More mobile marketing regulation may not benefit consumers

By Eric Holmen

Earlier last month, the Center for Digital Democracy and the U.S. Public Interest Research Group filed a complaint with the Federal Trade Commission, calling for more stringent regulation of the mobile marketing industry.

These two consumer advocacy groups expressed concern about proliferation of mobile spam and the potential for location awareness to become an intrusive aspect of mobile marketing endeavors.

The FTC, should it respond to this call-to-action, would be justified in taking a proactive stance to stave off dubiously ethical practices, particularly as mobile marketing represents a highly personal method of reaching target audiences.

It should be noted, however, that this personalized communication is the very aspect of the medium that makes it so effective from a marketing standpoint.

According to market research firm eMarketer, the individual connection facilitated by the mobile medium is the reason mobile advertising spending increased to nearly $2.7 billion worldwide this year.

This connection is also the reason why 89 percent of major brands plan to incorporate mobile into their marketing mix in the next year.

The goal of regulation is not, and should not, be to squelch all marketing or advertising messaging. It should not staunch this impressive participation, but rather ensure that messaging is consistently welcome and invited.

The current FTC policy is based on a simple rule: opt-in.

The Center for Digital Democracy’s complaints aside, unwelcome messages actually comprise only a very small percentage of all texts sent and received in the United States annually.

This success can be directly attributed to effective policy formulation on the part of the FTC and scrupulous execution on behalf of the majority of mobile marketers. Any expansion of FTC policy should reasonably build on the opt-in mandate.

Injecting any more complexity into the regulations would only serve to muddle the operating environment and may not benefit the consumer.

The technology will continue to mature and expand. It doesn't make sense that a consumer would have to first opt-in to get a text message, then opt-in to share their personally identifiable information, then opt-in to share location-based data, then opt-in to use commerce features, et cetera.

Of equal if not greater importance, the ability to opt out should also be swift and complete.

As mobile technology continues to evolve, it will be vital for companies and oversight entities such as the FTC to work in conjunction with each other to preserve the privacy of ordinary citizens.

If the FTC applies its current standards – opt-in requirements, in particular – to emerging segments of the mobile market, mobile marketing will continue to be a welcome and effective avenue of communication between consumers and the companies that serve them.