Facebooks New Member Tracking Tools
(James Hood @ ConsumerAffairs) Facebook has been generating a lot of publicity about its new Facebook Home app for Android phones but it's being a lot quieter about another big change -- its lash-up with Datalogix, a marketing research firm that maintains huge databases tracking consumers' online and offline activities.
Facebook's new deal with Datalogix lets it show ads to people who have purchased or shown interest in all kinds of products offline, everything from packaged goods to cars, as well as online.
Datalogix is one of those "big data" firms that constantly collects information from all kinds of sources, including loyalty cards in brick-and-mortar establishments.
In some ways, Datalogix goes Google one better. Google sells "contextual" advertising, based on the content of the web page you're viewing, and "behavioral" advertising based on your general online behavior.
But with the data from Datalogix, Facebook will be able to show you ads based on what you are doing in the physical world as well as online. This is creating a lot of buzz in the advertising world and is likely to generate a bumper crop of revenue for Facebook.
Audience segments
The Datalogix-Facebook deal involves the launch of over 300 audience segments, called “Partner Categories.”
“With Datalogix Partner Categories, Facebook becomes a verifiable sales driver as well as a brand builder for Pepsi,” said Shiv Singh, Global Head of Digital for Pepsico Beverages, in a news release. “Datalogix helps us reach the right consumers on Facebook and measure the offline sales impact with confidence.”
Marketing types say this is good for everybody: it helps companies sell their stuff, which creates jobs, moves the economy, etc.; it helps online sites keep the lights on; and it benefits consumers by reducing clutter and showing them targeted advertising that more closely meets their needs.
“What makes Datalogix audiences unique is both the quality of the data and the scale with which they deliver,” said Erica Bigley, Digital Media Manager for Ford Motor Company. “We’re excited to expand our use of Datalogix Data and Measurement services from the Open Web to the full scale of Facebook media."
How do privacy advocates feel about all this? They don't like it, although they tend to focus on the potential for information in marketing databases finding its way into the hands of the government.
Consumer advocates express fears that the information can be used to affect credit ratings, insurance premiums and even employment prospects but attempts to outlaw such tracking are hampered by the often-overlooked fact that there is no guarantee of privacy in the U.S. Constitution.
New legislation is always being proposed but tends to run into overwhelming opposition from marketers' well-funded lobbying.
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