Week Ten: E-mail marketing

E-mail marketing has proven to be one the cheapest methods of on-line marketing, yet it has the possibility of providing one of the biggest returns on investment if done in an effective manner. Statistics have shown that e-mail marketing can provide and ROI of $57.00 for every $1.00 spent. These type of numbers make this method a very attractive alternative. However, in order to gain returns such as these, you must follow a few guidelines in order to maximize overall effectiveness.

1. Build up a quality opt-in database

One of the most important things in creating this database, is that you utilize a double opt-in method. Essentially, this means that once someone opts-in to receive correspondence from your company, you then need to e-mail them to confirm that they meant to opt-in. This type of verification has become common practice, and helps to eliminate your e-mails from getting caught in a SPAM filter. The following video gives a few extra pointers on how to build a quality database.

2. Send relevant messages at the appropriate times

Even if someone decides to opt-in to receive messages from your company, this does not guarantee that your correspondence will be read. For instance, if they were to open a newsletter which they felt was not relevant to their needs, they are likely to send it to the junk folder. Any subsequent e-mails which are then sent to this individual could be viewed as irrelevant, and may automatically be sent to the junk folder without any viewing at all. One way to combat this, is by creating e-mails which lead to a call to action. This could be in the form of adding user-generated content, filling out a survey or questionnaire, or simply voting on a particular issue. Regardless of what tactic is used, it must be something that captures the viewer in a way that makes them want to act.

3. Try to segment your database

Building on the previous point, it can be useful to try and segment your database so that the messages you are sending are reaching the appropriate people. This is especially important for companies which have built up a large database. If you are dealing with a large number of people, it is safe to say that they will likely share differing interests. By targeting messages based on user behaviour, a company should be able to satisfy the different needs of their audience. One way this can be done, is through the use of an analytics program. Users could be segmented on their click paths, those who made a purchase and those who did not, or simply by geographical area. Segmenting helps to ensure that the most relevant information is going to your audience.

4. Need advanced technology and good ISP relations

Simply sending an email no longer ensures that it will actually get to the intended recipient. E-mail can easily get caught up in a SPAM filter, it could be sent to someones junk box rather than their in-box, or it could be subjected to a public blacklist which are continuously updated. This area is extremely crucial to success, and companies may want to contract out this job as experts will be more knowledgeable when it comes to the dynamic legislation that governs web practices.

Overall, e-mail marketing can be a very effective tool if used properly; however, if the company does not follow best practices and fails to utilize these tips, it is unlikely that they will maximize their return on investment.

Week Nine: Potential for Marketing on Mobile Devices

While focus over the past couple of years has centered around on-line marketing, it seems that the new trend to watch in the future will be marketing to mobile devices. Mobile devices are attractive for a number of reasons. First of all, there is a large market of mobile users that is largely untapped at this point. Most marketers are still focusing on the traditional media buys when looking to advertise, as they have yet to realize the potential associated with mobile marketing. Further, since there are not a lot of companies utilizing this strategy, it is likely that if you get into the game early on, there will be a great opportunity to establish a great branding strategy and reputation.

Another reason that mobile marketing is effective is that it is incredibly cheap in comparison to traditional media rates. A company has the potential to send out a large number of texts that will reach a very large user base. However, this is not to say that one should just send out a blanket message to everyone in the geographic vicinity. On the contrary, it is important to remember that marketing on a mobile device is not unlike marketing in other areas. This means that messages should be targeted to specific consumers in order to make the most of the message sent. If companies just sent text messages to people based on their location, they would quickly be deleted, not unlike Spam on your computers.

With mobile marketing it is also important to let the customer drive your relationship. What that means is that you should give users the ability to opt-in or opt-out of your messages so that the people who want to receive them are coming directly to you. Since the consumer has the option of whether or not they would like any correspondence, it then becomes possible for the marketer to try and further their relationship with those users who do, as texts may seem more personalized. The messages you send must also be interesting and content rich. Ideally, you would like the person you are messaging to not only read the message, but also to act upon the message. This could take the form of either purchasing an item, signing up for additional texts, or merely forwarding the message to a friend.

