What Is Data Mining?

It is isn’t new and is something that has been around in the world of business for many years, however, data mining itself has had a ‘brand refresh’ in recent years, tracking online consumer use, with terms such as data profiling and dataveillance now in common use.

According to the Financial Times Data Mining is:

“[The analysis of] large amounts of data about customers held on a computer in order to get information about them that is not immediately available or obvious.”

Data mining has become a tool that is widely used within the marketing and advertising sector, with a keen focus on retail and the consumer environment. It has been given increasing emphasis in the role of strategy development within advertising and marketing campaigns, mainly due to the wealth of information that it can now provide for companies. The increasing rise of the digital world, with daily activities such as shopping and socialising now moving online in the form of online shops, newspapers and social networking sites, activities have now become more easy to track.

Consumer’s participation in the digital world has made it easier for companies to build a detailed consumer profile through consumer’s online activities and therefore, create a tailored online and offline experience for the consumer. The use of online cookies have enabled companies to track specific online movements of consumers and have become a lucrative tool in the statistics industry.

Companies’ use of data mining can be viewed as beneficial for both the consumer and the company. The company gains ethnographic information about consumers, on a large scale, which can be analysed to improve products, services, positioning and commerce strategies for the company, which in turn makes the company more successful and drives profits. When companies improve their products and services by (for example) creating a tailored online shopping interface, or making product suggestions and alternatives based on the previous tracked shopping on the website, this is beneficial for the consumer, as they received a better and more positive experience with the brand. 

However, I recently read an article about that detailed the mining of data from social networking sites, online blogs and other social networking platforms. It suggested that companies are now creating an online profile for each individual consumer, monitoring social networking profiles, usage, blogs, online comments and online consumption patterns to build a profile of a consumer and sold to companies.

This made me question, do we, as consumers have a choice about the information gained by our use of websites such as Facebook and Amazon?

The pressure to conform to social norms, and the social networking movement have amde the option of not having a social networking profile near impossible. Consumers don’t want to get left behind in the online boom, and it seems that if you want to be part of this social drive Facebook is an absolute essential. However, when consumers opt into using social networking sites they are opening their lives to companies. 

We have no choice but to use these sites to keep up with social norms, therefore, is it right that consumers have no choice in whether they want such information to be gathered about them when using such sites? Is our privacy the price of free?

When we sign up to use “free” internet services such as Google, Hotmail, Facebook, Twitter, Youtube and many more, are we paying with our privacy? And what effect does this really have on our lives?

An article published by O’Reilly Media proposed the negative effects of the use of data mining and the real value of online free. It was suggested that data mining is used by credit card companies and as claimed by the aforementioned Mashable article, can actually affect the credit that you can get. When data profiling is used, companies “treat all consumers as examples of a pattern and not individuals”.

The regulation of such marketing tools is important, but however, increasingly difficult due to the ambiguous nature of online. 

The UK have however, made some attempt at regulation with the Freedom of Information Act (2000), the Data Protection Act (1998) and now with the expansion of the CAP code to online marketing communications. 

Without sounding too negative about the use of data mining within marketing, Smirnoff Nightlife Exchange Campaign is a brilliant example of the integration of data mining both offline and online to create a a successful multi platform campaign. 

The company created an online campaign via Facebook, which created a Facebook app, which invited target consumers via their online profiles. 

The event held 14 nightlife swaps around the world on one night, all sponsored by Smirnoff. The following link provides videos and pictures of the nights. 

https://www.smirnoff.com/index.aspx?LangType=2057&smf_c=GB 

The Role of Digital Communication in Activism

“Activists work to improve the lives of the people, communities and societies that make up our world...activism is not only about politics or protest...[it is] about knowing that you are responsible for the world around you, and that the skills you possess can and must be brought forward to help communities around the world” (Global pact 2011)

The traditional image of an activist fighting on the front line of justice is no more, a modern activist’s main tool is now his computer and his ability to use this communicate and bring people together for the same cause- Activism has now gone digital. 

Henry Jenkins talks about the convergence of culture and how the internet is blurring the lines of distinction between cultures, which is ultimately creating Americanisation and a mono-culture (2006). The same theory can be employed when considering the use of the internet to ignite communication amongst differing social groups and global activism. Mary Joyce defines digital activism as; “The action of using digital technology for political and social change”. The Meta-Activism project will act as “a central location for people interested in building a body of knowledge about the fundamental mechanics of digital activism”(Readwriteweb 2011)

Joyce defines the two key elements that make digital activity platforms successful are the scale, in terms of how many people it can reach and the “use neutrality” which indicates the ease of use of the interface to make it openly accessible for the majority. That is why social networking sites such as Facebook and Twitter are good platforms to use, however, they are not the only way in which groups can form and communicate. 

