Last year some overzealous Google developers decided it would be OK if the company’s new social networking site (Google Buzz) would automatically select friends for their users based on who they emailed most. The release of “Buzz” created buzz of the worst kind, a backlash on internet security and privacy, which was the pregame for Facebook’s recent missteps. Some scholars are wondering, is privacy dead? 

The constitution does not explicitly protect our privacy (The Fourth Amendment provides “the right of people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures). Yet protecting our homes, families, and information is central to our core values and American’s have an innate expectation of privacy.

The internet is a paradox; it offers us the ability to access powerful information at our fingertips. But access to information comes with a cost. It also offers the ability to track a colleague’s home address, see an aerial view of their property, see pictures of their children and know if they prefer golf, skiing or stamp collecting. It is not very difficult to ascertain ones sexual preference by looking at their Facebook page.

Consider the emerging trends in insurance coverage. The day will come shortly when an insurer will be able to track your medical history, what you had for lunch today, the number of steps you took at the gym this morning, and actuate the cost to insure you. Such modeling could reduce the cost for life and disability insurance.  Yet we see it as an invasion of our privacy. Some are wondering, what are the unintended consequences of having powerful databases which track our movements with such precision?

Clearly, the Federally mandated shift to electronic medical records is going to create shock waves for patients, who are going to need to warm up to their podiatrist seeing the rest of their medical history. But perhaps we need to see the forest through the trees. If our life could be saved by more complete medical information, wouldn’t it be worth the risk of our neighbors knowing a little bit more about us?

We reset our expectations of what is acceptable all the time. In the 50’s, Elvis shaking his hips was viewed by some as vulgar (imagine what Ward Clever would make of Lady Gaga).   It appears that we are on the cusp of resetting our expectations about what is private, and what is not. Companies have demanded since the advent of email that they own the content of the email, and that they have the right to read it at any time. Our work methods are far more public (than they used to be) in a world of common calendars and collaboration work tools.  

It appears to me that we are at a crossroads where we will really not have any choice. The converging forces of media, government, business and social networking are moving us in a direction of accepting less privacy. Organizations should be cognoscente of such concerns and make choices that protect their customers and employees. However, we may need to accept that progress comes with a price.

Big Idea 1-Your Car as a Device

In a shocking role reversal, Honda and Toyota are both caught in reverse, and GM and Ford are suddenly surging.  Ford made $2.7 billion last year, as its stock rose 700% without a government bailout.

Perhaps even more shocking is the prospect of real innovation at Ford.  Fast Company referred to the venerable auto maker as “America’s most surprising consumer-electronics company.”[i]

CEO Alan Mulally has a rabbit up his sleeve in the form of a new generation of automobiles. These cars will change our paradigm, from connecting our PDA’s and iPods to our cars, to the car becoming a device itself. Imagine a car being a killer app!

The new marriage of steel and plastic will allow people to actually pay attention to driving their car while getting more functionality than we could have imagined. Sync-My-Ride (cool brand name if I ever heard one) allows you to sync your car to a PC. In 2011, several models will have elaborate touch screens that will allow you to customize the dashboard on your car to your preferences. You can even download your Ford settings onto a thumb drive and load it on another Ford (for example,  a rental car).  Ford may be becoming relevant again.

Big Idea 2-Integrated Internet

Another news item that caught my attention recently was Facebook’s recent announcement that could upset how we use the Internet. 25 year old Mark Zuckerberg and friends are attempting to make the Internet smart; having it anticipate how you want to use it based on your Facebook preferences on things such as friends, sports, hobbies and music.

In concept Facebook tools would be outwardly facing, interacting with other websites so they become a cloud of integrated websites.  Imagine signing on to your fantasy baseball site (you know who you are) and having your favorite Kings of Leon song streaming on Pandora behind it – automatically.

As was the case when ATM’s, email and social networking exploded on the scene, there will be all kinds of security concerns and late adopters but the opportunity to create a fresh online experience is likely to take storm.  Facebook is disruptive once again.