The following video gives a few tips on marketing on a mobile device.

Although many people still underestimate the power of marketing to mobile devices, there are campaigns that have utilized this medium very effectively. One of the best examples of this came in the form of Barack Obama’s political campaign. Obama was able to utilize mobile devices and the Internet to fuel his campaign and gain crucial votes, as users began to forward his messages to those people on their own friend lists.This goes to show that the potential for marketing on these devices is limitless. For instance, a small business could use this technology to text their customer database to inform them of an upcoming sale. At the same time, mobile marketing could also be used in aiding a social cause. An example of this could be an Amber Alert. Mobile users could opt-in to allow emergency texts through that could have a picture of a recently missing child, or could simply flash a scrolling message of a license plate number. Since many cell phones and mobile devices have a GPS system in place, the text could be sent to all of those in the area of an abduction, and users are more likely to take in the information because they have to read the text that is coming in. While the alerts are also effective on radio and television, there is a greater chance that they will be missed, as people automatically tune out many commercials and background chat.

As you can see, the possiblilites for marketing on a mobile device are endless. In order to maximize the effectiveness of your campaign, the following list provides a more in-depth look at what you should be focusing on. If you are able to follow these guidelines, you should be well on your way to developing a successful mobile marketing campaign.

Week Eight: Click Fraud

Although recent reports of malfeasance on the web have generally centered around issues involving Internet privacy, it is becoming inherently clear that click fraud should also be a large concern for companies advertising on-line. Essentially, click fraud means that someone is clicking on your advertisement so that the company has to pay for that click, even though the individual has no intent to purchase anything on the site. Clearly not every customer who clicks through your site will end up in a conversion;however, it is those customers who repeatedly click through without action that become a problem. Often the most notable offender will be your competition clicking on your ad, as they are trying to eat up your advertising budget. More recently, there has been an alarming trend of companies hiring people from third world countries to sit and click on your advertisements. New technology has also evolved which allows automated programs to click on your sites as well. As you can see, businesses using  PPC (pay-per-click) advertisements on the web need to be aware of click fraud, as malicious clicking can be extremely costly if not detected.

It is difficult to determine exactly what percentage of clicks are in fact fraudulent, as reports seem to vary depending on the source. Search engine providers such as Google and Yahoo claim that the number is not as high as you might think; however, they may not be the most accurate source, as search engines gain a portion of revenue with each click. Google recently released a report claiming that only 0.02% of clicks were malicious; however, a report from an insider in the paid placement industry claims that it is closer to 20% of all clicks that are in fact fraudulent. While search engine providers continue to state they are trying to improve safeguards, the fact remains that click fraud is more prevalent than ever. This is most likely a product of the sheer volume of content on the web that they are trying to filter. Nevertheless, this not a problem that can be left up to the search engines to monitor. Those companies using a PPC structure must place the onus on themselves to monitor server logs by using an analytics program, which can help to detect abnormal behaviour. A few indicators which may point to click fraud include:

1. High tallies of the same IP address

If you notice in your server log files that an IP address continues to come up an unusual amount of times, it is likely that someone, or something is clicking on your ad maliciously.

2. Ad is being viewed in abnormal geographic areas

If a local business starts to notice a lot of traffic occuring from different parts of the world, it is likely that they are being paid to click on your site.

3. Click through rates and traffic have increased, but conversion rates and search engine placement remain the same.

If you are noticing this type of pattern, the company should first ensure that they have not made any changes to content or keywords. If there has been no change, then there should not be such a drastic increase in traffic. Further, if one of your keywords has previously been unsuccessful in generating hits, but is now improving, it could also indicate a problem.

4. Visitors have very short visit times on the landing page

If there is a pattern of views which are only a couple of seconds long, this could be a strong indication that someone is being paid to click on your site.

