Nov. 13, 2024

Episode 6: Duncan McCall on Protecting Consumer Location Data

Episode 6: Duncan McCall on Protecting Consumer Location Data

Alan Chapell and Duncan McCall talk location privacy in the advertising industry, highlighting the pressing need for better consumer protection. They discuss how the precise location space has faced significant scrutiny due to privacy concerns, particularly as real-world examples of harm emerge. Duncan shares insights from his experience founding PlaceIQ, illustrating how the landscape has evolved from basic location data usage to more sophisticated targeting and analytics, while also addressing the challenges of fraud and misinformation. The conversation emphasizes the importance of self-regulation within the industry and the role of major tech companies in shaping privacy rules, often prioritizing their business interests over consumer welfare. As they explore the balance between innovation and ethical practices, they underscore the ongoing struggle to keep consumer data safe in an ever-evolving digital environment.

Companies mentioned in this episode:

  • Google
  • Apple
  • Amazon
  • Meta
  • Walmart
  • Planned Parenthood
  • Blue Kai
  • Reclaim
  • Fetch
  • PlaceIQ

Chapters

00:00 - None

00:44 - None

00:54 - Introduction to the Monopoly Report

05:41 - The Evolution of Location-Based Advertising

10:31 - The Evolution of Location Data and Its Impact on Privacy

20:56 - The Role of Large Tech Giants in Privacy Regulations

28:29 - The Future of Data Privacy in Advertising

Transcript
Alan Chappelle

Welcome to the Monopoly Report.


Alan Chappelle

The Monopoly Report is dedicated to chronicling and analyzing the impact of antitrust and other regulations on the global advertising economy.


Alan Chappelle

If you are new to the Monopoly Report, you can subscribe to our weekly newsletter at Monopoly Market tv and you can check out all of the Monopoly Report podcasts and leave us a comment or review at our new website, monopolyreportpod.com I'm Alan Chappelle and I'm excited to be taking over the reins here at the Monopoly Report.


Alan Chappelle

Eric was traveling this week.


Alan Chappelle

One piece of housekeeping before we get started.


Alan Chappelle

Ari and I did an emergency pod earlier this week in light of some of the filings in the DOJ AdTech case against Google.


Alan Chappelle

I'm now hearing that there will be a major competition announcement coming out of Europe by the end of November.


Alan Chappelle

So look out for that.


Alan Chappelle

And of course, we'll be covering it here.


Alan Chappelle

In this episode we have Duncan McCall, entrepreneur and former co founder and CEO at PlaceIQ, which is a mobile location intelligence platform.


Alan Chappelle

So welcome to the pod.


Alan Chappelle

Duncan, great to have you here.


Duncan McCall

Hey Alan, great to be here.


Duncan McCall

Thanks for having me.


Alan Chappelle

My pleasure.


Alan Chappelle

So I've had the pleasure of working with you in a number of capacities over the years.


Alan Chappelle

We were both on the board, the NAI board for a couple of years and we worked together pretty closely within the Mobile Marketing association where I think you're still on the board of directors, is that right?


Duncan McCall

Correct?


Duncan McCall

Yeah, in nine years strong or something like that.


Duncan McCall

So yeah, it's been a great industry board.


Alan Chappelle

Oh, fantastic.


Alan Chappelle

And before I forget, I like to ask each guest on the Monopoly Report to share a secret or semi secret passion or hobby.


Alan Chappelle

So what you got for me, Duncan?


Duncan McCall

I have a few, but I think the obvious one is actually I'm become a very passionate spear fisher.


Duncan McCall

So spear fishing, lifelong fisherman.


Duncan McCall

And I don't know, probably six years ago, somebody introduced me into spearfishing.


Duncan McCall

It was one of those weird things that just like, just took hold.


Duncan McCall

Love fishing, love the ocean.


Duncan McCall

Never put them together.


Duncan McCall

It's been fantastic.


Duncan McCall

So obviously I don't get to do it as much as I'd like because the Long Island Sound here has about 6 inches of visibility and is not very open to spearfishing.


Duncan McCall

But yeah, whenever we go away, much to my wife chagrin, I'm trying to pack a spear gun and end up near a body of water.


