The tracking of consumers’ shopping habits (online and offline) for targeted behavioral advertising and other types of marketing is not new. There have been numerous news stories about this surveillance issue. For example, after the Wall Street Journal reported that credit-card companies Visa and MasterCard “are pushing into a new business: using what they know about people’s credit-card purchases for targeting them with ads online,” Sen. Jay Rockefeller (D-W. Va.), chairman of the Senate Commerce Committee, wrote to both MasterCard and Visa asking about the report. Also, the consumers have become interested in opt-out and Do-Not-Track remedies, including browser tools. (Read more about targeted behavioral advertising and privacy issues connected with it in a previous post.) Here are a few recent stories about the tracking of consumers’ browsing and purchases:
BusinessWeek: Big Brother Is Watching You Shop
On the Web, every click and jiggle of the mouse helps e-tailers customize sites and maximize the likelihood of a purchase. Brick-and-mortar stores have long wanted to track consumers in a similar fashion, but following atoms is a lot harder than following bits. [...]
To get a better understanding of their customers in real time, mall operators are monitoring shoppers’ behavior with devices that track mobile-phone signals, while retailers including Montblanc (CFRUY), T-Mobile (DTEGF), and Family Dollar Stores (FDO) are finding new uses for old tools such as in-store security cameras. The goal is to divine which variables affect a purchase, then act with Web-like nimbleness to deploy more salespeople, alter displays, or put out red blouses instead of blue. [...]
T-Mobile employs similar technology from San Francisco’s 3VR, a maker of security systems. Two years ago, 3VR executives realized that its cameras could be used to gather consumer data, according to the company’s CEO, Al Shipp. He says T-Mobile, in Bellevue, Wash., uses 3VR’s technology in some of its retail stores to track how people move around, how long they stand in front of displays, and which phones they pick up and for how long. T-Mobile declined to comment. Now 3VR is testing facial-recognition software that can identify shoppers’ gender and approximate age. [...] Read more »