Marchex, Microsoft criticized on mobile advertising techniques |
Register here for our next TechFlash Live networking event, March 23, featuring an expert panel discussing the future of online advertising.
Marchex, Microsoft criticized on mobile advertising techniques
Seattle online advertising company Marchex is among those criticized in a 52-page complaint [PDF] today brought by the Center for Digital Democracy and U.S. Public Interest Research Group that says mobile marketers are using "unfair and deceptive practices." The complaint, filed with the Federal Trade Commission, also cites Microsoft's acquisition of mobile advertising startup Screen Tonic, noting how it attempted to target teenage girls with a mobile marketing campaign that captured their emails. And it points out how Kirkland-based HipCricket's mobile marketing techniques target Hispanics.
The report singles out Marchex's call tracking service, which is provided to mobile advertising companies such as AdMob, Ringleader Digital and 4INFO.
Here's an excerpt:
"Marchex surreptitiously gathers data on mobile users and even records calls made in response to ads. Marchex’s call tracking service enables mobile advertising providers to: “(i) track the calls generated by advertisements on their network, (ii) determine exactly which advertisements delivered the calls, (iii) track and report key information including the duration, time of day and geographic location of callers, and (iv) record the calls."
The complaint says that Marchex gathers the information without "adequate notice to the consumer" and it asks that the FTC scrutinize the actions. It also lays out several steps on how companies should handle consumer information on mobile devices, including notifications to consumers of the data gathering tactics.
"If left unregulated, marketers will ultimately strive for nothing short of a totally mobile-based data collection and targeting environment," the complaint says.
Here's an overview from MediaPost, which notes that "mobile marketing companies do not typically collect names, phone numbers, email addresses or other so-called personally identifiable information."
TechFlash Team
Recent Sponsor Posts
Seattle University Software Engineering
Chinwe Okeke (MSE’08) pursued her graduate degree while working as a developer and technical analyst for the Boeing Company. She picked the SU-MSE program for small class sizes and real world learning opportunities offered through the academic service-learning and capstone projects.
The MSE program at Seattle University is geared for working professionals with classes offered in the evenings. The program builds upon the computing experience of its students and offers courses in a variety of technical and management areas of software engineering, with an emphasis on teamwork and a disciplined approach to problem solving.
Marchex is one of Seattle’s largest ad technology companies with 300+ employees providing call and click based performance marketing products, and managing over $100m in ad budget for tens of thousands of advertisers. Our customers range from local businesses to the Fortune 500.
Our talented and creative product engineering group is hiring.
If you are an innovative software design engineer interested in solving difficult problems at scale, across a wide array of technologies from Lucene to Hadoop to Asterisk and SIP then we’d love to hear from you!
Apply now.
Technology Tax Planning – Did You Take The Deduction?
Technology companies require professional advisors who can assist in all aspects of the business. The BDO Technology Practice provides a full range of services tailored to help address the changing needs of domestic and international companies. In addition to core audit and tax services, BDO professionals can assist technology companies with:
· Revenue recognition
· Business combination accounting
· R&D tax credits
· Compensation and benefits
· Business valuations
Backed by 38 national offices and an international network in 110 countries, we have the domestic and global footprint to serve growing technology companies. Contact sphilpott@bdo.com (audit partner), mreeves@bdo.com (audit partner), psmith@bdo.com (tax partner), tzambito@bdovaluation.us.com (valuation), tfiscus@bdo.com, Director, 206.624.2020
Job Listings
- Software Development Engineer - Display Advertising
- Business Services Company
- Director Enterprise Architecture - IT
- Starbucks Coffee Company
- Senior Program Manager - External - 713665
- Microsoft Corporation
- Quality Improvement Specialist
- HCR ManorCare
- Senior Software Development Engineer - eXtreme Computing Group - 708427
- Microsoft Corporation
TechFlash Archive
- March 2010 (185)
- January 2010 (235)
- November 2009 (249)
- September 2009 (278)
- July 2009 (276)
- May 2009 (212)
- March 2009 (286)
- January 2009 (260)
- November 2008 (205)
- September 2008 (6)
- February 2010 (243)
- December 2009 (230)
- October 2009 (305)
- August 2009 (239)
- June 2009 (253)
- April 2009 (254)
- February 2009 (262)
- December 2008 (204)
- October 2008 (122)
