From eMarketer on The Advertising Opportunity in Facebook Places [excerpt]: Facebook’s value as a business comes from all the bits of information it gleans about its users from their daily activities. Every single action people take—whether it’s writing a status update, posting a photo, commenting on a friend’s post, liking a marketer’s message or playing a game—becomes an object in Facebook’s database. Location is a type of data that is very compelling because it provides additional context for the actions people take on Facebook…If ads can be pushed to people in the moment they are engaged with something, rather than waiting until they take action and start a search, the ads become very very powerful. Location will give Facebook a new way to target and sell advertising… By offering ways for marketers to target Facebook users not only on the online service but also when they are on the go and using Facebook on their mobile phones, it opens up all-new avenues for interaction.
Category: social networks
“Tipping Point for Geo-Marketing”—Facebook Places (and what the Like Button already tells marketers)
You have to follow your data [and your friends and networks]–that’s how the money is generated in online marketing. This article via DM News explains that:“…Facebook continues to gather more information about what people do and where they are – critical data for marketers. “What I find interesting is where people check in says even more about what they like. Now we’re actually looking at their real-world behavior, instead of just a button they click on a website,†he said [Augie Ray, senior analyst at Forrester Research]. “I think this really will continue to help Facebook offer much better targeting and permit marketers to do a better job of understanding their consumers and targeting ads at those consumers. The very scale that Facebook Places creates is a welcome event for marketers, said industry professionals. “I would say this is a tipping point for geo-marketing,†said Lawrence Kimmel, CEO of the Direct Marketing Association…Maria Mandel, VP of marketing and media innovation at AT&T Advanced Ad Solutions, agreed that the service makes geo-marketing much more mainstream. “It certainly brings location-based social media to the mass market,” she said. “It validates the relevance of the location-based check-ins and may offer substantial new opportunities for advertisers.â€Â Leveraging location may prompt innovative promotional campaigns, such as scavenger hunt contests, Mandel noted. There is also the scope to build long-term loyalty programs by rewarding people for checking in at certain locations to build toward prizes, offers or discounts, she said.
source: Marketers See Potential in Facebook Places. Shahnaz Mahmud. DMNews. August 20, 2010.
PS:Â One social media marketing company writes that:Â “…Facebook already provides marketers with a comprehensive list of your interests and favorite things with the integration of the Like button. Retailers, like Amazon, have already begun to leverage this information to create purchase suggestions for you and your Facebook friends…Now, with Facebook Places…[M]arketers can (and should) use this invaluable information to direct promotions and advertisements to consumers…This information is highly valuable as social media once again allows businesses to gain access to the exact niche of consumers they are striving to reach.”
Facebook Places, Brands, Ads & Data
We have been raising concerns about privacy and location data collection and targeting–including with our colleagues at USPIRG. Facebook’s new location feature is designed to generate more user data that can be used by Facebook and its affiliates to bolster ad and brand targeting. I want to excerpt this post from one of Facebook’s developers–Vitrue–which illustrates how soon companies like McDonald’s will work with Facebook to harvest local data and our behaviors:
“…A user will open up their mobile Facebook app and be able to see shops, restaurants, parks, areas, etc. that they are near. They can then check-in to that location. If a location doesn’t exist, the user can simply create it. A story about where that person checked-in will be published to their profile and subsequently their friends’ news feeds…Facebook’s massive user-base is a distinct advantage and is likely to generate location-based activity orders of magnitude greater than other companies already in the space. As the leading social network, Facebook is able to capitalize upon the users existing friends, and use their collected demographic and preference data to show users places that it thinks is relevant to them, instead of just places nearby.
How Will Brands Take Advantage of Facebook Places?
With all of these users checking in to locations, what does that mean for brands? Well if your brand has brick-and-mortar locations, your brand can claim these digital “Placesâ€, turning the locations into Facebook Place Pages.
