Listening in on chats leads to ad sales
Last May, I wrote a post about how advertisers are targeting us online, and doing so pretty effectively. The topic is an important one, so I thought I’d add some more thoughts here.
One statistic that appears a lot these days is an interesting one: While only 14 percent of consumers in America trust advertisements today, some 78 percent trust peer recommendations.

Facebook CEO and founder Mark Zuckerberg speaks to press and advertising partners at a company event in New York. Behind Zuckerberg are comparative graphics of how traditional mass media communicate vs. how viral communication operates on the Web and Facebook. (AP Photo/Craig Ruttle)d
The implication for marketers and ad sales reps is obvious, get friends talking about your client, and recommendations often turn into changed minds. But first you need to know what friends are saying to each other.
Self-identified members
All of us who use a social media site like Facebook are already self-identified members of a target audience segment, probably not knowing we’ve offered up the information that put us into that segment.
With that standing comes a flurry of ads on our FB page, which may well be a different array of ads than on someone else’s page because – in a real sense – you have said to the advertiser, I’m your most likely customer.
Facebook power
“Facebook has incredible potential to deliver customers to advertisers based on information that members submit themselves … when they communicate with friends, identify their ‘likes’ … and share their interests,” media scholar John Vivian notes.
The “Like” button is only the latest means of finding out how much we like certain things, people, or ideas. The marketer’s idea is to use those preferences to influence friends of online friends to buy that product, service, or political candidate.
This button sends an instant message to advertisers that you are a potential target. As a result, many Facebook users are more judicious in deciding when to hit that button.
Permission needed?
As I mentioned in May, Facebook says it does not pass on information to other parties without the user’s permission, although it does use the aggregated data.

Sheryl Sandberg, formerly of Google, was hired away by Facebook in 2008 to be its new chief operating officer, providing it with more management and advertising experience. (AP Photo/Google, ho)
The “Terms of Use” policy can be found in the bowels of the Facebook site and runs 4,579 words long. Much of that is focused on how it can pass your data along to advertisers, and how you might prevent some of that data from going out by controlling the intricate privacy settings available on another part of the FB site.
The Facebook, “Data Use Policy,” is located elsewhere in the site and also runs a few thousand words.
Ever read this?
Obviously, few users actually take the time to read the entire legal agreements so – more often than not – users do not know they actually do have some control over the uses of their personal data.
Nevertheless, portions of the FB policy notes the following:
“You own all of the content and information you post on Facebook, and you can control how it is shared through your privacy and application settings. In addition:
- For content that is covered by intellectual property rights, like photos and videos (IP content), you specifically give us the following permission, subject to your privacy and application settings; you grant us a non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use any IP content that you post on or in connection with Facebook (IP License).
- When you use an application, the application may ask for your permission to access your content and information as well as content and information that others have shared with you. We require applications to respect your privacy, and your agreement with that application will control how the application can use, store, and transfer that content and information.
- When you publish content or information using the Public setting, it means that you are allowing everyone, including people off of Facebook, to access and use that information, and to associate it with you (i.e., your name and profile picture).”
The ad policy
About advertising specifically, the policy notes elsewhere:
“Our goal is to deliver ads and commercial content that are valuable to our users and advertisers. In order to help us do that, you agree to the following:
- You can use your privacy settings to limit how your name and profile picture may be associated with commercial, sponsored, or related content (such as a brand you like) served or enhanced by us. You give us permission to use your name and profile picture in connection with that content, subject to the limits you place.
- We do not give your content or information to advertisers without your consent.
- You understand that we may not always identify paid services and communications as such.”
Here to stay
Like so many other aspects of the Internet, the social media seem destined to be here for a long time to come. And anytime a couple hundred million people decide to flock to a media site, you just know the advertisers are going to be there in the midst of them.
The question to be addressed is this: What are the ethical limits of online marketing, especially when it comes to obtaining personal information about consumers?
Listening in
In some respects, what is occurring with Web marketing companies and research firms might be analogous to high-tech wiretapping. One might ask how much daylight is there between tapping into a phone conversation and tapping into a Facebook exchange between friends.
The latter may not be illegal, but the results are the same. Through the Web crawlers that pick up any mention of a client’s product, service, or candidate, marketers do seem to be tapping into personal conversations.
Ethics policies
The ethics issue has not gone unnoticed by marketing companies themselves. For example, one Web marketer posted this on its home page recently:
“Consumers’ lack of trust [in online marketing] is illustrated by a recent privacy survey conducted by IBM in which 78% of responding U.S. consumers stated that they did not complete an online purchase because they were concerned about how their personal data might be used by the site. A survey by Jupiter backs up these results — they found that 58% of respondents worry about companies selling their personal information to others.”