The following video gives a few examples of things to be aware of when trying to detect click fraud. It also gives a bit of insight into what to do once you have detected an offender:

Overall, it is important for companies to be aware of the implications of click fraud, and to empower themselves to try and manage the situation. If you notice this happening on your ads, it must be reported to the search engine provider so that reimbursement for faulty clicks can be made. Since ROI is one of the most important things in advertising, it is important that advertisements are being utilized properly to ensure maximum effectiveness for the company. Until search engine providers can come up with a way to better filter their sites, it is imperative that companies continue to analyze their own content to try and detect potential problems.

Week 7: Importance of Content to SEO

While there are a few different ways to improve your search engine result rankings, one of the best ways is to ensure that your site has optimum content. While many people believe that flashy websites will bring in the most traffic, this is actually not the case. In fact, it is the content rich sites that have the most advantage, as they provide useful and valuable information to the consumer. This is not to say that cramming your site full of information will automatically help you in your search results. In fact, adding useless information can be very detrimental to your site. Users who try and add too many key words can also run into problems because the content will appear too spammy, which could lead to the search engine provider removing the site from it’s index altogether.The information must be unique and relevant in order to engage the user, as well as attract spiders. One example of this in action is Wikipedia. Wikipedia is a site which is in a constant state of flux, as users are continually adding content to the site, which explains why they are consistently in the top couple of rankings when using a search engine. As the following video shows, it is important to create content which will compel the user to link in to your site, subsequently increasing your traffic, and allowing the opportunity for other visitors to find your site through their link.

One way to add relevant and interesting content in your site, is to write SEO optimized articles. These articles should not be used as a promotional tool; rather, they should be used be companies looking to engage the user, and provide information about the product, service, or company. For example, if a yoga studio wanted to improve their search results, they could write an article on their site about the top 10 health benefits provided by yoga, or it could discuss upcoming yoga retreats. The point is, the articles should provide original content containing keywords, without making a sales pitch.

Another way to increase traffic, is to allow the content on your site to be easily bookmarked. Social bookmarking is a great way to increase traffic, as it provides another method for potential users to find yor site. Social bookmarking sites such as Del.icio.us have increased in popularity, and provide a great way for people to organize and share their links with users of similar interests. Therefore, by making your site easy to bookmark, you have the opportunity to find users who will likely be interested in your content. Expanding upon this further, it could also be useful to send your articles to a social news site such as Digg, if you felt readers would find your content interesting and relevant.

For businesses uncomfortable with the thought of creating content, there are many agencies who specialize in SEO; however, nobody can guarantee results. For those who would like to try and optimize content on their own, there are many resources and tools on the web to help guide this process. If unhappy with your results, remember they are constantly changing so keep playing around with your content until you find a mix that improves your standing.

Week Six: Importance of Blogging to Businesses

It is no secret that over the past couple of years the use of social media has grown astronomically. Therefore, it is important for marketers and businesses alike to recognize the importance and value of embracing this new found culture. One of the most effective ways that is a business can do this, is by creating a blog. Business blogs can provide companies with a wealth of information and opportunities such as:

1. Customer Relationship Management

Blogs are the perfect forum for companies to try and get to know their customers. It provides consumers with the ability to engage in dialogue with the company to provide feedback, and gives the company further insight into consumer wants and needs.

2. W.O.M.

Blogging is an excellent way to gain WOM advertising from your customers. The very nature of blogging caters to this, as information and links are quickly spread through the Internet. Bloggers are often linked into communities of individuals with shared interests, so WOM is very powerful in creating additional buzz.

3. Helpful in addressing negative publicity

Businesses facing an attack of negative publicity could be well served by starting a blog. Often bloggers who get ahold of negative press can cause irreparable damage, as they have access to many influential people and can spread the word quickly. A company with a blog has the opportunity to do a bit of damage control, and can help to manage the fallout by communicating their side of the story to consumers. While they may not win them over, it is helpful to be able to explain your actions to minimize speculation in the blogging community.

