The Ethics of Online Privacy

by Cassandra Stoklosa on April 7, 2012

As someone who is pursuing a career in online marketing, issues around ethics and privacy come up quite frequently. It’s been especially difficult for me to reconcile what I believe because my political and personal views on what I think are appropriate are at odds with the information I’d like to be able to work with. I spent a few days thinking about these issues and found a few articles that helped me outline my internal debate about online privacy, which I’ve included below.

In the first dotcom bubble, we learned an important lesson – a sustainable business model can’t be built on free. This led to the rise of the advertising model. Give away your products to users for free, but sell their captive eyeballs to brands and agencies looking for new ways to push their message. It wasn’t long though before these companies figured out they had access to something even more valuable than money – personal data.

This article from today’s Wall Street Journal – Selling You on Facebook – explains how Facebook apps are grabbing far more data than most users realize. It also spells out a truth of the Internet era that most users would like to forget, if you’re not paying for software with money, you’re paying for it another way.

“This appetite for personal data reflects a fundamental truth about Facebook and, by extension, the Internet economy as a whole: Facebook provides a free service that users pay for, in effect, by providing details about their lives, friendships, interests and activities. Facebook, in turn, uses that trove of information to attract advertisers, app makers and other business opportunities.”

And it’s not just on free websites now where users have to worry. Another Wall Street Journal article – Apple, Google Collect User Data – discusses how mobile phone manufacturers are using these devices to capture GPS locations and WiFi data. These are devices that many users paid for, yet still seem to be paying for again with personal data.

For years marketers justified this type of data collection with the fact that the data was anonymous. Yet new companies like RapLeaf are now attaching names and email addresses to the data they have on file. So if the data isn’t anonymous and if you’ve already paid for the service, have marketers gone too far?

Yes

No

Many online companies have gone too far. Companies like Yahoo release quotes like “Data that is shared with Yahoo is managed carefully,” for the Wall Street Journal, and then turn right around and continue to be on the leading edge of behavioral targeting. Even Google’s mission – to organize the world’s information and make it universally accessible and useful – showcases a blatant disregard for intellectual property.

While marketers may not be using this data for evil, by paying for and encouraging the collection of it, they are enabling future generations of evil-doers. Today may not be the day where a real crisis comes from it, but on the day that it happens, people will look back to marketers of today and blame them – very similarly to how people view the ibankers who made millions off of credit default swaps.

If there is any hope of righting the course, marketers must set standards for collecting and using personal data now – and do so voluntarily. Maybe if advertisers step up and do the right thing before they are regulated into it, they can restore some of the trust in messaging that they’ve lost.

It is America’s sense of entitlement that has caused these issues and marketers aren’t doing anything wrong. Consumers don’t want to pay for software and services with money, but they still want access. Facebook didn’t build itself – millions of programming hours went into its creation – and those developers don’t come cheap. Marketers provide a valuable service in the digital ecosystem by paying the cost that the user won’t. This has enabled a multitude of innovation that otherwise would not have occurred.

Users must also bear responsibility for their lack of common sense and basic safety. Would you tell a stranger you meet at a bus stop where you leave and your weekly schedule? Then why put it on Facebook?

Finally, to some extent, a personalized world is a better world. In a one-size-fits-all world, we all have to listen to messages about fishing equipment and Honda CRVs, even though we might not fish or be in the market for a car. The tailored messaging that we get when we give up a little information about ourselves is more informative, entertaining and helpful.

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Creativity and Innovation

by Cassandra Stoklosa on March 25, 2012

For Customer Insights this week, we were asked to read and reflect on How to Be Creative, an article in the Wall Street Journal that discusses new studies which show that creativity may not be the magical super-power we non-creative types have come to believe it is. New studies have shown that the reason creativity may be so difficult is because it’s not formulaic, like other skills we learn. While taking a break and having a beer may work best with one type of problem, continuing to think about something relentlessly may work for another. The good news, the author states, is that our brain tends to sense when we’re on the right track and when we’re not, we just have to learn to listen to it.

Having gone from a consulting job to an advertising job pre-business school, I completely agree with the author – creativity is something you can get better at. I don’t, however, think it’s something you can do alone in an organization. To be innovative, organizations have to help their employees by changing the constraints of the firm to allow for creativity. The three main factors organizations need to consider when looking to innovate are environment, motivation and team dynamics.

Reuben McDaniel’s class on Managing Complexity helped me to understand the difference between productive and unproductive working environments. To quickly summarize the class, organizations that operate on the principles of a complex adaptive system (CAS) often outperform firms who view the organization as a deterministic, machine-like structure. Some of the ways that a firm can embrace the ideas of a CAS are allowing for the firm to adapt, people to learn and improvisation to occur. These things can only happen in firms that are accepting of risk-taking and mistakes, yet carefully dissect and learn from errors. In fluffier terms, they create a “safe-space” for employees to experiment with different solutions.

