Im scott mcgrew. By now, you know the Trump Administration changed the rules to allow internet providers to sell your data to advertisers despite pushback from the Electronic Frontier foundation. This is a done deal but its left us with lots of questions like what does the data look like and how much is it worth and who gbuys it. We have the ceo of the largest independent Internet Service provider in california joined by sarah of cnbc. We have to start at the beginning and say this television station is owned by comcast. Have you heard of comcast . Its also an internet provider. That said, we can move on. What is internet data. Is it on a usb stick, cd, email, text . What is it . Well, the key thing is internet providers can do whatever they wanted. Without the protection of the information you are going to bring up the fact you dont sell it, right . Yeah. I know you are going to do that. Ill get to it in a second. Literally, what i want to know is it at 5 17 p. M. , scott spent an hour on read it . Its the click scene on the internet. Every site you visit, the url and everything you download. Who is buying it . Small Companies Like facebook ads . Large, large advertisers buying the campaigns . Are we talking five major conglomerates . Its not clear what carriers do with the information. Primarily, this is about tailoring advertising in hopes it is on target. The confusing part is, this is status quo. The obama rule was heading down into effect. It repeals, but never got into effect. We are already seeing what is going to happen, right . Or does it take it another step further . The rules have not gone into effect. They were set to go into effect late this year. The rules banning it. The rules banning it were not in effect yet. The number of carriers using the information to tailor advertising was limited. At t offered a service where their Internet Access is less expensive if you opted into it. Is that going to change . Do you think the fact theres a federal mandate saying this is okay, do you think thats going to send a signal to the industry . Industry likes certainty. This is certainty. This opens the door to possibilities. Would i notice it happened . I already think to myself, thats weird, i was shopping with luggage, now the Chicago Tribune has luggage. I get cookies. Will i notice as a consumer . How will i know its happening . Today, you see ads that follow you in silo. You browsed amazon, looked at luggage and another website running an amazon ad. They know you want luggage so they show you. Carriers see what you are doing. What that could mean is you went to fords website, then later on cnn and seeing chevy ads instead of ford ads thats the boundary that breaks here that is interesting. What are the potential ramifications down the line . Silicon valley is the land of unintended consequences. Just going to be used for advertising and we all want free stuff. Its great. What do you have to hide . What are the potential ramifications down the line that are creepier than the chevy ford scenario . Most consumers do things on the internet they may not be comfortable with others seeing. You use the internet as an intimate thing today. The cache is private. We have seen websites hacked. The click streams, the things you do could be a target. You have this in my click stream. We dont log this information. So, to store this information, you have to build an extensive infrastructure for storage and analysis. Our position is people that use the internet as vie vat. How does it change the relationship with the isp and google and facebook. Their Business Model is data by an advertising model and the isp is more of a subscription. Do they have a hybrid and working together now . Well, i dont think working together, but yes, the model changes. You go from Internet Service providers being subscription to as you say, a hybrid model, where they have the potential behind the scenes to monotize your use of the internet. I think that is creepy. Any chance they lower subscription fees in return for taking or selling your data . You would hope in a competitive marketplace. If you have 18 to choose from and one said we are going to look deeply at what you do, fwu result, you are going to get ultra cheap access and choosing between 15 providers, doesnt make sense. If i wanted sonic, i cant get that because its not an option where i live. Is that because you cant get in on the telephone wire or the cable or you have to dig your own cable . Its a mixture. So, we often Home Services in three cities today in the San Francisco bay area and offer dsl in 125 cities in california. Who uses dsl . A lot of folks. Dsl has come a long way since the launch in 1998. Dsl today, even at home i have dsl service. Its almost 100 megabytes. Its come along. Why do you think people arent more concerned about this . Granted we are flooded with the Trump Administration. I didnt see people outside the Tech Industry getting too upset about this one. I think consumers are used to this because you have it on the media websites and you are used to being retargeted. Its different when you are a carrier who sees everything you do. How much does this cost . We dont know yet. I want 10,000 would i buy in bulk of 10,000 or 100,000 . I dont think you will see carriers selling individual consumers you cant buy scott mcgrews, thank god. What you are liking to see is you want to target a person of a certain demographic, age, market with children in the home. Not necessarily a bulk, here is everything we know, the way magazine subscriptions say here is our entire data base. You dont think that is going to happen . The ceo of snap said he thinks retargeting is creepy. Hes taking a different stance than Mark Zuckerberg and facebook did. When people downloaded ad blockers rk it was the biggest boycott of a product in human history. Theres forces of people saying we would rather pay, we dont want this. Millennials have grown up in a social and connected world and learned hard lessons. So, yes, i think the younger folks are more conscious of this as relevant privacy. The ceo of sonic. Thank you for being here. Of course. Up next, Silicon Valley prosperity paradise. B. Welcome back to press here. The San Francisco bayary has more people. More ph. D. s per square mile. How many millionaires . 