Jason Williams, CEO of Kidoz Inc.
As business leaders, staying up to date on the latest tech advancements and understanding the implications of these innovations means we must constantly learn, adapt and grow. This also means that, with emerging technologies, we consider social, ethical and legal implications that need to be explored and understood.
One of the top priorities in my business is to ensure child-directed advertising adheres to Children’s Online Privacy Protection Act (COPPA) and General Data Protection Regulation (GDPR) regulations, which are enforced to keep minors, and their data, safe when online.
Based on this experience, this article will assess the different ways that brands are engaging with new technologies and the importance of ensuring minors are protected. It is crucial, for example, that brands, developers and adtech providers using AI or existing in the metaverse adhere to existing regulations and standards.
Before implementing emerging technologies such as the metaverse and AI, brands must evaluate their business processes to make sure that they have strong policies in place to protect minors online.
Advertising With The Metaverse And AI
With technologies developing at a rapid pace, savvy advertisers can leverage the innovative opportunities and personalize user experiences using the plethora of accessible data they can collect. Brands can now connect with more people faster and across multiple platforms and devices.
Innovative leaders’ brands are taking note, with many leading brands showing increasing interest in how they can utilize artificial intelligence (AI) and the metaverse to stretch their exposure and consumer tracking further.
According to Sitecore’s study, “Perceptions of the Metaverse,” nearly 9 in 10 U.S. consumers expect the metaverse will play a significant role in how they shop and interact with brands in the future. The same report showed that 31% of marketers have the metaverse already embedded in their current marketing strategies with another 55% expressing plans to use it in the future.
When building out advertising strategies, however, it is important to consider what audience generation your business is targeting. Countless research shows that millennials and Generation Z are interacting with the metaverse and AI everyday, which poses a great opportunity for brands to connect with consumers outside of regular advertising and marketing channels.
In fact, according to the Sitecore study mentioned above, 91% of organizations are targeting millennials with their metaverse strategies followed by Gen Z and Gen X. Brands that leverage these technologies will continue to understand where to reach their target audience and continue to adapt new ways to engage with them.
With brands embracing AI tools and the metaverse offering new data signals, the marketing landscape becomes more powerful. However, the impact on children must be considered, and companies should ensure they develop strong ethical guidelines and comply with COPPA and GDPR regulations in virtual spaces to protect kids’ privacy and ensure their freedom to play without tracking or retargeting.
How Industry Leaders Are Engaging With AI
Amazon was one of the first companies to start using AI to target consumers, giving them competitive advantages, boosting the efficiency of business operations and improving the customer experience. One of Amazon’s stand-out AI-powered strategies is its advanced personalized product recommendations.
When buying something on Amazon, you can see options like “recommended for you,” “products you might like,” or “customers also bought.” This strategy drives 35% of Amazon purchases and results in consumers’ time spent on site with additional shopping and browsing. This is a marketing and advertising strategy that turns an online passive store into an active sales channel through understanding its users with data.
Metaverse companies such as Roblox are also implementing AI into their products. AI has applications in the way that the platform’s worlds are created, the behavior of objects or animals inside games and through enabling data mining and sharing to enhance the platform or the advertising on the platform.
Customers should expect benefits such as improved personalization and faster release of features through the integration of AI by large tech companies, but companies, especially those targeting kids, must exercise caution and stay on top of regulations when implementing AI applications to ensure that data protection processes are maintained.
Interacting With Kids In The Metaverse
In a study done by McKinsey, 59% of consumers are looking forward to transitioning everyday activities into the metaverse. Big brands like Walmart, Nike, Balenciaga and Adidas, among others, all have one thing in common: They have all opened virtual storefronts in the metaverse.
One notable example to point out is Nike’s Nikeland where consumers can play sports-centric virtual games, buy NFT sneakers, engage with athletes like LeBron James and buy physical Nike products. Nike has created a user-centric and user-driven experience that allows consumers to create unique-to-them products and personalized experiences.
That said, kids could be drawn to these products, and one of the most important safeguards required to develop and monitor the metaverse and other emerging tech is the privacy of minors.
This starts with understanding and complying with the privacy laws. First off, the financial consequences can be quite large if you don’t. Consider that, in December, Epic Games agreed to pay the FTC $520 million for Fortnite violating children privacy laws.
But those developing these technologies should also consider the ethical implications. Many parents don’t realize which platforms are part of the metaverse and that they should be monitoring platform usage for commercial and data privacy considerations. As metaverse platforms continue to grow, tech companies must take the lead in finding the balance between personalized experiences and data privacy needs.
Staying Ahead Of Changing Trends
Emerging tech presents opportunities for fresh and innovative ways to approach all aspects of life—both in business and in our personal lives—which are key for brand marketers and advertisers to keep in mind. That said, companies must also proactively consider the ramifications of new technologies, especially how they impact kids who might not yet understand the consequences.
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