Duncan McCall

So it's been great.


Alan Chappelle

Well, that's great.


Alan Chappelle

So all those hours that you spent as an entrepreneur, now you've got something else to be occupying your time.


Alan Chappelle

The spear Fish.


Duncan McCall

Absolutely no problem occupying my time outside of work for sure.


Alan Chappelle

I have family who are from Nicaragua and so I spend a lot of time with them.


Alan Chappelle

By the way, I would invite you check out the Pacific off the coast of Nicaragua or Costa Rica, because the fish in there is pretty good as well, 100%.


Duncan McCall

I've spent a lot of time in Costa Rica in the last year surfing and fishing.


Duncan McCall

So I'd like to go further south.


Alan Chappelle

Fantastic.


Alan Chappelle

Okay, so in case folks aren't familiar with place IQ or the precise location space, let's start with an overview.


Alan Chappelle

What is the precise location space and then how does it relate to the larger ads business?


Duncan McCall

Yeah, no, absolutely.


Duncan McCall

I think that maybe the simplest way to explain this is this idea of a lot of.


Duncan McCall

So your audience obviously pre educated.


Duncan McCall

A lot of folks are familiar with sort of cookie targeting, contextual targeting.


Duncan McCall

Hey, we understand the websites that consumers visit and we build a profile, right?


Duncan McCall

You visit sports websites, you're a sports fan, you maybe visit, you know, automotive websites, you're into cars.


Duncan McCall

Well, the location space leveraged the fact that mobile devices are location aware and often attach the location of the device to an ad request and then subsequently attach it to an app.


Duncan McCall

And that data was available as well.


Duncan McCall

So suddenly now, instead of profiling consumers based upon the websites they visit, you can build profiles of consumers based upon the places they visit in the physical world.


Duncan McCall

So, you know, similar concept, but actually physical visitation.


Duncan McCall

And now you can essentially target advertising based upon the indicators of physical visitation versus digital visitation.


Duncan McCall

That's the simplest way to explain it.


Alan Chappelle

No, that makes sense.


Alan Chappelle

And I'm probably preaching to the choir here, but in terms of signal strength, a visit to a website versus a actual physical visit to a particular location, I would imagine the location signal from an advertiser standpoint is just, well, a lot stronger.


Duncan McCall

100%.


Duncan McCall

Right.


Duncan McCall

And there are things that you don't visit on the web that you visit in the physical world.


Duncan McCall

And to your point, right, Researching a vehicle online is a much lower bar for intent than actually going on a car dealership, going into a Walmart, a target, taking a plane somewhere.


Duncan McCall

These are indicators of behaviors that are incredibly strong and have a much higher signal to them.


Duncan McCall

So when this industry sort of came about, yeah, People said, wow, this, this is a new type of targeting and it is a very strong signal of consumer behavior.


Alan Chappelle

So what was that space like when you founded place IQ and how has it evolved over the last decade or so?


Alan Chappelle

Like what were the big use cases as they pertain to the ad space back then?


Alan Chappelle

And what are they today?


Duncan McCall

Yeah, so you know, when we founded Place iq, actually we, I knew nothing about marketing or advertising, so we didn't found it to be a marketing and advertising company.


Duncan McCall

We thought there was an opportunity to leverage all this new location data and build an analytical and data company.


Duncan McCall

And then we end up sort of finding marketing as a, as a use case.


Duncan McCall

But to your point specifically, much of your audience might remember way back then, we're talking, you know, 2010, 11, 12.


Duncan McCall

There was no persistent identifier, meaning there was no mobile ad id, no idfa.


Duncan McCall

So you actually couldn't build behavioral targeting to start with.


Duncan McCall

It was all about understanding the context of a location in real time and then connecting that with a real time ad request.


Duncan McCall

Hey, we see a consumer with an ad request, with location.


Duncan McCall

We've not seen this consumer before, we won't see them again because there's not a persistent id.


Duncan McCall

But if we understand the context of this location, it's a car dealership, it's a Walmart, right?


Duncan McCall

It's an airport.


Duncan McCall

We can attach in real time a more relevant ad.


Duncan McCall

Then suddenly, you know, one day Apple launched this thing called idfa and you had the mobile ad id, right?


