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As we interact online, we leave a breadcrumb trail of data – both personally identifiable and anonymized.  This information can be pulled straight from data shared – name, age, or address – or can be extracted from browsing habits and usage patterns.  So what restraints are put in place to stop unchecked collection and use of this data?

One touchstone used by authorities in determining data-related policies and definitions is the concept of “unfairness.”  This term is used prominently in the FTC Act and is part of the fabric of consumer protection in the United States.  In addition, unfairness is being used in policymaking and enforcement efforts to determine what types of data collection, storage or use may be impermissible because conducted or structured in such a way that do not adequately protect consumers from harm.Continue Reading Brand Activation Association Marketing Law Conference – Data and Unfairness

Madison Avenue is a hotbed for creativity and innovation. The evolving nature of the digital world means new opportunities and platforms, and also means that agencies are constantly pushing the envelope to meet new client needs, develop new campaigns, and rise to new challenges from global competition, the economy, and the like. The constant change that agencies are moving with is what has propelled the creative industry forward all these years.

 The Way I See It

  • I see more agencies successfully melding creative and data to meet the needs of clients and deliver the type of advertising and marketing campaigns that build upon the new trove of consumer data to frame brands in a positive light.
  •  I see competition in all industry segments constantly growing, with new brands launching all over the world, and each agency being forced to develop creative that both trumps competition in its segment and also stands out for consumers in terms of advertising.

The Way The Industry Sees It

I sat down with Peter Krivkovich, Chairman and CEO of integrated marketing communications agency Cramer-Krasselt, to discuss the industry and the state of today’s agency.

Cramer-Krasselt’s business model is built on the idea of integration with a constantly growing range of disciplines, from creative to public relations to CRM. How do you think this notion of integration plays into your work?

Integration is a highly over-claimed word. The question is not whether everyone has access to those various disciplines – the better question is how does everyone have access to them. If they are run as separate profit centers, separate profit and loss statements (P&L) with the people heading them up having separate budgets or separate revenue-based bonuses, then it can’t possibly result in sustained unbiased contributions to a marketing solution. The former is more akin to the old corporate world conglomerates. And they didn’t work out that well – few synergies beyond a revenue pile-on. Integration plays into our work from inception. Because we are outcome – rather than output – driven, because we have no profit-center walls between people, we can have a diverse group of thinkers around the table minute one, with no discipline politics agenda biasing a solution. It’s never about simply checking boxes – it’s all about connection points that will drive results and that require multiple disciplines in constant motion and in constant sync.

For any creative firm, there is a constant pressure to show return on investment (ROI) and to harness data to drive results. How do you think data has changed the role of advertising?

Data has certainly made us smarter about the people with whom we need to connect. If we’re smarter about them we can get closer to them and be more relevant to them. And, of course, data – big or small – helps us optimize our approach in ways we never could before. We’re much more real-time now. It’s an exciting development, and really just beginning. But like integration, it’s also a terribly over-used word – and more importantly, data is a misused one.  Getting consumer information is no longer difficult, it’s prolific. Knowing which data leads to genuine actionable insights is. That’s where we concentrate our talent. Not on data compilation and output, but on what specifically will lead to an outcome for what’s next.

Continue Reading Breaking the Traditional Agency Model in Today’s Data-Driven Economy with Cramer-Krasselt’s Chairman & CEO, Peter Krivkovich

In 2004 – the inaugural year of the industry’s biggest event, Advertising Week – Facebook was launched as a social networking site open only to Harvard students.  Now ten years old, Advertising Week – like social media – has seen many changes and, more importantly, has shaped critical conversations driving change in the advertising industry in the past decade.  Advertising Week now has its very own app, not to mention too many hashtags to count.  With dialogue and events on the most important topics in the industry, featuring many of the industry’s biggest innovators, movers, and shakers, Advertising Week is the most important week of the year for everyone on Madison Ave and beyond.

The Way I See It

  • I see an event that has grown vastly in the past ten years, mirroring the growth and innovation that the industry has achieved, to present hundreds of events, discussions, panels, and live case studies  on advertising’s most important issues.
  • I see a week of creativity and innovation that is truly unmatched.  With some of the brightest minds in an industry that is notorious for driving change faster than you can say, “Advertising Week is a hotbed for big ideas.”
  • For Advertising Week’s tenth year, programming is right on point for what will shape advertising moving forward, with mobile, data, video, and innovation tracks.  With a session called “Will Robots Ever Cut Your Bangs,” it’s safe to say that Advertising Week is looking toward the future.
  • I see the industry’s biggest leaders gathering in New York City to share and discuss the latest ideas, creations, and technology that are shaping the future of the industry.

