Posts Tagged ‘Behavioral Targeting’

Plans for New Online Privacy Bill in Effect

24
April
2009

House members meet to discuss the draft of a new online bill that addresses privacy implications on ad targeting technology.

Christine Pepin
Media Coordinator

Yesterday afternoon, members from the House Subcommittee on Communications, Technology and the Internet met to confront privacy concerns of behavioral ad targeting technologies.  Joining them were several Internet freedom advocacy groups who question the integrity of an ad network’s ability to track a user’s every move online.  Members present affirmed their willingness to propose legislation relating to not only behavioral targeting but perhaps to all online targeting. 

In 2002, a bill written by Republican Cliff Stearns of Florida was introduced that would have required firms to notify customers about their data collection and usage.  The bill was never passed, however members of the House indicate that it “will be the starting point and the foundation of our privacy bill this year.”  Marketers, search engines and ad networks would be hugely affected should a bill like this one ever passed.  Therefore, members of the House and privacy advocators are thoroughly analyzing the effects of tightened restrictions on these businesses.

A joint hearing on this subject is expected for this summer where further analysis by Congress will occur.

Behavioral Targeting: A Double-Edged Sword

30
June
2008

Relevant ads targeted towards Internet users’ needs lend to high click-through rates, yet debate over its infringement upon individual privacy persists…

Christine Pepin
Media Coordinator

With the potential audience for Internet ads exceeding two-thirds of the US population by the end of 2009, both online advertisers and web publishers are highly optimistic about greater revenues from ad inventory.  Unfortunately, these prospective 200 million users are actually becoming unresponsive to the most common forms of online advertising, finding ads to be irrelevant to their current interests.  With the use of behavioral targeting, advertisers have a chance of reversing user’s indifferent attitudes about the banners, rich media, and video ads disseminated online.

By targeting ads based on a consumer’s specific interests or needs online advertisers may begin to see the revenues they seek.  However, with behavioral targeted advertising comes a greater risk of violating the individual privacy of consumers, which is closely monitored and protected by privacy groups, state governments, and the FTC.  The good news for advertisers is that 66% of US Internet users indicated they would click on additional Internet ads if they were more relevantly targeted.  The bad news is that a nearly identical number (65%), represents users who call Internet advertising more intrusive than print ads.

Below is a study by eMarketer that shows the different attitudes of Internet users towards online advertising:

Attitudes of U.S. Internet Users Toward Online Advertising by Age, October 2007- eMarketer

Google AdWords Behavioral Targeting

3
August
2007

Recently Google has started to tailor the delivery of its paid search advertisements, basing the delivery on not just the search query, but the previous query and sometimes even combinations of recent queries executed by the searcher.

Keith Vera
Account Manager

Well, sort of. Recently Google has started to tailor the delivery of its paid search advertisements, basing the delivery on not just the search query, but the previous query and sometimes even combinations of recent queries executed by the searcher. Google’s new approach to paid search ad delivery is detailed nicely in a blog post by Zachary Rodgers of ClickZ (link below).

Google has been quick to shoot down any notion that they are moving towards true behavioral targeting. Nick Fox, Google’s group business product manager for ads quality states, "We’re not doing things like trying to profile the user to find out if the user is a man or a woman or a 45-year-old or a 25-year-old," he said. "In the context of search it doesn’t seem that powerful, and we haven’t seen any evidence that it will be that powerful."

While online behavioral targeting carries heavy privacy issues, I would disagree with Fox in that I can easily see how behavioral targeting can immensely help paid search advertisers. All marketers have a strong idea of who is in their target audience; wouldn’t paid search campaign ad servings be a lot better off if advertisers knew exactly what audience demographics their impressions were reaching? On the other hand, is capturing this kind of detailed information on searchers an excessive violation of privacy rights?

So let’s hear your opinion. Who out there would like to see stronger behavioral targeting techniques for paid search ad placements?