Duncan McCall

And then you obviously had the Google Android id and you now had the ability to have a persistent identifier.


Duncan McCall

And that changed the game.


Duncan McCall

It changed the game because now you could build a behavioral audience.


Duncan McCall

You could start to say, well, this consumer has been going to golf courses, they've been going to big box retail, they've been traveling.


Duncan McCall

Okay, I can build a behavioral profile.


Duncan McCall

The other thing it enabled that was incredible.


Duncan McCall

That was, you know, a product we built and brought to market was foot traffic attribution.


Duncan McCall

Because you had a persistent identifier, you could now use the signal of physical visitation as an outcome measure.


Duncan McCall

Did somebody see an ad on tv, on mobile, on display, and did that mobile device end up going to the dealership, to the quick service restaurant, et cetera.


Duncan McCall

And then of course, the last thing that enabled was analytics.


Duncan McCall

So to set aside marketing and advertising and just start to say, well, we can now tell Walmart how busy this store was versus their competitor.


Duncan McCall

We can tell them all the people that drove past their store and went to their competitor.


Duncan McCall

So it enabled this entire use case of real world analytics.


Duncan McCall

So there was a lot of step functions along the way from, you know, very crude, blunt instrument to this new type of industry that had audience targeting, attribution and analytics.


Duncan McCall

So it's been quite the journey.


Alan Chappelle

So one of the things that I remember from the early days.


Alan Chappelle

And I'm curious if this, this is still a big issue, but you had app publishers who kind of recognized that their inventory would be more valuable if they had a location attached to it.


Alan Chappelle

And so the rumor was that there were a certain number of apps who just sort of made it up and, or just pulled, you know, whatever they could or inferred it from an IP address which isn't always super reliable.


Alan Chappelle

And so how did you guys.


Alan Chappelle

You must have known that this was going on.


Alan Chappelle

And so, like, what was your approach to weeding out the signal from the noise?


Duncan McCall

So it's polite the way you refer to it there.


Duncan McCall

You know, spam fraud.


Duncan McCall

So, you know, in life and in business, you've noticed when something has money attached to it, people will often create that product to get the money, even if it isn't real.


Duncan McCall

So to your point, when publishers realize that inventory with location was more valuable if they didn't have location, they would just pretend they did and create fraud and spam.


Duncan McCall

So initially this was quite easy to detect.


Duncan McCall

Right to your point, you take an IP address and you turn it into a large location.


Duncan McCall

Pretty easy to be able to detect.


Duncan McCall

Hey, these things don't look like consumer behavior.


Duncan McCall

So we built a whole product suite that we used to call Darwin that would weed out spam and fraud.


Duncan McCall

And without going too far down the rabbit hole, as always, like the financial markets, we would get smarter, then they would get smarter, then we would get smarter.


Duncan McCall

So this is arms race.


Duncan McCall

And towards the end of my time there, what the fraudsters were doing was actually taking entire real visitations so they didn't have to pretend and replaying them in the future.


Duncan McCall

So it was real consumer behavior, but it happened in the past, which is pretty cunning.


Duncan McCall

So, long story short, many industries where there's this monetary motivation, fraud and spam was created and there was a continual arms race to stamp that stuff out.


Alan Chappelle

I guess that's just the nature of ad tech.


Alan Chappelle

And you've got a new and developing industry and there's just always going to be folks who are looking to game things.


Alan Chappelle

And then your job, I guess, is to weed that out and at least have a certain predictability and reliability in the information that you're providing.


Alan Chappelle

And so in my view, the precise location space has increasingly come under fire for privacy issues.


Alan Chappelle

And one of the reasons is that it's one of the few places where privacy fears have really moved from speculative to real.


Alan Chappelle

And what I mean by that is in other ad settings, it's really hard to quantify how somebody Gets harmed because you know, they got an ad for a Toyota rather than an ad for Mercedes.


Alan Chappelle

But in the location space you're seeing a drumbeat of tangible examples.


Alan Chappelle

You've got, you know, that story where the bishop was outed based upon where they figured out that bishop had been going.


Alan Chappelle

There's an identification of a person in Alabama, which happens to be a place that restricts abortion, and that that device anyway had crossed state lines and gone to a reproductive clinic.


