Are Our Devices Listening to Us? How Ads Have Become So Targeted

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Have you ever wondered if your phone is spying on you? It feels as if it’s by magic—or maybe more creepy—when ads for things you were just speaking about pop up on your phone. Is it by coincidence or are algorithms actually reading our minds? Here’s what’s actually happening behind those seemingly psychic ads.

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Are Our Devices Actually Listening?

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Just to clarify: no, your phone is not listening to your conversations—well, not in the way that you think.

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The real magic comes from data—not a microphone. The information that your phone and apps collect on you is immense. Everything from your browser history (yikes), location, purchase behavior and even how long you linger on a particular post; all this information is collected and analyzed, day in and day out, and it’s used to create an intricate portfolio based on your preferences.

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Predictive Analysis

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So in reality, algorithms don’t really need to listen to your conversations to know what you’re interested in—they have enough data points to make an educated guess, which to us feels eerily accurate. This type of technology is called Predictive Analytics; the technology Netflix uses to recommend a show or movie, and how Spotify is able to so easily create your perfect playlist.

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Frequency Bias

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Not convinced? There is a little more to it. When we speak about or notice something new, we start to believe that we come across it more often than before. This psychological phenomenon is a frequency bias known as Baader-Meinhof, whereby once something new (and particularly interesting to you) is on your radar you start seeing it everywhere.

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Ad Targeting & The Role of Data Enrichment

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As we mentioned before, your phone and apps collect and analyze a huge amount of information to create your preferences portfolio. This is how they’re able to put you on the receiving end of targeted advertising which might feel eerily like you’re being listened to.

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Let’s use an example to explain how ad targeting works; you’ve just learnt from a friend at lunch that an anticipated video game was finally released. Now a number of thing could happen:

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Your Friend Has The New Video Game

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So, it’s likely if your friend already has the game then it could be a case of linked profiles—if you and your friend were on the same WiFi, by using contextual targeting businesses are able to show you ads related to things your friend has an interest in or previously viewed. In this case; the new video game.

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Location & Demographics

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Another reason why you were targeted with such specific ads could be down to your location and demographics shared with your friend. For example, when you grant platforms like Google Maps or social media access to your location, it gets added to your portfolio. This data is then used for targeted ads, and is able to sync up with other internet users around you, which means that you’re likely to see their ads and vice versa. So, if you and your friend are of similar age and both enjoy video games, then it’s likely that the algorithm is comparing your demographics and preference portfolio with those around you, and showing you whatever they have interacted with or searched for online that’s similar to your interests.

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Geo-Targeting

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Perhaps you walked past a video game store before your lunch, and they were running a geo-targeted campaign for the launch of the game to reach a specific audience, and find potential customers in the local area.

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Searching for Related Information

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Even if you haven’t directly searched for that new video game, it’s likely that if you’ve ever searched for something similar it could be the reason you’re getting such specific targeted ads. Really any of your browsing habits could have led to that ad coming up, or perhaps you were getting those ads all along but only noticed them after your friend hyped it up.

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Mobile Retargeting

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If you happened to see a digital-out-of-home ad of the new video game at a bus stop, it’s likely that the advertiser swooped up your device ID to retarget you later on with relevant ads.

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So, the reality is, your phone isn’t spying on you—it’s simply highly targeted advertising and data collection. But if you don’t know how targeted advertising works then it can still feel like an invasion of privacy.

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The Ethical Side of Targeted Advertising

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The biggest concern about targeted advertising is; how ethical is data tracking and sharing? Many people are wary of apps collecting and analyzing their behavior. While it’s undeniable how effective targeted advertising can be, it brings up a lot of ethical questions. Are you comfortable with advertisers collecting so much information about you?

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Yes, data collection for ads is legal but it’s essential that you know how it works and what exactly is tracked. Every aspect of your personal data is collected, from what you search for, where you go and who you follow online—it’s all extremely valuable information for advertisers. However, companies are extremely transparent about data collection in all of their privacy policies (which more often than not goes left unread), and the level of detail they can gather on your activities is often more than most people realize.

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Listening Technologies

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Passive listening technology like Siri, Amazon Alexa and Google Assistant, further complicates the picture. To work seamlessly, these voice-activated tools are always “listening” for specific wake words like “Hey Siri”, even if they don’t actively record until they’re triggered. Some devices take this a step further, certain Google Pixel phones have a “Now Playing” feature, which constantly listens to background sounds to identify and display any music playing around you—it acts like a built-in Shazam, recognizing songs but without any direct prompt from the user. While this might be convenient to some users, these passive listening capabilities can feel intrusive. Although tech companies claim they don’t store or analyze personal conversations without consent, the existence of these capabilities raises ethical concerns.

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Understanding and Controlling Your Online Data

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While your devices may not be “listening” to you, ad targeting works by gathering and analyzing your online behavior which makes it feel eerily accurate. So, if you’re concerned about your privacy there are ways to take control. Adjust your privacy settings, review permissions on your devices and consider using ad blockers if needed. Most of all, read into companies' privacy policies so you know what you’re up against.

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Curious about how ads work and how to manage your data? Contact us today for more insights on data-driven marketing.

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