The Way The Industry Sees It

I sat down with Matt Freeman, the Chairman of Advertising Week and Operating Partner at Bain Capital, to discuss all the details of Advertising Week’s tenth year.

It’s hard to believe Advertising Week is in its tenth year.  The industry has experienced a lot of change in this past decade – the advent of smartphones, Twitter, and YouTube, to name a few.  How do you think this year will differ from others in terms of programming and topics?

Data has truly become a central player in marketing – as is reflected in the strong presence of technology and analytic companies this week. The ability to use data to unify and optimize a brand’s connection to consumers – increasingly in real time – may be the most dynamic sector of marketing today, and it is changing all facets of the business. This data trend not only makes for exciting new capabilities, but also for a more diverse set of talents and conversations – ultimately a great strength for our industry.  Also, Pamela Anderson will be doing a Q&A. So, to summarize: data and Pam Anderson.

What role do you think this week plays in the industry?

Advertising Week is a unique chance for our industry to come together each year for both celebration and (even more importantly) advancement.  Our business is replete with award shows, but Advertising Week is a chance to celebrate the best and brightest aspects of marketing in the interest of education and advancement.  From promoting diversity to attracting and developing young professionals, the week is fundamentally centered on the long term health of advertising – in turn, a vital driver of our economy.

Continue Reading A Decade of Advertising Week

The Digital Advertising Alliance (DAA) recently issued guidance explaining how its Self-Regulatory Principles for Online Behavioral Advertising and Multi-Site Data apply to certain types of data in the mobile space.  The DAA’s Self-Regulatory Principles are a direct response to the Federal Trade Commission’s (FTC) call for advertising industry self-regulation in the digital space.

The DAA clarified that its Self-Regulatory Principles are applicable to three newly-defined classes of mobile data: (1) data collected from a particular device regarding app usage over time on non-affiliated apps (Cross-App Data), (2) data about the physical location of the individual or device (Precise Location Data), and (3) calendar, address book, phone/text log or photo/video data created by a consumer and stored on a device (Personal Directory Data).  In addition, the DAA reaffirmed the applicability of the Self-Regulatory Principles to the collection of data over multiple sites (Multi-Site Data).   Significantly, the DAA acknowledged that it may not be feasible to comply with the Self-Regulatory Principles on mobile devices in the same manner as on desktops.  For example, devices with small screens might make it difficult to provide notice of Multi-Site Data collection on the same webpage where this data was collected.  In such instances, the DAA stated that notice would be acceptable as long as it is “clear, meaningful, and prominent.”

Data collection for operations and systems management, market research, product development and reporting for ad delivery purposes are all exempt from the Self-Regulatory Principles’ notice requirements.  In addition, de-identified data that does not associate or connect an individual with a particular device is carved out from certain compliance obligations.  Note, however, that none of these categories of data may be used to determine eligibility for employment, credit, healthcare treatment or insurance.

Notably, the DAA made clear that the new guidance is in an “implementation phase” and that, during this phase, the guidance will not be in effect or enforced by the DAA.  However, once the DAA announces that this new guidance is effective, it will begin to enforce any non-compliance through its accountability mechanisms.

The Way I See It

In the futuristic world of Minority Report, Tom Cruise’s character walks into a Gap clothing store; his eyes are scanned and a 3D hologram of a saleswoman welcomes him by name and inquires about his satisfaction with his previous Gap purchases.  The movie is set in 2054, but this scene may not be too different from the world we live in today.

Retailers such as Nordstrom, Family Dollar, Benetton and Warby Parker are testing new technologies that track customers’ movements throughout their stores by following the wi-fi signals from customers’ smartphones.  As part of a movement to gather data about in-store shopping behavior, retailers are also using video surveillance technology to detect moods based on facial cues, catalogue how many minutes are spent in a particular aisle and how long a customer looks at merchandise before making a purchase.  Retailers who employ these technologies can use the information gathered to determine the ideal store layout or to provide targeted offers based on a customer profile.  So far, some consumer reactions have been less than positive.  However, this data gathering is no different from the digital equivalent: e-commerce sites that use cookies and other online tools to determine who consumers are and how they shop.  Nonetheless, it appears that, for many, transporting these technologies to brick-and-mortar stores is striking some shoppers as just too creepy.  In fact, Nordstrom ceased experimenting with this technology partly in response to customer complaints.

Those objecting may not realize that location-based targeting has been around for some time.  For example, GPS-based apps can determine whether you are in a particular store and immediately offer products and deals available at that retailer through your mobile device.  While this practice may have turned some consumers off initially, it is increasingly an accepted practice.  One notable difference, however, between app-based targeting and brick-and-mortar tracking is that those who download these theoretically apps expect location-based tracking, whereas those who walk into a store likely do not expect to be monitored and targeted.

