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Behavior-Based Internet
Advertising Who Is Watching You?
By Scott Buresh
Have you ever been surfing the web and come upon Internet advertising
that provides a direct solution for something that you've been researching
lately? Did you think that it might be related to your computer cookies,
or did you chalk it up to serendipity?
The fact is, it almost certainly wasn't a coincidence. Behavior-based
Internet advertising is a relatively new and very powerful way for advertisers
to get their message in front of potential buyers that they know to be
qualified. The question is, how do they know that the surfer is qualified?
The advertisers know this because the Internet advertising network is
tracking the surfers' online activity. With tracking, advertisers know
what sites you like. They know what searches you make. They have profiled
you, and, unlike in real life, profiling on the web is AOK -- so far.
Check Your Computer for Cookies
Before we get into the legal issues involved, perhaps a further definition
of the technology is in order. Most (but not all) behavioral Internet
advertising is based on computer "cookies." These computer cookies
are tiny files that are placed on your machine when you visit certain
websites. In the simplest form, you go to a web page. An advertiser has
a blank spot, or placeholder, for a banner ad. But instead of serving
up just any banner ad, the advertiser parses through your computer for
cookies to discover your likes and dislikes, and then you are fed Internet
advertising based on your online behavior.
For some people, this is no big deal. They like Internet advertising
to be targeted toward them, and they don't mind computer cookies. For
others, it's a little Orwellian and creepy. This leads us to the great
debate.
Opt-in or Opt-out?
One big question to be resolved is whether ultimately this type of Internet
advertising will be "opt-in" (meaning that a user has to sign
up in order to receive targeted ads) or "opt-out" (meaning that
a user will receive targeted ads unless they specifically ask not to).
It shouldn't surprise anyone to know which side the advertisers are on.
If governmental regulators eventually require that all Internet advertising
be "opt-in", the industry will be severely restricted. My guess
is that it would relegate behavior-based Internet advertising to a fringe
player in the online marketing world.
The privacy advocates, naturally, are on the other side of the fence.
The vast majority of people assume that their online activity is not being
tracked, they say. Why should they have to take a specific action in order
to remove computer cookies and to not be tracked and profiled?
A Do Not Track List?
Recently, a group of nine consumer advocate groups proposed the idea
of a "Do Not Track" list for Internet advertising, which would
work in a similar fashion as the "Do Not Call" list works today.
Naturally, this is an "Opt-out" scenario, but because of the
attention that the formation of such a list would bring, it may be a suitable
compromise between advertiser and advocate.
How to Prevent Being Tracked
It is fairly easy to prevent being tracked by advertisers. You simply
prevent your machine from accepting computer cookies. Go to START, SETTINGS,
CONTROL PANEL and click on INTERNET OPTIONS then the PRIVACY tab. (Note
that these instructions assume you are working with a Windows XP system.
The procedure will be similar, however, for other operating systems.)
Slide the bar all the way to the top to where it says "Block All
Cookies."
However, you should be aware that this change may limit your Internet
experience. Some websites will not display properly (or at all) if you
do not accept computer cookies. In my experience, at least one of the
top five search engines will not work at all. Other engines have limited
functionality when you block Internet advertising.
Even if you do manage to turn off your computer cookies, don't rest easy
just yet.
The Newest Technology
Recently, it was announced that a Silicon Valley startup named NebuAd
has created a new technology that does not require computer cookies. Under
the NebuAd model, the company teams up directly with service providers
and installs equipment directly at their facilities that allows them to
track the behavior of individuals on the web, even if their machine does
not accept computer cookies. This, of course, requires Internet Service
Providers (ISPs) to embrace the new technology; naturally, they are given
a piece of the Internet advertising revenue that is generated. Whether
or not any of the major players embrace this technology will probably
depend largely on public outcry, or lack thereof. Of course, if this does
become the newest behavioral targeting standard, we will return again
to the question of "Opt-in" or "Opt-out."
Conclusion
The future of this approach to Internet advertising is unclear, and will
depend largely on public education and reaction. Will people see value
in receiving targeted ads, even if it means that somewhere there is an
"anonymous" profile of them sitting on a server? Will they feel
outraged and push for a total ban? It's hard to say.
Will this new approach be the death of the Internet as we know it? Probably
not. But it should at least be interesting.
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