4. Advertising

Blogs can be a wonderful forum for companies to test out new advertisements; however, it is important to note that in order to be effective, the company needs to be upfront about the fact that they are trying to market the product to the community. There has been the propensity in the past for marketers to try and disguise ad campaigns as posts created by bloggers. Fake blogs or “flogs“, can be incredibly detrimental to companies, as consumers feel tricked by the ad, and will ofter lose trust in the company or brand. However, done properly, advertising on blogs can be extremely effective, as was witnessed with Nike’s Art of Speed campaign.

5. Corporate Communication

Another way in which blogs prove useful to companies, is that they provide an outlet for employees and stakeholders to discuss the company in an uninhibited manner. This is a useful tool to promote company culture, and it also provides management with  a better understanding of employees and company dynamics throughout different levels of the company. From a consumer standpoint, it helps to foster a level of transparency, key in building customer relationships.

As you can see, blogs are an excellent pulpit for businesses, as they allow the opportuntiy to engage in unfiltered conversation with influential people. Ignoring this social medium would be a huge mistake for a company these days, as it is increasingly important to provide real-time information to well informed consumers and interest groups. Failure to enter the blogging community can not only lead to misinformation about your company, but can also put you at a serious competitive disadvantage if others in the industry have already jumped on board. If done right, blogs allow companies to disseminate information in a way that provides them the ability to gain trust and credibility by interacting with people from all walks of life. If trends continue towards increased use of social media, the possibilities for companies using blogs are limitless.

Week Five: Developing a Successful Viral Marketing Campaign

The purpose of viral marketing is to develop a message which instills the recipeint to feel compelled to pass the message on like a virus. One reason this type of advertising has proven to be successful is that it relies heavily on word of mouth. Consumers are typically more trusting and responsive to WOM advertising, as it is based on the opinions of their peers. However, simply devising a viral campaign is not enough to ensure success. In order to maximize the effectiveness of a viral campaign, the following steps should be followed:

 

1. Develop Creative Material

There are a few things to consider when developing a viral campaign. In relation to the actual content of a campaign, it is often better to keep it simple. With the numerous technological advances available to marketers these days, it is hard to resist the urge to utiitze these features when developing an ad; however, if the material is interesting and deemed controversial, the message can often be made at a low cost. A great example of an inexpensive viral campaign is Apple’s iBand. The video was made to try and generate buzz about new features offered on the iPhone, and is simply three users who have used their phones to create a song. The video is low budget, but was interesting enough to warrant 1.2 million views on You Tube, along with 10,000 comments, 11,000 ratings, and 13,000 bookmarks. There are also numerous response videos to the iBand clip featured on You Tube, which is further indication of the campaigns growing success. Providing giveaways, or promoting contests can also help to drive a viral campaign, but it should be noted that without drafting interesting content, it is unlikely that a campaign will reach optimum success.

2. Seeding

Developing interesting content is merely the first step in developing a successful campaign. Viral marketers must also take into consideration who to deliver the message to. This requires that the marketer establish who the best “influencers” would be to send the message to. In order to choose the best mix of recipients, marketers must first determine who the target audience is for the message. Once that has been established, they must next decide who is most likely to spread the word within that market segment. One good choice would be sending the message to a blogger who writes about your insudtry. Bloggers already have a built in forum to discuss your viral campaign, and would be sharing opinions with users who are also interested in similar material. Other choices could include Webmasters, or Presidents of Associations who would perhaps be interested in your campaign. It is important to try and target those who will be more prone to passing on content, rather than creating a blanket email campaign hoping to drum up controversy. Seeding also requires that marketers distinguish what channel of communication they will use. If targeting younger users, social media may be a better choice; however older users are not as involved with social networking and may be better targeted through an email message.

3. Tracking

The final element that needs to be considered in a viral campaign is tracking effectiveness. In order to do this, marketers must first decide what sort of web metrics they will be using to track success. The measurement chosen will also be impacted by which communication channel the message is being delivered through. For example, if the viral message was sent out via email, marketers could track the amount of emails they distributed, and how may clicked the message to forward to a friend. This will determine how many initial influencers felt the urge to pass it on. If posting a viral video on a social networking site, marketers could look at the widgets, or code installed on a profile page, which are then forwarded on to friends. By tracking these measures, a marketer can better gauge success of a campaign in terms of return on investment. In determining how many users viewed the viral content, a company can determine if money spent on the campaign was worthwhile.

