New Persuasion

Ten Companies to Watch

Via Emergic comes Read/WriteWeb's Top Ten picks from Demo 2007.  The Demo 2007 conference "showcases the latest emerging technologies."  As I look through their list, it strikes me that six of these companies are for sharing things like videos, photos, home design, music, even wifi networks.  Another technology makes live videos cooler.  One company is about organizing your information by leaving a Hansel & Gretel-like web trail of crumbs.  If you're looking for relationships between people and companies,  ZoomInfo can help.  And the last company, Sentinel sort of goes against the Web 2.0 vein here and provides copyright protection for bloggers.

Here are the companies to watch for:

eJamming: The eJamming web site and desktop software allows musicians to play in sync over the Internet... eJamming's secret sauce allows musicians across the globe to connect and seamlessly play together as if they were in the same rehearsal room.

Jaman: Less than 1% of the movies made in the world are available to the US public. Jaman is about to change that by delivering these movies straight to Windows and Mac Desktops with innovative, better-than-DVD quality software. On top of getting us these unique movies, Jaman software creates instant social networks by placing an interactive control bar to the right of the movie window.

MyDesignIn: Social networking has gone vertical in recent times and this app is an interesting twist. MyDesignIn allows users to collect home design ideas and artifacts online using browser buttons. The users then can apply collected information and images to the blueprints of their house and get design advice from their friends and family.

OurStory: Just when we thought there is nothing left to do in the online photo and media sharing market, Our Story proves us wrong. They take the simple idea that media exists in time, and come up with an end-to-end photo organizer, storage and sharing experience. The photos are organized around events and timelines, and they can be shared and contributed to by multiple users via site or email.

Sentinel: We live during exciting times, when self-expression on-line and particularly blogging is on the rise. Protecting the copyright of our blogs is as important as protecting the copyright in print. Sentinel monitors the web and pin-points blog plagiarism.

SplashCast: Splashcast allows users to remix photos, video and audio to create personalized channels. These channels are then available to play in any SplashCast player installed on a web site, blog or social network profile.

Total Immersion: Total Immersion?s software enables the real-time integration of interactive 3D graphics into live video flows. In is quite impressive and certainly is the most fun DEMO video that I watched.

TrailFire: TrailFire is an annotation technology that allows any user to attach notes to web pages. By naming the notes with the same name, this software allows users to create trails. Each trail represents an individual or collective navigation path, centered around a topic.

Whisher: When was the last time 128-bit encryption stopped piracy? Certainly not when it comes to WiFi. Spanish company Whisher helps you to navigate the entire WiFi network, without worrying about what network you are connected to.

ZoomInfo: ZoomInfo offers a vertical semantic search engine, focused on companies and people. It is an impressive technology that turns the web into a database of corporate and personal information; and organizes it in an intelligent way.

e-Commerce and Breaking News

I'm just now reading about the Aqua Teen Hunger Force guerrilla marketing campaign that was mistaken for a terrorist threat in Boston.   According to Cato-at-Liberty blog:

"The campaign received little notice in New York, Los Angeles, Chicago, Atlanta, Seattle, Portland, San Francisco, Philadelphia, and Austin, Texas.  But in Boston, public officials treated the signs as a possible terrorist threat, closing bridges, subway stations, roadways, and even part of the Charles River while bomb squads removed the signs."

To me, the whole thing is hilarious.  Especially considering the signs were up for 3 weeks before anyone in Boston noticed.  And now, because they made such a big deal about it, Boston officials want to prosecute the guys that put up the signs. 

Enough.  There's only one thing that interests me about this whole thing - the e-commerce angle.  My colleague Steve Skojec sent me his take on this " ebay Flash Market for breaking news items."

Steve says this story is notable for three reasons:

• New Media Effort -guerrilla marketing in the form of electronic graffiti;
• Major Media Story that has erupted around the citywide panic in Boston over what officials thought was a terrorist plot; and
• New E-Commerce opportunity for individuals who are already selling some of the signs in question on ebay while the story is still in the headlines. One seller has already received a bid of $2000 on a sign he took from an undisclosed location in Atlanta, another city where the marketing campaign was deployed.

Steve goes on to say:

"When the story broke, I knew immediately someone would have them on Ebay – it just made sense. The question this raises is how much of a trend these news-based 'flash markets' will become. Imagine if ebay had existed during the destruction of the Berlin wall. Artifacts that can be sold as an interactive part of a news story have an intrinsic value that is probably much higher in the initial days of a story."

Steve believes (and so do I) - we're going to see more of these flash markets for news related items - and all the ethical questions that brings up.  How long before evidence in a murder trial is up for sale on ebay?

Risk in Perspective

Time magazine's cover story this week, "Why We Worry About The Things We Shouldn't... ...And Ignore The Things We Should," has a quote from our fearless leader Dan McGinn:

"We used to measure contaminants down to the parts per million," says Dan McGinn, a former Capitol Hill staff member and now a private risk consultant. "Now it's parts per billion."

