Facebook's Mood Manipulation Study: What Does It Mean To Brands?

Fatemeh Khatibloo

By now, most of you will have read or seen multiple media stories about Facebook's recently published mood manipulation study. There's a lot of debate about the ethical implications of the research, and several European data protection agencies have already announced investigations into whether Facebook violated local privacy laws with the study.

But we think the questions for marketers go deeper: how will this research, and user response to it, affect how brands are able to engage with their customers on Facebook? My colleague Nate Elliott and I have just published a Quick Take on the subject. Our high-level assertions: 

  • While Facebook’s study crosses ethical lines, the data use is likely legitimate. Consumers are understandably outraged by why they perceive as an abuse of their postings. But Facebook’s Data Use Policy explicitly allows the firm to use data for internal research purposes. Still, the potential for users to abandon Facebook is real.
  • Facebook has novel data to analyze, and long term, that could change marketing practices significantly. The kinds of data that Facebook is starting to exploit are highly unique. It could actually combine evergreen affinities with contextually specific emotional states to change how brands buy media and measure performance.
  • But the short term implications may cut its opportunities off at the knees. If Facebook, with all of its research and experimentation, causes users to feel like lab rats, it’s possible that they will leave the site in droves. That outcome could severely limit brand reach — and that could signal the end of Facebook’s marketing customers, especially given today’s already reduced reach.
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Few Insurers Are Currently Proud Of Their Mobile Offerings, And Rightly So

Oliwia Berdak

Have you ever had the pleasure of making the acquaintance of Maxwell the Pig? Maxwell is a likeable if slightly assuming animated pig. At times he can be a bit dismissive of those who aren’t as digitally savvy as he is.

Maxwell is also a celebrity, featuring in a number of videos promoting Geico’s mobile insurance offerings.  In one he bewilders a policeman with his digital insurance ID, in another he demonstrates how time and space have been obviated by the convenience and ubiquity of mobile insurance. Talk of the mobile moment!

Even if you don’t know Maxwell, perhaps you know other such celebrities? I thought not. That’s because there aren’t many companies that are willing to advertise their mobile insurance services as proudly as Geico is doing. For my new report, I surveyed the mobile offerings of more than 30 insurance companies in developed economies. The results clearly show that plenty remains to be done, both in terms of customer adoption and what’s on offer.

The big US insurers such as Geico and Progressive are leading the pack, offering a growing range of mobile functionality that lets customers get quotes, file and track claims, locate a repair shop, pay bills, and save documents simply by taking pictures with their smartphones. Offering functionality that makes it easy for customers to achieve their insurance-related aims seems like the basics, but a lot of companies still haven’t got it right.

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Banks In Singapore And Hong Kong Must Step Up To The Cloud Challenge

Fred Giron

Last week I presented an overview of cloud adoption trends in the banking sector in Asia to a panel of financial services regulators in Hong Kong. The presentation showcased a few cloud case studies including CBA, ING Direct, and NAB in Australia. I focused on the business value that these banks have realized through the adoption of cloud concepts, while remaining compliant with the local regulatory environments. These banks have also developed a strong competitive advantage: They know how to do cloud. Ultimately, I believe that cloud is a capability that banks will have to master in order to build an agility advantage. For instance, cloud is a key enabler of Yuebao, Alibaba’s new Internet finance business. 80 million users in less than 10 months? Only cloud architecture can enable that type of agility and scale (an idea that Hong Kong regulators clearly overlooked).

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Mobile App Innovation Has Paused

Julie Ask

Why? eBusiness pros are pursuing too many one-off initiatives without tight collaboration with their Technology counterparts. And, they are doing too little to build infrastructure to support future mobile services - and mobile moments. Check out our full report "Developers Are The St. Bernard For Mobile Projects." 

I've Stopped Opening My Favorite Mobile Apps

Julie Ask

Mobile has transformed my expectations putting me on the bleeding edge of the mobile mind shift. I've had a smartphone in my hand since August 30th 2005 when a broken wrist forced me to be a one-handed typist - better done on a smartphone than a laptop. My Lark wearable wakes me each morning. My Nike Fuelband tracks my steps. I tweet and check Facebook on my phone. I deposit checks. Honestly, there are a handful of websites that I can no longer navigate because the complexity of the experience overwhelms me. It's simply easier to do stuff on my mobile phone. 

Today, I rolled into Starbucks a little after 7am to pick up an iced tea. I had to reload my stored value card within the app. (I don't use auto reload in case my phone is stolen. My bus card was autoload ... the last time it was stolen, the person must have handed off to six other people to travel before I could shut it down.) What was my reaction when I realized I would have to reload the card? "Sigh" ... well, really a "heavy sigh." The thought bubble over my head was: "Ugh, I now have to open this app, type in my password, etc." Usually I just open Passbook and do a quick scan. Please keep in mind that I think the Starbucks app rocks and reloading my card takes about 30 seconds. That said, I was annoyed that I had to go into the app. 

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Slide To Unlock - The New Face of Home Security

Andrew Rose

I recently visited a trade show dedicated to physical security.

Almost every vendor was advertising IP-enabled ‘smart’ technology, with accompanying apps, that would log and alert on access or motion, prevent tail-gating, recognise smartphones or RFID tags, or track faces or number plates automatically. The sheer number of CCTV vendors alone was stunning, although, truth be told, as a physical-security novice, I struggled to spot any discernable difference between them all!