76,000. 76,000 people in the bay area are millionaires or billionaires. If you put them together, that is the population of palo alto and then some. They are already full of millionaires. The city has its poor, too, they are harder to spot. Theres a disconnect between rich and poor. This is nothing new. Less unusual in Silicon Valley is how very little millionaires contribute and when they do, heather says they donate to the wrong place. She calls that the Silicon Valley prosperity paradigm. She is cofounder of open impact and author of the giving code. Are we talking real millionaires or millionaires that have a house worst a lot of money . Stock. Stock in a company. Millionaires net one million up net of the house. Net of the house. Million or more investable assets. Available assets. The people have gotten to the point where they consider San Francisco to be part of it. This is excludeing San Francisco. 76,000 of them. Including retirement funds. Yes. All their investments. Well say that. So, they are not donating it . They are being well, they are donating it. What was actually interesting, nuances in finding, Silicon Valley is generous. We found giving has gone up across multiple categories in the last decade. A number of donors were giving at a higher rate in california or america. The challenge is 90 of the money is going to national and global causes, not a lot of it is staying locally or going to the people who need it most in our own backyard. Thats the prosperity pair dox. The Humane Society or give money to eradicating global salmon. They are global millionaires and billionaires. Make them mobile. The hospitals and god bless them for it. God bless them. What we see is a trend where this new generation of wealthy millionaires and billionaires are giving more nationally and globally. In part, they say i can have more bang for my buck giving 1,000 or 10,000 to africa than east palo alto. When they give locally, they give to big institutions or private schools. Institutions, large universities, many of them have names on the buildings of the universities but they are not benefiting the low income people in our backyards. We think thats where the challenge was. How do you find, if you happen to be worth several million, how do you give that way aand find the right nonprofit where you can see the metrics and the potential impact and you expect your money is going to the cause you want it to . Thats part of the problem, ari. We found theres a big disconnect between the tech millionaires and billionaires and nonprofits. The nonprofits are operating on less than 1 million. They dont have large Marketing Budgets and cant pay for evaluations and business plans. They love metrics, they want metrics and want it to look like a miniversion of their company. How do i know . It is a fair question. There are intermediaries out there. Theres been changes in the lands skap, too. Theres less information now and fewer opportunities for the donors to connect with the nonprofits. The united way rolled up. Why united way . We have a large Silicon Valley community. They are focused on the donors needs to give where they want to give. They are not doing the local brokering. They are left to their own vices. We think theres a huge opportunity to help Start Connecting the millionaires and billionaires with opportunities in their own backyard. It strikes me in San Francisco glide has been a good job of tapping into tech money. Yeah. Tech ceos on the board. Theres a lot of tech ceos involved. San francisco, the tipping poupt is raising money from wealthy families and giving to people in the need. The boys and girls club of east palo alto, they had just erik wiener of whos who. They do a phenomenal job. Their ceo is a harvard grad and knows how to pitch the donors. Food banks have done a good job. They do a phenomenal job, but there are a lot of nonprofits who are struggling to connect. It would be hard to understand if im running a small nonprofit, it does something important. How do i even get into facebook to get how do i talk to millionaires . Where do i find them . How do i talk to them to get thundershower money . We have millionaires and billionaires living in neighborhoods that may be a mile or half mile from neighborhoods where you have a High Percentage of kids who are homeless or sleeping on couches. Someone recently told me up to 40 of the kids are technically homeless, living in multiple families per household, in cars, staying with aunts and uncles. Thats a travesty. Theres one in East San Jose who i love. They serve a local Community Organization in East San Jose. Shes done a great job of getting into sb2. Through that, shes met the donors and built relationships. I have a minute left, we are giving more . Absolutely. The other problem, there are schoolteachers going to food banks. Yeah. The number of people in the lower or middle, middle class are needy in a way they werent before where the charity is seeing more people. We uncovered data, the middle class has been hollowed out like across the rest of the country by 11 in the last two decades. The rich are getting richer, the poor getting poorer. You have teachers, firefighters, retail workers and so on having to access the foods bank and social services to get by. Anecdotely, my younger son, we live in a nice neighborhood. I have a younger son who knows a family that lives in a garage. He goes to school with the kid. My son is a quarter away from graduating college and wants to be a firefighter and you think, i dont know how hes going to make rent. Fresno, there is data that came out. Im from