Category Archives: Privacy

Privacy Vs a Better Online Experience

A couple months ago I wrote a column about a potential showdown between privacy advocates and Web 2.0 supporters. I identified a crisis point being reached as behavioral targeting became more common and began influencing our search results. Of course, a large part of the functionality touted in Web 2.0 plans depends on the surrender of a certain degree of privacy.

My prediction was that it would case a temporary fuss, which would be picked up by some, but that for the vast majority of us, we would put aside our concerns when we realized the benefits of a better online experience:

“More and more consumer groups will launch protests. Politicians will sense opportunity and jump on their soapboxes. There will be a very vocal minority that will rail against this “Big Brotherism.” There will also be a group of advertisers that will continue to step way beyond the acceptable, using targeting to subvert the user experience, rather than enhance it, hijacking the user and taking them to places they never intended. This will add fuel to the fire. And because they’re the most visible target, the search engines will bear the brunt of the attack.

In the end, we’ll realize there’s much more pro than con here. Effective targeting will generally add to our experience, not take away from it. We’ll toy with trying to use a third-party privacy filter, but in the end, most of us won’t be willing to give up the additional functionality in return for maintaining an illusion of anonymity online. Much of the usefulness of Web 2.0 (I know, I hate the term too, but at least it’s commonly understood) will be dependent on capturing personal and click-stream data. We’ll give in, and the storm will gradually fade away on the horizon.”

Indeed, it seems that while the danger is certainly in the minds of privacy advocates and some legislators, most consumers don’t really care, despite the occassional horror story like the recent AOL debacle. Privacy Advocate Mike Valentine posted this comment after the column ran:

“I’ve been predicting the same approaching privacy storm for about 5 years now. After each breach of data in hack attacks, after ChoicePoint sold data to bad guys posing as customers (hmmm), after VA laptops are lost exposing veterans to identity theft, after AOL exposed private users search queries, and on and on and on. The storms never come, the public doesn’t care, the media reports the hacks, breaches, thefts, criminal activity and identity thefts and moves on because consumers simply don’t care until identity theft or public embarassment happens to them.”

Now, a new study from Choicestream seems to indicate I was on the right track. The number of respondents willing to share some information in return for a better experience rose fairly dramatically, from 46% last year to 57% this year.

graph1privacy

The number willing to let a website track their clicks and purchases in return for personalized content climbed from 32% to 43%.

graph2privacy

What’s interesting about this is that these numbers returned to the levels seen in the 2004 survey. 2005 definitely saw a heightened awareness to privacy issues that seems to be abating somewhat. But although consumers seem to be willing to trade off privacy, they do so grudgingly and with some concern. 63% of them are still worried about the security of their personal data.

I believe it’s a combination of convenience and blissful ignorance that’s keeping the privacy storm clouds from coming to a head. The reality is, like most things, we won’t impact the smooth sailing of our day-to-day lives unless we get burned. And then, we’ll be looking for someone to blame.

The Coming Storm: Search and Consumer Privacy

First published November 9, 2006 in Mediapost’s Search Insider

Earlier this week, in OnlineSpin, Seana Mulcahy wrote about two new complaints filed by consumer groups with the Federal Trade Commission. The shadowy subjects of tracking online behavior, analytics and targeting are outlined in the complaints.

Earlier this year, in an interview, I predicted a showdown between search engines and consumers around privacy issues. I suspect these two complaints could be the harbinger of the coming storm.

The Natural Convergence of Search and Behavioral Targeting

It makes all kinds of sense for the worlds of search and behavioral targeting to overlap, and the conjunction of those two worlds is a very powerful place indeed for the marketer. Behavioral targeting allows you to track and target potential customers based on their click stream. You can identify promising click streams based on sites visited and behavior on those sites. The odds of picking the right person at the right time to receive your message go up substantially.