There were firms who were crossing over into ‘smart home’ technology – selling a series of sensors to control temperature and light; detect issues such as movement, flooding or smoke; and remotely unlock the front door of homes, or secure areas. Although mainly sold on a ‘home security’ premise, these systems were also cleverly brought together into packages which could be used to monitor the activity of an elderly relative, sending alerts if regular patterns of behaviour, or safe limits, were transgressed (i.e. Has the shower been on too long suggesting a fall? Has the box containing essential pills been opened at around the right time? Has the front door been opened at 2am? Etc.) 

I spoke to six or seven vendors of similar technology sets and asked how they managed the logical security around their product. Almost every response began with a pause.... then came, “well, you know that nothing can ever be totally secure”, and then they abruptly ended with “we have encryption!”. It became abundantly clear that few, if any, vendors, had thought through the logical security issues and none were including it in their sales training.  Other responses, somewhat worryingly, included “our engineers look after that”, “they wouldn’t let us sell it unless it was secure”, and the classic “I’m sure it’s fine….”

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Collaboration Technology Should Be Part Of Your Customer Experience Tool Kit

TJ Keitt

Businesses invest considerable sums of money with vendors like Box, Cisco, Google and Microsoft for a collection a technology we call collaboration tools. As an analyst, though, the question that has dogged me in watching this space is "why?" As in "what is the actual value a business gets from investing in collaboration technology?" The vendors' rationale for acquiring collaboration tools has shifted in emphasis over time, going from a conversation on cost savings to one on productivity gains. However, cost savings is an undifferentiated and limited message while "increasing productivity" can feel ephemeral because it is difficult to measure. Yet my inquiry queue remains full of companies trying to figure out how best to deploy these technologies and my briefings calendar is filled with startups and incumbents pitching new offerings in this space. This brings me back to my original question: Why?

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The CIO's Second Agenda

In addition to managing the IT agendas of their companies, CIOs must build a second agenda of Business Technology (systems, technology, and processes to win, serve, and retain customers). The IT agenda focuses internally on supply chains, financial systems, and administrative technology. These are all critical -- most corporations would stop in minutes without IT. But as empowered and digital customers demand more, BT will emerge to concentrate on technologies -- CRM, systems of engagement, customer apps, customer insight, digital customer service as examples -- that will enhance customer experience.

Forrester does not believe that a Chief Digital Officer will arrive on a white horse to run BT, and we also do not agree with the trendy assertion that marketing is going to be in charge of all customer technology. Because of the close synergy between the IT and BT agendas, we believe that the CIO and his or her staff must adroitly manage both. And as unnatural as it might seem in many organizations, the CIO must execute on the BT agenda in concert with the CMO and business unit leaders. A go-it-alone approach will create havoc and unhappy customers.

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Chinese Tech Management Pros: Start Looking Closely At Domestic IT Vendors

Frank Liu

Several events over the past few months in China will affect both the IT procurement strategy of Chinese organizations and the market position and development of local and foreign IT vendors, including:

  • A government-led push away from foreign IT vendors. Amid security concerns, the Chinese government has issued policies to discourage the use of technology from foreign IT vendors. As a result, many IT and business decision-makers at state-owned enterprises (SOEs) and government agencies have put their IT infrastructure plans — most of which involved products and solutions from foreign IT vendors — on hold. They’ve also begun to consider replacing some of their existing technology, such as servers and storage, with equivalents from domestic vendors. This is significant given that government agencies and SOEs are the key IT spenders in China.
  • A trend to get rid of IBM, Oracle, and EMC. Alibaba was an early mover, replacing its IBM Unix servers, Oracle databases, and EMC storage with x86 servers, open source databases like MySQL and MongoDB, and PCIe flash storage. This has evolved into replacing these foreign products and solutions with ones from local Chinese vendors. For example, Inspur launched the I2I project to stimulate customers to drop IBM Unix servers in favor of Inspur Linux servers to support business development. The Postal Savings Bank of China, China Construction Bank, and many city commercial banks have started deploying Inspur servers in their data centers. However, this only affects the x86 server and storage product market: While domestic vendors can provide x86 servers and storage, they still have no databases to replace Oracle’s.
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The Data Digest: Our Multi-Device Journey Through The Digital World

Anjali Lai

Recently, I’ve been on the go: I’ve just returned from a two-week sprint that took me to five different cities by plane, train, and car. Any frequent traveler is familiar with the logistical challenges that make multimode transport inconvenient – whether it's dashing between connecting flights or strategizing a taxi pickup to catch the train, switching between methods of transportation can make for a trying, disjointed journey overall.

As I settled into one flight by turning off my mobile phone and opening my laptop, it dawned on me that our path through the fragmented digital world is similar to my multiphase journey. As our physical location changes and as we realize the limitations of certain device experiences, we reach for various devices to carry out the task at hand – often, we complete one activity sequentially across screens and expect a seamless experience.

In fact, Forrester's Consumer Technographics® data shows that more than half of US online adults who begin tasks on their mobile phone continue them on their laptop. These consumers are most frequently purchasing products, checking emails, and researching items: 

 

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