Pitch presentation personal data on Marketing

Why companies should not use personal data to target markets

1. Companies should use
personal data to target
markets -Against
Fahim Hussain 17075177
Yasmin Adrianna Cheok 23072507
Jelyn Tey JieRui 23049208
AalyaaAnwar 19024777
GROUP 6

2. Content
Loss of Privacy:
A Fundamental Right
Data Overload &
Manipulation
Constant
Surveillance
Data Breaches and
Security Risks

3. Data or Information overload occurs
when the amount of information
exceeds the working memory of the
person receiving it. (Arnold et al., 2023)
By constantly pushing information to
consumers, companies are able to
influence consumer behaviour thus
leading to Manipulation.
Cognitive Load Theory (CLT)
•This theory explains how we process
information and highlights how too much
information (TMI) can negatively affect
our decision making.
•Divided into three categories of
cognitive load namely:
-Intrinsic load
-Extraneous load
-Germane load
Weller, 2022
Data Overload & Manipulation

4. Constant Ads and Cognitive Overload
•Constantadsleadto‘Banner
Blindness’and‘extraneousload’.
•Extensivedatacollectionleadsto
‘Cognitiveoverload’andreduce
‘GermaneLoad’forconsumers.
•Repetitivetargetedmarketingfrom
companiescouldnegativelyaffecttheir
brandimagemakingadslesseffective.
(Nikoleychuk, 2023)

5. Focus on Value, not Manipulation
•ProvideValuethrough‘clearandconcise
communication’ and‘respectingconsumers'
privacy’.
•Companiesexploitemotionstoincrease‘Intrinsicload’
whichresultsinimpulsebuying.
•Usingresponsiblemarketingtogaincustomerloyalty
andincrease‘GermaneLoad’.

6. Privacyisafundamentalhumanright
andessentialforfreedomofthoughtand
expression
Personaldataisanextensionof
ourselvesinthedigitalworld
Whencompaniescollectanduseour
datawithoutourknowledgeorconsent,
it'sanintrusiononourprivacy
Loss of Privacy: A Fundamental Right

7. Lack of Informed Consent
Morey et al, 2015
Users are unawareof the extent
to which their personal data is
being collected and utilized by
companies for targeted marketing.
Lack of informed consent and
control over their personal
information and potential
consequences of its use.
Khan, 2019

8. Targeted ads that
incorporate personal data
are an invasion of privacy
Personalized ads &
marketing are unethical
63%
Mckeon, 2019
83%
Koetsier, 2019​
•Targeted marketing
requires disclosure of
personal datafrom
users' web activity &
digital footprint
•Crosses the boundary
intopersonal space,
leading to discomfort
amongconsumers
Users become more
uncomfortable as the degree
of personalization increased.
Plane et al, 2017
Violation of Privacy Rights

9. Data collection
can lead to a
pervasive sense
of being
constantly
monitored.
This feeling of
surveillance
can be
stressful
&anxiety-
inducing.
It can stifle
creativity& open
communication.
Constant Surveillance

10. Erosion of Trust
Deloitte, 2024
Companies that misuse
dataerode consumer trust.
Consumers may become
cynicalof marketing
messages& less likely to
engage with brands.
Building trust with consumers
requires transparency,respect
for privacy & ethical data
practices.

11. Ethical Considerations
Consumers have a right to
privacy & autonomyover
their personal information.
Consumers should be fully
informedabout how their
personal data is collected,
stored, & used.
Targeted marketing based on
personal data has the
potential to perpetuate
social inequalities
&reinforce existing biases.
Filed in the U.S. District Court, 2022

12. •A data breach is any
security incident in which
unauthorized parties gain
access to sensitive or
confidential information.
•Data breaches include only
those security breaches in
which data confidentiality
is compromised.
Data Breaches and Security Risks
•71% of data breaches involved customer data,
sensitive information leaks, or unauthorized
access to admin panels.
•The remaining 29% of breaches compromised
other data types.HALIMY, 2023

13. Risk of Data Breaches
The impact on
reputational damage
Impacts on attracting customers,
investments, and employees.
The Disruptive Effect of
Operational Downtime
Business operations are
significantly disrupted
Toll on financial loss
The impact of sensitive
data loss
Exposes personal information and
lead to identity theft.
Cyber attacks
Companies that collect data are
potential targets for cyberattacks.
Legal implications and
actions
Data laws demand protection;
breaches invite legal actions for
compensation.
Wheatley, Maillart, & Didier Sornette, 2015
Customer compensation,
response, investigation, legal.

14. Reinforcement of Social Inequalities
•Targeted advertising algorithms
reinforce biases.
•Reliance on historical data perpetuates
discrimination.
•Marketing content may exclude certain
demographic groups.
•Exacerbates existing social disparities.

