“Every scaled platform is introducing ads in some form,” the exec said. “NextDoor … has a robust ads product and captures a tiny, tiny, tiny share of wallet from the ecosystem.”

Not alienating users

Life360 is mindful that many users didn’t originally sign up for an app with ads. Certain ad formats, like interstitials and video ads, would “be a bridge too far” for maintaining user experience, CEO Chris Hulls said on an August earnings call. The firm will also control which brands advertise on its platform.

Moreover, children represent a significant chunk of Life360’s user base, and location data is sensitive. After an investigation from The Markup in 2021 found that Life360 was selling precise location data to data brokers, the company said it would stop the sale of this location data to all partners except Arity. A proposed class-action lawsuit was also brought against Life360, according to The Markup.

 The company said those under 18 will automatically not be part of the advertising operation.

“Data from users under 18 is strictly excluded from receiving ads and being included in targeted advertising segments,” a Life360 spokesperson said.