Facebook’s youth nature and vast student population meant that it was an effective platform used by activists of the recent student protests in London, to rally support. This digital platform provided access to thousands of students and provided an interface which facilitated discussion and communication. A group was set up called;  “Students against UK top up fees reaching £7,500 per year”, which received 202, 535 likes. The online conversation then moved offline with the organised Millbank protest, where thousands of students joined to together to march together against one cause. I was there that day to represent my disapproval of the inflation student fees, but was saddened by the negative effect that activism can create by the uncontrollable and violent few (BBC 2011)

Digital activism has widened the conversation and created a global scale of communication between people with the same agenda, wether that be political or social. It has facilitated the rapid diffusion of ideas, opinions and actions, building solidarity amongst  groups of people cross culturally. It has given those who previously felt as though their view was worthless a voice in the vast media landscape.

I think that both digital activism and traditional activism can work together to bring people together and provoke action. An example of such is when Green Peace took over the Stena Don oil rig. Green Peace have launched a campaign called Go Beyond Oil which was started after the Gulf of Mexico oil spill and highlights the fact that oil companies are drilling deeper and deeper in the pursuit of oil. 

Green peace out ran the Danish navy and took over the rig for 40 hours every hour of which was documented by Lisa Vickers. The charity used a multitude social networking platform through which to communicate to their audience. She sent live video feeds from the rig, took pictures, publishing these via Flickr, Twitter and Facebook, she also continuously blogged about her experience. The following videos were posted on Youtube to show their experiences.

Many people think about digital activism as a tool to ignite support for a certain campaign before it has even started and this is true,  it provides a brilliant platform for conversation and debate, however, Green Peace has shown that the role of digital communications doesn’t have to stop there. Digital communication can be an ongoing medium of communication and support for digital activists, pre-campaign, during the campaign and provides a lasting legacy to spark an ongoing conversation.

I Spy with My Googly Eye

I found our lecture this week about privacy issues very interesting as online privacy is something that affects pretty much all of us. We all use the internet now and share information about ourselves across the web every day in the form of emails, Facebook posts, blogs and Tweets. With the realm of the digital age removing the physical barriers we uphold to the public, what is privacy anymore??-It’s not a closed door or shut curtains, it’s not a locked diary under your bed, the word ‘privacy’ means something completely different now. 

Privacy is defined by Alan Westin 2003 as “the claim of an individual to determine what information about himself or herself should be known to others” and by Burgoon et al. as ‘‘the ability to control and limit physical, interactional, psychological and informational access to the self or one’s group’’ . This is one of the problems of the law a regulation of online privacy. It is not so easily defined. 

The UK go some way to provide legislation to protect the consumer with the following bodies providing rules and regulations on the subject:

• The Data Protection Act 1998.
• Privacy and Electronic Communications (EC Directive) Regulations 2003
• Information Commissioners' Office (ICO, 2010)
• Freedom of Information Act 2000
• Proposed: Digital Economy Bill (2009, 2010, 2011…?)

Back in 2007 The Telegraph reported on the privacy scandal that erupted around Google. It was reported that whilst taking photos for their street view maps online, Google were obtaining information from unsecured networks in local areas. Google were under investigation for breech of privacy in a number of countries, but were ‘let off’ in a good faith gesture as Google claimed the data was collected inadvertently.

Now in 2011, in an interesting move, Google have created Google Dashboard to make the information they store about you, (the Google consumer), more transparent. Google Dash board allows you to see the information that Google stores about you all in one place. It is a record of the consumer’s usage of all Google products, whether that be Gmail, YouTube, Google maps etc. The following is a video that Google have distributed to explain how this new tool will work and will probably be able to give you a better explanation than I can.

I think that it is a good thing that Google are becoming more transparent, it is important that as consumers we trust the service providers of the products we use with the information we give them. Consumers are often suspicious about the information they provide large corporations such as Google Facebook and Yahoo with, therefore, I think that is a good thing that a large corporation within the sector is taking steps towards a more open a honest approach. I think that Google have to improve their reputation for ethical data handling and this is a step towards doing that. Hopefully other conglomerates within this sector will follow their lead.

