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Targeting Privacy
		 in Mobile Advertising
Targeting Privacy in                                              How Is Information for Targeting Collected?


Mobile Advertising                                                The operator has a number of ways to collect information
                                                                  that can be used to create user profiles for targeting ads.
                                                                  Some of these capabilities are unique to the mobile industry,
Addressing Privacy Concerns of Subscribers Who Get                and this can give operators an advantage in the competition
Mobile Ads                                                        for advertisers. Information-gathering methods may include:

The many benefits of mobile advertising for the parties          •	    Volunteered Information: Users can volunteer
involved are well-documented. Advertisers can gain effective           information by filling out mobile ad participation forms
and economical new ways to reach consumers; operators                  with their interests, etc. This may in some cases be a
can benefit from new sources of income and new revenue                 highly valuable method of obtaining relevant information.
streams. Users can get options for attractive valuable benefits,
such as discounted and free services.                            •	    Demographic Information: The operator network
                                                                       knows key information about its subscribers, including
Mobile advertising has many admirers — but it also has its             gender, age, occupation, home location and more.
detractors. One of the most mentioned objections to mobile
advertising is that it may invade individual privacy.             •	   Phone and Billing Information: This includes the
                                                                       type of handset, bandwidth speed, payment plan and
This article discusses mobile advertising privacy concerns             method, usage information, amount spent on various
and suggests ways to try to address those concerns.                    types of services, what services are being used and how
                                                                       often, etc.
Targeting Raises Concerns Regarding Mobile
Advertising and Privacy                                           •	   Location Information: The operator can know exactly
                                                                       where a subscriber is, how fast the subscriber is moving,
Mobile advertising can be targeted, which means that it is
                                                                       roaming status, etc.
tailored to user interests. This makes it more valuable to
advertisers than untargeted advertising because advertisers       •	   Contextual Information: Mobile Internet banners,
can more successfully reach their prime market and get                 for example, can be based on the website visited,
better results. Getting the right ad to the right person               messaging advertising can be based on topics
(matching people with the ads most relevant to them) can               mentioned in the messages
boost click-through rates and return more value for the
advertising dollar.                                               •	   Behavioral Information: The operator can track user
                                                                       behavior by means of keywords, sites visited and deep
Mobile ad targeting engines require information about                  packet inspection, which gives detailed information
users. Collection and manipulation of user information,                about the user’s Web activity.
together with the possibility of sharing that information, may
raise privacy concerns; some users may fear that personal         Information gathered by the above methods can be used
information is being gathered without permission.                 to determine the optimal content and delivery method for
                                                                  advertising.
Beyond that, if personal information is shared, then the user
may be exposed to various forms of unsolicited contact            Preserving the Bond of Trust
from other parties or spam. Moreover, although the mobile
phone is a private device, other people sometimes borrow          In order to try to address user privacy concerns, operators
the device or otherwise glance at the screen. Users have          can make it clear to all that respect for privacy is a core
private interests that they don’t always want to share with       principle, and take steps intended to ensure that privacy is
others, and these interests could theoretically be reflected in   safeguarded. These steps may include, for example:
targeted ads and seen by others who borrow the device or
glance at the screen.




For more information please visit www.comverse.com                                                                               2
•	     Sensitivity and Selectivity: Obtaining ample information            That is why many mobile operators have been
       for accurate targeting without using information-                   exceedingly proactive in constructing guidelines and
       collecting methods that might cause consumer concern,               best-practice recommendations for mobile advertising.
       such as deep packet inspection.

•	     Opt In: Giving users the option to choose to participate
       in mobile advertising in order to receive incentives and
       other benefits. Users opting in could be given access to
       information about how data for targeting is collected and
       assurances that all privacy principles are strictly adhered
       to. One possibility may be to allow interested users to
       select the degree of targeting that they want applied.

•	     Storage and Usage: Securing and controlling any
       storage and usage of data.

•	     No Peeking: Assuring the user that targeting engines
       only – and not human eyes on the operator end – will
       see the information. Systems could be configured in
       such a way that they use the data but do not recognize
       or identify individuals.

•	     Privacy Policies: Being in the forefront of creating (and
       adhering to) appropriate privacy policies.

Caring Partners Care about User Privacy

Operators (and advertisers) want to be seen as caring
partners in the ecosystem who protect the privacy of their
consumers. Done correctly, targeting leads to a positive user
experience that can benefit all parties.

Operators should be eager to protect user privacy because
this is a key foundation of the trusted operator-subscriber
relationship. Maintaining the trust that is the basis of that
relationship can result in benefits to the operator such as
high rates of user participation in mobile advertising, the
confidence of advertisers, the loyalty of subscribers, and the
preservation of the operator’s good name.




     About Comverse
     Comverse is the world’s leading provider of software and systems      Copyright ©2009 Comverse, Inc. All rights reserved.
     enabling value-added services for voice, messaging, mobile Internet
     and mobile advertising; converged billing and active customer         Comverse, its logo, the spark design, Kenan and Netcentrex are registered
     management; and IP communications. Comverse’s extensive               trademarks of Comverse Technology, Inc. or its subsidiaries in the United
     customer base spans more than 130 countries and covers over           States and other selected countries. Other denoted product names of
     500 communication service providers serving more than two             Comverse or other companies may be trademarks or registered trademarks
     billion subscribers. The company’s innovative product portfolio       of Comverse, Inc. or its subsidiaries, or their respective owners. The materials
     enables communication service providers to unleash the value of       presented in this communication are summary in nature, subject to change,
     the network for their customers by making their networks smarter.     and intended for general information only.