Alan Chappelle

And that information ultimately ended up apparently in the hands of law enforcement.


Alan Chappelle

So I know that was a big preamble here, but I'm curious to know what tangible steps can the precise location space take right now to avoid creating consumer harm?


Duncan McCall

Yeah, no, and absolutely right.


Duncan McCall

And I think as you said, this is a very powerful signal and consumers aren't always aware historically, or they weren't aware historically, necessarily opted in because it was more of an opt out than an opt in.


Duncan McCall

And then to your point, because this was an unregulated space with no rules.


Duncan McCall

And I think the other dynamic is there wasn't like one or two, you know, we were the first company in the space and you know, often spaces evolve where there's two or three big companies and they, they can get together and do the right thing.


Duncan McCall

Right.


Duncan McCall

In this space, suddenly there was like two or three companies and then the next year there was 60 companies because the barrier to entry was very low and you could access the data that was attached to the ad request data very simply.


Duncan McCall

There wasn't a lot of consumer education or understanding.


Duncan McCall

So to your point, entities could buy this data or access this data very cheaply.


Duncan McCall

And that was, you know, the talk with Byron Tower was around the fact that the government realized, and just to give you an example, the government realized for better or for worse, depending on your position, that instead of going and getting a subpoena and trying to go through this painful mechanism to get, you know, a warrant to access geolocation data, they could just buy it from the marketing ecosystem.


Duncan McCall

That's been happening for a long time.


Duncan McCall

And it's not just location data.


Duncan McCall

And something that makes you realize, wow, this whole marketing ecosystem does have this tremendous amount of data leakage to your point.


Duncan McCall

And we can talk about this in more detail, but what do I think the space could have done, should have done, we tried to do was get together and define a set of self regulation that we all adhered to and really aggressively driven that home, that this is a standard and in an ideal world that would have led to actually some real regulation.


Duncan McCall

That then would have become a law.


Duncan McCall

That would have been the best outcome.


Alan Chappelle

Yeah.


Alan Chappelle

You know, one of the things that I think may ultimately save the space is that, you know, the government might be reluctant to impose draconian rules if they are the biggest customer.


Alan Chappelle

And that's sort of a little bit of a challenge, I think for this space.


Alan Chappelle

But one thing that I think, and I'd love your opinion on this, one thing that I think would be really helpful, just as a general rule, I find that the self serve location space where basically any entity who can work with the DSP and who has a few hundred bucks can start creating their own precise location zones, to me that just seems inherently problematic and perhaps not worth the risk.


Alan Chappelle

But I'm curious to know your thoughts.


Duncan McCall

So, so the topic that you're pulling out there is, is one of this incredible innovation and evolution of technology and how do you play a whack a mole or catch up with the idea of rules and regulations and self regulation.


Duncan McCall

And you know, the reality is that we operate within a system whereby people try and make money and they try and make money in ways that are legal.


Duncan McCall

And if you don't have laws or self regulation governing the way folks behave, you're going to end up with a wild west.


Duncan McCall

And that's exactly what happened with the location space.


Duncan McCall

And there's certainly been ramifications.


Duncan McCall

The FTC has gone after various folks, but those ramifications haven't been substantial enough, I think to be able to stamp out that type of behavior.


Duncan McCall

So you've ended up in this situation whereby there's been a tremendous amount of bad press about the location space and we could talk about whether that's warranted or not.


Duncan McCall

And then the large companies have started to say hey, we're not going to enable location data to be captured and used in the same way.


Duncan McCall

So you've ended up, I think with a rather suboptimal outcome in the way that this industry has evolved.


Duncan McCall

And to your point, the idea that the government is going to be able to coordinate, hey, well we got some use cases for data over here, so we should change laws over here.


Duncan McCall

My personal observation opinion is I don't think that's going to happen.


Duncan McCall

The government will always find a way through, you know, through data and signals to do what they're going to do.


Duncan McCall

So I don't think that will have much of an outcome.


Duncan McCall

But it's a dynamic space and unclear where it's going to evolve to.


Alan Chappelle

So you've mentioned self reg a couple of times and I know that you have been a pretty huge proponent of self reg.


