Home  › Media › Mobile
mobile-gps

Proposed Law Could Affect Location Based Ads

  |  June 17, 2011   |  Comments

Bill calls for user consent for location-based ads.

A new bill sponsored by Senator Al Franken could have implications for the burgeoning location-based advertising space. The proposed legislation - co- sponsored by fellow Democrat Senator Richard Blumenthal - would require companies to obtain express consent from users before collecting location data from their handsets, but also calls for consent before sharing that data with third parties, such as mobile ad providers.

"Current federal laws allow many of the companies that obtain location information from their customers' cellphones and smartphones to give that information to almost anyone they please - without their customers' consent," the bill summary suggested.

The bill, which was introduced in the Senate on June 16, is the latest among a slew of bills proposed recently relating to online privacy. Though others have mentioned location-based data privacy, this is the first to focus on it.

If the bill is passed it could inhibit advertisers' ability to use location information to target ads, depending largely on the ways in which developers and service providers choose to gain consent from consumers. At present, devices such as the iPhone prompt users to allow or disallow applications to access their location data, but the new bill implies more detailed information must be provided regarding how it's being shared.

Some mobile service or property owners might choose to satisfy the requirements by gaining consent for both uses separately, while some might seek consent for both at once. For example, an app developer might ask for access to location data first to provide a service to the user, while a second choice might specifically relate to the passing of that data to third parties for purposes such as advertising.

However, the majority of providers would likely bundle the two issues in one overarching indication of consent, perhaps denying access to the service if users decide to opt out from sharing their location data with ad networks, for example.

Despite that fact, if users decide to disallow third parties to access to that data en masse, it could severely limit publishers', developers', service providers' and advertisers' ability to deliver location-relevant media and advertising.

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

Jack Marshall

Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011. 

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

Resources

Jobs

    • Recent Grads: Customer Service Representative
      Recent Grads: Customer Service Representative (Agora Financial) - BaltimoreAgora Financial, one of the nation's largest independent publishers...
    • Managing Editor
      Managing Editor (Common Sense Publishing) - BaltimoreWE’RE HIRING: WE NEED AN AMAZING EDITOR TO POLISH WORLD-CLASS CONTENT   The Palm...
    • Senior Paid Search & Advertising Manager
      Senior Paid Search & Advertising Manager (Smarty Had A Party) - St. LouisCompany Description: A warm, loving, [slightly wacky] startup, we view...