T-Mobile’s Targeted Ad Plan
T-Mobile Will Automatically Enroll Users in a Targeted Ad Program
A number of large tech companies have made decisions to move away from targeted ads recently, but T-Mobile (TMUS) is taking a different approach. Starting on April 26, the cell phone carrier will automatically enroll subscribers in an advertising program centered around their online activity unless they choose to opt out.
T-Mobile is the second largest US carrier by subscribers. At the end of 2020, the company had over 60 million customers under its main brand and over 20 million customers on prepaid plans.
Google and Apple Make Changes
Regulators and privacy advocates have been scrutinizing large tech companies’ targeted ad policies recently. In response, Google (GOOGL) said it will remove the tracking technology known as third-party cookies by 2022 and will not replace it with an alternative tracking technology.
Apple (AAPL) is also rolling out strict privacy protections which will limit advertisers’ ability to collect data about iPhone users. This will have a significant impact on Facebook (FB).
T-Mobile Hopes for Positive Response from Customers and Brands
T-Mobile believes that as tech companies phase out their targeted ad technologies, brands will be eager to receive data about customers from other sources. AT&T (T) and Verizon (VZ) also enroll their subscribers in an ad program which groups them based on interests, like cooking, buying a car, or sports.
T-Mobile says that some of its customers prefer to see ads that are targeted to their interests. Customers will not be forced to enroll in the ad program, so those who do may appreciate receiving ads related to their internet activity.
Targeted ads have been a topic of intense discussion in the tech industry, the advertising industry, and among lawmakers. Many will be eager to see how customers and advertisers respond to T-Mobile’s strategy.
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