Chapter 5

1. Nash (2000).

2. It is possible thanks to, inter alia, mobile communications, GPS, or identification and localized systems with the use of RFID.

3. Kelly (2006).

4. BTL advertising activities are targeted at a specific customer and are not advertised in the mass media. BTL advertising media are targeted mainly at retailers and consumers. Direct mail and consumer promotion belong to the BTL category.

5. ATL marketing activities occur in the traditional areas of the mass media, such as radio, the press, posters, and external advertisements.

6. There is extensive literature on similarity measures, which refer to nearest-neighbor methods within pattern recognition algorithms. See Duda, Hart, and Stork (2000). For cluster analysis, Anderberg (1973). For case-based reasoning, see Aamodt and Plaza (1994).

7. Berry and Linoff (2004). The example of mining social networks for marketing responses is in Surma and Furmanek (2010).

8. Kelly (2006).

9. This issue is connected with business psychology, where various methods are used (e.g., a psychological picture of a given customer profile is built up and then the proper marketing message can be devised).

10. U.S. Fair Trade Commission (2000).

11. See the example of inferring social network structure using mobile phone data in Eagle, Pentland, and Lazer (2009).

12. There are agreements between companies on the exchange of information about customers (e.g., about debts, credits).

13. For instance, say we are interested in a person Ω and in the activities of a foundation called “Bright Future” (recorded on an Internet portal in time t), a payment into the account of the foundation (registered by a bank in t + 1), and a visit in Boston (registered by mobile communications operator in t + 2). One can provisionally conclude that at the time t + 2, the person under study participated in a meeting of the members of the foundation’s management board in Boston.

14. The global interactive marketing company Acxiom (http://www.acxiom.com) is a good example of approaching this business model.

15. It seems that there is no chance to move away from building government information systems, which follow this trend.

16. See http://research.microsoft.com/barc/MediaPresence/MyLifeBits.aspx and representative papers such as Gemmel, Bell, and Lueder (2006).

17. Kelly (2006).

18. It is possible to use less precise identification methods based on the records of identification data on a customer’s PC (cookies).

19. This issue was officially addressed by Google on August 8, 2008: http://googlepublicpolicy.blogspot.com/2008/08/google-responds-to-congressional-letter.html. See also interest-based advertising (http://google.com/ads/preferences) and http://googleblog.blogspot.com/2009/03/making-ads-more-interesting.html

20. See http://secondlife.com/