Although this is a lack of trust simply related to data emanating from online purchases, users of social media sites and even e-mail users are wary of what they say, click, or respond to on those sites or regarding incoming e-mails.
Stepping up
To avoid losing consumer trust, some Web marketers are advocating policies like this one from Web Advantage:
“In order to gain the trust of consumers, online retailers must *clearly* spell out their privacy policies on their sites. Consumers should know *exactly* what the site plans on doing (or not doing) with any personal information or indirect data (cookies, IP addresses, etc.) they divulge as a result of visiting and interacting with a web site. If a site’s policy is to sell OR share consumer information with business partners, that fact needs to be disclosed.”
The age of interactive, online marketing might promise more tailored commercial messaging – something which many consumers might appreciate – but it comes at a cost.
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Comments
The question of ethical limits of online marketing is an interesting one. I agree with Justin’s statement that “for some, viewing a few tailored ads is not so bad compared to having free access to social networking or search engines.” Just as with anything in life, it’s an exchange of cost versus benefit. When you watch network television, you have to endure commercials. When you opt for DVR services so you can skip those commercials, you pay a fee. Most free and inexpensive media we consume are made possible through advertising.
For online marketing, though, I think the issue has to do less with the “cost” of viewing ads and more with an actual or perceived invasion of privacy. As Dr. Willis referenced in this post, consumers tend not to trust online advertising. I believe that’s because few people understand it. Facebook clarifies, as Vivian quoted, that “We serve the ad to people who meet the criteria the advertiser selected, but we do not tell the advertiser who any of those people are.” Consumers who think there are teams of online computer hackers stealing all of their personal information every time they purchase a purse online simply don’t understand that to marketers, they’re nothing more than a number. There’s really no invasion of privacy because companies get no personal information about the people who interact with their ads. I ran my first Facebook advertisement this week, and I can confirm that advertisers are given very little information about people who see their ads. I know we had 26 clicks in one day, and I know that we targeted our audience based on zip code and age, but that’s all I know. Based on this reality – apart from unusual scenarios like alcohol companies targeting children online – I think online marketing is pretty far from breaching any ethical barriers.
What’s most interesting, to me, about web advertising is how quickly it’s becoming overlooked. Scholar John Vivian notes that, in 2007, Facebook users protested advertisements appearing in news feeds. He says they were worried about privacy issues. For that reason, in 2009, Facebook altered its terms of service to protect its advertising interest and again did so in 2010 (as listed by Dr. Willis). Each time the FB advertising format has been altered, it’s received less attention. That’s because it’s simply becoming the norm–as are other forms of web advertising. Just like we’re used to watching commercials between tv shows, we’re used to watching them during webisodes (if we want to watch them for free). We can’t avoid invasive advertising on news sites either. Ever try looking through photos in an online news gallery? An advertisement usually takes over the screen somewhere in the middle of the gallery. Of course, there are advertisements always lining the right side of the screen on nearly any website, and sometimes lining the left, too. This just adds to ad clutter. Again, though, this clutter, as the norm, can become easily overlooked over time. And, I believe it is. The “noise” is no longer “loud” because it’s just tuned out. It’s happened to all traditional forms of media–newspapers, radio and television. That’s why, advertisers are turning to social media sites that can easily track users, who provide information about themselves by themselves. No real research needed. That’s less of a cost for advertisers, when their audiences are already researching themselves. It makes sense that advertisers would naturally be attracted to the medium. And, as sharing of this information becomes the norm, it will bother users less and less. However, technology will continue to evolve and users will move on to bigger and better things. So, advertisers must never stop looking for new ways to communicate.
I think that one of the main ethical dilemma that comes with websites is that terms of use and privacy policies are written at such length, that sometimes many very important things become convoluted and are not apparent to the average user. Just having the policies written doesn’t meant that the company has informed the users, the policies not only have to be written, they should be easy to find and easy to understand. I like that you mentioned how deep within facebook the privacy policy is – it’s the same for many social networking sites. My brother and I often joke that it’s easier to search google for some of these answers than the sites themselves. One big thing that bothers me about the internet in general is advertising. I understand that advertising is how most of these sites make money, so I’m not against that, it about how they know so much about me and my history. If I am searching for a pair of jeans online, for the next 2 weeks any site I go to will have ads with all of the brands of jeans I looked up – that’s a little scary! When does my privacy kick in on that front? Same with facebook, when I changed my status from single to engaged, my ads went from local clubs and dating sites to wedding photographers and apartments for rent. I don’t like the idea of federal regulation of the internet, but I do think that sites really need to step up their policies and make users feel more safe about the information they share.