For more information please visit www.comverse.com                                                                                                      3

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Mobile advertisiing addressing privacy concerns

  • 1. Targeting Privacy in Mobile Advertising
  • 2. Targeting Privacy in How Is Information for Targeting Collected? Mobile Advertising The operator has a number of ways to collect information that can be used to create user profiles for targeting ads. Some of these capabilities are unique to the mobile industry, Addressing Privacy Concerns of Subscribers Who Get and this can give operators an advantage in the competition Mobile Ads for advertisers. Information-gathering methods may include: The many benefits of mobile advertising for the parties • Volunteered Information: Users can volunteer involved are well-documented. Advertisers can gain effective information by filling out mobile ad participation forms and economical new ways to reach consumers; operators with their interests, etc. This may in some cases be a can benefit from new sources of income and new revenue highly valuable method of obtaining relevant information. streams. Users can get options for attractive valuable benefits, such as discounted and free services. • Demographic Information: The operator network knows key information about its subscribers, including Mobile advertising has many admirers — but it also has its gender, age, occupation, home location and more. detractors. One of the most mentioned objections to mobile advertising is that it may invade individual privacy. • Phone and Billing Information: This includes the type of handset, bandwidth speed, payment plan and This article discusses mobile advertising privacy concerns method, usage information, amount spent on various and suggests ways to try to address those concerns. types of services, what services are being used and how often, etc. Targeting Raises Concerns Regarding Mobile Advertising and Privacy • Location Information: The operator can know exactly where a subscriber is, how fast the subscriber is moving, Mobile advertising can be targeted, which means that it is roaming status, etc. tailored to user interests. This makes it more valuable to advertisers than untargeted advertising because advertisers • Contextual Information: Mobile Internet banners, can more successfully reach their prime market and get for example, can be based on the website visited, better results. Getting the right ad to the right person messaging advertising can be based on topics (matching people with the ads most relevant to them) can mentioned in the messages boost click-through rates and return more value for the advertising dollar. • Behavioral Information: The operator can track user behavior by means of keywords, sites visited and deep Mobile ad targeting engines require information about packet inspection, which gives detailed information users. Collection and manipulation of user information, about the user’s Web activity. together with the possibility of sharing that information, may raise privacy concerns; some users may fear that personal Information gathered by the above methods can be used information is being gathered without permission. to determine the optimal content and delivery method for advertising. Beyond that, if personal information is shared, then the user may be exposed to various forms of unsolicited contact Preserving the Bond of Trust from other parties or spam. Moreover, although the mobile phone is a private device, other people sometimes borrow In order to try to address user privacy concerns, operators the device or otherwise glance at the screen. Users have can make it clear to all that respect for privacy is a core private interests that they don’t always want to share with principle, and take steps intended to ensure that privacy is others, and these interests could theoretically be reflected in safeguarded. These steps may include, for example: targeted ads and seen by others who borrow the device or glance at the screen. For more information please visit www.comverse.com 2
  • 3. Sensitivity and Selectivity: Obtaining ample information That is why many mobile operators have been for accurate targeting without using information- exceedingly proactive in constructing guidelines and collecting methods that might cause consumer concern, best-practice recommendations for mobile advertising. such as deep packet inspection. • Opt In: Giving users the option to choose to participate in mobile advertising in order to receive incentives and other benefits. Users opting in could be given access to information about how data for targeting is collected and assurances that all privacy principles are strictly adhered to. One possibility may be to allow interested users to select the degree of targeting that they want applied. • Storage and Usage: Securing and controlling any storage and usage of data. • No Peeking: Assuring the user that targeting engines only – and not human eyes on the operator end – will see the information. Systems could be configured in such a way that they use the data but do not recognize or identify individuals. • Privacy Policies: Being in the forefront of creating (and adhering to) appropriate privacy policies. Caring Partners Care about User Privacy Operators (and advertisers) want to be seen as caring partners in the ecosystem who protect the privacy of their consumers. Done correctly, targeting leads to a positive user experience that can benefit all parties. Operators should be eager to protect user privacy because this is a key foundation of the trusted operator-subscriber relationship. Maintaining the trust that is the basis of that relationship can result in benefits to the operator such as high rates of user participation in mobile advertising, the confidence of advertisers, the loyalty of subscribers, and the preservation of the operator’s good name. About Comverse Comverse is the world’s leading provider of software and systems Copyright ©2009 Comverse, Inc. All rights reserved. enabling value-added services for voice, messaging, mobile Internet and mobile advertising; converged billing and active customer Comverse, its logo, the spark design, Kenan and Netcentrex are registered management; and IP communications. Comverse’s extensive trademarks of Comverse Technology, Inc. or its subsidiaries in the United customer base spans more than 130 countries and covers over States and other selected countries. Other denoted product names of 500 communication service providers serving more than two Comverse or other companies may be trademarks or registered trademarks billion subscribers. The company’s innovative product portfolio of Comverse, Inc. or its subsidiaries, or their respective owners. The materials enables communication service providers to unleash the value of presented in this communication are summary in nature, subject to change, the network for their customers by making their networks smarter. and intended for general information only. For more information please visit www.comverse.com 3