Now let’s look at search. At some point in the buying cycle, which is mirrored by the click stream, almost all consumers will turn to a search engine to look for more information. This is a rather momentous point. At the earliest occurrence, it often indicates when the consumer switches from awareness to consideration. It’s when they become actively engaged in the act of purchasing, which puts them in a whole new mindset. From that point forward, they could turn back to the search engine at different times to assist them in the purchase. The key is that consumers who are using a search engine are very receptive to information about the product or service, because they’ve requested that information. Push turns to pull.

 

The Challenge with Search

The problem with search right now is knowing where the consumer is–at which touch pointIs it early in the cycle, near the beginning of the consideration phase, when consumers are compiling candidates for their consideration set? Is it somewhere in the middle, when they’ve assembled their set and are comparing features or looking for reviews? Is it when they’re ready to purchase? It’s almost impossible to tell from the query, because as past comScore studies have shown, there is often not a search funnel. The same query could be used at each point in the cycle.

Given this inability to disambiguate intent from the query, most marketers aim for the sure bet. They go for the purchase, because it’s much easier to track conversions and ROI. Do a search right now on any engine for “digital cameras” and look at the sponsored ads that appear. I guarantee they’ll be aimed at someone ready to purchase. Is this the query you would use if you had done your research and were ready to purchase one specific model? Would you even buy online? Probably not. But it is the query you would use if you were starting to consider your options.

You’re not alone. The marketers on the results page are missing over 80% of potential buyers by focusing on the less than 5% who are ready to buy now. It’s just not a good match-up for the advertiser or the consumer.

Enter BT

Now, if you were able to combine behavioral targeting with that all- important search touch point, you could serve a research-based ad if you knew at what stage in the buying cycle the consumer was, based on his online visits. You could take the guesswork of matching the message to the person. And finally, we could start to pull away from the pure direct response tactics that restrict the effectiveness of search. It’s tremendously powerful.

This is not something in the far-distant future. The mechanisms are already in place for search engines to track your online behavior. Tool bars, mini apps, personal search history. All of these can and do track where you’ve been. Everybody is being tracked to some degree.

But as Seana pointed out in her column, most of us are blissfully unaware of it. That’s because it’s been relatively benign to this point. In return for a handy tool bar that offers increased convenience, the ability to index your desktop and other added functionality, we just click the accept button without really reading what we’re accepting. Up to now, there hasn’t seemed to be any consequences. But in the background, the engines are quietly collecting terabytes of click-stream data. And the time is coming when that data will be put to use.

Privacy Storm Front

At first, it will be subtle and a little unsettling. The search ads we’ll be seeing will be targeted much more precisely. They will seem to speak just to us. It will be like the advertiser is reading our mind. We’ll be thrilled at first, but eventually, we’ll read an article somewhere that will explain the uncanny ability of the advertiser to give us just the right message. It’s because they’ve been watching us, tracking what we do online. And it won’t just be on search, it will be throughout the search engine’s advertising networks.

“Hmmm” you’ll say to yourself, “I’m not sure I’m okay with that.”

More and more consumer groups will launch protests. Politicians will sense opportunity and jump on their soapboxes. There will be a very vocal minority that will rail against this “Big Brotherism.” There will also be a group of advertisers that will continue to step way beyond the acceptable, using targeting to subvert the user experience, rather than enhance it, hijacking the user and taking them to places they never intended. This will add fuel to the fire. And because they’re the most visible target, the search engines will bear the brunt of the attack.

In the end, we’ll realize there’s much more pro than con here. Effective targeting will generally add to our experience, not take away from it. We’ll toy with trying to use a third-party privacy filter, but in the end, most of us won’t be willing to give up the additional functionality in return for maintaining an illusion of anonymity online. Much of the usefulness of Web 2.0 (I know, I hate the term too, but at least it’s commonly understood) will be dependent on capturing personal and click-stream data. We’ll give in, and the storm will gradually fade away on the horizon.

At least, that’s my prediction.