One final note in developing a viral campaign, is that marketers must be prepared for a large increase in traffic hitting their site. Therefore, server scalability is extremely important, as a campaign can not be successful if your server goes down due to volume increases.

The following is an example of a successful viral marketing campaign. Success was garnered due to strict adherence to the rules previously mentioned. Enjoy…and remember, pass it on!

Week Four: Virtual Worlds…Potential for Marketers or Waste of Time

During the lab this week, discussion turned to evolving trends surrounding virtual worlds. More specifically, we were asked if there were any merits for companies looking to market in virtual worlds such as, Second Life.

It would seem that the potential for marketers in virtual worlds is limitless, as it gives companies a perfect forum to build a sense of community and brand loyalty for their product. Marketers are consistently told to think outside the box, in terms of finding alternative ways to reach potential and current consumers. Virtual worlds definitely satisfy this requirement as well. However, after doing a bit of research, it seems that the jury is still out on whether or not marketing in virtual worlds actually converts into a return on investment for companies, or if it simply a waste of dollars better spent marketing in the real world.

One inherent problem is that virtual worlds are a fairly new phenomenon, therefore, it is tough to say whether or not they will catch on with the same sort of success witnessed by social networking sites. Further, within these sites, a user could potentially develop as many avatars for themselves as they want, which could skew the number of users that actually use the sites themselves. Althgough it seems that sites like Second Life are experiencing widespread growth, it could actually be that current users have become bored with their avatar, and have created themselves a new character. Another issue is that virtual worlds do not have a mass appeal for consumers. While early adopters of technology, and the youth market may have been exposed to this phenomenon, it is unlikely that many others have even visited virtual worlds in the past.

It seems that companies who have developed their own interactive worlds for their products have had a bit more success, than those who have simply joined an online community, such as Second Life. For example, many toy companies have interactive sites, such as Barbie, or Webkins. This could be due to the fact that consumers who visit these sites already have a relationship with these brands and are heavy users. In a forum such as Second Life, users still have to weed through all of the clutter to get to the places or companies that they want to visit.

Perhaps the most important thing for companies to remember, is that marketing in a virtual world really needs to be similar to that of the real world. Companies can not expect that by simply adding content to  a site that users will follow. If they are hoping to drum up business or buzz in virtual worlds, it must be done in an exciting way. There are companies who have experienced success generating buzz in Second Life, however, they were well thought out campaigns with a lot of interaction involved. For example, ticket sales for the latest Harry Potter movie were thought to have been boosted by their marekting in virtual worlds.

I suppose that we will have to wait and see just how much of an opportunity marketing in virtual worlds really provides. The only thing that is certain, is that if companies expect to jump onboard, they need to have someone to monitor this area, or they are sure to have limited success in the future.

Week Three: Success factors in planning a web presence

During class this week, we focused on elements that should be incorporated when developing a web presence. All too often, people get hung up on developing a site which is visually appealing; however, in order to develop a site which is effective, many more elements need to be taken into account.

1. Product

At the most basic level, it is important to distinguish what exactly it is that your site offers in terms of products or services. If your site is unclear about its product offererings, it is likely that the customer will move onto the next site listed in their search. Since the Internet boasts such a wealth of information for users to weed through, it is imperative to get to the point quickly or bounce rates will be high. For the company itself, it is also a useful tool in determing what marketing mix will be used. This is helpful in figuring out the range and scope of products offered.

2. Interactivity

Interactivity refers to how the customer is able to navigate through the site. Many people do not take navigation into account when developing a site; however this is one of the most crucial elements. Many users will simply navigate away from the entire site if they have a problem moving around the site. For example, if an error pops up while loading a page, they often do not have the patience to wait, since there are many more sites who are well equipped to meet customer needs.

3. Service

Another element which needs to be considered is service. This relates to all of the logistical matters when building your site. For instance, decisions need to be made regarding how a product will be shipped, what payment methods will be offered to the consumer, and if there is a return policy.