Big Idea 3-Cashless Society

One of the scenarios we project in the book (Intended Consequences) is the trend towards a cashless society. Federal Reserve Banks rarely handle cash or checks anymore; bank commerce is almost entirely electronic.  On the internet, PayPal offers a 3^rd party clearinghouse where money is moved safely from one party to the next.

While we have the ability to transact electronically using a credit card almost everywhere, paying for things can still be slow and arduous. The mechanics of an online transaction are still a barrier;  setting up a new account can feel at times like a root canal, especially when vendors expect you to enter all kinds of extraneous information about your first born and personal income.

In contrast, on iTunes one’s ability to download media is practically instantaneous, and that is what other websites should aspire to.  As new online technologies allow for safer transactions, our ability to instantly download media and pay through a 3^rd party will be a game changer.

I am often asked if organizations should include Facebook postings and other social media in their marketing plan. For those of you interested in a precise answer, here it goes: it depends.

Newspaper revenue has fallen off a cliff (down 40% by 2003) while magazines have not fared much better (down 20%). Television ad revenue is down 15%, this year alone.  Meanwhile, online media is growing at a 7% clip suggesting that as a whole, total spending on marketing is undergoing a precipitous drop.

According to Kiplinger, targeted campaigns will reap 75% of all marketing spending by 2013. Marketers, armed with the ability to regurgitate millions of data points such as age, gender, location, income and household size will find ways to market online to very specific audiences.

In these cases, social media will provide an inexpensive method for targeting specific customers.  In the interim, most of us are just spewing on social networking sites with little return. There is certainly room for consumables to be marketed through social media. A recent study published in the Harvard Business Review showed a significant lift in the popularity of certain products and services when Facebook  and Twitter are used to mold the consumers’ opinions, including the use of online coupons and the like.

Yet for now, it is hard to imagine a professional services firm (for example) using such sites for anything more than impressing their younger colleagues. LinkedIn is by far the most useful site for professional networking, yet few people take the time to mine their database beyond their existing relationships (which seems redundant and far from the point).

My conclusion is that if your primary audience is B2B, the focus of internet marketing should be search engine optimization, blogs, and LinkedIn. I have many of my B2B contacts on Facebook, but it is a slippery slope (some have even verbalized their preference not to have any business interactions on Facebook). It can be hard to mix business with pleasure, and Facebook certainly presents the opportunity for the horse to get out of the yard.

Combinations of internet marketing activities can be very powerful, such as linking Facebook, Twitter and LinkedIn posts to your blog. Some have gone as far as outsourcing to marketing professionals that do nothing more than ghost for a business on the internet.

I may be old school in this regard, but I think for most of us that money would be better spent trying to orchestrate meetings with people our own age who will be more impressed with what we have to say in person than how clever my Tweet is this week.

Many of my older colleagues are feeling a bit out of sorts with Facebook, RSS feeds and the plethora of online media which have disturbed the sanctity of our desktops. Many feel compelled to join the party, regardless of their place within the world order. 

I wonder if all of this panic is really necessary.  For some, running Facebook ads seems trendy, but for others it is like selling Yankee pinstripes at Fenway Park. My point is that if you have an old world product, it is hard to convert to online marketing techniques overnight.

Peter Drucker said all management is marketing but I wonder if he is turning in his grave at the prospect of Twitter and its lack of a sustainable revenue model.  He couldn’t have expected marketing to change so dramatically, practically overnight.  Print advertising is dying a rapid death.  Yet some products and service have an experiential component that make Internet marketing difficult.  Companies are spending a lot of money on ad words and other SEO (search engine optimization) tools, sometimes void of any real strategy or measurement other than click through (which is a ridiculous measurement if I ever heard of one).

Companies are well advised to consider their Internet strategy within a broader effort that blends different approaches into an integrated marketing plan.  Marketers must take the time to acquire the skills, resources and technology to compete effectively in the online space. 

One advantage that online marketing offers us is the ability to measure specific outcomes of web traffic, and we should all be a bit more vigilant in measuring the effectiveness of our marketing so that we can better allocate resources to the approaches that work best.  See you all on Facebook.