What Happens on the Road, Stays in the Blog

First published December 15, 2005 in Mediapost’s Search Insider

Heaven help anyone trying to lead an illicit double life on the convention circuit. Blogging and camera phones have turned us into a society of voyeurs. This is especially true in the search marketing industry. We are all content producers who publish our thoughts. During one conversation at a recent after-hours reception, we began keeping score–and realized that everyone in the conversation either had a blog or wrote a regular online column. Many did both.

It becomes even more amusing when you have one conversation over dinner at a show with a few friends, and within the next few days, all of you have posted online comments about the conversation, each from your own perspective. To find the truth, you have to triangulate the comments and discover that the substance of the conversation lies somewhere between the extremes.

This is a dynamic altering of how we communicate. The degrees of separation that divide our global community become short-circuited online. In one example, I wrote a column a few weeks ago about a conversation I had with Greg Jarboe about white hats and black hats. The event that sparked the conversation was a dinner he had with a black hat in Stockholm. A few days later, Greg was approached by someone in a coffee shop in his hometown about the column he wrote about black hat SEO. He had no idea what she was talking about, until he tracked it back to my column. Also, Danny Sullivan, in his blog, actually had me having dinner with the black hat, even though I was several thousand miles away from Stockholm at the time. Since that time, Greg has gone on to write about the same event in his blog. That one conversation has sparked at least a dozen blog posts and columns, all with slightly different takes on the actual event.

Somewhere in this observation lies something profound about the Internet. It changes the way we live. We now exist with one foot in the real world and one foot in the virtual. We are individuals, but we are also the sum of a million different parts that float around in the online world, and it’s usually search that connects those parts. We become the composite of other’s online comments about us. Our Google Doppelganger becomes a part of us, and vice versa.

Flori, my father-in-law, is an old-world Italian carpenter. To him, Gord Hotchkiss is the person who married his daughter, fathered his grandchildren, and who does something vaguely unexplainable with computers. We get along wonderfully, but our conversations center on our shared experiences: family camping trips, what my daughters are doing, homemade Italian wine, and why I’m out of town so much. Once, when I was on the road, he asked my wife why I have to speak at these shows. In an effort to explain, she Googled me. Up came about 16,000 entries, in almost every language, from every corner of the world. There was the online persona of “Gord Hotchkiss.” It was a side of me my father-in-law never knew existed. I was deeply embedded in a network of communication, and in part, that network defined me.

I find it (mostly) exhilarating when I meet new people at a conference and they’re already familiar with me because of my online presence. I tend to share a lot about my personal side, because it’s such an integral part of me. As one person said, upon meeting me for the first time, “I feel like I know your wife and kids, because you write about them.” So, my online persona extends to include my family. Through me, they’re developing a virtual presence. At this point, they’re not coming up when they Google themselves, but I assure them it’s only a matter of time.

I’m not sure we’ve really explored the consequences of this shift, but I know it’s earth-shaking in its importance. We are all now producers of content. We can all reach global audiences. We are judged by our thoughts, our observations and our intellectual mettle. We leave a footprint online. Search is the connector that introduces us to our audience.

Gutenberg’s invention of the printing press created a quantum change in the society of the 1500s. But there was still a physicality to printing. It consumed resources. It took time. Because of these physical restrictions, publishing evolved into big business, with its own controls and checks and balances. Distribution of one’s views did not come easily. Just ask any author who dreamed of getting on the best-seller list. Today, a blog post can take a few moments and no money. In a few hours, it can be picked up on a search engine. If it happens to rank well for a popular keyphrase, especially one that’s of immediate topical interest, it could attract thousands of readers in a few days.

It’s a sobering thought. Most of us feel in control of our own lives. We can be the person we wish to be. And the people who form opinions of us we usually deal with face to face. But online, people form opinions of you without ever meeting you. Our online personas rush beyond the bounds of our physical world. We hand control over our online persona to people that have no idea who we really are. They blog about us and expand our footstep, adding to the sum definition of who we are, without really knowing us.

In the old days, you could be your own person. Today, you belong to a global community. Anyone could be watching, anytime. And you thought Wisteria Lane was a tough place to keep a secret!