The Ethics of Digital Marketing - University of Wyoming

The Ethics of Digital Marketing - University of Wyoming

The Ethics of Digital Marketing Patrick E. Murphy Professor of Marketing Mendoza College of Business University of Notre Dame Recent Articles on Ethical Issues WSJ series on What They Know Microsoft Quashed Efforts to Boost Online Privacy8/2/10; On the Webs Cutting Edge, Anonymity in Name Only8/4/10; On the

Web, Children Face Intense Tracking9/18/10 The Pants that Stalked Me on the Web, Advertising Age, 8/2/10 Seeing that Ad on Every Site? Youre Right. Its Tracking You, New York Times, 8/30/10 Facebook Fights Privacy Concerns, WSJ, 8/22 Preliminary Thoughts wwwThe Wild Wild West A Decade AgoConsumer Online Privacy: Legal and Ethical Issues, Caudill and Murphy

Personal Shopper for you and your friends Walmart vs. Facebook and other websites Big Brother Outline

Introduction with definitions and comparisons Ethical theories/traditions Ongoing and new ethical issues Ethical concerns with social media Concluding comments Digital Marketing Digital marketing is the promoting of brands using all forms of digital advertising. The focus here will be on the new media. New media include the Internet, blogs, mobile

marketing and social media. Social media refer to outlets where individuals rather than organizations provide the content such as Face book, Twitter, web forums and comment sections on programming. Similarities and Differences with Traditional Marketing Similarities Mass media are free or less costly because of advertising

Intrusiveness and potential manipulation by advertisers are longstanding concerns Differences Internet has characteristics of many media Individual targeting has become more sophisticated Ethical Traditions/Theories Utilitarianisma decision is judged as ethical or unethical based exclusively on outcomes or consequences--greatest good Duty-based theorya decision is judged as ethical

or unethical based solely on the intentions or reasons of the deciderputs consequences aside Ethics of virtuepersonal character driven and not decision driven Utilitarianism and Digital Marketing (DM) Egoism is a special casebenefits for one individual or organization instead of many Most digital and new media marketing uses utilitarian argument Benefitstargeted advertising, low search

costs, more interesting and relevant websites Costsreduced privacy, big brother fears Recent Microsoft decision Duty-Based Ethics and DM Intentions or reasons, not consequences, make a decision ethical or unethical Rights and dutiestwo sides of same coin USrights-based society Right to privacyCOPPA US vs. Europe on digital marketing regulation

Europe is more community oriented and the US is more individualistic Ethics of Virtue and DM Focus is on the person and not the decision

Aspirations are key idea Moral virtues are good habits that are learned Ethic of the mean Virtues applied to DMtrust, transparency, integrity and vigilance Trust---building, maintaining, reservoir Character questions about some DM decision makers Marketing Techniques in DM STPkey concepts in marketingsegmentation,

targeting and positioning Marketing research Cookiesfirst party and third party--library Behavioral targeting Remarketingad for a product you have considered shows up on many websites--Zappos Location-based marketingGoogle Places Established New Media Marketing One way communication flow Googlesearch, maps, gmail

Amazonremembers choices, gives recommendations, compares searches against similar demographics Netflixmakes recommendations Your favorite online marketer Ethical Issues with These Media Vulnerable consumersnot just young, less privileged and less educated Transparency or lack thereof Benefits vs. costs

Ownership of information Remarketingunsettling, stalking, creepy Virtue ethics concernstrust, integrity New New (Social) Media

Facebook You Tube Twitter Wikis Blogs News Aggregators I think part of our generation, now that were mature, has grown up

and is now realizing the consequences.-Nick Normandin, ND Senior US Behaviorally Targeted Online Ad Spending as a Percent of Total Display and Total Online Ad Spending, 2008-2014 7.6 2014 19.8

6 2012 16.8 Display Advertising Total Online 4.8 14.2

2010 3.3 10.7 2008 0 5 10

15 20 25 Note: Display Ads include banners, rich media and online video Source: eMarketer, January 2010 Ethical Issues with Social Media

Social media tools are(nt) marketing tools; they are content creation and communication tools Transparency of communicators Loss of trustsocial media is all about conversations and building relationships and trust Benefits and costs Anonymity to other users Dangers of Web Tracking Possibility of our personal information:

1. falling into the wrong hands 2. may be used to influence our behavior and even our thoughts in ways that are invisible to us (i.e., manipulation) 3. eroding of personal privacy may lead us as a society to devalue the concept of privacy Source: N. Carr, The Wall Street Journal, 8/8/10. Concluding Comments 21st Century Marketing EthicsHigher expectations by consumers and society

Finding the balance between business/ marketing interests and privacy Power-responsibility equilibrium Need to be more proactive than reactive Possible parallel with telemarketing (Do Not Track list??)

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