Australia in the Digital Economy - Trust and Confidence

ACMA March 2009

http://www.acma.gov.au/WEB/STANDARD/pc=PC_311655

The Australian Communications and Media Authority (ACMA) has just released an interesting report on the trends in the take-up and use of the internet by Australian consumers.

The evidence is that the growth and uptake of the internet is approaching saturation in Australia. However consumer behaviour in relation to e-commerce has a long way to go yet. Some of the interesting statistics:

1. Over 11 million use the internet for a variety activities
2. 27% prefer the internet as a source of information rather than radio, newspapers and TV
3. Over 80% of 18-64 year olds use the internet. Only the 70+ year olds have less than 50% usage.
4. Education level affects usage. Of those who have achieved senior secondary school or higher over 80% use the internet.
5. There is a very positive attitude to use of the internet, which declines with age, but stays relatively high across education levels. However there are significant concerns about privacy and security.
6. There is still a significant barrier to internet use for some due to the complexity and technology.
7. However internet users’ measures against online risks and dangers are quite low with less than 50% have anti-virus software and about 22% having a firewall.
8. There is a low level of knowledge of risks and measures to reduce risk.
9. Just over 68% are self-taught and less than 18% received formal training.
10. All internet users rate themselves as having average or well above average skills.

Q1. How would you describe the take-up of the internet from a marketing point of view?

Q2. What should internet marketers pay more attention to in the light of these results?

Q3. What are the emerging marketing opportunities?

Behavioural Targeting Advertising

Just when you think it is safe for a dip into cyber space, Google has announced a new service that 'profiles' your web surfing behaviour and delivers targeted ads to web sites that you visit.

These are called 'Ads Preferences' by Google.  You can edit them to specify your interests and you can opt out if you do  not want your web surfing behaviour tracked and categorised. Microsoft has already put in place its own consumer behaviour profiling based on Hotmail user browsing patterns.  While Google and Microsoft have been relatively open about their bhavioural targeting, less ethical operators install cookies on your computer (spyware)  that also track your browsing and use that informaton to deliver targeted ads and emails to you.

There are significant privacy concerns and ethical issues!

Ars Technica: Google's new behavioral ads already raising privacy worries

Ars Technica:  Microsoft behavioral advertising technology goes global

Google Ads Preferences: Make the ads you see on the web more interesting

Google Blog: Making Ads More Interesting

BBC: Google serves up behavioural ads

Microsoft: Behavioural targeting gives Vauxhall a higher gear

PC World: Google's Behavioral Ad Targeting: How to Reclaim Control

Opt Out Options from PC World:

Network Advertising Initiative's Opt-Out Tool

Google's ad system has its own opt-out page here

Yahoo's targeting program lets you say "no thanks"here

Q1. Is this a privacy issue that can produce a consumer backlash?

Q2. What are the ethical issues in relation to marketing?

Q3. Is 'behavioural targeting' an effective marketing strategy?

Gaza War in Cyberspace

In the 1960s and 70s the war in Vietnam was described as the first TV war (Museum of Broadcast Communications ).  Reporting and film from battle zones and interviews featured on TV news, current affairs programs (ABC ) and documentaries during the war.  TV played and important role in bringing the war into American living rooms and it is claimed influenced the outcome of the war.

The current war in Gaza has prompted a large amount of activity on the internet.  Not only in reporting on the situation, but also as media for supporters and critics to debate and to promote their sides partisan views.  In particular, not only websites were used, but blogs, YouTube, Facebook and Twitter were used as well.

From Gauravonomics Blog 03/01/09

"The Israel-friendly Help Us Win blog (Facebook/ Twitter) says that “the war is not only on the ground - but also in the international media” and encourages Israel’s supporters to “tell Israel’s side of the story” and “ensure that the international coverage of the Campaign Against Hamas is balanced”.

In fact, the Israel propaganda machinery is in full flow to ensure that everyone gets to hear Israel’s side of the story. The Israel Defense Force has a blog and a YouTube channel, the Israel consulate in New York held a press conference on Twitter and summarized the discussion on their Israel Politik blog, and the Likud prime ministerial candidate Benjamin Netanyahu is active on both Twitter and YouTube."

Other related websites and coverage:

ABC News 08/01/09 

Wired: YouTube, Twitter: Weapons in Israel's Info War 30/12/08

Aljazeera: War on Gaza 

Facebook: Consulate General of Israel in NY 

Twitter: Isreal Consulate 

Aljazeer: Waging the web wars 21/01/09

Q1. Are we now in the 'cyber war' age where the outcomes of wars may be determined by what happens on the internet?

Q2. What is the relevance to marketing?

Q3. What does this say about consumer behaviour?