However, it doesn’t get away from the fact that Google is a free service. This means that the site is in high demands of advertisers who want space on the search engine and high listed searches, they also want the market research that Google products can provide about certain consumers. Therefore, Google are in a difficult situation as they need to make money, but they also need to provide their consumers with a trustworthy reputation. 

This is only one example of a number of internet services that collects information about consumers.

Looking at this from an advertising and marketing perspective, sites like Google are a gold mine for useful information, at a cost, and can provide ethnographic insights for which advertisers can base a campaign. Data collection via the internet is recordable and traceable, therefore, the more ‘free’ services you use the more information companies are gaining about your everyday lives.Another advantage for these ‘free’ services is that it has provided another channel for which advertisers can target consumers. 

In conclusion, even though there have been many laws that try to regulate the system to protect consumer’s privacy, I think that the internet is so vast and regularly used that it is ‘unregulateable.’(if that makes sense). Consumers have access to all of these free products but as the old saying goes “you don’t get a free lunch” and the price of a search engine may well be your privacy. 

Product Placement hits the UK

This week the introduction of product placement in UK television programmes has created a storm in the advertising industry. Since February the 28th, broadcasters can now charge brands for the placement of their products in certain television programmes.

According to Ofcom (2011), the UK broadcasting regulator, product placement is subject to certain rules. It will be allowed on all commercial channels, excluding the government funded BBC channels. It will be allowed in films, soaps, entertainment and sports programmes, but will not be allowed in children’s, news, current affairs, religious and consumer advice programmes. There are also restrictions on what exactly is allowed to be broadcast, therefore, the usual no tobacco, alcohol, escort services or gambling products. But more surprisingly no foods that are high in sugar, salt or fat and also prescribed medicines and baby milk?!  So that means that companies such as Pizza Hut and Cow and Gate baby milk are out of the running for a spot in UK programmes.

Ofcom (2011) have taken the following measures, placing the 'P' symbol before and after any shows that feature product placement. I can see that Ofcom are trying to make the process as regulated and transparent as possible, but I think that this symbol may run the risk of insulting the intelligence of the audience. 

Product placement has been something that has been apparent in the US since the 1980’s  with many companies vying for a placement in the latest soap or blockbuster movie. UK audiences will be familiar with the burred red smudges that have the Coca Cola logo hidden behind them on American Idol and many other programmes that have been exported from the US featuring product placement.

The first company and programme in the UK to adopt this unique partnership is Nescafe and ‘This Morning’. According to a recent report in Brand Republic, Mindshare valued the deal at £100,000. It is also reported that ITV have confirmed this is the first of many more to product placements to come. They also clarified that editorial content will come before any product placement and will only be used where appropriate. 

Product placement now provides another channel for advertisers to communicate to thier target audience, but is this a good or bad thing?

Some people may view the new rules on product placement as a bad thing. People have complained that they would feel bombarded. However, isn’t the sight of brands on television a reflection of our everyday lives in which brands play a massive part? And aren't brands already featuring on TV in the form of advertisements?

Product placement may have a positive effect on modern popular culture. Brands can now use this medium to affiliate themselves with a programme and all that the programme stands for. It can use the programme to communicate key brand values and an identity. The brand will also gain new heights of exposure and grasps that audience’s attention in a way that an advert cannot guarantee. For example an avid soap fan will sit down and watch a programme, this programme will have their full attention therefore, it gives the brand a prime opportunity to target the audience when they are fully engaged with the advertising medium. In comparison to a TV advert, where the audience may get up a make a cup of tea or when an advert flies past on bus. Also with the increase of ondemand services with SKy plus and internet streaming, adverts are being cut out of the viewing habits of many consumers, therefore, product placement is a positive step for advertisers as it has provided a new medium in which an advertiser can gain the attention of the audience. 

The use of product placement is not only a positive step for advertisers, but broadcasters alike as well as audiences. Advertisers are happy because they get the direct exposure of a brand’s product with a specifically targeted audience. Broadcasters are happy because they are paid for this exposure, which means that the broadcasting industry will generate more revenue. As broadcasters are generating more revenue hopefully, this means that the services and programmes that they are able to offer will improve.

T&T Advertising reported that the ISBA (the voice of British advertisers) stated that the current use of unpaid product placement serves both industries well, channels seek brands to include the programme and brands get the exposure they need without paying for it. They suggest that the new paid system will increase advertising costs for brands and agencies alike. 

The future of product placement in the UK...

Well paid product placement has been successful in the US for many years now co-existing with spot advertising happily, but time will tell if product placement in UK market will be an effective form of advertising for brands and advertising agencies alike.