Professional Documents
Culture Documents
Abstract
The increase reliance of the Internet revolutionized how both organizations and individuals
conduct business. The most significant business activity conducted online is e-commerce. This
study investigates the internet marketing tools being used by advertisers and how it impacts the
privacy of consumer information. This research is performed by reviewing the common devices
in the collection of marketing data on consumers. The data offers some possible relation between
business intent and their level of concern regarding their consumers personal privacy. The
results support and extend previous research by showing that it can extend limited clues to
Introduction
With greater reliance, consumers are continuing to prefer the web for their shopping
needs. Ovum, a London-based tech research and advisory firm, has even projected that mobile-
enabled sales will reach $2.05 billion by 2020 (Berry, 2016). With this upward trend, most
businesses are pressured to create ingenious methods to generate revenue online through specific
targeted advertising. However, online businesses have their unique methods to identify their
consumers, some more complicated than others. However, they are being criticized by
consumers for collecting their private information and creating a false sense of trust.
The research conducted in the discussion will focus on advertisers use of internet
marketing tools, such as internet cookies, internet filters and social media sites. As with previous
research, this study examined basic profile information provided to online businesses, when
consumers complete their purchases--such as age, sex, region and income, the impact on
Advertisers are continuously challenged with collecting necessary data from their
targeted market. With the rise of mobile devices and social media, marketing companies are
constantly searching opportunities to apply old rules to ever changing marketing platforms online
(Bhargava, 2013). As such, Hoofnagel (2014) argue that, ...advertisers are using technologies
that consumers are not familiar with, specifically in order to override consumers preferences (p.
278). The tool being used by the majority of advertiser is Internet Cookies, which aide with
tracking online shopping behaviors of their specific targeted niche. Marketers also rely on the use
of search engines, such as Google and Yahoo, to track users through the use of internet filter
bubbles. This tool is based upon analog calculations of the user behavior, which offers a path of
Online Marketing and Consumer Privacy 4
least resistance, which is specifically created from the personal data entered. Since the data
tracked in these tools are not static, it follows them to other websites. Thus, this form of social
engineering intent is to convince consumers into thinking they want, rather than providing them
Another popular device is obtaining the behavioral data through social media sites. Since
available about its users. For example, many advertisers have leveraged Facebook to collect its
user data for the purpose of driving ads outside this site (Miners, 2014). Many internet users do
not have control, and may be even unaware that their behavioral, as well as their personal
information, are being collected through these popular internet marketing tools. With the rise of
major retail companies consumer data recently compromised, shoppers confidence to provide
personal information online has waned and online businesses now have to earn this information
Most consumers are also relying on government intervention to curb internet advertisers.
While there are no formal policies to enforce e-commerce privacy practices, the Federal Trade
Commission (FTC) has launched its 2012 Privacy Report, with intent to alleviate this issue. This
report outlines a map for online retailers to provide strong and appropriate consumer privacy
protections. For example, FTC is attempting to encourage all internet businesses to implement
deidentification technology on their storefronts. This system offers robust user interface and
helps advertisers relies less on personal data to develop their marketing strategies. (Brill, 2014,
p. 5).
Online Marketing and Consumer Privacy 5
Conclusion
This paper discusses online activity and privacy concerns of internet users, in relevance of an
advertisers intent to gather personal information for their marketing purposes. However, the
that companies will make decisions that affect their marketing strategy, solely on the basis of
their target markets internet activity, is challenging and susceptible to error. Further research into
the extensive internet use is critical to ensure that feasible, as well as ethical, implications about
Sources
All about cookies.org (n.d.). What are cookies in computers? Retrieved July 17, 2016 at
http://www.allaboutcookies.org/
Allnutt, L. (2011, June 29). The Filter Bubble: What the Internet is Hiding from You. Christian
Berry, A, (2016, Jul). 3 numbers that may change the way you see mobile retail. NRF Retail.
you-see-mobile-retail
Bhargava, M. (2013). Privacy in the Mobile Age: Recent Developments and New Regulations.
Brill, J. (2014, Feb). Center for Policy on Emerging Technologies. The Internet of Things:
Brill Washington, DC February 26, 2014. Federal Trade Commission. Retreived on July
17, 2016 at
https://www.ftc.gov/system/files/documents/public_statements/203011/140226cpetspeech
Hoofnagle, C. J., Soltani, A., Good, N., Wambach, D. J., & Ayenson, M. D. (2012). Behavioral
Advertising: The Offer You Cannot Refuse. Harvard Law & Policy Review, 6(2), 273-
296.