The Way I See It

On Tuesday night, I attended a fascinating event at The ADVERTISING Club called AD THINK, which is bridging the gap between tech startups and the advertising world.  As the event’s host, founder and partner of Evol8tion Joseph Jaffe, put it – we have seen a lack of creativity in digital advertising and with all of the creativity streaming from the high-tech startup boom, several stellar startups have emerged to bridge the gap between Madison Ave and Mountainview.  The event, which was standing-room only and will be the first in a series, brought five cutting-edge startup founders to deliver presentations on their products and attempt to woo a panel of experts who know a thing or two about successful startups, ad land, and how creativity and tech can work hand-in-hand.  The panel included: Brian Cohen, Chairman of New York Angels and the first investor in Pinterest; Andreas Dahlqvist, Deputy CCO of Global & Vice Chairman of NY for McCann Erickson; Nihal Mehta, Founder and CEO of Local Response (in 2001, he founded an agency dedicated solely to mobile – way ahead of his time); and Catherine Schenquerman, Digital Advertising Head of JetBlue Airways.

Even though I could talk about the all-star panel for a while, let’s talk about the startups – the true stars of the evening.  I was blown away by the creativity of each of these tech companies, and the potential that these startups have for the future of advertising and marketing.  The main theme among them was something we’ve talked about before: bringing data and creative together, as well as using data and analytics to improve and drive creative content for digital and mobile advertising.  I’m excited to see what’s next for each of these companies.

  • One of the founders of social intelligence company Bottlenose presented the analytics tools the platform offers brands, which, among other things, can correlate the volume of trending topics and conversations surrounding a brand on social media with key indicators (i.e., stock price, sales, website visits, Nielsen ratings, etc.) to uncover who and what on social media are driving important activities.
  • The founder of Customer.io started by saying, “E-mail is dead.”  We’ve heard it before, but his technology is actually using data gathered from e-mail marketing to help brands determine what to say and when to say it in order to achieve objectives from their e-mail marketing.  This could really bring e-mail back to life.

    • Continue Reading At the Intersection of Tech and Advertising

Data, data, data.  Advertising Week was buzzing with chatter about data – its importance for the advertising industry, future implications, how to improve and maximize data, privacy and security issues… The list goes on.  So it was only appropriate for Ogilvy & Mather North America Chief Creative Officer Steve Simpson’s keynote address at the National Advertising Division’s annual conference on Monday of Advertising Week to be focused on big data.  Adweek reporter Katy Bachman put it well in summing up the key takeaway from Steve’s address: “In the age of big data, advertisers need to get their act together when it comes to online privacy.”

The Way I See It

  • I see a boom in online behavioral advertising and interest-based advertising, which has given rise to the need for stricter consumer data protection standards for the industry.
  • I see a number of challenges and potential pitfalls that advertising agencies and brands need to be cautious of in order to be able to reap the benefits of all of the data that is becoming available.
  • I see the need for increased transparency across the industry in order to educate consumers about privacy policies and the data that is being collected from them.

The Way the Industry Sees It

I had the pleasure of speaking with Steve Simpson, Ogilvy & Mather North America Chief Creative Officer, after Advertising Week to further discuss his NAD keynote address and his thoughts on data, privacy, creative, and more.

During your keynote, you said that this is a “massive creative issue.” Can you elaborate on this point? What steps should the advertising industry take to address this creative issue?

For marketers, privacy is an ethical issue, it’s a legal and regulatory issue, but it’s also a respect issue. This is to say, the new issues are the old issues.  It could be argued that the old days of one-way communication didn’t respect the consumer in the broadness of the messaging or bluntness of the media.  It intruded on your time with messages for products or services in which you often had no interest and for which you had no use. But the difference was the consumer knew what was what: the rules of the game were well known, transparent, and pretty much invariable.  The message was honest about its intent and succeeded by the power of its proposition or the force of its charm.  And when you turned the TV off, the TV didn’t rise from its stand, follow you about, and note all your doings.  It stayed shut off, because the “off” switch was a simple unambiguous technological act: “off” meant “off,” it didn’t mean “not apparently on, but watching you all day to see how you like it.”  While many in the industry declare with dewy eyes and a catch in the voice that the “consumer is now in control,” they are telling only half of the truth.  Because while the consumer can with high dudgeon tell a company exactly how to make a product better according to his own exacting personal standards—“Who’s in control now, you corporate hacks!!!!”—ending his tweet or review with a flurry of exclamation points, and moves on—he doesn’t move on, because the company he’s engaged isn’t ready to move on from him, but is only beginning to track him relentlessly in return for his “valuable inputs and collaboration.”

