SOURCE article: http://fortune.com/longform/att-media-company/
“Say you and your neighbor are both DirecTV customers and you’re watching the same live program at the same time,” says Brian Lesser, who oversees the vast data-crunching operation that supports this kind of advertising at AT&T. “We can now dynamically change the advertising. Maybe your neighbor’s in the market for a vacation, so they get a vacation ad. You’re in the market for a car, you get a car ad. If you’re watching on your phone, and you’re not at home, we can customize that and maybe you get an ad specific to a car retailer in that location.”
Such targeting has caused privacy headaches for Yahoo, Google, and Facebook, of course. That’s why AT&T requires that customers give permission for use of their data; like those other companies, it anonymizes that data and groups it into audiences—for example, consumers likely to be shopping for a pickup truck—rather than targeting specific individuals. Regardless of how you see a directed car ad, say, AT&T can then use geolocation data from your phone to see if you went to a dealership and possibly use data from the automaker to see if you signed up for a test-drive—and then tell the automaker, “Here’s the specific ROI on that advertising,” says Lesser. AT&T claims marketers are paying four times the usual rate for that kind of advertising.
I can’t imagine this being all that surprising for anyone who follows privacy or internet tech. For the most part, they are adapting bog-standard “digital” ad tech for “linear tv.” The location tracking is somewhat novel; but I am assuming Google already does this. The main difference being that you can avoid Google’s location tracking via LineageOS; there is no way to avoid tracking by your mobile service provider.