“Know your audience more precisely.
Drive your business more effectively.”
Verizon is pulling no punches when it comes to letting advertisers know that they have valuable data- OUR data- and they’re willing to share it. For a price of course. Phone carriers, who see a continued decline in contract subscriber growth and voice calls, are hoping to generate new sources of revenue by selling the data they collect about us. They already collect information about user location and Web surfing and application use (which informs them about such things as travels, interests and demographics) to adjust their networks to handle traffic better. Now they have begun to sell this data.
Note: Verizon customers can OPT-OUT of this data sharing by logging into their accounts online and following the opt-out instructions. I recommend that you do so immediately.
Instead of seeing themselves just as providers of valuable services to their customers by providing a means of communication, carriers now see the potential profit beyond the service. Businesses such as malls, stadiums and billboard owners can gather information about the activities and backgrounds of cellphone users in particular locations. For example, Verizon’s data service is being used by the Phoenix Suns to map where people attending its games live “in order to increase advertising in areas that haven’t met expectations”, according to Scott Horowitz, a team vice president.
In Verizon’s own words, their analytics platforms allows companies to:
- Understand the demographic, geographic and psychographic makeup of (their) target audience.
- Isolate where consumer groups work and live, the traffic patterns of a target audience and demographic information about what groups visit particular locations.
- Learn what mobile content (their) target audience is most likely to consume so (they) can cross-sell and up-sell more easily.
The program does not include information from Verizon’s government or corporate clients and individuals do have the right to opt out on Verizon’s website. Some European companies have launched similar programs and Jeff Weber of AT&T says they are studying ways to analyze and sell customer data while giving users a way to opt out, but at this point they do not have a similar product.
Carriers do acknowledge the privacy issues related to such data surveillance and companies say they don’t sell data about individuals but rather about groups of people. But Chris Soghoian, a privacy specialist at the American Civil Liberties Union, is worried according to an article in the Wall Street Journal. In it, he says “the ability to profit from customer data could give wireless carriers an incentive to track customers more precisely than connecting calls requires and to store even more of their Web browsing history. That could broaden the range of data about individuals’ habits and movements that law enforcement could subpoena. It’s the collection that’s the scary part, not the business use.”
In other words, it’s about more than well-meaning companies collecting our data; it’s that their company databases are vulnerable to attacks by hackers, competitors and foreign governments. And when a breach happens, it’s our data that goes missing.
John Sileo is a keynote privacy speaker and CEO of The Sileo Group, a privacy think tank that trains organizations to harness the power of their digital footprint. Sileo’s clients include the Pentagon, Visa, Homeland Security and businesses looking to protect the information that makes them profitable. Watch John on 60 Minutes, Anderson Cooper and Fox Business.