Ad Firm Claims To Use ‘Active Listening’ Tool To Reach Consumers

Social media has become a new realm for shopping, with Instagram and TikTok shopping videos and X ad spots in constant action. However, consumers have been concerned that their devices may be selling data to advertisers. A new “Active Listening” tool now takes this worry to a heightened level.

404 Media, an independent media company, recently reviewed a new ad strategy based on an AI-powered tool called “Active Listening” offered by Cox Media Group (CMG). This innovation can listen to conversations via smartphones, smart TVs, and other devices, provided the microphones are enabled, in order to collect data that can be used to create more targeted ads.

Privacy and data protection have become growing concerns for consumers with regard to their devices being able to listen in on and record their conversations. There have been cases where conversations have been archived and captured by microphones on smart devices. However, according to 404 Media, “It is not immediately clear if the capability CMG is advertising and claims works is being used on devices in the market today, but the company notes it is ‘a marketing technique fit for the future. Available today.’”

For now, consumers have to take care of their own privacy by having the right settings selected on their devices.

CMG has worked with big tech and retail names such as Google, Microsoft, and Amazon, to name a few. The original blog post on the marketing company’s website that discussed Active Listening is no longer accessible, but an archived version is available. Speaking about Active Listening, CMG’s website stated, “What would it mean for your business if you could target potential clients who are actively discussing their need for your services in their day-to-day conversations? No, it’s not a Black Mirror episode — it’s Voice Data, and CMG has the capabilities to use it to your business advantage.”

404 Media found that ahead of removing the page, representatives of the CMG also posted about the Active Listening tool on LinkedIn, “explicitly asking interested parties to contact them about the product.”

CMG claims that its clients can leverage listening data to specifically target demographics more precisely, including targeting geographic regions aimed directly to consumers.

The FCC has not yet commented on the above claim, which could have complicated legal and privacy consequences. Also, per Business Insider, “It’s important to note that it’s not clear whether this technology and marketing is actually happening.”

Cox Media Group made a statement to Business Insider, which said, “CMG Local Solutions markets a wide range of advertising tools. Like other advertising companies, some of those tools include third-party vendor products powered by data sets sourced from users by various social media and other applications then packaged and resold to data servicers. Advertising data based on voice and other data is collected by these platforms and devices under the terms and conditions provided by those apps and accepted by their users, and can then be sold to third-party companies and converted into anonymized information for advertisers. This anonymized data then is resold by numerous advertising companies.”

The statement continued, saying, “CMG businesses do not listen to any conversations or have access to anything beyond a third-party aggregated, anonymized and fully encrypted data set that can be used for ad placement. We regret any confusion and we are committed to ensuring our marketing is clear and transparent.”