Tuesday, December 26, 2006

Microsoft using Hotmail to Sell Targeted Ads

In the Wall Street Journal reported today that Microsoft is using its Hotmail email system or rather the data it represents to sell targeted "behavior based" ads. The article states that the data users put in when the set up the account along with their search habits will be used to sell ads that can be very targeted to the user... or will they?

You basically are going to quickly develop two groups of people here. The first are people that put in real and honest data about themselves and will consider this a HUGE violation of privacy and they should. This is data that they willingly gave up to get an email account, not give marketers an edge in marketing to them. If they wanted to let marketers have this information they would have given it to them.

Microsoft should be ashamed. If I found out my dentist or doctor or anyone else that I provided personal information to sold my information to make a buck to other marketers I would be very upset and probably take it out on the marketers trying to contact me as well as the company that violated my privacy.

Now Microsoft says that they don't give personal information just general info, but the important thing here is they shouldn't be giving anything without my (or your) permission.This is the reason why trust continues to be an issue on the Internet and makes it harder for legitimate marketers to get people to give up information on themselves. Once they give it up, presumably for one purpose they find later it has been sold or used for another purpose they wouldn't approve of.


In addition, you have the added benefit of continual spying by Microsoft by monitoring your search habits. Next we will hear that they are reading the contents of the emails and presenting ads based on the types of emails you receive. Way to go Microsoft! Now that is a strategy to be proud of...full sarcasm intended!

The second group of people are those that provided totally false data when they set the account up to insure that if such a day would come like this that their information wasn't at all representative of them and what appeals to them. Yours truly falls into this category. Now Microsoft is out there selling my data along with everyone else's the problem is that the marketers that use it aren't getting a picture of the real person so the ads they present to me will be seriously off the mark. What do you think the chances are that I will correct their assumptions for them?

Building trust with customers is a very hard thing to do both online and off, but why you would deliberately violate that trust is beyond me and I believe Microsoft is on the verge a serious back lash from customers over this one. Those that gave real information will be angry and those that gave false info will have even less trust than they had before and will be even more wary of online marketers.

Michael Temple