You mentioned to your friend that you want new sneakers. Later that day, you open instagram and there it is, a target ad for running shoes. Is it a coincidence or is your phone listening to you? The answer is more interesting and reasonable than you might think and this is often the result of cookies online and browser tracking.
Zero moment of truth
Since the arrival of the internet, the purchase decision starts at home. You search online for the product, then you compare different brands and models, you might read reviews, etcetera. And after all that, the actual purchase arrives, that’s called zero moment of truth (ZMOT).
And guess what? All the clicks you made left a trace.
What are cookies online?
Spoiler alert: They are not edible chocolate chip cookies. Cookies are basically small text files that collect information about your activity on websites. They remember your preferences, interests, behaviour, etcetera.
There are different types of data in this process. The first-party data is the information collected directly by websites you visit, like your last purchase. And the third-party cookies are by external platforms. In short, you have not been listened to, but the cookies can watch what you do online.
Browser tracking
How is this data transformed into an ad that is surprisingly accurate? The answer is through browser tracking that analyzes what pages you visit, what products you view and even how long you stay on a website. Every activity on the internet is used to build your profile, which is grouped with other similar profiles. This is called audience segmentation, it is based on interests, behaviour and demographics.
Targeted ads
Your profile, built by browser tracking, is a fundamental part of targeted ads. Based on your digital footprint, you are shown advertising that is designed specifically for you.
For example, retargeting is when you visit an online store for a product, you do not buy it, and then you see that same product in many ads. And it is highly effective because it targets people who are already considering buying, this is what marketers call the “think” stage.
So… Is Your Phone Actually Listening to You?
There is no evidence that phones record conversations, what is actually happening is much more fascinating: digital marketing. Nowadays there are extremely powerful data collection systems that drive the precision behind targeted advertising.
Platforms use algorithms and machine learning to predict your next purchase based on your web interactions and behaviour.
Web privacy and GDPR
Logically, the question about data protection arises. As these sophisticated tracking systems expand, concerns about the user’s privacy increase. Regulations like GDPR aim to protect personal data on the internet by giving the choice of what information can be collected and used. Maybe you did not notice, but every time you enter a website and accept or reject cookies, you are making a decision.
As a result of this increased user control, the third-party data collection has been significantly affected. As a result, companies are moving toward first-party data strategies, relying more on the information collected directly from users.
Conclusion
So, next time you see an ad that feels a little too accurate, remember it is not your phone listening to you, it is the result of every click, every search and every scroll you have ever made. You showing all the time what you are interested in and the system is simply paying attention.
Federica Maidana