Targeted: The Dark Side of Personalized Advertising

[00:00:00] It is Tuesday, August 27th, today, where the conspiracy nuts write all along, turns out

[00:00:07] our phones are listening to us and they're doing it to sell ads.

[00:00:12] Also, the shocking number of buyers who return things they purchase online, Google's secret

[00:00:17] program to influence agencies, and TikTok will do more than speak your language, it'll

[00:00:23] sound like you're CEO while doing it.

[00:00:27] I'm Tod Maffin, that's a head today in Digital Marketing.

[00:01:28] Cox Media Group claims it can target ads based on what people say out loud near-device microphones.

[00:01:36] We first reported about this a few months back after some media reported rumors of this technology.

[00:01:41] Now, 404 Media says it's confirmed it.

[00:01:45] CMG calls the product Active Listening and claims it can use voice data from more than

[00:01:50] 470 sources to target potential customers.

[00:01:55] Quoting from the CMG pitch deck, quote,

[00:01:57] Smart devices capture real-time intent data by listening to our conversations.

[00:02:03] Advertisers compare this voice data with behavioral data to target in-market consumers.

[00:02:09] We use AI to collect this data from 470 sources to improve campaign deployment, targeting

[00:02:16] and performance, unquote.

[00:02:18] So how does it work exactly?

[00:02:21] Quoting 404 Media, quote,

[00:02:23] The deck does not say where CMG allegedly sources this voice data, be that a particular brand

[00:02:29] of smart TV, a smart speaker or smartphone loaded with a particular app.

[00:02:34] It says that once it has used the voice data to identify an audience that is ready

[00:02:38] to buy, CMG builds a list of those audience members and uploads it to ad platforms to

[00:02:45] then target advertisements, unquote.

[00:02:48] CMG lists big names as partners, but those partners, Google, Amazon, Facebook and Microsoft's

[00:02:55] Bing, are now slowly backing into the shrubs as word spreads.

[00:03:00] Google has kicked CMG out of its ad program after reviewing the presentation.

[00:03:05] Amazon denies working with CMG on Active Listening.

[00:03:08] Meta is investigating whether CMG violated its terms.

[00:03:12] Microsoft has not yet commented.

[00:03:13] And if that slide deck can be believed, it's actually cheaper than you think.

[00:03:19] CMG says it charges 100 bucks a day to target people in a 10 mile radius and

[00:03:24] $200 a day for a 20 mile radius.

[00:03:27] Though it's possible that's simply an add on cost to use its technology and

[00:03:31] doesn't include the media costs for the actual ad creative placement.

[00:03:36] Understandably, this leaked confidential pitch deck is light on details.

[00:03:40] Quoting 404 Media, quote,

[00:03:42] employees of MindSift, a tiny New Hampshire based company,

[00:03:46] boasted on its own podcast about targeting advertisements by listening to

[00:03:50] people's everyday conversations through microphones in their smart speakers.

[00:03:54] After publication of that piece, MindSift's social media went dormant

[00:03:58] and the company wiped mentions of the voice data capability

[00:04:03] from their Instagram page, unquote.

[00:04:05] A new survey has found that 39% of consumers return online purchases at

[00:04:15] least once a month.

[00:04:17] Last year, return to merchandise in the US reached $744 billion.

[00:04:21] The survey also found that 46% of consumers shop online weekly and

[00:04:26] 87% do most of their shopping online.

[00:04:30] Return fraud is becoming a major issue with 57% of shoppers admitting

[00:04:35] to making fraudulent returns at least once.

[00:04:38] Incidents of return fraud rose 16% to 52% this year.

[00:04:44] There is good news though, most consumers say they're open to exchanges or store credit

[00:04:49] instead of full refunds if the process is quick and convenient.

[00:04:53] Younger consumers prefer instant refunds or exchanges

[00:04:56] while older shoppers prioritize convenient and low-cost return methods.

[00:05:02] We have a link to the full report in today's email newsletter,

[00:05:04] which you can get for free by tapping the link at the top of the show notes

[00:05:07] or going to todayindigital.com slash newsletter.

[00:05:14] According to new court documents filed last week,

[00:05:17] Google planned to spend hundreds of millions of dollars on incentive programs

[00:05:20] to influence agencies to buy certain types of media.

[00:05:25] The programs offered discounts, perks and cash back to agencies that agreed

[00:05:29] to purchase specific media from Google.

[00:05:32] The documents were filed as part of the upcoming antitrust trial against Google,

[00:05:36] yes another one.

[00:05:38] The programs have said to have existed since at least 2016

[00:05:41] and include DVIP up fronts, the agency capability fund and KPI deals.

[00:05:48] These programs offered agencies discounts cash back or other incentives

[00:05:51] to meet certain spending targets or performance metrics.

[00:05:55] Some say the programs raised concerns about transparency

[00:05:58] and potential conflicts of interest.

[00:06:01] Agencies might recommend media declines based on the incentives they get,

[00:06:05] rather than what's best for the client.

[00:06:07] The document suggests Google plans to use the incentive programs

[00:06:10] to steer money towards certain products like Waze and programmatic deals on AdX.

[00:06:16] The company also discussed whether incentives were needed

[00:06:18] to encourage buying from universal app campaigns.

[00:06:22] The documents will likely be used in the upcoming antitrust trial against Google.

