Friday, 31 January 2020

The ethical dilemma of online ad targeting



Even though we often think that ads are annoying because they interrupt content we care about, we do like (or at least prefer) personalised ads as they show us content that is relevant to us. As shown by the graph below which is based on a survey conducted by Deloitte in 2017, between 75% and 80% of respondents used at least one type of ad-blocking technology. It's getting harder and harder for a message to reach its target. How can we optimise the advertising budget in such hard conditions? With targeted ads. 

  
Retrieved from Deloitte


For marketers, targeted ads are a great way to send a message to a specific audience with pre-defined characteristics. It’s more cost-efficient and can be done in two clicks. 

But, as marketers, by choosing the recipient of our message, we are facing an ethical dilemma. When is it acceptable to exclude someone from seeing an ad? When is it acceptable to target based on the sexual orientation, or other immutable characteristic? 

Discrimination is illegal. Really? 


In the United States, like in other countries, it is forbidden for a landlord or an employer to discriminate people based on their race, religion, country of origin, gender, disability and familial status. This is a good thing. However, even though explicit discrimination is illegal, such as a job ad with the mention “whites only”, what about more implicit discrimination? In the past, marketers could filter the audience only to a certain extent, by choosing a specific newspaper, radio or television. But today, with tools such as Facebook’s advanced ad targeting, they can choose the audience.  

There are good ways to target by group, to reach people interested in a certain product or service, but it’s definitely unethical to use ad target option to exclude and discriminate people based on immutable characteristics. 

The ethical dilemma of online ad targeting: a current topic of interest 

 

Ethical challenges of online targeting in advertising have been studied by scholars. In 2014, this method was already criticized for being poorly understood by consumers, non-transparent, deceptive, and hard to opt out. More recently, the ethic of mobile behavioural advertising has been a topic of interest. Two researchers found that brand customer relationship quality is influenced by perceived brand ethical value, which is itself impacted by perceived privacy control and privacy. Probably an excellent argument for marketers and their ethical responsibility, isn't it?

Advertisement for consumer goods is one thing, but what about politics? The ethical issue is even more crucial when we think about Trump and the role model he should represent with his position. In 2016, his campaign relied on these so-called dark ads, which were used to target black voters to lower voter turnout for Hillary Clinton. This is simply not acceptable! Watch the Ted talk below if you want to know more about how Facebook can be a threat to democracy. It’s frightening. Discovering this video the day when Brexit was becoming a reality, I have had goose bumps. 






Is there any solution? 


Hopefully yes. For sure, advertisement platforms have some responsibilities. It’s great to see that Facebook already took some measures. For example, the digital giant has new rules since 2019 that restrict highly targeted ads for employment or housing based on race, gender, ZIP code, multicultural affinity, and sexual orientation. This is probably a good start, that should not be limited to employment or housing. But what about other industries, such as education and universities, which are targeting privileged kids only?  

The responsibility should start even before, at an individual level. As marketers, even though the goal is to be the most cost-effective possible, we must consider the impact that our campaigns may have. This is our ethical obligation to society.  Guilherme Pires, co-author of Ethnic Marketing Theory, raises some interesting questions: 

  • "Has permission been granted by the consumer to be targeted with dark ads?”  
  • “Has the content been abused, such as by containing pictures, endorsements or other content that is false, misleading or in some other way abused?” 
These questions should definitely be used by all marketers when they consider whether their campaigns are ethical or not.

At a government level, solutions can also be found. When we can read on Forbes that only “17% Of Consumers Believe Personalized Ads Are Ethical” it is clearly legitimate to expect a reaction from the government(s). In Europe, the GDPR already show that people are in favour of stricter data privacy expectations. Furthermore, as the return on investment of the money spent on Google and Facebook is more and more questioned (Procter and Gamble cut its budget for advertising partly because digital advertising is controlled by only the two giants), it is only a matter of time before governments jump deeper into the subject. 