Here at The McGinn Group, we've been studying how perceived risk and real risk are two separate things.  Consider:

• More than 650 news articles mentioned bird flu this year during the week of October 2nd and a Google search yielded more than 26 million hits. There’s fear that bird flu will kill tens of millions overseas before making its way to the US. However, the World Health Organization notes that bird flu has only killed a confirmed total of just 140 people since 2003. Contrast that to the yearly flu season.  Yes, it gets attention, but not nearly as much as bird flu.  And each year, between 5 percent and 20 percent of Americans contract the flu through person-to-person transmission, primarily by coughing and sneezing. About 36,000 people die each year as a result, and more than 200,000 are hospitalized from complications of the flu.”  Sun News, 10/5/06   
• Cell phones and brain tumors.  We’ve all seen the headlines and media coverage suggesting there may be a link.  Yet the American Cancer Society says, “there is now considerable epidemiologic evidence that shows no consistent association between cellular phone use and overall risk of brain cancer.”  Compare this to medical mistakes.  “According to the Institute of Medicine, some 98,000 deaths occur each year in the U.S. because of preventable medical errors, or roughly the same number who die from breast cancer or car accidents. One million more are injured by such mistakes.”  Medialifemagazine.com, 10/5/06
• “The death of a 10-year-old boy from Mississippi in 2005 put rabies back in the headlines, though it was the only reported case that year. From 1980 to 2004, only 56 instances of human rabies were reported in the U.S.” (Parade Magazine, September 24, 2006) Compare those numbers with heart disease killing 700,142, cancer killing 553,768 and suicide claiming 30,622 lives. (USA Today, October 14, 2004.)
• While there were major headlines over the threat of Mad Cow Disease, out of a scant 195 cases of the disease globally, only two have occurred in the U.S. to date and are likely to have originated in Britain. Compare that number with other, more common  risks: lawn mowers cause 74,000 injuries each year (USA Today, June 15, 2006) and in 2005 alone, there were 24,000 kids who were treated in emergency rooms for shopping cart related injuries (CBS Early Show, August 7, 2006). 
• Shark attacks are extremely rare, but when one occurs, it gets major headlines in the top news media outlets throughout the country.  In 2005, however, there were only 58 confirmed unprovoked shark attacks on humans compared to the millions of swimmers in waters worldwide. Of the 58 unprovoked attacks, there were a total of four deaths. (Florida Program for Shark Research, Florida Museum of Natural History) According to the Wall Street Journal, the biggest threat at the beach is the pollution from drainage systems in the water.
• There is much talk on the safety risks of NASCAR race drivers. However, in more than six million miles of racing, not one person in NASCARS’s top three divisions has died. By contrast, 185,000 drivers, passengers and motorcyclists have been killed in the same time frame. (Freakonomics, New York Times Magazine, February 19, 2006)

For me there are two parts of risk - fear and worry.  I don't worry about things I fear because I either stay away from them (no skydiving or bungee jumping for me) or I can't even slightly control it (terrorist attacks- not scared of them - it either happens or it doesn't).  And I think that many of things we Americans worry about are petty and not really all that worrisome - but what they are is a distraction.  It's easier to focus on these little things and get all worked up than it is to change our diet or exercise regimen to address the real risks in our lives. 

For more check out Brand Noise and the dread factor in risk.

Security Breach

I received a phone call this past weekend from Kate, my younger sister. She was fuming over her debit card being denied while she was at dinner. When she got home she checked her bank account online. Hmm, she thought –“everything is OK here.” So she called her credit card company only to find that they were closed for the rest of the weekend. She went the entire weekend without money or answers to what happened to her card.

 

Like so many of the people I know, debit/ ATM cards are a staple in their day-to-day life. Many I know believe that it eliminates the need for a credit card. It is more convenient - you rarely have to step foot in a bank.

 

This may seem odd to some, but to many it is a way of life. And, it is catching on. 

 

According to The Nielsen Report (via The Wall Street Journal’s article “Visa Warns of Data-Theft Risk for Customers” – subscription required) there has been a 17.8 percent increase in the number of transactions on Americans' debit cards.  2005 total US Visa and MasterCard debit card charges jumped to $827.09 billion, up 19.2 % from 2004.

 

Monday, Kate found a letter in her mailbox informing her that her debit card had been shut down due to a suspected security breach. The bank had not been informed by the credit card company of the breach, leaving most of their customers, including Kate, in dismay. The credit card company will have her new card within the next two weeks.

 

Turns out, Kate fell victim to one of the most recent security breaches, affecting an estimated 600,000 people.

 

A new report from Intersections Inc. entitled “2005: The Year of the Breach?" states that in 2005 at least 130 data breaches exposed the personal information of more than 55 million Americans.

The flurry of reported data breaches, driven in part by new security breach notification laws, is changing consumer perceptions and forcing companies to rethink how they communicate with and engage consumers on issues of privacy and security.

Well put. One year ago the thought of someone tapping into my personal information did not cross my mind. So, it leaves me to ask these questions: With the rate of technology impressively increasing each year, and the number of data breaches increasing with it, which will be victorious in the end? Our privacy and security or the thieves hunting for information? What does that mean for the relationship between businesses and consumers?