You said that if an advertiser is not respectful of its consumers’ privacy concerns that the job to be done by advertising, and the role of the creative director for that account, is very difficult.  Can you explain what you mean?

If consumers feel that marketers have relied solely on technology to track and target them, without openness and transparency, or without their knowledge or consent, then we have put the consumer into a state of alarm, resentment and even active resistance to our message.  Hence, the “massive creative issue.” What kind of ad can we create that is so wonderful it can overcome this?  Dear consumer, you feel violated—ready for a funny ad?

Continue Reading Data: A Creative Director’s Perspective

On Thursday during Advertising Week in New York City, I hosted an event called “Mission Impossible: Truth & Privacy – The Future is Now,” featuring Commissioner Julie Brill of the Federal Trade Commission, along with Frank Abagnale, one of the world’s foremost authorities on fraud and identity theft (you may know him best from the film Catch Me If You Can – he was portrayed by none other than Leonardo DiCaprio), and Jonathan Salem Baskin, Co-Author of Tell The Truth. Privacy is an issue everyone is talking about these days, and I wanted to share with you some of the thoughts and issues discussed during the session at Advertising Week. Click here to view a video of Ron’s conversation with FTC Commissioner Julie Brill.

Advertising is a fascinating and complex industry, reflecting the latest innovations, the newest technologies, and, of course, the height of creativity. Advertising is a reflection of the fundamental changes sweeping our society – the transformative effect of digital, the changes in all forms of media, the importance of data and the rise of wireless. Amidst this rapid change, privacy is one of the most important issues in the advertising and media business, and one which demands our attention now, not tomorrow.

The Way I See It

  • I see that digital technology and media has created an unprecedented “Holy Grail” opportunity for marketers to have conversations with consumers as individuals wherever they are on a broad array of devices. The question we must answer is, how do we manage the legitimate privacy concerns?
  • I see the FTC’s role and influence in steering the privacy and data security debate and action rising in importance.
  • I see global marketers and agencies working in good faith either alone or in groups to navigate safely through leading edge issues and the concerns of interested parties – the government, agencies, marketers, technology providers, media and consumers.
  • I see “do not track” continue to be a central issue that focuses many of the important advertising industry and societal issues about both what can be and what should be.
  • I see “privacy by design” being a simple concept, but a difficult concept to execute in real time.

The Way The Industry Sees It

Commissioner Julie Brill of the FTC shared some extremely valuable insights with me and the attendees of our Advertising Week session. I then asked Commissioner Brill some follow up questions that touched upon some of the conversation that we had in our Advertising Week session.

Can you highlight what you see as the role of the FTC in regards to its relationship with the advertising industry’s need to focus on consumer privacy and data security?

The Commission has developed a set of best practices, as outlined in the agency’s March 2012 final privacy framework, for companies that collect and use consumer data. (“Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers,” An FTC Report (Mar. 26, 2012) available at http://www.ftc.gov/os/2012/03/120326privacyreport.pdf.) Because the advertising industry is among the heaviest users of such information, these best practices can be useful to the advertising industry –including ad networks, individual advertisers, and all other players in the advertising eco-system—as they develop and maintain processes and systems to operationalize privacy and data security practices within their businesses. In addition to our policymaking role, the Commission takes action against companies—including those in the advertising industry—that do not treat consumer data in accordance with the laws enforced by the agency. For example, we took action against several advertising networks that misrepresented their practices involving consumers’ ability to opt-out from online behavioral advertising. (See press releases, “FTC Puts an End to Tactics of Online Advertising Company That Deceived Consumers Who Wanted to “Opt Out” from Targeted Ads” (Mar. 14, 2011), available at http://www.ftc.gov/opa/2011/03/chitika.shtm; “Online Advertiser Settles FTC Charges ScanScout Deceptively Used Flash Cookies to Track Consumers Online” (Nov. 8, 2011), available at http://www.ftc.gov/opa/2011/11/scanscout.shtm).

In the fast paced world of marketers and agencies where they must implement “privacy by design”, what is the biggest issue confronting the industry?

Well, there are a lot of big issues. One of the biggest issues is the rapid pace of today’s technological advances. Companies are bringing products and services to market as quickly as they can—and the advertising and marketing have to keep up with that pace. As a result, companies may not be employing a methodical process to consider all the privacy and data security issues that could arise with the product or service, or with an advertising or marketing campaign. I think one of the most important elements of Privacy by Design is for companies to take the time to thoroughly examine the consumer information they are collecting, what is being done with that information, and how it is being safeguarded. In our privacy report, we stress the importance of operationalizing these processes, which will help companies conduct these analyses in an efficient and timely fashion.

Continue Reading Privacy and the FTC: Inside Perspective from FTC Commissioner Julie Brill