Brands can choose to merge a Facebook Place Page with an existing Facebook Page, if one exists, and if prompted– the option may not be widely available yet as Facebook is rolling it out over a period of days…
At this time Facebook does not recommend merging your Places with your Page if you are a national or global marketer with more than one location, like a McDonald’s or GAP. They recommend managing the Places separately and have stated that a solution that will help these types of brands is planned for the future…Currently, Facebook CEO Mark Zuckerberg says they aren’t looking to monetize Facebook Places right now, but that doesn’t mean that they can’t in the future.  With Facebook collecting all of this location-based data, it seems like Facebook could allow brands to place highly targeted Facebook ads on the Places Facebook pages. For example, if your brand’s products are sold in grocery stores, you could potentially place your ads on certain grocery stores’ pages to be viewed by people who’ve checked in.”
In another words, in the world of mobile and location ad targeting, our data will provide marketers with real-time sophisticated insights giving them a rich history of where we spend time and what we do [go to the bank, buy at the pharmacy, eat fast food, etc]. Such “360 degree” targeting, as the online marketers call it, require the appropriate privacy safeguards.
Teens and Online Privacy: Empowering Adolescents to Control How Online Marketers Can Stealithily Target Them and Collect Data
Some commentators–and groups funded by online marketers that target teens–are worried that proposals to the FTC and Congress that adolescent privacy be protected will somehow create a system that requires forms of age verification online. The coalition of leading consumer, child advocacy, health and privacy organizations filing comments at the FTC last week aren’t calling for the parental permission paradigm used by the Children’s Online Privacy Protection Act [COPPA] be extended to teens. But there are many online commercial services specifically targeting adolescents–that’s their target market. It’s those sites and services specifically focused on adolescents that we want to have better privacy safeguards.  We want those sites to be governed by an opt-in regime that gives teen users meaningful control of how their information is collected and utilized. Those sites should be required to engage in the Fair Information Principles known as “data use minimization.” Commercial sites targeting adolescents should make its data collection practices fully transparent and under the control by the teen (including a truly accessible privacy policy). In another words, a privacy safeguard regime that really should be available for everyone. Teens are ‘ground zero’ for much of digital marketing–for examples see our site: www.digitalads.org [especially the update section]. If you look at the reports on that site, you will see that the most recent scholarly thinking is that brain development in adolescents occurs much later than what was once thought. They don’t have the ability to effectively understand the intent of highly sophisticated interactive marketing and the corresponding data collection which underlies contemporary digital advertising. That’s why empowering them so they can protect their privacy strengthens their rights.
Location Privacy for Mobile Marketing: Time for Congress/FTC/States to Protect Consumers
Last year, CDD and USPIRG filed a complaint on mobile marketing, privacy and deceptive practices at the FTC. We know that it woke up the commission to the issue–but they are acting too slow. The recent decision by Apple to expand its data gathering for location ad targeting on the iPhone (and do a about-face on the privacy issue, really) is just one example of why safeguards are required immediately. As Mobile Marketer explained in an article about what Apple is doing:
“Location is an important element that illustrates the promise of mobile and social,†he said. “Look at the way that the mobile environment is developing—proximity marketing is really the direction that we’re headed [Noah Elkin, senior analyst at eMarketer].
“Being able to marry data about a user’s location and data about a user’s likes and dislikes—being able to present a relevant offer—raises the bar in terms of the relevancy of the advertising messages. Apple acquired Placebase and Quattro recently, which gives it a mapping platform and an ad network.
“Collecting user positioning data is the next necessary ingredient for ‘location intelligence,’ which will bridge the gap between these two acquisitions and enable them to deliver a really relevant experience based on place and time,†Mr. Goodman said [Alistair Goodman, CEO of 1020 Placecast].
Meanwhile, companies like Loopt that merge social and mobile marketing techniques are extending how they target consumers, inc. data collection. Loopt explains in its new “mobile rewards” service for marketers that:
Loopt Star offers retailers a virtual loyalty card, allowing them to connect directly with their customers when they’re out and about, driving foot traffic and encouraging repeat visits. It offers retailers and businesses a unique “cost per visit†business model.
