Customer data from dealer websites and 3rd party vendors being sold??

[Todd Caputo]

Would love everyone’s opinion on this one..I spent the last 4 days at NADA and was told by several vendors something very disturbing that I was not aware of. I am told that Dealer Website companies, 3rd party lead sources like Auto Trader, Cars.com, Car Gurus, True Car are selling their visitor data to companies like Oracle and others that then sell this data. It is then being sold back to SEM agencies for dealers for them to target people for conquest and then we pay for it. If this is correct I have a serious problem with it. Dealers are paying for a website, paying to get traffic to their website, paying 3rd party vendors for “leads” then some of us are then paying possibly the same companies for SEM services, Facebook advertising, etc...AGAIN. So dealers are being double or triple dipped here??

 

[Alexander Lau]

I wouldn't doubt that. I'm sure a lot of automotive data vendors (who swim in those waters) are going to disagree, but I'm sure a lot of that goes on.

 

[AdamMurray]

I'm sure it's all there in the small print when you sign up for these services. Oracle/BlueKai and Lotame are probably the largest of the aggregators using this data. Several other companies are buying the anonymized data and reselling it as dynamic retargeting opportunities.

It's a double-edged sword to me...while it sucks giving up data you essentially paid for, aggregating this data and opening up more/better targeting opportunities can vastly improve your marketing.

 

[Alex Snyder]

So dealers are being double or triple dipped here??

Kinda makes you appreciate Reynolds for being a little more up front about it huh? ....I can't believe I just posted that

 

[Chris Leslie]

100% they are doing that. Most likely its an exchange of data too. That is the only way any vendor can get household/location data without the DMS.

 

[craigh]

Some of you may be too young for this reference...

 

[craigh]

100% they are doing that. Most likely its an exchange of data too. That is the only way any vendor can get household/location data without the DMS.

There is so much more data being sold.
Household, car owned, registration data, spouse information, buying habits, etc.
American Express will also tell you the average spending bracket for a "cookied" user.
The trick is that dealer sites have lead forms, so they can convert that cookied user into a true identity.
I'm pretty sure this is a core business model for companies like DealerX.

 

[CameronDV]

There is so much more data being sold.
Household, car owned, registration data, spouse information, buying habits, etc.
American Express will also tell you the average spending bracket for a "cookied" user.
The trick is that dealer sites have lead forms, so they can convert that cookied user into a true identity.
I'm pretty sure this is a core business model for companies like DealerX.

These data companies put it all in the fine print..and they have no limits, if they can get their hands on the data, they will...and they will turn it for profit. This data is also cross referenced with other data lists that exchange hands to build profiles on consumers, making it more comprehensive with each "Terms of Service" you agree to. As AdamMurray mentioned, Oracle/BlueKai are pros at this type of data hoarding.

 

[Jason@nabthat]

At the end of the day, it is important that dealers read the fine print and make sure they are adding language that protects their data. Our contracts specifically state that our dealer client is the owner of the data - It is unethical in my opinion that companies are making money off of what others are paying for. Feel free to use the following clause in your contracts:

Vendor shall maintain reasonable administrative, physical and technical safeguards for the protection, confidentiality and integrity of Client’s data. All customer information derived from Client is considered the Clients’ and will not be shared with any 3rd party, free or otherwise. At no time may the Vendor resell any portion of the Client's data derived from any work agreed to within this contract or addendum.

Remember to look inside the code that you are applying to your site, too many times I see vendors adding their own cookie code/Google Analytics to the site. This should be a no-no

 

[Alex Snyder]

Advocate.

Does it matter? Our personal digital lives are so exposed already. We have ZERO control over that. Outside of upholding PPI, why should we even care if our businesses' (assumed anonymized) data is being used? Can we assume it is being used to make our experiences better within those products or that it is helping to fund those products so that our direct costs aren't rising? Are we just mad because we have direct costs and think we can bully these companies around?

</fuel thrown on fire>