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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.
(C) Medium Blue 2007
About the Author
Scott Buresh is the CEO of Medium Blue, which
was recently named the number one search engine
optimization company in the world by
PromotionWorld. Scott has contributed content to
many publications including Building Your
Business with Google For Dummies (Wiley, 2004),
MarketingProfs, and WebProNews.
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