Transparent customers. Direct marketing online



This process works even better on the Internet because of the latter's interactive nature. "The Internet is a dream to direct marketers", said Wil Lansing, CEO of the American retailer Fingerhut Companies. Many services require you to register online, requiring users to provide as much information about them as possible. And in addition, the Internet is fast, cheap and used by people who tend to be young and on the search for something interesting.

Many web sites also are equipped with user tracking technology that registers a users behaviour and preferences during a visit. For example, user tracking technology is capable of identifying the equipment and software employed by a user, as well as movements on the website, visit of links etc. Normally such information is anonymous, but can be personalised when it is coupled with online registration, or when personal identifcation has been obtained from other sources. Registration is often a prerequisite not just for obtaining a free web mail account, but also for other services, such as personalised start pages. Based on the information provided by user, the start page will then include advertisements and commercial offers that correspond to the users profile, or to the user's activity on the website.

One frequent way of obtaining such personal information of a user is by offering free web mail accounts offered by a great many companies, internet providers and web portals (e.g. Microsoft, Yahoo, Netscape and many others). In most cases, users get "free" accounts in return for submitting personal information and agreeing to receive marketing mails. Free web mail accounts are a simple and effective direct marketing and data capturing strategy which is, however, rarely understood as such. However, the alliances formed between direct advertising and marketing agencies on the one hand, and web mail providers on the other hand, such as the one between DoubleClick and Yahoo, show the common logic of data capturing and direct marketing. The alliance between DoubleClick and Yahoo eventually attracted the US largest direct marketing agency, Abacus Direct, who ended up buying DoubleClick.

However, the intention of collecting users personal data and create consumer profiles based on online behaviour can also take on more creative and playful forms. One such example is sixdegrees.com. This is a networking site based on the assumption that everybody on the planet is connected to everybody else by a chain of six people at most. The site offers users to get to know a lot of new people, the friends of their friends of their friends, for example, and if they try hard enough, eventually Warren Beatty or Claudia Schiffer. But of course, in order to make the whole game more useful for marketing purposes, users are encouraged to join groups which share common interests, which are identical with marketing categories ranging from arts and entertainment to travel and holiday. Evidently, the game becomes more interesting the more new people a user brings into the network. What seems to be fun for the 18 to 24 year old college student customer segment targeted by sixdegrees is, of course, real business. While users entertain themselves they are being carefully profiled. After all, data of young people who can be expected to be relatively affluent one day are worth more than money.

The particular way in which sites such as sixdegrees.com and others are structured mean that not only to users provide initial information about them, but also that this information is constantly updated and therefore becomes even more valuable. Consequently, many free online services or web mail providers cancel a user's account if it has not been uses for some time.

There are also other online services which offer free services in return for personal information which is then used for marketing purposes, e.g. Yahoo's Geocities, where users may maintain their own free websites, Bigfoot, where people are offered a free e-mail address for life, that acts as a relais whenever a customer's residence or e-mail address changes. In this way, of course, the marketers can identify friendship and other social networks, and turn this knowledge into a marketing advantage. People finders such as WhoWhere? operate along similar lines.

A further way of collecting consumer data that has recently become popular is by offering free PCs. Users are provided with a PC for free or for very little money, and in return commit themselves to using certain services rather than others (e.g. a particular internet provider), providing information about themselves, and agree to have their online behaviour monitored by the company providing the PC, so that accurate user profiles can be compiled. For example, the Free PC Network offers advertisers user profiles containing "over 60 individual demographics". There are literally thousands of variations of how a user's data are extracted and commercialised when online. Usually this happens quietly in the background.

A good inside view of the world of direct marketing can be gained at the website of the American Direct Marketing Association and the Federation of European Direct Marketing.

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Security Measures?

The more so-called security measures are taken the more control and the less freedom is granted. Whereas criminals are flexible in their computer work/digital existence, the average person cannot be. So it is her/him who gets punished with an increase of control.
Of course security can be in favor of the population as well - and this is the case if cryptography is legal so that everyone has access to it to protect his/her data. This one needs for e-commerce, secure payments and transmission of private data, mostly e-mails or access to websites where one needs a password. E-mails are nothing else than postcards, letters without envelopes. Without encryption they are easy to open, read and trace back, even without knowing the password. Rumors that Echelon works with a list of key-words, controlling any e-mail in the world and reacting to words of that list, led to actions like the Jam Eschelon Day, last time held on October 21st, 1999, to confuse the espionage system.

for more information on Jam Eschelon Day see:
http://www.hacktivism.org
http://www.echelon.wiretapped.net/
http://www.heise.de/tp/deutsch/inhalt/te/5358/1.html

But the respect for privacy stands for an essential values in democratic societies.
So, how can it be regarded a governmental risk?

At a conference:
"How many people here fear a greater risk
from government abuses of power
than from criminal activity?"
The majority raised their hands,
one participant shouted "What's the difference?"
(anonymous)

If governments really care for the people and want to fight against cybercriminality they should rather support the work on the latest technologies for encryption than to restrict their access. Or even better: they should not intervene at all - to make sure they do not build in any trapdoors. Though it is already too late for discussion like this one as the trapdoors are already part of most of the key-systems. Rumors about PGP and trapdoors do not help the confidence in cryptology.

for information about the risks of cryptography see:
http://www.cdt.org/crypto/risks98/

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MIRALab

MIRALab is a research laboratory attached to the University of Geneva. Its motto is "where research meets creativity". MIRAlab's objective is to model human functionalities, such as movement or facial expression, in a realistic way.

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IIPA

The International Intellectual Property Alliance formed in 1984 is a private sector coalition and represents the U.S. copyright-based industries. It is comprised of seven trade associations: Association of American Publishers, AFMA, Business Software Alliance, Interactive Digital Software Association, Motion Picture Association of America, National Music Publishers' Association and Recording Industry Association of America. IIPA and its member's track copyright legislative and enforcement developments in over 80 countries and aim at a legal and enforcement regime for copyright that deters piracy. On a national level IIPA cooperates with the U.S. Trade Representative and on the multilateral level has been involved in the development of the TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement of the WTO (World Trade Organization) and also participates in the copyright discussion of the WIPO (World Intellectual Property Organization).

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