Good Data that conversation becomes innocuous: “Thanks for telling us about your interest in running, let’s discuss the best shoe for you.”
The French firm Alenty has done a study that shows effective digital branding takes more repetition and longer exposure than current OBA campaigns drive. In order to deliver that number of impressions cost effectively, audience segments must be as narrow and accurate as possible. Opt-in, complete, accurate data shared by consumers makes these segments achievable, without requiring privacy compromises.
Of course, there is one loser in all this – it’s the companies who gather data surreptitiously. Incidentally, they’re the small portion of the marketing industry that creeps people out and gives us all a bad name – no one is going to miss them. Auf Wiedersehen bad data.
By Marc Guldimann
Founder and CEO
Enlinken
Marc Guldimann is founder and CEO of Enlinken, a business that allows consumers to monetise their data and protect their privacy. He’s speaking at nugg.ad’s inaugural Data Days conference on 1st October in Berlin (www.data-days.com)
