Behavioral targeting, the method of tracking a user’s internet surfing behavior to make targeted and personalized ads, is now geared up to merge with user cell phone data. This merging will result to an even more personalized advertising which will undoubtedly receive some criticism in light of privacy invasion. This is the summary of an article by Catherine Holahan, which looks at new and exciting advertisement possibilities: The Smartphone. You can get the PDF of the behavioral targeting article here: The Sell-Phone Revolution
Behavioral and geographical targeting
Cell phone personalized data shows a lot of data about its users, including street location. Combined with online advertising tools, the result is behavioral and geographical targeting, allowing advertisers to know the exact person most likely to buy their product and at the right time. In a few years, this can be realized, but now it is already in its infancy stage. Cell phones use zip code, area code and GPS data to let users know where the nearest business establishments are. In the future, ads will show up in your cell phone selling products sold by local businesses within your present location. Furthermore, Tacoda and other online advertisement networks plan to make targeted ads for broadband-enabled TVs, allowing users to see personalized ads during commercial breaks.
Privacy restraints
As for now, targeting is modest because of several privacy restraints. Federal Communications Commission (FCC) rules set limits for the use of location and other customer data. They also set other restraints, such as the ability of users to easily opt out of mobile updates anytime they want to. However, these standards can easily depreciate, and some suggest that unlimited texting for a flat rate contributes to this depreciation. Thus, companies such as Medio Systems, inc. are slowly taking steps toward that kind of targeting. This company supplies the search engine of many phones, including T-mobile. They implement targeted ads using cell phone search data and browsing. Someday, they will incorporate GPS-precise data for more precise targeting.
Motivation behind sell-phone revolution
Sales pitches are the motivation behind these efforts. Viewers shut out most of the ads they see on TV, and only 5% respond to targeted ads online, while 1% respond to conventional online ads. Phone targeting is advantageous because usually there is one user per phone; mobile web data is obtained from unique individuals. Furthermore, triangulating signals allow phones to locate users within 50 to 300 meters.
However, location-based marketing is not that popular among the majority. Most of us would prefer privacy with our cell phones. Seeing an ad in our cell phone is not a marvellous event, after all. The ad will need to add relevant information to the situation, otherwise you will get the feeling of being spammed. So I advice to target ads on mobile devices even more than on the computer, because screen space is more scarce.
