privacy – Suffering The Benz

In a recent post about “FourSquare Fatigue,” I noted the generational difference in the way people view online privacy.

The New York Times had an interesting piece on Friday that digs into the issue more deeply. While privacy advocates bemoan that many users don’t consider how the information they’re sharing could be “used and exploited by marketers,” venture capitalists are pouring millions of dollars into plays like Blippy, FourSquare and Skimble. And many consumers are freely offering up their data.

While I’m not sure I see the business model that will evolve from some of these plays, it’s clear people see the power of social networks to drive purchase decisions and generate reams of behavioral data.

And this made me think of another article I bookmarked recently. Groundswell co-author Josh Bernoff wrote a blog post on Peer Influence Analysis on his blog. This is a preview of sorts for Empowered, an upcoming book about the “power of individuals and word of mouth.”

“The question is, can you quantify that?” Bernoff asks. He then answers: “Yes, you can. … It’s called Peer Influence Analysis.”

Clearly, an increasing amount of work is being done in this area. It’s worth keeping an eye on … and it will be interesting to see how consumers react to Facebook’s latest moves to aggregate data. Will this be the next Beacon, or will consumers be willing to negotiate some of their privacy in exchange for “the power of word of mouth.”

Four Square fatigue

When Internet advertising talk turns to targeting, people start to twitch. Just consider the maelstrom Facebook walked into with its Beacon blunder. The concerns about online privacy are quite valid. It’s important to be vigilant about how your personal data are being used. The snarky PleaseRobMe.com drove this point home beautifully. But I think it’s important to seek a middle ground, a place where the use of your data provides value to you while you retain control of who sees that information and under what circumstances.

Venture capital blogger David Hornik does a great job finding that middle ground in his post: Four Square Fatigue and the Evolution of Privacy. He’s not flapping his arms yelling the sky is falling. Not by a long shot. His post is more a meditation on how our notion of privacy is evolving, and how online companies need to understand that as they devise ways to leverage this data.

Hornick writes:

“The coming generations of consumers may not abandon the idea of privacy in its entirety, but they will certainly have very different views of the appropriate balance between privacy and utility. That balance has already clearly shifted in the direction of utility and I believe the trend will continue.

“To some this will be viewed as a warning — a cry of the coming privacy apocalypse. I don’t see it that way. As technologies and standards evolve, doors open to new products and services. We are on the verge of an explosion of new ideas.”

I think he’s right on target here. It will be interesting to see how this progresses …