Marketers Take Note -- If You Can't Protect It, Don't Collect It

As I was doing my weekly grocery shopping this week, I picked a couple bags of candy for Halloween. I don’t have many Trick-or-Treaters in my neighborhood but I never want to be caught empty-handed so I usually opt for the favorites like Reese’s Peanut Butter Cups, made by Hershey Foods. It has been America’s favorite treat for years, mine, too.

While doing research for my Introduction to Digital Marketing Communications class this week, I learned that Hershey was one of at least 10 businesses that have been fined in recent years by the Federal Trade Commission for violating the federal Children’s Online Privacy Protection Act (The Associated Press, 2003, Dobrow, 2006). The FTC in 2003 fined the chocolatier $85,000 for collecting personal information from children on one of several Web sites that market candy and for posting the names and hometowns of children who won online contests, all without receiving proof of parental consent (The Associated Press).

The Children's Online Privacy Protection Act (COPPA), passed in 1998 and adopted in April 2000, restricts the online collection of personally identifiable information from children under the age of 13 (Simmons, 2007). To legally collect such personal information, businesses must obtain verifiable parent consent, provide a means for a parent to review the information, not make providing such information a requirement to participate in a game or collecting a prize, and maintain procedures to protect the confidentiality of information that is collected (Simmons).

No doubt children today are much more techno-savvy than many adult. Yet, nearly a decade after COPPA became law, privacy and kids’ marketing remains a key area of debate in the online world. Lillie Coney, associate director of the Electronic Privacy & Information Center, said the fact that addresses, birthdays and other information can be retained cheaply and easily for decades is reason enough that no data on any minor child should be retained in any database, period (Dobrow). “Young people are not cautious about the information they share with others,” Coney said. “Parents know to tell their kids not to give an answer if a stranger walks up to them and says, ‘Where do you go to school?’But that's exactly what's happening to them on the Internet.”

Although reputable marketers do not set out to harm children, there are those who seek to blur the lines or ignore them altogether, making laws like COPPA necessary. Marketers of child-driven products and other more-widespread services would be wise to follow the law and protect their customers. Failure to do so could ultimately lead to the loss of a marketer’s greatest asset – access to private customer information.

References:
Dobrow, L. (2006, March 13). Privacy Issues Loom for Marketers; Creating Relationships with Kids Under Age 13 Presents Sticky Situations. Advertising Age. Retrieved October 21, 2009, from http://www.lexisnexis.com.www.libproxy.wvu.edu/us/lnacademic/results/docview/docview.do?docLinkInd=true&risb=21_T7671641039&format=GNBFI&sort=RELEVANCE&startDocNo=1&resultsUrlKey=29_T7671641048&cisb=22_T7671641047&treeMax=true&treeWidth=0&csi=8093&docNo=1.

Dolnicar, S. & Jordaan, Y. (2007). A Market-Oriented Approach to Responsibly Managing Information Privacy Concerns in Direct Marketing. Journal of Advertising. 36(2). Retrieved October 21, 2009, from http://web.ebscohost.com.www.libproxy.wvu.edu/bsi/pdf?vid=6&hid=112&sid=49535893-727d-440b-a765-a7f358edac23%40sessionmgr110.

McCarthy, M. (2009, October 8). Halloween Candy Favorites: What Are America's Top Picks for Trick-or-Treat Candy Brands? Suite101.com. Retrieved October 21, 2009, from http://homemanagement.suite101.com/article.cfm/halloween_candy_favorites.

Simmons, C. (2007). Protecting Children While Silencing Them: The Children's Online Privacy Protection Act and Children's Free Speech Rights. Communication Law and Policy. 12 (2). Retrieved October 21, 2009, from http://web.ebscohost.com.www.libproxy.wvu.edu/bsi/detail?vid=5&hid=112&sid=49535893-727d-440b-a765a7f358edac23%40sessionmgr110&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=buh&AN=25183468#db=buh&AN=25183468#db=buh&AN=25183468.

The Associated Press (2003, February 28). Hershey Fined for Violating Children's Privacy Act. Retrieved October 21, 2009, from http://www.lexisnexis.com.www.libproxy.wvu.edu/us/lnacademic/results/docview/docview.do?docLinkInd=true&risb=21_T7671393592&format=GNBFI&sort=RELEVANCE&startDocNo=1&resultsUrlKey=29_T7671394102&cisb=22_T7671394101&treeMax=true&treeWidth=0&csi=304481&docNo=5.