The average Facebook user knows his data is being collected. I just gave a presentation on social media to an undergraduate class where I work. I made sure to ask the class, and they all responded affirmatively: they knew their data was being monitored and sold to companies targeting them for advertisements. At a recent family gathering, I asked the same question and all of my relatives (age 50-70, approx.) were completely flabbergasted as I explained the inner-workings of Facebook, a tool they all use. Vivian writes that Facebook is open about the way it collects data, but if you don’t know the tools…
It’s all about media literacy, and for the people who are illiterate, online advertising becomes stealth advertising. Perhaps they aren’t clear on the details, but people are generally aware of how targeted advertising works. (No 65-year old woman questions why Oprah’s O magazine has ads for wine and chocolate and not Craftsman tools.)
I joke about being a professional “Facebook-er,” but it isn’t far from the truth. It seems like Ashley and I have similar job responsibilities. I monitor activity for a number of accounts and create and monitor ads for social media and several “pay per click” accounts. The information I receive as part of that work isn’t really personal. It’s demographic, and it’s aggregated. I can’t even connect one individual user’s demographics. I think most companies try to maintain an ethical boundary between the information they have in their arsenal and using it to gain profits. Advertising pays the bills for most media. There’s no such thing as a free lunch, and that’s something every age group understands.
I mean the entire point of marketing is advertising to consumers so I don’t feel that we should be super surprised about our invasion of privacy. But, I think the nature of advertising and marketing is so intrusive now because its reflective of our culture. We give into so much marketing and advertising that marketers are just pushing the envelope until we push back, our generation loves products, we love to shop and we are lovers of things society is giving us what we want. Its the effects of social construction, we want things so we are sold things, we incorporate our possessions into our identities and so advertisers try and become part of our lives as well. On Facebook and with different social media sites, they work with those companies so that is expected, but we do have the options to not give into that or deal with it, we’re just lazy and won’t read the terms of use and take the precautions necessary.
As users of social sites, I do not think it should come as a total surprise that sites like Facebook have given information out for marketing or advertising. However, being members of social sites we must remember that anything on the internet is in a sense “free” information and actual privacy does not exist. Sure, we as users can set certain settings to maintain some privacy however, a few clicks here and there and your information can be public to anyone. I do agree that marketing and advertisements have become more aggressive. Yet, this particularly reminds me of when telemarketers would constantly call. Now it has manifested into another form which is all online. I believe as a user of social sites, that you should put only enough information, the more information you declare on these sites, the more they will take and vise versa; the less information you put up, the less marketers can work with.
I think this is a really interesting topic. While I see the invasion of privacy in some aspects for various websites passing along info about you. But, if there are going to be adds on the web pages that I visit, I would prefer that they were tailored to my tastes. I have found some really great websites through the adds on the sides of the web pages. Sites that I don’t know if I would have visited without seeing them on a site I already view and trust. Hearing a friend give something a good review definitely makes an impact on my opinion, so does seeing an add on a site I already trust. I don’t click on 80% of the adds I do see, but if something does catch my eye, I don’t think it is a bad thing to see what other sites being suggested to me have to offer.
I think the key to this is being aware that you are the customer. Often times business or advertisements want you to think you are the one making out on some type of deal but in reality it is always your business and your money that they want. Online ads have become in many ways become a a distraction when entering a website but without them these websites would not exist and us users would be very disappointed. I think there is an ethical line when it comes to advertising. Advertisers should be able to promote their product in such a way that consumers will buy it without being ticked. So many times you are almost manipulated to click on ads and end up on websites you never intended to be on in the first place. Consumers must be alert and aware of the ethical issues related to advertising but advertiser should also do what is right and not trick people into buy their products or buying something that they didnt intend to purchase.
I think one thing users need to always keep in mind is that goods and services are rarely ever “free.” If you’re walking down a street and a man sitting at a booth stops you and asks if you would like free football tickets, you would most definitely ask what the catch was. He might reply something about wanting you to tour a condo facility in exchange. Websites like Facebook are providing a service and in a capitalist economy, that would not be possible without some way generate income. Even something simple that we take for granted like Google search is the same way. Both of these web services generate income through advertising and that advertising is tailored to users based on their behavior. So just like walking down the street, when surfing the web consumers should always ask about that catch. For some, taking an hour to tour the condos would be well worth the tickets and for others it would not be. Just like for some, viewing a few tailored ads is not so bad compared to having free access to social networking or search engines. Most would rather do that than pay a dime every time they punched something into Google, or posted a picture on Facebook. It’s all about being informed and making choices that suit your personal goals and interests.