Morning Brew - ☕ Out of place

Lawsuit against Kochava raises questions about location data.
Morning Brew September 13, 2022

Marketing Brew

Contentsquare

Welcome to Tuesday. Tired of trying to convince the powers that be that marketing isn’t just big splashy TV commercials with A-list celebs? Success requires a broad knowledge of business fundamentals. The Brew’s Business Accelerator can be your guide. Join our September cohort here.

In today’s edition:

—Ryan Barwick, Minda Smiley, Andrew Adam Newman

PRIVACY

There’s no place like phone

a phone on top of the US map on a blue background Grant Thomas

Those who collect and sell location data might have raised an eyebrow last week when the Federal Trade Commission sued Kochava, a data broker, for, well, collecting and selling location data.

Rewind: The FTC alleged that Kochava was selling data that could be used to “trace the movements of individuals to and from sensitive locations.” Though Kochava argued in its own lawsuit—that was filed in anticipation of the FTC’s suit—that the FTC’s case is baseless, privacy experts told Marketing Brew that the commission’s argument is so broad that it could, theoretically, put the collection and sale of location data under the thumb of regulators.

  • There are currently no federal laws that regulate the data-broker industry—and Kochava has gone as far as to argue that consumers who agree to share their data should actually expect their data to be bought and sold to third parties. The FTC is trying to make the case that collecting and selling this sensitive data is “opaque to consumers, who typically do not know who has collected their location data and how it is being used.”

Looking ahead: The argument that this is unfair and could cause harm to consumers is “untested in court,” Allison Lefrak, SVP of public policy, ads privacy and COPPA compliance at Pixalate, told Marketing Brew.

“It can be read as an indictment of location-based marketing and even an indictment, more broadly, of the entire data-broker business model,” she said. The FTC has an “uphill battle here in proving substantial injury to consumers,” Lefrak said, but if it prevails, the ruling could create a precedent that other data brokers would need to follow.

Read the full story here.—RB

        

TOGETHER WITH CONTENTSQUARE

The digital CX event of the szn is fast approaching

Contentsquare

We’re talkin’ about CX Circle 2022: Humanize the Digital Experience, a virtual event where you’ll hear from 20+ industry pros, explore 10+ informative sessions, enjoy exclusive giveaways, and network with over 1,500 digital pros.

And it’s allll free.

On Oct. 20, Contentsquare’s CX Circle dives into the data, insights, and strategies that drive ROI. Attend workshops led by top US brands—e.l.f. Cosmetics, Royal Caribbean, and Discover, to name a fewand choose your own schedule with sessions on topics such as accessibility, site speed, and CRO strategy.

As icing on this already sweet, sweet cake, registration automatically enters you to win an iPad Pro.

Save your seat and get in on all the good stuff.

        

MARKETING

Coworking with Stephanie Tweel

Stephanie Tweel in Marketing Brew's Coworking series Stephanie Tweel

Each Tuesday, we spotlight Marketing Brew readers in our Coworking series. If you’d like to be featured, introduce yourself here.

Stephanie Tweel is director of programmatic at Digital Matter, a digital consultancy for e-commerce businesses.

Favorite project you’ve worked on? I worked on a large entertainment client to drive viewership and tune in. We ran an activation where we partnered with a company to create custom pizza boxes with the show’s graphics and delivered them via drone to target markets. We ran online ads to promote the activation, and it received a lot of positive press for the show’s season premiere.

What’s your favorite ad campaign? Nike’s “Dream Crazier” ad gave me chills. It’s empowering and a great example of storytelling. Ads don’t have to push a product in your face to be effective. In fact, they shouldn’t!

One thing we can’t guess from your LinkedIn profile? I’m an avid fiction reader. It would be a dream to write a novel one day.

What marketing trend are you most optimistic about? Least? I’m least optimistic about the deprecation of third-party cookies. I don’t believe consumers understand they are going to continue to receive ads, but they will be less targeted and publishers will need to serve more of them to monetize their sites. I actually believe cookie-based targeting is a better alternative for both brands and consumers, but the misunderstanding around them led us to their decline.

I am most optimistic about the shift in focus on first-party data. I work with a lot of brands who are not using their customer data to its full potential, and I feel there’s a large opportunity to help brands evolve in this capacity through tools like customer segmentation, RFM scoring, etc.

What’s one marketing-related podcast/social account/series you’d recommend? @mediaproblems on Instagram. We all need to be able to laugh at our jobs. It’s just marketing, after all.

        

FASHION

Hem fatale

An illustration shows a shirt being cut with scissors. Grant Thomas

Retail Brew’s Andrew Adam Newman recently looked into why some retailers—like the Gap and PacSun—don’t accept altered items through their resale programs, while companies like Poshmark and eBay do. Read an excerpt below, or click here for the full story.

Nearly three out of four (73%) sellers of secondhand items also purchase them, according to an August report from Recurate, a two-year-old tech startup that helps brands launch their own resale programs.
Recurate calls these buyers-slash-sellers “circulars,” and they’re apt to purchase clothing with an eye for something more traditionally associated with car and home shoppers: resale value.
And one way to hurt the resale value of clothing—especially if you’re hoping to sell it through the resale programs of brands themselves—is to alter it.
        

TOGETHER WITH BLACK CROW AI

Black Crow AI

Score more sales this holiday season. Black Crow AI’s machine-learning platform for e-commerce helps brands leverage the full power of their first-party data to identify and target their highest-value customers on the top ad channels. Book a demo to learn how you can maximize your holiday ad budget this year.

        

FRENCH PRESS

French press Francis Scialabba

There are a lot of bad marketing tips out there. These aren’t those.

Facelift: Take your social content to the next level with these design tips.

Tweet tweet: Here’s a refresher on Twitter Ads for anyone just starting out on the platform.

What, like it’s hard? If you work for a law firm, check out these six pointers on content marketing.

No cookies? No worries: Contextual targeting lets marketers take control of their campaigns and drive successful results. Learn more about how contextual advertising can save the day in a cookieless future with StackAdapt’s report.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • Peloton co-founder John Foley is among three C-suite leaders exiting the company as part of a major executive shake-up.
  • Twitter’s former head of security, who alleged security and privacy lapses at the social network, is set to testify before the Senate today.
  • Rent the Runway is cutting its corporate workforce, as is Warner Bros. Discovery.
  • Disney CEO Bob Chapek hinted at developing a “hard” streaming bundle in which customers wouldn’t have to maintain separate logins and apps for different services.
  • TikTok viewership is beating out Instagram Reels more than tenfold, according to internal documents reviewed by the Wall Street Journal.

TUESDAY TRIVIA

Which celeb was named Radio Shack’s chief creative officer in 2015?

  1. 50 Cent
  2. Nick Cannon
  3. Vanessa Hudgens
  4. Steve Aoki

Keep scrolling for the answer.

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TRIVIA ANSWER

Nick Cannon. It is unclear if he still works for the retailer, which has filed for Chapter 11 bankruptcy twice in the past seven years.

 

Written by Ryan Barwick, Minda Smiley, Andrew Adam Newman, and Kelsey Sutton

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