Also, we should not forget that targeted ads have led to a proliferation of fake news and clickbait, and is even criticised for being “one of the most destructive trends in the modern world”.  

What if the solution would be to ban the use of personal data for all targeted advertising? 

Sunday, 19 January 2020

Our contemporary digital environment


 

“Alexa, can you please call Mom?” 


Wait, Am I really talking to a machine? 


  
Indeed. It’s not science fiction anymore, artificial intelligence has reached a new level. It is part of our contemporary digital environment, which is composed of elements that look more and more like futuristic movie we used to watch few years ago. Let’s have a look: 

# Artificial intelligence  

Today, artificial intelligence are two words that can be linked to pretty everything. From Poker - where it has been found that AI can beat professional players, and this can “pose a risk to the online gaming ecosystem”- to sustainable investment – where the machines can find information “presented in incompatible ways because of the lack of reporting regulations” - but also, and more surprisingly, artificial intelligence is transforming art; with digital dance for example, and even literature (Alexa, have you been able to write a few lines today my dear?). 

# Human microchip implant  

Elon Musk is hoping to put a computer chip into our brain. Why so? First, to help quadriplegics control smartphones for example, but also to control machines remotely, as the electric signals sent by the brain would be translated into action. Would you like to know more? Just watch the following video: 




Yes, it’s only a project at the moment, but some chips are already implanted, such as the ones to control tremors in people with Parkinson's disease. 

# Social media  


Social media have completely revolutionized our environment and the way we interact to each other and with brands and companies. Basically, social media is impacting all kind of relationships. It is very present on commerce, we can dialogue with other customers miles apart from us, we can be targeted by companies with ads that have the exact right message for our profile, and so on. With social media, we can get a new job while we were not even looking to change (thank you LinkedIn). Social media help marketers to increase website traffic or to target the right customer. 

# The new job (digital nomad) 

The digital environment has also its own job, the so-called digital nomad. You can drink your mojito in the Bahamas while working for a Chinese startup. Well, it appears that the reality of being a digital nomad is a little bit more different, with common misconceptions. First, it’s hard to have proper wifi at the beach. It’s a challenge to enjoy the time travelling as you need to get the job done. Moreover, if you want to do your work well, you will need a stable environment, which means that it's hard to hop from one city to another. 

# Social, Mobile, Analytics and Cloud (SMAC) 

Are you familiar with the acronym SMAC? It stands for Social, Mobile, Analytics & Cloud. In today’s marketing, these four words represent major areas of importance for marketing.  
 
As mentioned before, social media have a huge impact on companies and on they operate. It’s THE tool to know and target your audience. 

It’s no secret, not only people are connected, they live, sleep, eat (take a shower?) with their mobile phone. Marketing campaigns should not be mobile-friendly, they have to be mobile-first.  

Data. Data. Precious data. They are now very easy to collect and are very useful to take future marketing decisions. But marketers need to know how to use and interpret those data. This is when analytics arrive on stage. 

The cloud is a nice word for something that has saved millions of holiday pictures taken with a stolen phone. With the cloud, we can have access to our files wherever we are. For marketers, it means they can collaborate on common projects from all over the globe.
  

# Sharing economy 

The sharing economy. Another digital revolution. It isn’t a new concept, but technology has made the transactions easier. We all know Uber. It’s one of the best examples to illustrate the impact of the sharing economy on a traditional industry; transportation. But the sharing economy can also be found in the consumer goods sector (think of ebay), professional and personal services; taskrabbit to find contractors, and even in healthcare. With Doctor on demand, you can have virtual visit to doctors and psychologists.

What will be the next traditional sectors to experience changes because of the sharing economy? 


Well, these six elements are only a part of our giant contemporary digital environment. 

But now, maybe the question would be more, what is not part of the digital environment? You may be like me and go living remotely in the Swiss Alps (here exactly), you would still find 4G...