In my past work experience, I have been in both types of organizations (creative vs. uncreative). The creative organization embraced autonomy for their employees and didn’t under staff projects, this allowed us the time and power to create the environment described above. In the uncreative organization, we were overloaded with work and deadlines, leaving us little time to self-organize and adapt to the changing needs of our clients. Start-ups are often guilty of this innovation killer. Books constantly recommend that firms start “lean,” but when this is taken to an extreme, employees spend too much time keeping their head above water and not enough time making adjustments to their course.

Additionally my previous work experience has shown me that I am most creative and innovative when I am very motivated to excel in my role. When I didn’t see a future at the company, my job became more task-oriented. I saw each assignment as something to finish rather than something to think about. As long as the work got done, it didn’t matter if it was wildly innovative or creative. In fact, even if I had an idea of how to improve it after I turned it in, I wouldn’t bother going back to it because I didn’t want to add more to my to-do list. When I did see a future at the firm, however, I saw each assignment as an opportunity to impress my bosses with my abilities and could make even the most mundane assignments come to life. I often went back to make notes on assignments that I had completed and wouldn’t hesitate to stay late to perfect something. More importantly, I felt inspired and excited to continue to work on the projects – which improved my ability to innovate.

Finally, when the creative work needs to be done by a team, the social dynamics of the group play heavily on its success. I believe that common goals, complimentary skills and mutual respect are the building blocks for creativity in a group. Common goals are necessary to determine where the group is going to focus their resources. It also can help to shift focus from someone’s “part” to the success of the group as a whole. By keeping everyone’s eyes on the larger goal, each individual is more likely to help others or think beyond their own assignment. At the same time, expertise in a given field is often necessary and bringing together experts from a variety of fields allows for this expertise but also allows for outsider views. Finally, while team members don’t have to be friends, they need to respect each other. When groups disintegrate into chaos, it’s often because of a lack of respect. When, however, there is solid respect and trust, each group member is more likely to speak up and take risks than when they feel their position in the group is threatened.

When I re-read this entry, all of the ideas I discussed seem obvious, yet I rarely see them executed on in real-life. I think this is a barrier to creativity in itself. The things we need to do to set the stage for being creative are so “obvious” that we just assume they are in place, when they are likely not. Until managers are given the go-ahead to spend time on fluffier aspects of the firm, the organization will be stuck in a task-oriented mind set.

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Research Gone Wrong: Project Impact

February 21, 2012

In a few months, I will be moving out of Austin and joining the marketing team at Walmart (hopefully in their advertising group if any of you decision-makers are reading this)! But even before I agreed to join them, I had followed Walmart as a fascinating company in the marketplace. I have lived through the [...]

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Studying Social Media Use

February 12, 2012

As marketers, we learn to conduct a variety of market research. Most of these methods, like surveys, focus groups and interviews, often require us to formulate questions for the subject to respond to. What we often learn, however, is that the customer often doesn’t know the answer to our question or answers it in a [...]

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Personas for Segmentation

February 4, 2012

The following is a persona based on the Empathy Map for Customer Insights class. An immigrant from Mexico and father to nine children, Max has spent most of his life working two jobs to provide for his large family. Having been an active worker his entire life, he equates being productive with being successful. When [...]

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Customer Insights

January 22, 2012

This semester I’ll be writing regular blog updates for my class on Customer Insights. New posts coming soon!

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Walmart Culture

September 15, 2011

For the past two days, I’ve been immersing myself in the mystical force known as ‘Walmart culture.’ While one might find it difficult to describe on first encounter, after two days I’m ready to share some insights about what makes this company tick. Hurry They move fast here – very fast – and with that [...]

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Customer-Centric Organizations

September 11, 2011

The topic for our Marketing Fellows class last week was customer-centric organizations and to help lead this discussion, J.B. Raftus, CMO of GSD&M and Kurt Kane, CMO of Pizza Hut paid us a visit. They both brought an interesting consumer problem for us to investigate. Below is a summary of the issue and some of [...]

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Best Mobile Offering: Sephora

August 22, 2011

This is the fifth & final installment of best-in-class digital brands from this post on my internship work. With as good as Sephora’s mobile offering is right now, it’s almost not fair to compare them to anyone else. Yes, they are a retailer but even without the ability to buy via mobile, their site would [...]

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Best YouTube Channel: The Home Depot

August 20, 2011

This is the fourth in our installment of best-in-class digital brands from this post on my internship work. For our best-in-class YouTube example, I decided to pick a boring example. Often times when we look at great digital executions, the creativity gets in the way of focusing on the web principles that made it successful. [...]

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