13/08/08
Congress investigating internet tracking
Goggle has released a bevy of helpful new internet tools recently. However, on the heels of their release is a Congressional investigation to determine if the tools and tracking ability is a violation of internet users’ privacy. It’s an issue to watch.
Google, Microsoft, and Yahoo are already under investigation by The House Energy and Commerce Committee. While all of the search giants have responded to Congressional inquires into the practice, their responses haven’t convinced many of those within Congress. Several representatives are already drafting legislation that will impact marketers and the search engine giants.
The investigation could ultimately result in a sort of online-privacy Bill of Rights. That legislation is part of ongoing privacy legislation that would require that consumers opt in rather than opt out of the tracking of their online behavior and the collection and sharing of their personal data.
Under the current system users can opt out of the tracking, although most don’t. And companies take advantage of that. Only a fraction of users, smaller than one percent Yahoo says, actually visit an opt out page to refuse behaviorally targeted ads. Internet companies believe consumers like the targeted ads and they do – until they find out they’re being targeted. Studies show once consumers understand what’s happening with targeting they don’t like it.
A March 2008 survey by TrustE which found that 57 percent of the 1,015 respondents "are not comfortable with advertisers using that browsing history to serve relevant ads, even when that information cannot be tied to their names or any other personal information."
TrustE is hardly an unbiased source in terms of privacy issues. They sell privacy-accrediting services to site owners.
Still, the investigation into privacy issues couldn’t come at a worse time. Marketers have all kinds of new tracking tools to help them target advertiser behavior and internet use and more are on the way. They rely on consumers opting out of the tracking rather than having to choose to opt in.
Congress is concerned that as the technology and ability to track internet behavior increases, so does the ability to invade internet users privacy and would rather see the opting situation reversed.
If legislation is passed, it won’t be just marketers who will suffer. News organisations, most of who are suffering from decreased sales, will too. Most news organisations are looking to internet marketing to increase their revenues and ad sales as well.
Reason and common sense dictate that if an ad and the accompanying content is more relevant to the group seeing it, then people are more likely to respond. Sports ads on a sports page, or wedding vendors ads on pages related to wedding announcements are more likely to draw attention and sales than a random ad about a non-relevant product.
The consumer benefits by having relevant information readily accessible. That fact is not being contested. How those consumer groups are identified, tracked and targeted is the issue. It's way too early to know whether proposed legislation will become a reality. Marketers who use behavioral targeting however, should watch this issue closely. Opt in requirements could affect ad rates, be expensive or complex to implement and most likely not be worth the investment given that most visitors don’t use opt out features now.
Concerns focus on behavioral targets and serving ads or content to a site based on someone’s web-browsing behavior. The concerns include targeting behavior on the web at large as well as within a group or site.
It's quite possible that any legislation aimed at Internet providers and search engines also could affect what happens with ad targeting on news sites as well.
The investigation could ultimately result in a sort of online-privacy Bill of Rights. That legislation is part of ongoing privacy legislation that would require that consumers opt in rather than opt out of the tracking of their online behavior and the collection and sharing of their personal data.
Under the current system users can opt out of the tracking, although most don’t. And companies take advantage of that. Only a fraction of users, smaller than one percent Yahoo says, actually visit an opt out page to refuse behaviorally targeted ads. Internet companies believe consumers like the targeted ads and they do – until they find out they’re being targeted. Studies show once consumers understand what’s happening with targeting they don’t like it.
A March 2008 survey by TrustE which found that 57 percent of the 1,015 respondents "are not comfortable with advertisers using that browsing history to serve relevant ads, even when that information cannot be tied to their names or any other personal information."
TrustE is hardly an unbiased source in terms of privacy issues. They sell privacy-accrediting services to site owners.
Still, the investigation into privacy issues couldn’t come at a worse time. Marketers have all kinds of new tracking tools to help them target advertiser behavior and internet use and more are on the way. They rely on consumers opting out of the tracking rather than having to choose to opt in.
Congress is concerned that as the technology and ability to track internet behavior increases, so does the ability to invade internet users privacy and would rather see the opting situation reversed.
If legislation is passed, it won’t be just marketers who will suffer. News organisations, most of who are suffering from decreased sales, will too. Most news organisations are looking to internet marketing to increase their revenues and ad sales as well.
Reason and common sense dictate that if an ad and the accompanying content is more relevant to the group seeing it, then people are more likely to respond. Sports ads on a sports page, or wedding vendors ads on pages related to wedding announcements are more likely to draw attention and sales than a random ad about a non-relevant product.
The consumer benefits by having relevant information readily accessible. That fact is not being contested. How those consumer groups are identified, tracked and targeted is the issue. It's way too early to know whether proposed legislation will become a reality. Marketers who use behavioral targeting however, should watch this issue closely. Opt in requirements could affect ad rates, be expensive or complex to implement and most likely not be worth the investment given that most visitors don’t use opt out features now.
Concerns focus on behavioral targets and serving ads or content to a site based on someone’s web-browsing behavior. The concerns include targeting behavior on the web at large as well as within a group or site.
It's quite possible that any legislation aimed at Internet providers and search engines also could affect what happens with ad targeting on news sites as well.