Alan Chappelle

I mean again, I've worked with you and I a couple of different industry groups really trying to set standards here.


Alan Chappelle

You were one of a handful of CEOs in the location space who pushed to create an industry wide list of sensitive locations with a larger goal of setting up industry wide exclusion lists.


Alan Chappelle

And so you mentioned coachava and I know there's been a couple of ftc, we'll just say enforcement actions again in the location space recently.


Alan Chappelle

It's interesting that they're talking about the output of that is to set up this exclusion list because you were pushing for that at least five years ago.


Alan Chappelle

And I'm just curious, you know, do you think industry has done enough to self regulate in the location space?


Alan Chappelle

And what could industry have done better?


Alan Chappelle

And maybe, you know, for you personally, you know, what button could you push that might have pushed things a little differently?


Duncan McCall

So do I think the industry has done enough?


Duncan McCall

No, let's just be clear, let's answer that.


Duncan McCall

So, so to your point, right, Sensitive locations and maybe just for the audience, right?


Duncan McCall

What's, what's, what's the concept of sensitive location?


Duncan McCall

So I give a real example.


Duncan McCall

I remember very vividly we started the company in Boulder, Colorado and remember we, we actually had a fire in our office and our office had burned down and we were in this like weird rented warehouse space and I'm whiteboarding with my co founder CTO and he's like, hey Duncan, schools, what do we do with schools and hospitals?


Duncan McCall

And we looked at each other and we're just like, that seems like a really bad idea to track consumers to schools and hospitals.


Duncan McCall

We said, how about we just don't, we don't have them in the base map.


Duncan McCall

So then we sat down and we built our own list of things, right?


Duncan McCall

Places of worship, right?


Duncan McCall

Cancer centers, Planned Parenthood.


Duncan McCall

All the things you would imagine that would be indicative of a real world behavior that doesn't really make sense to profile for many, many reasons.


Duncan McCall

And we said we're not going to do these things.


Duncan McCall

And it just seemed to us like the right thing to do, the right logical thing.


Duncan McCall

And then to your point, right, so fast forward some years later and it took, even then it was just blatantly obvious, hey, if we as an industry allow ourselves to profile some of these sensitive locations and sell audiences of people who visited Planned Parenthoods and cancer centers, that seems like a terrible idea that the media is going to pick up and run with.


Duncan McCall

And not only are they going to report it truthfully, it's going to create this incredibly bad aura around the entire industry.


Duncan McCall

Understandably.


Alan Chappelle

Right.


Duncan McCall

That's what the media does with those things.


Duncan McCall

So at the time we went initially to the MMA that I've been on the board for a long time and said, you know, why don't we build an industry consortium to actually build a list of sensitive places we all agree not to target.


Duncan McCall

We spent years on that and, you know, didn't really work out.


Duncan McCall

We went through the NI and we finally got that passed.


Duncan McCall

Although it was not simple.


Duncan McCall

But let's be clear, I think it was by then too little, too late, right?


Duncan McCall

Maybe it was just more too late than too little.


Duncan McCall

The narrative had caught control that this is incredibly problematic.


Duncan McCall

So to your point, if I could take a time machine back now and go and see myself and I don't know what, 2013, 14, something like that, and then back to the future moment, shake myself by the shoulders and say, you need to do this, I think what I would have done and the only thing I can imagine is you couldn't have got the 63 companies that were doing whatever the hell they wanted to agree to be self regulated by the NEI or you know, in an ideal world, maybe in reality, no, the way that this, I had observed this had worked successfully is you got to go to the bias, right?


Duncan McCall

The agencies and the brands and you have to say, hey, you like this whole location targeting stuff, right?


Duncan McCall

If you do not only buy from, let's say, give the example, companies that have been vetted by the NEI or another industry group that are not targeting these locations, that are following legitimate consent, et cetera, et cetera, if you do not only buy from these, these things, the industry will fail to exist under its current guise and you guys will look bad.


Duncan McCall

Will look bad.


Duncan McCall

I think that is the only realistic way.


Duncan McCall

Go to where the money comes from and educate them.


Duncan McCall

You cannot buy from companies that are not doing this the right way.