So long old friend ... Gourmet to cease publication

I found out this month that I’m losing a friend. Publishing giant Conde Nast announced it was ceasing publication of Gourmet magazine because of financial reasons. In circulation since 1941, Gourmet provided not only recipes and tips but commentary on a variety of food issues. Conde Nast has decided instead to keep Gourmet’s less fancy sister publication, Bon Appétit, which has more readers. While I enjoy both publications, I will miss Gourmet.

My love for food and cooking is a relatively new hobby. It started a few years ago when a couple friends were going through divorces. We decided to get together once a month, talk about our problems, share some food and some wine. Our little Supper Club has been going on more than 10 years now. None of us were experts when we started by any stretch of the imagination. But each month we would pick a theme, head to our cookbooks or Internet sites like Gourmet’s Epicurious, find an interesting recipe and try it for nonjudgmental friends. Sometimes the recipes were great; sometimes not. Along the way, we honed our culinary skills and deepened our friendships, something many of us could use a little more of in today’s hustle and bustle world.

I found myself reminiscing about Gourmet this week while doing some research for my Digital Marketing Communications class. My classmates and I were charged with comparing the media kits of two similar magazines. Of course, I looked at two cooking publications. Instead of Gourmet, my old faithful, I turned to two newer friends — Cooking Light and Every Day with Rachael Ray. While doing my research, I was surprised to learn the average reader of both magazines is a 40-something married woman earning between $73,000 and $75,000 a year. There are so many people who could benefit from the health tips in these magazines. Unfortunately, the reality is that many families who would benefit the most are the ones who can ill-afford a monthly magazine subscription, which is why, I suspect, the monetary demographics are what they are.

I can’t help but like Cooking Light and Every Day with Rachael Ray. Both of these magazines provide quick, mostly healthy, balanced, flavorful meals. I’ve had some health issues in recent years and enjoy trying out the healthier recipes both publications offer. Still, I’ll keep my favorite Gourmet recipes around. Here’s a popular one at my house: Pork Tenderloin with Apricot Mustard (http://www.epicurious.com/recipes/food/views/Pork-Tenderloin-with-Apricot-Mustard-238677). Add a tossed salad, some green beans or asparagus, roasted potatoes, bread, a bottle of wine, a few friends, and enjoy. And think about Gourmet when you do.

References:
Cooking Light Media Kit. Retrieved October 14, 2009, from http://www.cookinglight.com/magazine/media-kit-00400000033153.

Every Day with Rachael Ray Media Kit. Retrieved October 14, 2009, from http://www.rachaelraymag.com/Help/advertise-with-us-information.

Roberts, J. (2009, October 8). Just How Much Did Conde Nast Lose? Ad revenue at the high-end magazine company may drop by $1 billion by year's end. Retrieved October 16, 2009, from http://www.newsweek.com/id/216921.

An Apple a Day? Is It for Me?

I think I want an iPhone. Or do I? All the new touchscreen phones are confusing me. Still, since 2007 when Apple introduced its first iPhone, the sleek palm-sized computer that doubles as a cell phone has captured about 19 percent of the Smartphone market in the United States. While the iPhone has set many firsts in the cell phone market, it shares a common component with phones made by a competitor. The iPhone and Smartphones made by Korean electronics giant Samsung all run on the same Samsung-made processors (Crothers, 2009).

This common denominator has helped Samsung become a major player in the wireless market and set the stage for Samsung to launch an effort to follow in Apple’s footsteps. Samsung, one of the largest mobile phone providers in the United States, last month launched its own mobile applications store in Europe (http://www.samsungapps.com) with plans to expand to 30 countries through 2010. The apps are compatible with phones running the Symbian or Windows Mobile operating system (Kolakowski, 2009). Samsung opened its app store with about 300 applications and plans to expand to about 2,000 by the end of the year (Kolakowski). Samsung hopes its app store will help it capture a slice of the mobile-application pie that has been led mostly by Apple's App Store for iPhones and iPods.

Juniper Research estimates mobile application downloads will reach 20 billion annually by 2014 (Adhikari, 2009). Mobile data consumption continues to grow at a rapid pace, with data services now representing a quarter of total U.S. operator revenues, which topped $19.4 billion in the first half of 2009 (Ankeny, 2009). Wireless subscribers in the U.S., which now total 276.6 million, transmitted 740.3 billion text messages in the first half of 2009, about 4.5 billion messages per day (Ankey). With those kinds of numbers on the line, it’s no wonder Samsung and other mobile providers are doing what they can to increase their share of the ever-growing mobile pie. Now which one to buy???