 

It will be interesting to see a year down the road...

 

 

 

Stolen Identities

Well, it finally happened to me.  My credit union called last Friday to ask if I had bought $860 worth of merchandise at a Chandler, Arizona, Wal-Mart the prior day.  I said no, I had never set foot in Chandler.  The credit union representative then asked if a second Visa charge at another Wal-Mart was legit.  Luckily, the bank put a hold on my card, and is now investigating.  But no one could explain my financial liability, only that I would soon receive a form in the mail.

What is scary is that I did not lose my credit card.  Someone accessed my number and created a phony card, signing it with a phony signature.  I am certainly not alone.  In the last year, 8.9 million American adults were victims of identity fraud.  These were individuals like me, who not only had their personal information stolen, but actually experienced fraud.  Identity theft is more serious – this occurs when someone opens up a new account in your name, creating a second false identity.  Is that next for me?

According to a recent IBM survey, one in seven Americans had their personal data or credit card information illegally accessed.  Companies have lost records of former employees, financial institutions have misplaced files containing account numbers, hospitals have posted patient records on the Internet, and state agencies have thrown away files with the names, dates of birth, and Social Security numbers of individuals clearly noted.  These cases may or may not include the situation that happened to me, where a criminal steals a credit card number and uses it to make a major purchase.

Consider these facts: 

• In 2005, there were 152 data breaches, potentially affecting 57.7 million consumers.
• Identity fraud cost U.S. victims $56.6 billion last year, according to the Javelin 2006 Identity Fraud Survey Report. That figure is up from $53.2 billion in 2003. The number of identity-fraud victims dropped, but the average fraud amount increased per victim to more than $6,000.
• In most cases, thieves accessed personal information the old-fashioned way, by stealing a wallet or checkbook, or by “dumpster diving” for thrown-away credit card receipts and phone bills. 
• Researchers interviewed 5,000 people by telephone, and found that nine out of ten data fraud incidents occur offline, not online.
• Almost half of all identity theft is committed by friends, neighbors, in-home employees, family members or relatives (in cases where the victim was able to identify the source of fraud).

In all of 2005, we saw a disturbing trend.  Half of all security incidents impacted colleges and universities.  Think about all of the paperwork you fill out when you attend college, and all of the detailed information you provide to the admissions office.  We’re talking not just name, date of birth, and address, but detailed financial information and bank account numbers.  Many of these college students could have credit problems for years. 

What is the message in the most recent survey data? 

• The number of fraud incidents in the United States is down from last year, but the overall dollar figure is up.  And remember that we are talking about savvy criminals.  They will find other ways to steal this data. 
• Using the Internet to manage your financial accounts is far safer than sending a check in the mail.  In fact, it is foolish to leave your Visa payment in your mailbox.  It is equally foolish to receive your bank statement in the mail, unless you have a mail box with a lock, or a drop slot in your front door.
• The group at highest risk for fraud includes those aged 35-44, the very people we assume are Internet savvy.

No one is immune, however, from children to the elderly, college students to soldiers.  And no industry is immune, including government agencies, hospitals, financial institutions, and utility companies.  And, of course, employees of public relations agencies.

My Location is in the Public Domain

There are some innovations that straddle the line between unbelievable and… well, creepy. On my list right now:

Item #1: Google Earth. When it launched last year, I’ll admit I was one of the people who downloaded it immediately and spent the entire afternoon plugging in every address I could think of, fascinated by the fact that I could have a 3D image of anywhere in the world at a moments notice. (If you haven’t already checked it out, try it) There’s several blogs (here and here) dedicated to the latest and greatest on Google Earth, offering a constant stream of news and updates.  

 

 

 

However, an article highlighting international security concerns makes me think, in our increasingly transparent society, how much information is too much?

 

 

According to Vipin Gupta, a security analyst at Sandia National Laboratories in Albuquerque, “When you have multiple eyes in the sky, what you’re doing is creating a transparent globe where anyone can get basic information about anyone else. Times are changing, and the best thing to do is adapt to the advances in technology.

Interesting, but transparency in absolutely everything? I don't know that I should be able to locate every government building and military base in Uzbekistan- and the idea that I have access to such info doesn't leave me feel enlightened in New Persuasion thought... it scares me.   

Item #2: Cell phone advertising, specifically “I know where you are so I’m going to adjust your ad accordingly” cell phone advertising. A recent NY Times article (reg. required) touched on this up and coming technology. IamPowered says this about it :

Marketers said they were particularly excited about the prospect of eventually using cell phones, many of which are equipped with global positioning systems, to send ads to consumers based on their location. With that information, marketers could, in theory, send pitches from retailers to cell phone users who might be in the vicinity of a store.

Wow. While there are some benefits (AdPunch give you 12) it's hard to look past the ad overkill. I see your billboard. I hear your commercial. I minimize your pop-up. Instead of finding a way to stalk me using new technologies, make a product or service that is worth finding. Don't worry, if it's valuable to me, I'll find you.