Privacy And Online Data Collection

Selecting the right list, making a good offer and writing persuasive copy is as important today as when I started my direct marketing career thirty-some years ago. That much hasn’t changed.

But one thing that has changed is how we target our audience.

As recently as the mid-1990s, direct mail was the only way to reach customers one-to-one, but new online technologies quickly changed that.

Thanks to new online tracking technologies--and the vast amounts of demographic and behavioral data they collect--marketers now have a new way to deliver their message to consumers.

By taking these vast databases of online information and cross-referencing the information with data collected off-line—from warranty cards, bridal and birth registries, magazine subscriptions, public records, purchase histories, etc.—marketers can now use statistical analysis to make assumptions about the likelihood of a prospect or customer responding to a particular offer.

For the marketer, this means using advertising dollars more effectively. In return, the consumer gets a better and more personalized browsing experience plus free Web content and advertising messages that match his or her interests.

Yet much of this information—gathered as the consumer navigates the Web—is collected without the person’s knowledge. And this is the source of the controversy.

Once online data collection was limited to “cookie” files that recorded which websites people visited. But new tools now scan what people are doing on a Web page and, in real time, can access their location, income, shopping interest and even medical conditions.

• According to the Wall Street Journal, each of the 50 most popular websites installs an average of 64 tracking files on the web browser's computer--typically without the person's permission or knowledge.

• More intrusive tracking tools can record your keystrokes as you type online and then secretly forward the text to a data collection company.

• Other tracking tools refuse to die and re-install themselves after the computer users try to delete them.

Because the data collected is not connected to your name, advertisers claim that they're not violating anyone's privacy. And, they claim to be performing a public service because they can use the data collected to give Internet users a more rewarding experience by providing free content along with advertising messages that match the consumer's interests.

Direct mailers have been collecting information on consumers for years so there's nothing new about advertisers gathering personal data.

But there’s enough concern about safeguarding privacy that Congress is now considering new laws to limit online data tracking. And the Federal Trade Commission is preparing new privacy guidelines for the industry.

And unless marketers act quickly to address consumer's concerns about privacy, the politicians and government regulators are virtually certain to act.

Here are 3 simple steps marketers and online data collectors should take to answer consumers' concerns:

1. Inform Internet users of the options they already have with their Web browser's security settings.

2. Tell consumers straight up—not deeply buried in a Privacy Statement—that the company wants to give computer users the most relevant content and that requires a “cookie” to be placed on the computer. Clearly explain how the cookie works, what information it collects and how that information will be shared.

3. Make it easy for consumers to opt out if they don’t want to be involved in in the company’s online data collection.

Equally important, help the consumer realize the trade-offs of data collection. By allowing advertisers to obtain information as they navigate the Web, the consumer gets free and valuable content along with advertising messages relevant to their interests.

Like direct mail, successful online advertising is built on trust.

And when online advertisers and consumers discover that they have shared interests, we’ll discover that overcoming privacy concerns about data collection can be as easy as telling the truth.

By: Hugh Chewning

Article Directory: http://www.articledashboard.com

Hugh Chewning is a direct marketing specialist proving copywriting, strategy and consulting for consumer, nonprofit and business-to-business groups. You can visit his blog, Direct Mail Insight and sign up for free, practical and easy-to-use tips to boost your response. And, for information on his free, no-risk package critique visit his web site, www.cdmdirect.com