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The Evolving Universe of Digital Marketing

The Evolving Universe of Digital Marketing. MCCA Section 303 March 13, 2014. There is No Spoon. The Mobile Digital Consumer. Social Media Usage is now standard practice Hispanic Consumers lead the way in the United States International users far outpace United States Users

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The Evolving Universe of Digital Marketing

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  1. The Evolving Universe of Digital Marketing MCCA Section 303 March 13, 2014

  2. There is No Spoon

  3. The Mobile Digital Consumer • Social Media Usage is now standard practice • Hispanic Consumers lead the way in the United States • International users far outpace United States Users • In addition to mobile, multi-screen use and in video purchase technologies push marketing and purchasing into a single digital experience

  4. What are we using? • Smartphones • Tablets • Smart televisions • Laptop/Desktop • Gaming Consoles

  5. What Are We Doing With All Those Mobile Devices? • Store Locator • Price Check! • Researching an item before purchase • Mobile Coupons • Reviewing potential purchases

  6. But Are They Buying What We’re Selling?Incorporating purchasing into the mobile experience • Making a Digital Purchase • Using a Device for Payment • Purchasing a Physical Item on a Mobile Device • Purchasing a Service on a Mobile Device

  7. How Are You Adapting? • The consumer in the United States, the European Union and much of Asia has become digital and mobile, and they are using those devices to make mobile purchases or contacts for purchases. • The most successful companies in the social marketing area recognize that that they must remove social media marketing from its marketing silo and integrate marketing with purchasing and encouragement of consumer advocacy. • The mobile example • Data analytics • Multichannel users • Brand loyalty through social platforms

  8. APPS – Hoo Boy! • Most of mobile digital interaction comes through the almighty app • In 2009, the “Your Reebok” App generated more direct sales for Reebok than its website • In its first full year of use, eBay generated over $400M in sales from its iPhone app. • Groupon is the Granddaddy of the Coupon App • Mobile purchasing apps such as PressPay allow for purchasing to be done directly from the device rather than storing credit card information in the cloud • “Context retailing” – selling to customers based on where they are and how they live

  9. Context Marketing and Mobile Digital Platforms • LinkedIn • YouTube? You bet. • Smart watches and GPS • Google glass • Minority Report

  10. Seamless Mobile marketing and Purchasing or Overreaching Intrusion • Cinsay • Product placement in online advertising • Uses Social Media to allow the consumer to spread the word about the product • But Analytics are available about what is shared, when, to whom and how • Raises the same privacy issues previously discussed

  11. PressPay • Getting away from the cloud for mobile purchasing • Sensitive information is stored on the device rather than in the corporate retailer’s server base • Benefits the mobile user and the corporate user • Privacy issues are minimized, but care must be taken even here where analytics are used to gather data directly from the mobile device for future marketing

  12. Cloud-minimizing Payment Systems

  13. A Word About Licensing • Cross-Pollination of Social Networks Across Brands and Platforms • Trademark Protection • Trademarks and SEO • Trademarks and Third Party Mobile Users • Licenses • Privacy Policies • EULA • Intellectual Property • Business Associate Agreement

  14. Analytics

  15. Third-Party Data Collection: What Your Company Needs to Know

  16. What is Third-Party Data Collection? • Analytics Providers • Ad Networks • Creative Optimization Firms • Exchanges • Social Sharing Widgets • Platforms: SSPs, DSPs • Data aggregators

  17. Data Flow

  18. The Digital Advertising Ecosystem Today

  19. Online Advertising Ecosystem

  20. Example

  21. Why do it (or allow it)? • Help understand how site/app is used • Bring users back with the right messaging (coupon, etc.) • Allow users to bring friends to site by sharing • Monetize sites and apps • Help drive traffic to sites • Help select the right creative

  22. What Are the Risks? • Consumer Trust • Enforcement Actions • Privacy policy and other representations • COPPA • Lawsuits • E.g., Kissmetrics • Bad press (‘What They Know” series) • For allowing too many “trackers” • Accusations of sharing PII

  23. Current Self-Regulatory Landscape • Digital Advertising Alliance (DAA) Principles for OBA • DAA Mobile Principles • DAA Multi-Site Principles • Network Advertising Initiative (NAI) Code of Conduct for Interest-Based Advertising • NAI Mobile Code • NTIA Mobile Transparency

  24. DAA Principles • Covers the entire ecosystem, including technology providers, advertisers, and website publishers • “Enhanced” notice of third party data collection • Link to choice mechanism • In-ad notice • Enforced by Better Business Bureau • Now covers mobile, too: cross-app data, precise location data, personal directory data

  25. NAI Codes of Conduct • Only binding on “third parties,” but… • Notice and choice in privacy policy • Limits on merger of non-PII collected across sites/apps with PII • Now a Mobile Code, too • Both: Don’t use, or allow use of, data collected across sites for eligibility decisions.

  26. NTIA Mobile Transparency Code • Code “adopted” for testing • Governs short-form notices only; long-form notices are encouraged but not required • Disclose types of data collected, data sharing (including ad networks, data brokers, analytics providers, and social networks) • Encourages UI experimentation, within prescribed boundaries • Speaks to disclosure obligations only, not underlying data collection and use practices

  27. COPPA: Update • Expanded Definition of “personal information” • Includes device identifiers used for profiling/OBA even when not tied to “traditional” PII • Covers third-party data collection for the first time • Strict liability for “first party” website and app providers for third-party data collection on their sites and apps

  28. California Do-Not-Track Law: Third Parties • AB 370 amends CalOPPA (signed into law September 27, 2013) • If the company collects “personally identifiable information” about an individual consumer’s online activities over time and across “third-party” Web sites or online services, required to disclose how the company responds to Web browser “do not track” signals or “other mechanisms that provide consumers the ability to exercise choice regarding the collection of personally identifiable information about an individual consumer’s online activities over time and across third-party Web sites or online services”

  29. California Do-Not-Track Law: First Parties • If the company allows other companies to collect “personally identifiable information about an individual consumer’s online activities over time and across different Web sites when a consumer uses the operator’s Web site or service,” the company must disclose that. • But… An operator may satisfy the requirement of paragraph (5) by providing a clear and conspicuous hyperlink in the operator’s privacy policy to an online location containing a description, including the effects, of any program or protocol the operator follows that offers the consumer that choice. • http://webpolicy.org/2013/09/10/do-not-track-in-california/

  30. Europe • E-Privacy Directive (Cookie Directive): tell users about cookies and gain “consent” for all cookies that are not “strictly necessary.” • Specific information, “prominently displayed,” prior to collection (on entry page): • Essential • Analytics • “Tracking”/OBA • What is consent? • Splash screens, banners, modal dialog boxes, windowshade notices (“By using this website, you agree that…” + positive action” or other “active behavior”) • Browser settings: Only when the operator can be fully confident that the user has been fully informed and actively configured his/her browser or other application • No “take it or leave it” • Can’t just use another technology

  31. The Death of the Cookie? • Cookies under pressure • Flash Cookies, E-tags, “Super cookies” • Device “Fingerprinting” • Device attributes • Mobile identifiers • OS requirements • May be self-regulatory rules as well • Possibility of FTC “unfairness” enforcement

  32. Takeaways

  33. Thank You VIRGINIA Y. LEE Senior Attorney, Intel Corporation +1 503 456 5101 virginia.y.lee@intel.com Tripp Lake Partner, IP Litigation Lathrop & Gage, LLP 720-931-3218 tlake@lathropgage.com Scott Koller scott@koller-law.com

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