Online Tracking, No Thanks

As independent-minded consumers, Internet users have no interest in being tracked by online advertisers, based on the findings of a recent Gallup poll.

Major marketers such as AT&T are increasingly tracking users' habits on the Web so they can better deliver specific ads to specific kinds of people, according to AdAge.com.

The practice, known as behavioral targeting, has come under a renewed government scrutiny, specifically by the Obama administration and the Federal Trade Commission.

Asked if advertisers should be allowed to match ads to people's specific interests based on other websites they've previously visited, a clear majority of 67% said no, compared with 30% who said yes.

Marketers defending behavioral targeting argue, in part, that the public might not understand how much this advertising fuels free websites.

“Because there's been so much scare-mongering, people have been frightened about behavioral advertising,” says John Montgomery, chief operating officer of GroupM Interaction, a unit of WPP. “People are now equating it to something more pernicious.’’

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We offer this disclosure to assure you this blog’s two authors, free-lance writer Ken Cocuzzo and TechMan (tag name for employment reasons), respect and value your privacy as much as our own.

Gov't As Watchdog

The Obama administration and the FTC recently issued reports on the need for the industry to better regulate how advertisers track and target people online.

A recent U.S. Commerce Department report suggests creating a “privacy bill of rights” as well as a privacy policy office that would work with the FTC, the President, and other government bodies to protect online consumer privacy.

“America needs a robust privacy framework that preserves consumer trust in the evolving Internet economy while ensuring the Web remains a platform for innovation, jobs, and economic growth.

“Self-regulation without stronger enforcement is not enough. Consumers must trust the Internet in order for businesses to succeed online,” Commerce Secretary Gary Locke says.

Do Not Track

The FTC suggests the implementation of a “Do Not Track” mechanism (modeled after the national Do Not Call list targeting telemarketers) that would sit on web browsers and monitor which advertisers can and cannot keep track of people, based on their preferences.

Opponents of a Do Not Track list say it could dramatically decrease the effectiveness of online targeted, or behavioral, advertising.

“Despite some good actors, self-regulation of privacy has not worked adequately and is not working adequately for American consumers,” FTC Chairman Jon Leibowitz says. “We deserve far better from the companies we entrust our data to, and industry as a whole needs to do a far better job.”

The FTC will make policy recommendations and “take action” against companies that violate consumer privacy, “especially when children and teens are involved,” Leibowitz says.

Microsoft and Mozilla, makers of the Internet Explorer and Firefox web browsers, say they are working on a “Do Not Track” feature.

Microsoft recently introduced a function for the latest version of Explorer that lets users build lists of sites with which they don't want to share information.

The industry has a self-regulatory plan in place, called About Ads, which released its opt-out form a few weeks ago. GroupM, for one, plans to offer the program's opt-out icon to its list of around 200 clients which rely on behavioral targeting.

The Final Say

While WMB generally does not favor U.S. government regulation of the Internet, we do believe in consumer privacy protection.

This much is certain: We cannot depend completely on industry self-policing, and consumers deserve the final say in how much they reveal online.

 Ken Cocuzzo