In a technology-enriched world, companies globally use "data mining" to market and advertise products. Data mining assumes companies can predict future customer behavior with data collected from past purchases, online viewing habits, and demographics such as age, gender, and ethnicity. But this kind of data collection walks a fine line between informative and intrusive, and consumers are taking notice.

 

Don't Be Creepy
How much sharing is too much sharing when it comes to companies using consumers' data? According to Adobe's report "Click Here: The State of Online Advertising," consumers find web customization (when companies monitor the online habits of consumers and then promote their products accordingly) valuable; however, an average of 82% of global consumers think companies collect too much information, and 68% find the practice of web customization to be "creepy."

 

In exchange for collecting consumers' data without their permission, marketers should be tactful in how they use it. While many companies have taken steps to collect data on consumers and their target audience, they fail to use it properly. It's important to focus on the facts that have been accumulated through data mining instead of developing marketing strategies based on past principles. Numbers don't lie--but you need to know how to use them. One popular way to properly utilize data is to hire a contextual advertising company experienced in creating algorithms for marketing based on data alone.   

 

One of the most tragic downfalls of targeted advertising is the untimeliness and misplacement of online ads. From Facebook to news sites, online ad placement has come under fire for unfortunate timing (see comical examples). If your company uses online ad placement, ensure the contextual advertising company you select provides targeting tools that will allow your ads to be sensitive to keywords, current events, and potential pitfalls.

 

Data Do's
Data mining may have some negative outcomes, but it offers positive experiences as well. Some forms of data collection help improve services throughout the community. One example is IBM's 2013 Dublin research lab where cell phone data was used to aid in re-designing bus routes across Abidjan. Another example is Twitter's data grants program, Twitter #DataGrants, which launched last February. The program gives academics free access to data, which they can then utilize in proactive ways. Harvard University used the program to track down sources of food poisoning, and the University of Wollongong in Australia used the program to track flooding patterns in Indonesia and then relay the information through tweets to indicate the best routes to avoid flooded areas.

 

With data mining, it's not necessarily what you know about consumers--it's how you use it. Being timely, tactful, and on-point with the algorithms used in data-based marketing will help keep you a trusted company in what's becoming a sea full of untrustworthy competitors. Take advantage, and take the high road to achieve your marketing goals.

 

 

Mona Graham
 
Monogram Communication Services

798 University Avenue

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