mobile marketing meltdown

Business | Employment | Internet | Privacy | Information Security


Here’s What It’s About •  Privacy -- Privacy by Design: Advocates embedding

privacy considerations at the requirements phase of development projects

•  Monetization -- Including In-App Purchases -- Its Novelty is Both its Strength and Downfall

A Few Thoughts on Application Design


Why Should You Care •  There have been 3 FTC mobile application related

settlements already announced, others are ongoing

•  Several players in the ecosystem have been the target of called for Congressional investigations

•  IN SHORT THE LIABILITY EXPOSURE – add class actions, and state investigations – IS REALLY FREAKING HIGH


Announced FTC Settlements


KEY FTC INVESTIGATION TAKEAWAYS •  Advertising claims need be truthful. That means both

literally and what your advertising claims implicitly

•  Important terms of the app need to be stated clearly and upfront

•  Tune in to privacy. There are a number of privacy laws, and emerging restrictions on the type of personal data your app can and should collect from users


THE MAIN TAKEAWAY: There is a lot of scrutiny of mobile apps. Be

proactive and take reasonable steps to make sure your mobile apps comply

with the law


Let’s Talk Privacy

The amalgamation of so much behavior rich information in a single very personal device opens the possibility of radical innovations in marketing

Location Information (Consistent Broadcast)

Lots of Behavioral Tid-Bits

1:1 User Corollary

Access to a Network of Pre-Qualified Users (Think Stored Contacts)

Personal Financial and Health Information

Common SDK’s Create Emerging Interesting Possibilities


But There Are Risks


Several Privacy Guidelines Out There

Future of Privacy Forum Mobile Marke4ng Associa4on


Its Still About Choice, Consent & Control

Choice – Collec*on, Storage, & Transfer

Consent – Obtain Agreement

Control – U*liza*on


You Got To Have a Privacy Policy •  Even if you do not believe you are collecting

or using data that would trigger privacy concerns

•  Provide a link to it in each app store listing, on your own site. If your app has a settings page put a privacy policy link there as well

•  Make sure that it can easily be read on a mobile device


Get The Disclosures Rights


You Have to Timely Disclose Unanticipated Uses


Don’t Forget Security

•  Ensure reasonable security measures are in place

•  Encrypt data in transit (SSL / TLS)

•  Encrypt sensitive information stored including for example passwords

•  Protect user application data


Good Housekeeping

•  Stay within the boundaries of your disclosures – don’t use or collect data if you haven’t explained the practice to the user

•  Don’t access or collect data unless your app requires it

•  Delete old data

•  Provide users with a way to contact you and respond to their questions and concerns


Use Reputable Partners

Keep in mind that many, if not most, privacy issues for application developers come from inserting…SDKs – such as those from advertising networks and analytics providers – into your app


Let’s Talk In-App Purchases

There is a value proposition disconnect that is in part because of the novelty of the platform


Food for Thought

http://bit.ly/sLWOp6


Another Class Action Suit


The Quid Pro Quo

• It’s got to make sense

• Its not all about the “Benjamins”


Get The Disclosures Rights

•  Disclose the Existence of In-App Purchase Functionality

Although this application is free to download and play certain features functionality, may require an in-app purchase.

•  Avoid confusion: Price points like $.99, $9.99 and $99.99


Consider Documenting Your Pricing Strategy •  Calibrate using established revenue models: Think

console gaming and associated marketplaces (i.e. the Wii)

•  Incorporate average user revenue data overtime and tweak pricing to maintain reasonableness

No this is not a mechanism that limits an apps revenue potential. Rather we have fixed the per user revenue variable, the obvious then to increase revenue is to acquire more users. This then drives better quality into the marketplace and culls

inferior apps over time


Consider Limits

•  Daily Spending Caps

•  Time Based Purchase Limits

•  In-App Purchase Confirmation Alerts


Let’s Talk In-App Monetization Apple thinks incentivization is a dirty word


Food for Thought

http://on.mash.to/zloUCV


How It Works

App Promo*on Services Charge On A Per Unit Basis For Installs and Split Revenue with App

Developer who installed SDK

Established Apps Incorporate 3rd Party SDK’s to

Enable Mone*za*on

New Apps Promoted

Some*mes with Intent to Achieve Top 25 App Store

Ranking


You Cannot Game The System


Thoughts on App Design

A little conservatism in the face of uncertainty isn’t a bad thing.


These Work in App Design, Privacy and Monetization


CONTACT ME

HAYDEN CREQUE p. 320-247-3439 e. [email protected] Twitter@haydencreque Webwww.crequelaw.com

mobile marketing meltdown

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