Word on the Street: Mobile Targeting
In this Word on the Street Assignment, we had to answer the Question: “In what ways do you feel that companies are using mobile technologies to target you regarding their products and services?”
A great article on this subject is in the New York Times. Written by Stephanie Clifford, it was published on April 16, 2010 and is titled “Web Coupons Know Lots About You, and They Tell” [http://www.nytimes.com/2010/04/17/business/media/17coupon.html].
Companies who use mobile advertising target potential customers by:
- Geographical information contained in the phone (local targeting)
- Interests
- Specific Social Media Pages (YouTube, Facebook, Twitter, etc)
- Sex (M/F),
- Age
- Search queries
- The customer’s IP Address
- Prior shopping habits (loyalty programs)
- Ethnicity
All of this is invisible to the customer. It’s not ‘general’ information either. These coupons can get eerily specific, virtually following you to bed where it knows what kind of sheets you have!
Some merchandisers use a company called RevTraxx who has no privacy policy. They get around the privacy policies of Google and can even trend your IP address – if you have a proclivity for downloading pizza coupons on Friday afternoons – you may soon find one already there!
In a worst case scenario, as the article points out, companies with this kind of personal information can offer you substandard products than they might offer another person; or the same product but at a higher price than the next person. Privacy advocates are very much alarmed by this activity and the article quotes Ed Mierzwinski, the Consumer program Director for USPIRG as saying “There really have been no rules set up for this ecosystem”. Now, USPIRG is asking the FTC to tighten up online advertising privacy rules.
The FTC took it’s first action in March when it sought input about whether to revamp the COPPA (Child Online Privacy Protection Act) regulations, which were last updated in 2000. Among other questions, the FTC asked whether it should expand the definition of personal information to include “persistent IP addresses, mobile geolocation information or information collected in connection with online behavioral advertising.”
[http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=124908]
The deadline for comments on this, originally scheduled for June 30, 2010 has been extended by the FTC to July 20, 2010
[http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=131185&nid=116157]
In the meantime the “word on the street” is for advertisers to police themselves when dealing with kids 12 and under. As stated in the article “Why Marketers Must Keep Kids’ Safety In Mind”, “Marketers will have to tread lightly when dealing with minors, both because of existing regulations and the possibility of new ones. As newer channels like mobile and social networking become increasingly important destinations for kids and teens, effective self-regulation could head off some of the possible restrictions strict legislation or rule-making could bring.”