References:
Adhikari, R. (2009, August 31). Samsung Leaps Into App Store Arena. E-Commerce Times. Retrieved October 7, 2009, from http://www.ecommercetimes.com/story/68002.html?wlc=1254969627.

Ankeny, J. (2009, October 7). U.S. mobile data revenues close to $20B the first half of this year . FierceWireless.com. Retrieved October 7, 2009, from http://www.fiercewireless.com/ctialive/story/u-s-mobile-data-revenues-close-20-billion-h1-2009/2009-10-07.

Averitt, M. (2009, October 7). Samsung Mobile Announces Comprehensive Commitment to Deliver Support, Innovation and Services to Enterprise Market. Retrieved October 7, 2009, from http://finance.yahoo.com/news/Samsung-Mobile-Announces-bw-2158629657.html?x=0&.v=1.

Crothers, B., (2009, September 18). Samsung's 'Apple' Chip Rides iPhone Market Gains. Cnet.com. Retrieved October 7, 2009, from http://news.cnet.com/8301-13924_3-10356877-64.html.

Jones, A. (2009, July 30). Samsung Launches Samsung Application Seller Site. IT Business Edge. Retrieved October 7, 2009, from http://www.itbusinessedge.com/cm/community/news/mt/blog/samsung-launches-samsung-application-seller-site/?cs=34556.

Kolakowski, N. (2009, August 31). Samsung Application Store to Compete Against Windows Mobile, Apple App Store. Eweek.com. Retrieved October 7, 2009, from http://www.eweek.com/c/a/Mobile-and-Wireless/Samsungs-New-App-Store-Looks-to-Compete-Against-Windows-Mobile-Apple-App-Store-782741.

What is it about Facebook???

I’ve spent the last week reading and writing more about social media, including Facebook, than I ever thought I would. My Digital Marketing Communications class started out discussing whether companies that use social media, including Facebook, should create an in-house team to monitor activity. I personally think this is the best move for companies that are serious about using new media to reach customers. Who to better protect and promote your brand than your employees?

As part of this discussion, I came across a nugget of information in Fortune magazine (2009) that really struck me: “If Facebook were a country, it would have a population nearly as large as Brazil's. It even edges out the U.S. television audience for Super Bowl XLIII, which drew a record-setting 152 million eyeballs.”

What is it about Facebook that attracts millions of teenagers, professionals and grandparents alike? Recent Nielsen data show that when Americans go online, they spend 17 percent of their time on social network and blogging sites, particularly Facebook, nearly triple the time spent on such sites last year. I think one reason Facebook is so popular is because it offers us an easy way to reconnect with people, particularly through photographs. These images allow people to quickly share what they’ve been up to with family and friends, old and new. Plus, they’re just fun to look at. This addictive quality keeps Facebook's typical user on the site for an average of 169 minutes a month, according to ComScore. Compare that with Google News, where the average reader spends 13 minutes a month checking up on the world (Hempel & Kowitt, 2009).

All too often these days we find ourselves rushing from one meeting to the next, to soccer games and gymnastics, then home to make dinner, do some household chores and collapse into bed only to get up and repeat the process all over again. There often is little time left for friends and other interests. Facebook helps fill this void in so many of our lives. For me, it’s another avenue to stay in touch. It will never replace spending time with family and friends in person.

Still, I find it funny that no matter the environment, in person or online, some things never change when it comes to men and women. A Harvard study (2009) of social media usage, including Facebook, found the biggest usage categories are men looking at women they don't know (think the beach, the mall, a bar), followed by men looking at women they do know (repeat), while women like to look at other women they know (think of celebrations, shopping finds, new do).

What can you say? Men are from Mars; Women are from Venus.


References:
Hempel, J. & Kowitt, B. (2009, March 11). How Facebook is taking over our lives. Fortune. Retrieved October 3, 2009, from http://money.cnn.com/2009/02/16/technology/hempel_facebook.fortune/index.htm.

MarketingCharts.com Web site (2009, September). Ad Spend up 119% on Top Blog, SocNet Sites. Retrieved October 3, 2009, from http://www.marketingcharts.com/interactive/ad-spend-up-119-on-top-blog-socnet-sites-10534/?utm_campaign=newsletter&utm_source=wmd&utm_medium=textlink.

Silverthorne, S. (2009, September 14). Understanding Users of Social Networks. Harvard Business School Working Knowledge. Retrieved October 3, 2009, from http://hbswk.hbs.edu/item/6156.html.