“Hyper-local advertising should be about much more than simply clicking on a banner ad—it should be about connecting with brands and getting rewarded for loyalty. Brands want to turn their existing customers into better ones,†said Sam Altman, co-founder and CEO of Loopt. “Loopt Star enables brands to create customized campaigns that reach their customers in a completely targeted, interactive way that rewards the behaviors they want.â€
In addition to brand-specific customized rewards, Loopt Star will also allow the person with the most check-ins at a specific place to become the “Boss†of that location. Leaderboards allow users to compete with their Facebook friends to for the most check in points. Dozens of hidden Achievements will also be available to Loopt Star game players at launch — to be won when certain check-in actions are performed.
Loopt Star adds a key social component by being the first mobile location App based purely on Facebook Connect. Users can share their current location in real-time with all of their friends on Facebook, and alert friends via their Facebook News Feed about special offers they see on Loopt Star that are available to anyone. With its close integration into Facebook, Loopt Star allows Facebook friends stay up to date on where friends are and what they’re doing…
Brands can use Loopt Star to create fun, engaging campaigns that deliver foot traffic, connect with customers, build a strong community and increase their Facebook fan base. Customized brand campaigns can specify:
- The qualifying retail locations
- The qualifying time of day, day of week, or time span
- The qualifying number of check in times
- Whether they need to check in with friends, and the number of friends
- Which rewards are available to friends through the Facebook newsfeed (for example, “the next person to check into Joe’s Restaurant today gets free dessert†can appear on the newsfeed to all Facebook friends.)
- Specific and virtual rewards, such as Achievements, special titles, discount coupons, etc. Special titles allow retailers to offer a custom “Boss†title and graphic to the person who checks in the most at an individual location
Loopt is working directly with top brands to customize all aspects of Loopt Star, from the activity needed to earn the reward, to the type of virtual or real-world reward earned.
For example, Loopt Star users can check into any bar in the United States with two Facebook friends, and everyone instantly earns five free songs from leading popular music recording artists. (To see the songs available to win, go to http://www.amplified.com/loopt.)
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CDD Statement on Facebook’s new privacy settings [Digital Deja-vu Dep’t!]
Facebook made some positive changes today, but only because of political pressure from policymakers and privacy advocates on both sides of the Atlantic. Mr. Zuckerberg’s failure to acknowledge the political realities don’t bode well for Facebook’s future approach to privacy. He appears to be living a Alice in Digital Wonderland fantasy, where changes are made on privacy only because Facebook has the goodwill of its users in mind. Just last December 9, after all, Facebook made one of its typical self-reverential announcements that it was “rolling out easy-to-use tools to empower people to personalize control over their information.” These changes triggered a user revolt, letters from Senators, an opinion ordering a reversal from the EU, and concern from the FTC.
There are more simplified and manageable privacy settings, and Facebook has made an important first (or back-tracking!) step. Unfortunately, Facebook still refuses to give its users control over the data it collects for its targeted advertising products. The defaults should also be initially set for non-sharing, with the minimization of data collection at the core of Facebook’s approach to privacy.  CDD and other privacy groups will examine these new settings and identify where further changes should be made, including on advertising data. Meanwhile, we want Congress to hold hearings on social networking privacy, with Mr. Zuckerberg as a star witness. Mr. Zuckerberg should be asked to explain how Facebook continues to develop new approaches to data collection and privacy–from Beacon to Instant Personalization–that continually lowers the bar–until the company has to do some form of hasty retreat.  Congress needs to examine how Facebook develops its approach to privacy, and what its business plans mean for the future.
CDD will also press the FTC to investigate Facebook, including acting on complaints filed with EPIC and other groups. It’s time for the FTC to announce guidelines to protect social networking privacy on Facebook and other sites.