fresno and doing a lot of work in the central valley. Fresno . Exactly. Well be right back. Welcome back to press here. Theres a disconnect between what i want and what marketers think i want. I want to be left alone. That is obviously the absolute last thing a marketer is going to do. They would like to get a coupon for a store on my phone when i walk into that store or an offer from a loan from a bank when it senses im at a used car lot. They call them smartphones for a reason. Do we want this . Steven burke is ceo of context 360. I was saying earlier, the ability to send things on my phone comes great responsibility, though that is not to annoy me. I said it in a more crude way. Dont annoy me on my phone. How could you possibly be selling me a service that sends me anything . I think that thats a valid concern that many consumers have because its been done wrong. As you said in your first segment with that fine interview, the blind use of data to try to retarget people long after they expressed interest in something fails. We know it fails. What works is a trusted relationship between a brand an consumer, asking permission and not killing your battery. Getting an Airline Ticket because its on my apple phone, it pops up, you are at the airport. Thats okay with me. So many generations of the early days of the smartphone and data popping up. You have beacons fairly recently. Yep. It took every generation, the promise sounds the same for the consumer and the popularity doesnt really increase. I have been immobile since 1994 and every year is the year of relocation. The promise is still there. We are at a new step in personalization. Most personalization today has been reactive. Its based on Purchase History and safeway knows you buy apples, strawberries and toilet paper, those things. The new phase with personal assistance with alexa and google home and other services is near realtime response to your needs as you express them. The next step and the one we are working on is anticipating and predictive. Has your status changed . I havent bought a car in 15 years. I started going to dealerships. My bank app has things to help me. I can check the v. I. N. I can talk to a loan person to talk me out. Anything to compensate the creepiness you are watching me at the car lot. The app you have on your phone will tell you more about the car based on your v. I. N. I asked your permission and reminded you you have given me permission. Its first party. Its not sold to a data broker. Its in the service of my relationship with that brand. That is, as you said at the outset, a very powerful relationship and one that banks, Insurance Companies and others we choose to work with have invested in and maintained for a long time. Bank apps are the most advanced out there. They are trusted and used with security. Its a natural step to anticipate your interest and help serve you. This is not safeway throwing it on my phone when i dont have the app. Its not third party. Hey, by the way, we couldnt help but notice x. It sounds like you are most proud of what you are doing with banks. Whats interesting is how the use cases are accelerating, as we talk to more and more people and they do more and more focus groups with consumers. It started with the mortgage use case, the car loan use case. Theres a strong fraud use case. When you travel, your car gets blocked, you cant use it. When you were doing your book you got blocked around the world, right . Constantly. Travel use case we are doing with a french bank. People travel within europe and get lost. You could get notifications saying stay out of this area, the atms are not safe. Theres concierge related services they can provide within the context of their relationship with you. They have your purchase data, but dont know what your interests are. Whatever your interests change. We are working with more car makers, interestingly enough. The personalization of the automobile is a huge step forward for consumers and the brand themselves. So, what im learning, as i work with more and more marketers, i have been doing it a number of years. The new generation of marketer is more data driven than his or her predecessor and more sensitive to that relationship in trying to take the steps necessary to protect it and enhance it. So, we made a conscious choice as a company, we raised the ground. We hired expensive privacy attorneys, understand the real differences between managing first party and Third Party Data and apply that with trusted partners. No disruption here. We are trying to avoid that. How do you create an oped x experience that people want . Nordstrom is doing a good job, basically saying we would like to track your location. They are not a customer, by the way. In exchange for being able to alert you of this, that or the other. Ep curious, a cooking app. What would it want to know about me . Local ingredients in season that might help you with what you are cooking. Orange theory, the Fitness Studio has a lovely opt in that says here is why we would like to do this. Most notification information that they have launched ask you at the outset, the first date, you want to get married . No. Serve me, then ask ne. I have a minute left. If im an app developer, is this something from you . Its a very thin piece of code installed on any ios or android app. Once its given information, it talks to learning capabilities to build pii compliant profiles. We are not collecting personal information. One last thing, i have ten seconds, its very smooth of you to bring up her book. Pr pro. It was bril yanlt, crazy, cobby. A national one. Back in a minute. Thats our show this week. My thanks to our guests. You can find us on i tunes, its free. Im scott mcgrew. Thank you for making us part of your sunday morning. Damian trujillo hello and welcome to comunidad del valle. Im damian trujillo. We hope youre enjoying your easter sunday. We have another spectacular show. The Mexican Museum of