Behavioral isn't the only form of advertising under scrutiny. Consumers want privacy online and off-.
Targeted. Tracking. Behavioral.
In online advertising these methods of serving ads are different. Sure there's overlap, but all refer to different methodologies and, usually, technologies.
A notable new survey from the University of Pennsylvania and the University of California Berkeley combines all these methods under the rubric "tailored advertising" and find the majority of Americans don't like personalization, targeting, tracking, and their ilk when it comes to serving ads on the Web. Period.
More alarming, these practices fall deeper into disfavor when explanations are provided as to how these various forms of ad tailoring work -- even when people are assured their privacy is protected. Americans, at least the ones who participated in this survey, want legislation that protects their privacy and their personal data.
As with the great spam debate several years ago that led to e-mail legislation, bad actors are to blame. The survey found the majority of respondents felt their privacy had been violated (often more than once), both online and off-. Even so, the researchers are still scratching their heads as to why the majority of Americans would reject being served news stories that are tailored to their interests, or even discount coupons and targeted offers. According to the study:
Problem is, there's targeting and then there's targeting. Those ads I keep seeing on Facebook? The ones that promise special teeth-whitening deals to NYU alums? Arguably, those are targeted. But come on. No one, particularly someone with a dose of higher education, is dumb enough to fall for that kind of targeting.
Then there are the stories concerning privacy consumers read in the media. Thelma Arnold, a 62-year-old widow in Georgia, would have contentedly lived a life of obscurity if AOL hadn't unintentionally supplied a reporter with enough of her search history to finger her as an individual: searcher number 4417749.
Arnold is, of course, the tip of a very big iceberg. Facebook's Beacon. Credit card leaks. Divulged e-mail addresses. It's a long list indeed, and naturally it's the bad news that's widely publicized.
Of course, the Interactive Advertising Bureau and others have released self-regulatory principles to ward off government regulation. But the sentiment reflected in this study strongly indicates federal regulation is inevitably in the cards. In fact, legislation proposals have been promised, perhaps as early as next month.
Based on the study's findings, educating consumers about the difference between personal and personally identifiable information and data tracking may not be enough. And heaven knows it will be difficult to get consumers to understand the technologies behind ad serving anyway, even if they care enough to take the time to educate themselves.
Respondents to this survey, at least, have asked for proof that the companies respect their privacy and their personal data. They think it's illegal for companies to share data (it isn't), and that if it isn't, it should be.
This sentiment has enormous implications for the business of the Internet, for companies that serve ads, and for publisher and site owners. But it goes further than that. It could have far-reaching implications for credit card companies, catalogue retailers, broadcasters, direct mailers, traditional advertisers. The list goes on and on.
Privacy and data protection are something consumers want, and something Washington is prepared to give them. Balancing the interests of all concerned parties, however, will be a hard line to toe.
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Rebecca was previously VP, U.S. operations of Econsultancy, an independent source of advice and insight on digital marketing and e-commerce. Earlier, she held executive marketing and communications positions at strategic e-services companies, including Siegel & Gale, and has worked in the same capacity for global entertainment and media companies, including Universal Television & Networks Group (formerly USA Networks International) and Bertelsmann's RTL Television. As a journalist, she's written on media for numerous publications, including "The New York Times" and "The Wall Street Journal." Rebecca spent five years as Variety's Berlin-based German/Eastern European bureau chief. Rebecca also taught at New York University's Center for Publishing, where she also served on the Electronic Publishing Advisory Group. Rebecca, author of "The Truth About Search Engine Optimization," was ClickZ's editor-in-chief for over seven years.
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