Jeffrey Chester
Center for Digital Democracy
jeff@democraticmedia.org
Facebook teams with McDonald’s–location targeting for fast food giant part of a “bigger media buy”
Facebook is becoming a leading marketer for fast-food companies. When one thinks about Facebook working to weaken privacy, keep in mind they want to better harvest user data to help sell ads and other marketing services to McDonald’s and others. According to Ad Age [excerpt, sub. may be required]:
Facebook is preparing to launch location-based status updates for its users. But the social network is also planning to offer it to marketers, including McDonald’s. As early as this month, the social-networking site will give users the ability to post their location within a status update. McDonald’s, through digital agency Tribal DDB, Chicago, is building an app with Facebook would allow users to check in at one of its restaurants and have a featured product appear in the post, such as an Angus Quarter Pounder, say executives close to the deal. Facebook is not directly charging McDonald’s to build the app; Facebook generally does not charge developers to build on its platform. But executives with knowledge say it was negotiated as part of a bigger media buy on Facebook, and McDonald’s will be the first marketer to take advantage of the service.
The fast feeder won’t be alone for long. While McDonald’s is expected to be involved in the rollout in the next few weeks, execs at other digital shops have begun to spec out location-based campaigns in anticipation of Facebook’s impending functionality, which will allow users to include their location in a status update.
…Kevin Colleran, director-national sales at Facebook…noted that Facebook has the world’s largest mobile application, with more than 100 million users each day.
source: McDonald’s to Use Facebook’s Upcoming Location Feature: Brands Eager to Build Apps Once Massive Social Network Launches Its Own Foursquare Competitor. Emily Bryson York. Ad Age. May 06, 2010
Do You Want Marketers to Target You via a “SocialDNA platform”?
33 Across is one of the recipients of a Google/WPP ad research reward. As 33Across explains, it “enables brand and performance marketers to unlock the power of the Social Web. Our SocialDNAâ„¢ platform uses previously untapped social data sources, in combination with advanced social network algorithms, to create unique and scalable audience segments.”  In a job posting, they add that it can “enable advertisers to deliver high-performance media programs by activating the social graph around their brands. Our patent-pending SocialDNATM platform creates custom segments of people who are socially connected to a client’s existing customers, and reveals deep insights into the social network characteristics of a marketer’s brand. Our clients include many of the top online advertisers.”
Facebook to Users: Don’t Expect Payment when You Give us Your Data. After all, users get “egotistical value”
At a discussion on social media in London last week on “Understanding Social Graph Optimisation,” [meaning how to better target and monetize users], one of the topics was whether users should be financially compensated when their data is harvested for commercial exploit (such as for marketing). What did Facebook’s executive on the panel say? According to one post covering the event, ”
Trevor Johnson, Head of Strategy and Planning, EMEA at Facebook made it clear that Facebook users get enough value back simply from the user experience gained by being on Facebook. He described how users gain “egotistical value”.
Facebook Expands Big Brand Marketing Clout: Helping Starbucks to “get people to buy a muffin on a certain day”
The top execs at Facebook claim that the social network giant ad targeting apparatus is well understood by its users, and that they have secured their consent. But I suggest few users understand the complexities of Facebook’s viral marketing and tracking system, let alone the new Facebook/Nielsen “Brandlift” initiative designed to demonstrate Facebook can deliver big for the biggest brands. According to New Media Age:
More than 70 studies have been done in the US in the FMCG, retail, media and entertainment, telecoms, financial and automotive sectors. Nielsen and Facebook said 97% of these found a significant lift in at least one brand metric, while 85% reported an increase in at least two. “Starbucks is a heavy advertiser on Facebook,†said [Trevor Johnson, head of strategy and planning EMEA at Facebook] Johnson. “We ran a campaign to get people to buy a muffin on a certain day and measured a 94% uplift in purchase intent. Facebook will apply the demographic data it already collects from its users to deliver results tailored to brands’ needs.