Targeted: The Dark Side of Personalized Advertising

We never thought it was real. But the conspiracy nuts were right. Your conversations are being turned into ads.

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Yes, Turns Out the Ads ARE Listening.

Cox Media Group (CMG) claims it can target ads based on what people say out loud near device microphones. We first reported about this a few months back, after some media reported rumours of this technology.

Now, 404 Media says it’s confirmed this. CMG calls this product Active Listening and claims it can use voice data from over 470 sources to target potential customers.

From CMG pitch deck (source: 404media)

Smart devices capture real-time intent data by listening to our conversations. Advertisers can pair this voice-data with behavioral data to target in-market consumers. We use AI to collect this data from 470+ sources to improve campaign deployment, targeting and performance.

From CMG pitch deck (source: 404media)

How Does It Work? Who Knows.

The deck does not say where CMG allegedly sources this voice data, be that a particular brand of smart TV, a smart speaker, or smartphone loaded with a particular app.

It says that once it has used the voice data to identify an audience that is “ready-to-buy,” CMG builds a list of those audience members and uploads it to ad platforms to then target advertisements.

Uncomfortable Bedfellows

CMG lists big names as partners.

But those partners — Google, Amazon, Facebook, and Bing — are now slowing backing into the shrubs as word spreads.

  • Google has kicked CMG out of its advertising program after reviewing the presentation.

  • Amazon denies working with CMG on Active Listening

  • Meta is investigating whether CMG violated its terms.

  • Microsoft has not yet commented

The Cost

The CMG slide deck says it charges $100 a day to target people in a 10-mile radius and $200 a day for a 20-mile radius, though it’s possible that’s simply an add-on cost to use its technology, and doesn’t include the media costs for the ad creative placement.

Understandably, this leaked confidential pitch deck is light on details.

The First Rule About Voice Targeting…

Employees of MindSift, a tiny New Hampshire-based company, boasted on their own podcast about targeting advertisements by listening to peoples’ everyday conversations through microphones in their smart speakers.

After publication of that piece, MindSift’s social media went dormant and the company wiped mentions of the voice data capability from their Instagram page.

Online Returns Are a Growing Problem

A new survey has found that 39% of consumers return online purchases at least once a month. In 2023, returned merchandise in the US reached $744 billion. The survey also found that 46% of consumers shop online weekly, and 87% do most of their shopping online.

Return Fraud Is on the Rise

Return fraud is becoming a major issue, with 57% of shoppers admitting to making fraudulent returns at least once. Incidents of return fraud rose 16 percentage points to 52% this year.

There Is Good News Though

Most consumers (60%) say they’re open to exchanges or store credit instead of full refunds if the process is quick and convenient.

Younger consumers prefer instant refunds or exchanges, while older shoppers prioritize convenient and low-cost return methods.

Inside Google's ‘Secret’ Incentive Programs

According to new court documents [PDF] filed last week, Google planned to spend hundreds of millions of dollars on incentive programs to influence agencies to buy certain types of media. The programs offered discounts, perks, and cash back to agencies that agreed to purchase specific media from Google.

The documents were filed as part the upcoming antitrust trial against Google (yes, another one).

How It Worked: Report

The programs, which have existed since at least 2016, include DVIP Upfronts, Agency Capability Fund, and KPI Deals. These programs offered agencies discounts, cash back, and other incentives to meet certain spending targets or performance metrics.

Lack of Transparency

Some say the programs raise concerns about transparency and potential conflicts of interest. Agencies may recommend media to clients based on the incentives they receive, rather than what's best for the client.

Google's Goals

The documents suggest Google planned to use the incentive programs to steer money towards certain products, such as Waze and programmatic deals on AdX. The company also discussed whether incentives were needed to encourage buying from Universal App Campaigns.

Antitrust Implications

The documents will likely be used in the upcoming antitrust trial against Google, which starts on September 9.

Influencers Key to Online Selling Now

If you aren’t using influencers to sell your products, you may be at a disadvantage.

That’s one finding from a Shopify survey of over 13,000 merchants which found that 73% of US merchants rely on influencers and the social media engagement they bring to maintain relationships with existing customers.

Social media is also key for gaining new customers, with 52% of merchants citing organic social media content as the most effective marketing channel.

Influencer Marketing on the Rise

Influencer marketing is expected to be a top trend in the next year, with 41% of US merchants citing it as the most important marketing strategy. Social media platforms like YouTube, TikTok, and Instagram are the three most popular platforms for that use.

Platforms Investing in Social Shopping

TikTok's Shop feature is growing steadily in the US, while YouTube is expanding its affiliate marketing program and partnering with Shopify to build out new tools.

Personalization Matters

Merchants also prioritize personalized marketing messages, with 35% saying using acquired customer data will be a key trend for the next year.

Clone Your CEO’s Voice for Your TikTok Ads

Are you sick of that effervescent TikTok voice? Or how about that creepy carnival clown one?

TikTok is now letting users create AI simulations of their own voice in the app. This could lead to marketers using the voices of their CEO or hired spokesperson as the narrator.

How It Works

To create a custom AI voice, users speak into their device, and the app generates a digital voice that can be used on future clips. Perhaps more importantly for marketers, it also does language translation, making it a useful tool for brands that want to reach a broader audience.

The Nerdy Details

The feature is based on ByteDance's research into AI voice replication, which can replicate any person's voice with minimal input.

While this technology has potential benefits, it also raises concerns about deepfakes and hoaxes.

Apple Podcasts Loses Ground

Apple's podcast app has taken a hit. Three years ago, nearly a third of podcast listeners used the app. That made it the number one podcast app. Now, that number has dropped to just 12%.

YouTube now leads the pack, with 31% of podcast listeners tuning in on the video platform. Spotify takes second place with 21% of listeners.

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