Privacy Groups Raise Concerns Over Internet Firms’ Efforts To Provide Targeted Ads

If you’ve read up on some of my recent posts having to do with the evolution of the advertising world on the Web – one topic being the emergence and predicted effect of targeted, “smart” ad models for the long run – you know I’m on board with attempts made by various firms to turn the intelligence factor of marketing algorithms up a notch or two. In order for all in this ad-saturated ecosystem we live within to get along a little better, so to speak. So that you and I and lots of other folk frustrated with the mostly-generic, flawed systems currently in place get to see less of what we don’t want to see, and more of what we do (or don’t mind) seeing as we navigate our way about the WWW.

Well, not to rain on the parade of those developing the next generation of smart(er) advertising models, but they might very well have some seemingly insurmountable walls to confront in near future. Why? Two words: Privacy groups.

Yes, very big walls indeed. Privacy groups are very powerful entities (at least in terms of industry issues; influence on political shenanigans is another thing entirely), and tend to make those in the corporate world – who rely on reams and reams of citizen data to conduct business – quiver.

And, to be honest, I really think this clearly inevitable clash (or "discussion", if we’re to be oh-so-polite about it) is a tremendously good thing. Better to sort all concerns out now and deal with troubles today rather than tomorrow, when a lot more money will be play. A lot more money.

(According to eMarketer, online ad revenue totaled $17bn in 2006, and is estimated to jump to $40bn or more by 2011. That’s more than double in 5 years’ time. For Web-specific growth, that looks like a mighty good prognosis, no?)

Privacy groups’ concerns for the future of the Web and its fast-growing number of users are relatively simple and straightforward. They claim that the tracking systems developed today to allow for more targeted marketing infringes upon the privacy rights of netizens.

However, particular attention must be given to the way in which ad firms operating on the Internet conduct themselves and handle the information they gather. Only then can one truly find fault in targeted advertising practices.

Currently, Google, Yahoo! and Microsoft, and countless other network operators all retain some amount of data of their users, be they search histories or cookies involving clicks made in various places on the Net. (Not necessarily those operated by said corporations.) And by doing so, do they “invade” individuals’ privacy?

In very general terms, one can argue they do or do not. I myself tend to lean toward the they-do-not side of the divide, for the fact that most all transmissions and transactions by various firms (there are of course a bad few who do compromise individual identities and histories) are done exclusively by circuitry and code.

The concerns of privacy proponents raised are certainly legitimate, and their attempt, recently reported by the AP, to bring about the institution of a “Do Not Track List,” (in the vein of the Do Not Call List) is deserving of consideration, as it would allow Internet users to choose for themselves whether advertisers would be allowed to track their movements online – and thus deliver targeted or untargeted ads accordingly.

Being the realist that I am, I don’t necessarily think of the retention of those bits by ad networks is something to scorn. I say the means justify the ends.

What do you think will be the result of this initiative by privacy groups? Will they be granted what they’ve requested? Let us know in the comments below!