If you’ve ever felt that your smartphone or other smart devices display eerily accurate or relevant advertisements based on your interests, there’s finally some explanation. In fact, major media giant Cox Media Group (CMG) has admitted it actively offers a capability called, “Active Listening” which can “listen to ambient conversations of consumers through embedded microphones in smartphones, smart TVs, and other devices to gather data and use it to target ads,” according to CMG marketing material obtained by journalists at the 404 media blog.
CMG Active Listening: Ad Targeting by listening to actual consumer conversations
404 Media and journalist Joseph Cox (unfortunate but unrelated surname here to the marketing firm) was the first to drop the bombshell announcement of Cox Media Group (CMG) and its “Active Listening” marketing tactic. The marketing materials and a pitch were provided to 404 Media journalists by “an outside marketing professional.”
CMG claims the capability can “identify potential customers based on casual conversations in real-time.”
The brazen tactic of remotely listening to consumer conversations for keywords or topics to strategically position relevant ads on smart devices is beyond alarming. Many would be right to assume this is an episode or scenario straight out of Black Mirror. Yet, it’s real, and “Active Listening” is already in use by unnamed clients of CMG. Unnamed clients are likely due to the sensitivity of the advertising technique and legally enforced non-disclosure agreements, ironically.
How Active Listening Ad Targeting Works
According to a write-up on CMG’s website and stored as a PDF online for transparency by 404 Media, the media firm confirms, “Yes, our phones are listening to us.” The write-up has since been taken down by CMG, but it was captured in Google cache.
It gets creepier with the article continuing, “…a smart device is likely within earshot when we talk about our plans for the weekend, how badly we need our kitchen remodels or debate which SUV model is best for the family with our spouse, and so much more.”
It continues, “Creepy? Sure. Great for marketing? Definitely”
Essentially, your smartphone in this example is actively enabling its microphone based on permissions assigned and enabled by a specific app, or utilizing voice assistants.
“Any voice-activated device must eavesdrop around the clock to pick up on ‘wake words’ or the voice commands used to activate various virtual assistant services. Phrases like ‘Hey Siri’ can only work if a smart device is always listening,” the article continues.
“Don’t just know what they’re searching for – know what they’re talking about,” CMG states as it segues into its marketing pitch.
“Get more of the asset every business wants: data,” it explains. “Voice data goes beyond search engine data, so every casual conversation between two consumers becomes a tool for you to target, retarget, and retain consumers.”
The company outlines the mechanisms it uses in 7 steps, which are outlined in full detail on the 404 Media share. We are highlighting a few notable sub-bullet points:
- Step 1: Create personas
- “By analyzing and uploading past client data into our platform, we flesh out comprehensive buyer personas for your brand”
- Step 2: Identify keywords
- Step 3: Transparent tracking
- “We set up tracking via pixels placed on your site so we can track your ROI in real time”
- Step 4: Leverage AI
- Step 5: Analyze consumer behavior
- Step 6: Create a list
- Step 7: Target, retarget, transcend
- “We use your customized list to target your advertising via many different platforms and tactics, including streaming TV, streaming audio, display ads, paid social media, YouTube, Google/Bing Search (PPC)”
Is Active Listening Ad Targeting Legal? Yes, says CMG
If you think CMG is actually breaking the law and invading millions of innocent consumers, you can put that worry to rest (sarcasm). While this is highly controversial and invasive, CMG assures us that its Active Listening ad targeting capability is in fact, legal.
“It is legal for phones and devices to listen to you and for third parties to collect that data. When you purchase a new device and agree to terms and conditions, you consent to your phone listening to you when it is turned on,” CMG explains.
It explains further, “that’s because consumers usually give consent when accepting terms and conditions of software updates or app downloads.” Yet another reason to finally start reading those terms and conditions before accepting.
As a result of the stellar reporting by Joseph Cox of 404 Media breaking this story, CMG was inclined to follow-up and release an official statement.
CMG stated, “CMG businesses do not listen to any conversations or have access to anything beyond a third-party aggregated, anonymized and fully encrypted data set that can be used for ad placement. We regret any confusion and we are committed to ensuring our marketing is clear and transparent.”
Any mention of “Active Listening” has been scrubbed and removed from CMG’s website.
Unfortunately, 404 Media has uncovered another company utilizing microphones of smart devices for ad targeting. “When it comes to using voice to target ads, we’re the guys” the firm boasts.
Time to disable microphone access on all smart devices.
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