The World Wide Web, marketing software and consumer database files are propelling the next generation of marketing toward consumer-driven advertising. Also called one-to-one marketing, direct marketing, permission marketing, collaborative marketing and connections marketing, they all mean the same thing: information about the consumer drives the sales pitch.
In theory, salesmen acknowledge the need to develop consumer trust and protect consumer privacy. But reality walks in, looking a lot like the Internet, and a theoretical problem has become today's reality. "We don't have an image problem," said Seth Godin, Yoyodyne chief. "We have a reality problem." A vivid illustration of this reality is the software developed by Thinking Media of New York. Their software allows advertisers to query a consumer information database on the fly before posting a personally tailored advertisement on the screen. Reality.
All consumer information databases get their information from somewhere. The question is, does the consumer know their information is being given out? GeoCities found itself in trouble with the Federal Trade Commission over this very issue. It was selling consumer information even though on its registration forms GeoCities stated it would "not share this information with anyone without [their] permission, but will use it to gain a better understanding of who is visiting GeoCities." GeoCities agreed to update their policies on disclosing customer information to avoid a lawsuit.
Industry groups and the Internet Advertising Bureau are undertaking development of standards for online advertising. They are setting standards to specify what information Web sites may collect about their site's visitors and how to measure site visits.
At Procter & Gamble's conference on advertising's future in August, one-to-one marketing was proclaimed to be "transparent, tailored and time efficient," by Procter & Gamble's vice president of advertising, Denis Beausejour. The hot topic at the conference was consumer trust.
Many marketers believe consumers are willing to share personal information about themselves if they are approached correctly. And it is this data which lies at the heart of successful one-to-one marketing strategies. To obtain consumers valuable personal information, various Web programs offer incentives such as cash or points to entice Web site visitors into sharing their personal preferences. In turn, this information is used to target a narrowly defined market.
