NGA Dispatch: Cyber Security Imposes Vexing Challenges

Leon Panetta at NGA“THERE IS PROBABLY NO ISSUE more important today than cyber security,” said Peter Larkin, President and CEO of the National Grocers Association, in his remarks at the opening session of the annual NGA Show in Las Vegas, this week.

True to his word, the event’s educational program included three breakout sessions and one general session devoted to various facets of cyber security – from safeguarding POS and mobile payments; to protecting proprietary customer data; to defending the enterprise against malicious attacks; to whether insurance can offer useful protection.

Keynote speaker Leon Panetta, the former Secretary of Defense and Director of the CIA, said in response to an audience question that he could foresee the possibility of a “cyber Pearl Harbor” assault on American institutions and infrastructure. The siege is already well under way: The CIA was turning back some 100,000 cyber-attacks per day during his tenure from 2009-2011, he said. The pace has certainly accelerated since that time.

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Contactless Payments — What’s Taking So Long?

Mywallet in PolandIT’S BEEN A HALF-DECADE since I first got religion about the potential for “contactless payments” using NFC-enabled wallets in mobile phones. A very bright entrepreneur brought the concept to my attention and asked me to help advise his new firm. I agreed and got myself launched up the learning curve.

Most readers probably know that NFC (near-field communications) is a form of wireless radio that works only across a few centimeters. It’s perfect for enabling a mobile phone to communicate securely with a point of sale terminal. If the phone has an NFC chip and wallet app installed, a tap can function as a substitute for a card-swipe to enable payments and even frequent-shopper redemptions in a few milliseconds.

Mobile wallets are gaining traction throughout the developed world. The image reproduced here documents Eurobank’s version in Poland. Here in the U.S. we observe a slower pace of development, although the recent launch of Apple Pay seems to have kicked up the interest. Then again, yesterday’s disclosure of a data breech affecting the competing CurrentC service from Merchant Customer Exchange (MCX) has a lot of heads shaking.

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Where’s the ROI for Social Media?

AN INSTANT POLL that recently appeared on the home page of CPGmatters.com sheds some light on an important part of social media evaluation; namely, Return On Investment. Every CPG company of consequence has a social media strategy nowadays.

So do marketers think social media is a success?

ShopperTech.org
This article originally appeared on ShopperTech.org

Not really, say nearly nine of ten executives who took part in the poll. Only 12% say that social media is a success in CPG. Three of four respondents say concern over ROI is holding back success:

  • There is not enough ROI so far to be a success (19%)
  • It is very difficult to measure ROI at this time (56%).

Meanwhile, 12% say it’s too early to determine the success of social media in CPG.

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Invoking Relevance

RelevanceBEST PRACTICE IN MOBILE ADVERTISING remains an oxymoron, as marketers grapple with the natural tension between intrusiveness and usefulness. There is a strong drive to justify ad spending and validate the business premise behind personalized promotions. Relevance seems to be the key, we are told, and the unique data-capturing and consumer-tracking capabilities of mobile devices should materialize a marketer’s nirvana in which every message is on-target and welcomed.

Recent consumer research from PriceWaterhouseCoopers suggests that this formula may need to be applied with greater subtlty, however.  In Mobile advertising: What do US consumers want?, PwC researchers find, “There is an overall aversion to the prevalence of mobile advertising. Even ads that are relevant to personal interests do not directly translate to ad interest or engagement.”

This poses a challenge indeed, since according to PwC, “The biggest challenge is to leverage the knowledge of how consumers are using mobile to improve monetization from ad delivery.”

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