Who's got your data? And should you care?

It is easy to collect data about who is doing what online.

Google collects data about all your searches; it masquerades as a service, storing your search history for example, but it gives them a huge database of user activity on which to base their product development.

Others are collecting data so that they can serve ads that are targeted to your online profile. Facebook have recently faced a community backlash for it and have revised their policy (Guardian article). Ad networks are aggregating data from their sites so that they can extend their targeted inventory, re-inventing their run-of-site inventory as behaviour targeted. And now ISPs are collecting behavioural data (Clickz article).

But why are they doing it? It is all about adding a premium to the available advertising inventory. For example, in the past if an advertiser wanted people who were interested in cars, they would have to buy inventory from a car site. Now they by ads that are on other sites, but only when they are being looked at by someone who has recently been on a car site. This is known as behavioural targeting.

We know the upside for the companies collecting the data; they are making more money. But what does it mean for you. On the one hand, the Facebook backlash people would say that it is infringing their Data Protection rights. But on the other, as represented by those profiting from the activity, it means that you get ads that are more relevant to you which is a useful service. Imagine a magazine where every advert you saw was for something you'd been thinking about buying! There would be plenty of people who'd pay for that, especially if it included some good offers.

Like it or loath it, it will happen more and more. There is evidence that the youth culture is embracing it and accepts it as a part of live. Do you?

The demise of DRM

Sony is the last of the big four music labels to offer music unrestricted by Digital Rights Management for download from Amazon.com.

This is a clear demonstration that you need to understand how the Internet changes the landscape for your business. DRM ran against the grain of the Internet, it discouraged sharing and focused on profit. The music companies are discovering that the opposite is better, encourage sharing and the profit will come.

PS - see 2 blogs down for how the initiative is being taken by some.

In the mood

A recent AOL campaign ran with the following statements:

• The internet is over taking other media as a destination for relaxation, with more users now using the internet (60%) for downtime than the radio (41%), TV (58%) or newspapers (50%).
• However, the study shows that despite the majority of consumers (55%) choosing the internet out of work to ‘relax’, few describe the experience as comforting (8%) or safe (6%).
• By understanding the online consumers' minds and responding with appropriate messages, advertisers can build a more engaging dialogue with their audience and have a better chance of initiating a purchase decision, which, unlike other media can be made immediately online.

The first statement is interesting, the second subjective (what were the questions and alternative answers?) and the third unrelated! It seems to be a statement that could apply just as well to any marketing.

But I guess the message that they are getting across is that knowing who is looking at your advertising is only half the picture. You also need to know what state of mind they are in when they look at it. And as AOL has a home / entertainment based audience, they would say that their audience in more likely to be in the mood / position to be marketed to.

The opportunity of an online launch

Paramount Pictures Digital Entertainment's forthcoming 'Jackass 2.5' movie is to be released entirely online from next week for free, in what is believed to be the first time a major studio has agreed to promote its work without the aid of cinema.

There is a catch, which is likely to be generating some return for Paramount as fans will have to download the Microsoft Silverlight media player in order to take up the "free" offer. But it's certaily very cheap.

This follows Radiohead's online launch of their album In Rainbows. They took an interesting decision, to allow fans to put their own price on the download. In theory you were allowed to select £0.00, but I tried that and couldn't get it to work. Make of that what you will, but I'm sure they generated an incredible penetration and a large number of new converts to their music. I'd love to know the numbers, if anyone has them?

These are great examples of the opportunities the web offers to those who are prepared to think outside the usual constraints. By changing their model to one of low value \ high penetraion at launch, leaders in 2 industries that have spent most of the online revolution predicting that the end it nigh are finding that there is real potential online.