Duncan McCall

I don't know if that would have worked.


Duncan McCall

But that again, if you put me in a time machine now and send me back, that's probably my best idea right now.


Alan Chappelle

No, and that makes sense to me because really, even to this day, you know, one of the criteria that agencies are using is are you, are you part of the nei?


Alan Chappelle

Are you part of the larger self regulatory movement?


Alan Chappelle

This is less to do specifically with the precise location space, but like, you know, as you're trying to figure out what you're, you know, what you're vetting criteria are one of Them is participation in some of the industry wide opt out things.


Alan Chappelle

Although I will say probably less so for mobile than for the browser space.


Alan Chappelle

But you know, that's be as it was I think, you know, if we can only get that flux capacitor working and get you back to 2014, I would like another bite if that happens.


Duncan McCall

There you go.


Duncan McCall

Probably wouldn't be my first use of a time machine.


Duncan McCall

I would do other things first but yeah, it'd be on the list.


Alan Chappelle

So I want to turn a little bit to large tech giants and they're making privacy rules mostly with the goal of shoring up their own businesses with the secondary goal perhaps of mollifying legislators.


Alan Chappelle

And I don't want to completely undersell the goal of protecting consumers, but this has been a theme here on the Monopoly report.


Alan Chappelle

Can you walk us through how the concept of having large platforms dictating the rules, which you know sometimes are aligned with state or federal law, sometimes they aren't.


Alan Chappelle

And you know, how do you navigate that as a company trying to work.


Duncan McCall

Through that and maybe you know, for your audience that what happened in the location space, you know, and I can say with some degree of confidence, Having worked in it for you know, 15 years and looking back now and not being in the space right now.


Duncan McCall

Right.


Duncan McCall

So can talk from an unbiased perspective is you had this incredible explosion of God knows how many companies doing things that I think were not illegal but unsavory and unethical to, to a large degree.


Duncan McCall

You know, all that stuff's been in the, been in the press.


Duncan McCall

Then what happened, right?


Duncan McCall

Apple and Google said look, at the end of the day the consumer keeps reading these articles about location data and they're tracking you and all these different things.


Duncan McCall

And who do they, who do they ultimately blame?


Duncan McCall

They don't blame, you know, unnamed ad tech company ABC they've never heard of.


Duncan McCall

They blame Apple and Google.


Duncan McCall

That's the phone they have in their hand, that's their operating system, that's the share your location button you click, right?


Duncan McCall

I don't have a relationship with these third party companies.


Duncan McCall

It's Apple and Google.


Duncan McCall

So when this space sort of became slightly toxic, rightly and wrongly, however your perspective is Apple and Google said we're going to get the blame for this, we're going to close this thing down.


Duncan McCall

Right?


Duncan McCall

So they made it much harder.


Duncan McCall

It's no longer opt out, it's opt in.


Duncan McCall

They made it much harder to get access location obviously they shut off the mobile identifier, etc.


Duncan McCall

Etc.


Duncan McCall

And you Know, so A, that is not surprising that that makes logical sense and you would do that view of them.


Duncan McCall

But then, you know, B, I think the other construct is, well, what about these companies defining and writing privacy rules?


Duncan McCall

And to be clear, right, these are for profit companies.


Duncan McCall

These companies exist in a system to make money and do returns for their shareholders.


Duncan McCall

They don't exist to write privacy rules for the good of humanity or the digital ecosystem.


Duncan McCall

So the idea that we expect them to do that, I think is just invalid and incorrect.


Duncan McCall

That's not their role, that's not their job.


Duncan McCall

And they've done that A, because there's been a vacuum of no one else doing it, and B, because of this construct that, look, there has been no federal privacy law that's stepped in and taken place there.


Duncan McCall

Essentially.


Alan Chappelle

Yeah.


Alan Chappelle

And that's a challenge.


Alan Chappelle

And I agree, your perspective here is really helpful.


Alan Chappelle

It's funny, what came to mind for me was I go back to the adware space where there was a whole bunch of software operating on people's browsers and that software were literally shooting at each other and blowing up operating systems.


Alan Chappelle

And so you had people calling up their isp, saying, hey, how come my computer doesn't work anymore?