4. Reassurance

Perhaps one of the most crucial elements in building an effective web presence, is the ability to add reassurance or trust to your site. Information privacy has become a huge hot button issue over the last few years, as media reports have fuelled customer uncertainty about purchasing products online. In order to make the sites users feel safe, the developer should think about registering their site with Verisign or TRUSTe, as these symbols add a sense of security and credibility to a site. They are also widely recognizable to consumers, who often look for these logos before entering any personal information onto a site.

5. Performance

Performance refers to things such as speed and availability. When developing a site, you want to try and mazimize the sites performance, by ensuring that pages load quickly, and that files do not take too long to open. The reason for this is simply that we live in a time crunched society, and if users have to constantly wait for a site to load, the chances are far greater that they will move onto to something faster. This could mean lost sales opportunities for those who do not pay attention to these details.

6.Relevance

Another element to take into consideration is your sites relevance in terms of content and search. It is important to note, however, that this should be gauged and monitored through the eyes of the customer, not the company. One way to gather this type of information, would be to run an analytics program on your site. Often, these programs will alert site developers to search terms being used that they would not have taken into consideration. It is important to understand how your customer is trying to find you, as you can add in these search terms to optimize the users experience on your site.

7. Ease of Use

While ease of use seems fairly self-explanatory, it is important to mention in this section that ease of use should be tailored to your target audience. Therefore, a company who is selling a high-tech product could provide a site which is highly interactive, with cutting edge features; however, this may not be the best apporoach for a small business as users could become frustrated and confused. It is also important to ensure the language (HTML) of a site is current, or it may not be supported on your users web browser, leaving the site virtually unusable for many.

8. Design

While design is usually the first thing that website developers think about, it really holds the least importance overall in setting up your site. While you do want to present a site which is visually appealing, you also must ensure that the other steps are covered as they are the most important in maximizing effectiveness in site development. For example, most customers would buy shoes from a site even if the page was not designed in a manner they enjoyed; however if the page took time to open, or if it was hard to place an order, you are likely to lose a sales opportunity.

As you can see, there are a multitude of issues to consider when building a web presence. Although most get caught up in trying to build the most visually appealing site, it has become inherently clear that this is no longer enough to retain customers. The best way to effectively build your presence, is to focus on the customers journey throughout the site, to ensure that there are no problems at any of the contact points along the way.

Week Two: Google Analytics

During class this week, the primary focus of the lecture was on web analytics. Analytics programs aim to optimize the performance of your website, by providing statistical data regarding the traffic and content on your site. While web analytics programs have typically only been available at a very high cost, Google has now introduced a free version called Google Analytics, which has opened up this innovative new technology to a wealth of new users. While the concept of analytics itself may seem daunting, Google has created a very simple program, which presents statistical data in a manner easily understood by the average person.

There are many different ways in which Google Analytics can help to optimize your site. It can measure how many visitors you have had on your site, where they came from, what pages they looked at, where they left, average time on a particular page, site referrals, and provides great insight into search engine optimization. As you can see, the amount of information that is compiled is enormous. Marketers now have the unique opportunity to gauge how customers act, and react to their experience on the site. For example, if there is a sharp increase in the amount of users dropping off your site on a particular page, you may need to look into site redesign to improve usability.

So with all the hype surrounding Google Analytics, the question remains, does it really work? In this case, the old adage “knowledge is power” seems to ring true. There have been many cases where companies have been able to effectively analyze the data provided, and implement positive changes in their web business. One of the keys to success is analyzing the data over a period of time, which allows the user to spot different trends. For example, there may be spikes in sales during certain times of the year. The user could then try to determine what is causing this increase in purchasing; as it could be related to a particular promotional campaign, or could correspond to an upcoming holiday. While the analytics program is able to provide a vast amount of data, it is still up to the user to interpret this information and implement it in a way that will allow the website to run more efficiently.

