As marketers, we all know that targeted ads are a great way to improve conversion rates and get the best return on investment possible. Even many consumers agree that having ads targeted toward them specifically is better because it means the ads may actually provide them some value. As ad networks continue to try to get more and more specific in their targeting abilities, a growing number of people are becoming concerned at the privacy implications that naturally arise.
According to many rumors, Apple may be crossing the line when it comes to using personal information to show ads. They now have a patent that has been approved which is for a system that will improve their ‘method and system for targeted advertising of goods and services to users of mobile terminals.’ Sounds innocent enough, until you read down a little further and it says, “The common profile of users may be based on the amount of pre-paid credit available to each user.”
This essentially means that they will be looking at your available credit to see what types of ads to show you. If all your credit cards are maxed, for example, you’ll likely see mostly ads for low cost items or essentials. If you have a lot of free credit, you may see ads for vacations or other luxuries. The patent doesn’t go into too much detail, which is normal, about how they will collect this information and put it to use.
What might be even more controversial is that many people believe that Apple is working on a way of collecting and compiling information from third parties so that they are aware of the approximate credit score of each user in near-real time. If you have a high credit score, you might be shown ads for a Lexus but if your credit score is lower, a Kia might be showing up in your ads.
While this type of thing is not yet live in the system, the patent is a clue that it could come at nearly any time. While this specific patent is owned by Apple, there is little doubt that other ad networks will begin to use similar strategies if it is possible. Whether the consumers are happy with the improved ads or if they are upset with the level of information gathering by the ad networks remains to be seen.