15. References
Adjei-Ohene,Kennedy.“EthicalConsiderationsinTargetedAdvertisingandDataPrivacy:BalancingPersonalizationandPrivacy.”Www.linkedin.com,8June
2023,www.linkedin.com/pulse/ethical-considerations-targeted-advertising-data-adjei-ohene-.
Arnold, M., Goldschmitt, M., & Rigotti, T. (2023). Dealing with information overload: A comprehensive review. Frontiers in Psychology, 14.
https://doi.org/10.3389/fpsyg.2023.1122200
Arbanas,Jana,etal.“DataPrivacyandSecurityWorriesAreontheRise,WhileTrustIsDown.”DeloitteInsights,2024,
www2.deloitte.com/xe/en/insights/industry/telecommunications/connectivity-mobile-trends-survey/2023/data-privacy-and-security.html.
Hendrix,Justin.“FacebookSettlesLawsuitStemmingfromHUDDiscriminationComplaint|TechPolicy.Press.”TechPolicyPress,21June2022,
www.techpolicy.press/facebook-settles-lawsuit-stemming-from-hud-discrimination-complaint/.Accessed20Mar.2024.
HALIMY, A. (2023, February 20). Malaysia comes in at the 11th spot for breach of user’s data. Retrieved March 28, 2024, from SinarDaily
website: https://www.sinardaily.my/article/190554/focus/national/malaysia-comes-in-at-the-11th-spot-for-breach-of-users-
data#:~:text=According%20to%20the%20leaked%20data,been%2044.2%20million%20hacked%20accounts.
Khan,S.(2019,March11).60%onlineusersfearunauthoriseddatacollection,only11%usersreadprivacypolicies:Survey.TheEconomic
Times.https://economictimes.indiatimes.com/small-biz/policy-trends/60-online-users-fear-unauthorised-data-collection-only-11-users-read-privacy-policies-
survey/articleshow/68355981.cms?from=mdr
Koetsier,J.(2019,February9).Only17%OfConsumersBelievePersonalizedAdsAreEthical,SurveySays.Forbes.
https://www.forbes.com/sites/johnkoetsier/2019/02/09/83-of-consumers-believe-personalized-ads-are-morally-wrong-survey-says/?sh=734d0c2e19f5
Mckeon,K.(2019,August7).VisualObjects.VisualObjects.https://visualobjects.com/web-design/blog/targeted-advertising-invasion-of-privacy
Morey,T.,Forbath,T.,&Schoop,A.(2015,May).CustomerData:DesigningforTransparencyandTrust.HarvardBusiness
Review.https://hbr.org/2015/05/customer-data-designing-for-transparency-and-trust

16. References
Nissenbaum, H. (2004). Privacy as Contextual Integrity Privacy as Contextual Integrity PRIVACY AS CONTEXTUAL INTEGRITY. Washington Law Review
Washington Law Review, 79. https://digitalcommons.law.uw.edu/cgi/viewcontent.cgi?article=4450&context=wlr
Nikoleychuk, A. (2023, October 4). How do ads affect website visitor behavior? [experiment]. Search Engine Journal. https://www.searchenginejournal.com/ads-
user-behavior-experiment/494596/
Plane, A. C., Redmiles, E. M., Mazurek, M. L., & Tschantz, M. C. (2017).Exploring User Perceptions of Discrimination in Online Targeted Advertising.
Www.usenix.org. https://www.usenix.org/conference/usenixsecurity17/technical-sessions/presentation/plane
Team, C. (2016). Data Breaches: Threats and Consequences. Retrieved March 19, 2024, from Cloudmask.com website:https://www.cloudmask.com/blog/data-
breaches-threats-and-consequences
U.S. Department of Justice. “Justice Department Secures Groundbreaking Settlement Agreement with Meta Platforms, Formerly Known as Facebook, to Resolve
Allegations of Discriminatory Advertising.”Www.justice.gov, 21 June 2022, www.justice.gov/opa/pr/justice-department-secures-groundbreaking-settlement-
agreement-meta-platforms-formerly-known.
Weller, D. (2022, July 23). What is cognitive load theory?. barefootteflteacher.com. https://www.barefootteflteacher.com/p/what-is-cognitive-load-theory
Wheatley, S., Maillart, T., & DidierSornette. (2015, May 28). The Extreme Risk of Personal Data Breaches & The Erosion of Privacy. Retrieved March19, 2024,
from ResearchGate website:https://www.researchgate.net/publication/277333872_The_Extreme_Risk_of_Personal_Data_Breaches_The_Erosion_of_Privacy
Wright, J. D., & Rayburn, R. L. (2015). Guns and Criminals.ElsevierEBooks, 457–461.https://doi.org/10.1016/b978-0-08-097086-8.45095-6
5 Damaging Consequences Of Data Breach |MetaCompliance. (2020, February 25). Retrieved March 19, 2024,
fromMetaCompliancewebsite:https://www.metacompliance.com/blog/data-breaches/5-damaging-consequences-of-a-data-breach

17. Thank you!