Alan Chappelle

And so they blamed the person who made the computer, they blamed their isp, they blamed, I'm sure, Microsoft in there somewhere as the browser company back then.


Alan Chappelle

And so it's a lot of confusion about what happens.


Alan Chappelle

And so there is some value to the market makers stepping in and at least trying to create some semblance of order and safety.


Alan Chappelle

So we've been posting a bunch on LinkedIn over the last few weeks and my goal has been to really get the ad tech business community to define and explain what they mean by privacy.


Alan Chappelle

Because you keep hearing out there, it's like, oh, we're privacy safe, we're the best for privacy, privacy by design, privacy from the ground up, et cetera, et cetera.


Alan Chappelle

And one of the approaches that we keep hearing is this idea of putting consumers in control of their data.


Alan Chappelle

Problem with that is that in my view is it's just really hard for that to scale.


Alan Chappelle

And so now that I filibustered on something, I would love for you to react to it.


Alan Chappelle

Like, what's your, you know, what's your sense of how those types of user empowerment initiatives, you know, how do those work?


Duncan McCall

The unfulfilled dream of putting consumers in control of their data.


Duncan McCall

Yeah, so I am a believer in that dream.


Duncan McCall

I don't know if we'll ever see it.


Duncan McCall

I remember I You know, I literally wrote a business plan for this in early 2000.


Duncan McCall

I've never done it, but, but you know, the concept perhaps, and the way I interpret this is the concept that why the hell does this industry exist that tries to cobble together these profiles of what people are interested in, what they buy, what.


Duncan McCall

And they do it imperfectly, they do it through imperfect device graphs.


Duncan McCall

And now we target people in cohorts and it's, it's a mess, right?


Duncan McCall

Instead of hey, Duncan just bought a new car.


Duncan McCall

Instead of seeing non stop truck ads for a truck I'm never gonna buy, I would love to be able to communicate in a, in a way I control the fact that I just bought a new car, right?


Duncan McCall

This is a make and model.


Duncan McCall

And instead of seeing ads for trucks in the future, I want to see ads for accessories for that vehicle, right?


Duncan McCall

Duncan bought a new spear gun.


Duncan McCall

I don't want to see, you know, spear gun ads.


Duncan McCall

I want to see accessories for this.


Duncan McCall

So the idea that you are advertising across the ecosystem becomes more like your Amazon recommendations versus this kind of mess we have now.


Duncan McCall

So people, well, that logically makes sense.


Duncan McCall

So why doesn't that happen?


Duncan McCall

I think number one is there's always been this myth that, well, paying consumers for their data, not that much money, they don't really care.


Duncan McCall

I don't think that's valid because you look at companies like ibotta and Fetch, right, Valuable companies, what do they do?


Duncan McCall

They pay consumers for their data and consumers are happy to take that money and they built, you know, very large businesses from that.


Duncan McCall

So that doesn't really resonate.


Duncan McCall

And then you look secondly and you say will maybe the ones right, really created the consumer experience and value prop that, you know, it's just so compelling and your Internet experience has become so much better because it's relevant, meaningful.


Duncan McCall

So that hasn't really existed, right?


Duncan McCall

And then you say, well hang on a minute.


Duncan McCall

Well, Apple, Google, Facebook, Amazon, they all benefit from the fact that this doesn't exist because they have walled gardens where they have many versions of this.


Duncan McCall

Perfect.


Duncan McCall

You think of your Amazon recommendations, right?


Duncan McCall

They're amazing because it knows what you bought.


Duncan McCall

You think of how good Meta is at advertising.


Duncan McCall

Everybody thinks they've got the microphone on because the frickin algorithm is just that good.


Duncan McCall

If the rest of the Internet was like, that would be amazing, but these guys would not like it.


Duncan McCall

And they have a tremendous amount of power.


Duncan McCall

And then of course, finally, well, you know, I learned the hard way throughout my career in advertising.


Duncan McCall

Just because you think you could build a meta better.


Duncan McCall

Mousetrap doesn't necessarily align with incentive.


Duncan McCall

So if I was to walk into the buy side and the folks who are using, you know, buying money, using buyers money to buy advertising and say, hey, good, good news everyone, I've got a way for you to manage and spend less money and I'm going to take money out of the ecosystem because it's going to be more effective.