[00:06:26] This one starts on September 9th.

[00:06:32] If you aren't using influencers to sell your products,

[00:06:35] you may be at a disadvantage.

[00:06:38] That's one finding from a Shopify survey of more than 13,000 merchants,

[00:06:42] which found 73% of US merchants rely on influencers and the social media engagement they bring

[00:06:48] to maintain relationships with existing customers.

[00:06:51] Social media is also key for gaining new customers

[00:06:54] with 52% of merchants citing organic social media content

[00:06:59] as the most effective marketing channel.

[00:07:02] Influencer marketing is expected to be a top trend in the next year

[00:07:05] with 41% of US merchants citing it as the most important marketing strategy.

[00:07:12] Social media platforms like YouTube, TikTok and Instagram

[00:07:14] are the three most popular platforms for that use.

[00:07:18] Platforms are investing in social shopping.

[00:07:20] TikTok's shop is steadily growing in the US.

[00:07:23] YouTube is expanding its affiliate marketing program

[00:07:26] and partnering with Shopify to build out new tools.

[00:07:29] Another key finding from that survey,

[00:07:31] merchants also said they prioritize personalized marketing messages

[00:07:35] with 35% saying using acquired customer data will be a key trend for the next year.

[00:07:44] Are you sick of that effervescent TikTok voice?

[00:07:48] TikTok has this feature. Open TikTok app.

[00:07:51] Or how about that creepy carnival clown one?

[00:07:53] Start by searching up Echo AI then click install.

[00:07:56] Well, TikTok is now letting users create AI simulations

[00:07:59] of their own voice in the app or any voice.

[00:08:04] This could lead to marketers using the voices of their CEO

[00:08:07] or hired spokesperson as the narrator.

[00:08:10] To create a custom AI voice, users just speak into their device for a few sentences

[00:08:14] and the app then generates a digital voice that can be used on future clips.

[00:08:18] Perhaps more importantly for marketers,

[00:08:21] it also does language translation making it a useful tool for brands

[00:08:25] that want to reach a broader audience.

[00:08:27] The feature is based on ByteDance's research into AI voice replication

[00:08:31] which can replicate any person's voice with only a tiny amount of input.

[00:08:37] While this technology has potential benefits,

[00:08:39] it also raises concerns about deep fakes and hoaxes.

[00:09:21] Shopify offers a unique and secure platform

[00:09:24] for all tools to build up your online business.

[00:09:40] Hi, I'm Sean Nelson, founder and CEO of Love Sack

[00:09:45] and host of the Let Me Save You 25 Years podcast.

[00:09:48] Imagine learning from the best without the years of struggle.

[00:09:51] On my podcast, I sit down with stars like Montell Jordan and Sarah Blakely

[00:09:54] to share the hard-earned lessons that can save you time and effort

[00:09:57] on your path to success.

[00:09:59] Ready to speed up your success story?

[00:10:02] Listen to Let Me Save You 25 Years with Sean Nelson wherever you get your podcasts.

[00:10:06] And finally, Apple's podcast app has taken a big hit.

[00:10:10] Three years ago, nearly a third of podcast listeners used the app

[00:10:13] that made it the number one podcast app.

[00:10:15] Now that number has dropped to just 12%.

[00:10:19] YouTube, surprisingly, now leads the pack with 31% of podcast listeners

[00:10:24] tuning in on the video platform.

[00:10:26] Spotify takes second place with 21% of listeners.

[00:10:31] So my big video game drought appears to be over, at least for the time being.

[00:10:35] I switched over to Elder Scrolls Online, which, you know, I used to be obsessed with Fallout.

[00:10:39] Elder Scrolls is by the same company.

[00:10:40] It's kind of a similar game, mechanics-wise.

[00:10:43] It's a big multiplayer thing.

[00:10:45] And my wife and I used to play the hell out of it like a couple of years ago.

[00:10:48] But we stopped, we went to follow, we went to other things.

[00:10:51] I had an unfortunate mental health crisis over Overwatch.

[00:10:54] You know how it goes.

[00:10:55] Anyway, came back to Elder Scrolls.

[00:10:58] Man, is it different.

[00:11:00] It is so big now.

[00:11:02] Like I was just trying to enchant a weapon

[00:11:04] so that it would drain life from my enemy as I wounded them.

[00:11:08] And I had to get a scroll that would unlock seven gems

[00:11:12] that I had to deconstruct to turn them into a motif.

[00:11:15] But I couldn't do that because my current skill level only let me do three at a time.

[00:11:19] But I could grind the skill level, but I had to get 16 things to turn that into a...

[00:11:25] You know, it's one of those kind of games where the grind is so frustrating but so satisfying.

[00:11:34] So I joined Guild.

[00:11:36] They're helping me, which was very kind of them.

[00:11:38] I'm trying to get this set of armor that if I wear all five pieces

[00:11:42] that my healing...

[00:11:44] Because I'm a healer.

[00:11:45] My healing effects last for 40%.

[00:11:47] But to get all five pieces,

[00:11:48] I have to run a specific dungeon over and over and over again

[00:11:51] until they drop,

[00:11:53] which I'm told could take like a year.

[00:11:58] But I am here for it!

[00:12:00] All right, that's what I'm off to do now.

[00:12:02] I'm Todd Maffin.

[00:12:03] Thanks for listening.

[00:12:03] See you tomorrow.