It seems the only drawback to Google Analytics is the issue of information privacy. In order to install the program on your site, it must scan the site in its entirety. Therefore, all of the information on your site is now in the hands of Google. One must assume that if they can market a program to millions that can analyze data, they must have a far more powerful version which could do the same with our website content. Not surprisingly, Google has not been overly forthcoming regarding what they do with our personal information. It will be interesting to see if there are any repercussions from providing Google with such unlimited access to all of our personal and business data.

While privacy issues are a concern, they do not seem to be hindering the popularity of Google Analytics. Since its inception, the number have users have steadily increased, so much so at  one point that Google was forced to turn down users, and implement a reservation system to sign up for the technology. The analytics program is beginning to extend its reach beyond websites, and is now being put to use on blog sites, such as the wordpress program currently being used for this blog. It is safe to say that this program is here to stay, and is sure to dramatically change the landscape of ecommerce. With a new product redesign on the way, it will be exciting to see what more the program is capable of in the future.

 

 

Week One Blog: Internet Privacy

In this week’s lecture we discussed trust, permission, and relationship building in online marketing. Although many topics were discussed, the overarching theme of the lecture tended to focus on Internet privacy. It is hard to believe that a mere 15 years ago, the Internet was just being introduced to the general public. Nowadays, anyone can perform a multitude of activities online, including shopping, banking, chatting with friends, or simply a general information search. While the Internet has aided in adding convenience to our lives, it has also brought forth with it a new set of problems. One of the most heated issues to date, is that of Internet privacy.

Issues related to Internet privacy have emerged, due to the fact that there is an enormous amount of information available on the Internet. In order to try and keep personal information secure, a few different courses of action have emerged. First of all, the government was forced to draft new legislation, called PIPEDA, to govern personal information online. PIPEDA was set in place to provide a set of guidelines regarding how personal information is collected and controlled. While PIPEDA has helped to control privacy to an extent, the problem lies in the fact that the digital media industry is so dynamic, legislation is often not current enough to address all of the new concerns emerging.

One way that businesses have tried to dispel public uncertainty, is by paying to have their site stamped with the TRUSTeseal of approval. This symbol, widely recognized by consumers, means that the site, and your personal information are secure. TRUSTe also gives advice on a businesses’ privacy policy, and will help in aiding the business to ensure that information is being protected. This seal of approval has helped to ease the fears of consumers shopping online. However, while online purchases have led to identity theft in some instances, it seems that the new trend of social networking stands to cause even larger problems.

Many individuals are completely oblivious to the fact that social networking sites, such as Facebook and MySpace, could be very dangerous if the wrong information is posted. Hordes of users freely post their email addresses, birth date, address, marital status, and telephone numbers on these sites. Pictures and comments made are readily available for anyone to see, unless the user has taken the time to opt-out of sharing their profile with the world. However, the creators of these sites are not very forthcoming about informing users that this opt-out version is available. This option is embedded in very fine print on the bottom of the page, where the average user is not likely to go. It is only recently that these sites have come under fire for privacy issues, and they are now scrambling to find a solution to the problem.

It has just been announced that Facebook will start adding a Report Abuse seal of approval on their site, which will allow users to report questionable content if seen on the site. While it is promising that social networks are trying to police content, the onus is still being left up to the consumer to take action, which may not be the best approach. Further, it will be difficult to decide what type of material would be considered questionable, as users come from all walks of life.  Although the social networks are trying to mirror the success of the TRUSTe symbol, there are still many questions that could be raised regarding the actual security the ReportAbuse seal will provide.

Perhaps the best advice to consumers would be to really become aware of what information you are putting out there for the public to see. In terms of social networking, customers need to understand that everything on your site is open to the public. Further, it is also really important that if you are joining one of these sites that you take extra caution with password protection. Many users have the same password for all of their accounts, which makes it even easier for someone to hack into your personal information.

It will be interesting to see how the legislation regarding Internet privacy will change over the next few years. Up until this point, the government has been forced into taking a reactive, rather than a proactive stance, due to the dynamic nature of the industry. One has to wonder if the industry needs to plateau before legislation can really catch up, and become efficient. In the meantime, it is probably best to remain cautious regarding any information posted online.