Duncan McCall

You are going to be misaligned with a big part of the ecosystem.


Duncan McCall

So I don't know.


Duncan McCall

But my gut tells me as someone who really is passionate about that concept, there are a number of reasons this hasn't happened.


Duncan McCall

And I felt when Google was finally going to drop the guillotine on cookies, maybe that would be just enough to push it over because now it would be that much harder to cobble together these profiles.


Duncan McCall

But that didn't happen.


Duncan McCall

So I'm optimistic and hopeful maybe someday that will happen.


Duncan McCall

But I'm not holding my breath.


Alan Chappelle

Yeah, from my perspective, a lot of this just runs heads up into consumer perceptions issues because there's a fair number of consumers who, you know, are closer to the privacy advocate side where they're not going to give you data willingly almost no matter what.


Alan Chappelle

And then there's a, on the, on the other end of the spectrum, there's a number of consumers who, you know, probably don't care enough to actually proactively provide data and they maybe don't mind if you collect it.


Alan Chappelle

And so the question is, is, you know, is there, is there a workable business, a scalable business within that now you and a couple other folks who have been able to make a scalable business.


Alan Chappelle

I, I know the guys at Reclaim, I think are talking about Bill building a similar thing, the guys up in Canada.


Alan Chappelle

So theoretically possible.


Alan Chappelle

It's, it's funny though, I'm not sure it's, it's, it's, it's hard to do in practice.


Duncan McCall

Yeah, I mean, I don't, maybe it's like flying cars.


Duncan McCall

Right.


Duncan McCall

Should exist.


Duncan McCall

Makes logical sense.


Duncan McCall

But you know, for some reason it's a lot harder than people think.


Alan Chappelle

Well, we need self driving cars which are actually safe first and then maybe we can get into the Jetsons.


Duncan McCall

Yep, still holding my breath for that, you know, at scale.


Duncan McCall

So we'll see.


Alan Chappelle

So Duncan, before I let you go, I mean, what's, what's next for you?


Alan Chappelle

Anything you can share about what you're up to?


Duncan McCall

Yeah, so I'd been lucky enough to take a sabbatical, do a lot of spear fishing and spend a lot of time on the Pacific coast in Central America.


Duncan McCall

But yeah, no, as of, you know, a couple months ago, really now thinking about what's next and looking at this space, we've been working with some folks in healthcare, which another very, very interesting space with lots of data, lots of misaligned incentives and, but lots of innovation.


Duncan McCall

So, yeah, looking at a whole bunch of new things and excited to reengage and get back out there.


Duncan McCall

So, yeah, well, cool.


Alan Chappelle

We'll definitely have to have you back on as the healthcare stuff emerges because I think that's just such a fascinating area and one that is both ripe for disruption but carries with it a whole bunch of privacy issues, which I really don't think folks have entirely grappled with yet.


Duncan McCall

Absolutely.


Duncan McCall

Yeah, it's a fascinating space.


Alan Chappelle

So let's leave it there.


Alan Chappelle

This was a fantastic conversation.


Alan Chappelle

I really appreciate you coming on with me.


Alan Chappelle

Duncan.


Alan Chappelle

We've got a bunch of other fantastic guests coming up on the Monopoly Report podcast over the next few weeks.


Alan Chappelle

We've got Omer Tawakol, CEO of Rembrandt and the former CEO of Blue Kai.


Alan Chappelle

We're going to have David Leduc from the NAI who's going to share his predictions around the privacy landmines the digital ads market will counter in 2025.


Alan Chappelle

My prediction, by the way, is Peter Thiel is going to personally craft a federal privacy law and we've got nothing to worry about.


Duncan McCall

Well, there you go.


Duncan McCall

At least we maybe get one.


Alan Chappelle

So please subscribe to the show@monopolierportpod.com or on Spotify, Apple, YouTube, or wherever you listen to your podcasts.


Alan Chappelle

Duncan, thank you so much for being here.


Alan Chappelle

It was my pleasure.


Duncan McCall

Great.


Duncan McCall

Thanks so much, Alan.