| Let's face it; to survive you have to market your | | | | the Internet, and Rep. Joe Barton (R-Texas), |
| business. That means reaching the right audience, | | | | wrote to Charter asking it to put the test on hold |
| those who have an interest in the kind of | | | | to give time for discussions. |
| products you are selling and making the pitch. | | | | If this idea was not so alarming, what would there |
| That is pretty self-evident as far as it goes. We | | | | be to discuss? |
| have word of mouth, ads on traditional mass | | | | As for the other two, Embarq Corporation and |
| media outlets such as TV, radio and print; and | | | | CenturyTel, Inc., both phone companies, have |
| now there is Internet marketing, with its search | | | | finished their testing and are still considering the |
| engine optimization, pay-per-action ads and social | | | | move. Embarq has yet to come to a decision but |
| marketing, that reaches people not just across | | | | CenturyTel's head of investor relations, Tony |
| town but around the world. The technology used | | | | Davis, claims that Charter's decision was based on |
| to reach these potential customers is powerful, | | | | cable industry regulations and, therefore, don't |
| flexible and becoming more useful and expansive | | | | apply to telephone companies, saying that "At this |
| each day. | | | | point it's not affecting our thinking." |
| However, technology moves a great deal faster | | | | It has not affected their thinking. Why does this |
| than either law or ethics. This has been the case, | | | | not surprise me? |
| for example, with physics (nuclear technology), | | | | The Cost of Behavioral Advertising |
| and biology (cloning, stem cell research), and it is | | | | For those of you who answered, "Because you |
| certainly the case with Internet technology, | | | | are a cynic," I congratulate you on your insight |
| especially when it comes to the subject of | | | | but no, it has more to do with Tony Davis' |
| targeted advertising and its effects on privacy. | | | | position with CenturyTel. He's the guy charged |
| How Targeted Advertising Works | | | | with keeping the investors happy and-all other |
| Also known as "Behavioral Advertising," this is | | | | things being as they should be-the more income |
| based on a given user's browsing history. This is a | | | | streams a company has, the happier those |
| departure from its close cousin, "Contextual | | | | investors get. It is one of the fundamentals of |
| Advertising," since it doesn't look at current | | | | business, right? The problem is that Davis and his |
| search engine results to generate relevant | | | | cohorts are forgetting another fundamental of |
| advertisements; it looks at the user individually to | | | | business: Be a good corporate neighbor. |
| determine what they are interested in. | | | | I don't see any good to behavioral marketing. You |
| Network vs. Onsite Behavioral Advertising | | | | may have figured that out by now. I see it as an |
| Behavioral advertising both over networks and on | | | | invasion of my privacy, a reminder that what I |
| specific sites is based on building up demographic | | | | am doing online and in the privacy of my own |
| data on what users spend most of their time | | | | home is being monitored and I am just |
| looking at with networks building up this data by | | | | old-fashioned enough not to like it. How does this |
| looking at specific sites people visit while onsite | | | | translate into action? It is simple: I do not click on |
| advertisers look at where users go on a single | | | | any ads that correspond to things that I have |
| site and target their ads based on that data. | | | | searched for and I trash any e-mails that relate |
| The rationale behind this is that the money spent | | | | to anything I have been looking at. I may not be |
| by advertisers is better used when the ads are | | | | able to get out of this monitoring but I can |
| targeted to the specific needs of the audience. | | | | choose whether or not I reward the people |
| Why would someone who enjoys mountain biking, | | | | invading my privacy. |
| but isn't interested in fishing, want information | | | | If I am making that choice, refusing to give my |
| from a travel agency that specializes in Canadian | | | | business to companies who offensively invade my |
| fishing trips? They wouldn't, so why waste that | | | | privacy, then there are many, many others. In a |
| travel agency's money advertising to them? On | | | | recent study of consumer attitudes toward |
| the other hand, say the advertisers, since there | | | | behavioral marketing, Truste, a consumer privacy |
| are plenty of mountain bike-related ads that would | | | | organization, came up with some interesting |
| be perfect for this person to see, shouldn't we | | | | statistics: |
| make sure they see them? | | | | - 71% of online consumers are aware that their |
| The major concern is privacy. Even when the | | | | browsing information may be collected by a third |
| advertisers are using anonymous data based on | | | | party for advertising purposes, but only 40 |
| the number of hits that certain sites or links get, | | | | percent are familiar with the term "behavioral |
| there are concerns that the privacy of the Web | | | | targeting." |
| users who are visiting those sites and clicking | | | | - 57% of respondents say they are not |
| those links is somehow being violated. American's | | | | comfortable with advertisers using that browsing |
| have traditionally resented anything that smacks | | | | history to serve relevant ads, even when that |
| of being monitored. Since 9/11, we have accepted | | | | information cannot be tied to their names or any |
| more of that from the government and law | | | | other personal information. |
| enforcement (lest the terrorists win) but when it | | | | - 91% of respondents expressed willingness to |
| comes to private corporations harvesting and | | | | take necessary steps to assure increased privacy |
| using that data-especially since they seem to be | | | | online when presented with the tools to control |
| pretty bad at keeping our personal information | | | | their internet tracking and advertising experience. |
| confidential-Americans still tend to have a problem. | | | | - 64% would choose to see online ads only from |
| ISP Behavioral Advertising and the Threat to | | | | online stores and brands that they know and |
| Privacy | | | | trust. |
| That said, we can recognize that it is one thing | | | | - 44% of respondents would click buttons or |
| for a network of sites to look at where people | | | | icons to make that happen. |
| are going in order to target advertising, but quite | | | | - 42% percent say they would sign up for an |
| another when an internet service provider (ISP) | | | | online registry to ensure that advertisers are not |
| does it. After all, they already know us by far | | | | able to track browsing behaviors, even if it meant |
| more than just an IP address. They have our | | | | that they would receive more ads that are less |
| names, addresses, phone numbers-credit reports | | | | relevant to their interests. |
| for all we know-and they can also track our | | | | The analysts at Truste say that education, |
| movements and communications on Web | | | | transparency, real choices and real value are |
| whether we like it or not. | | | | needed before this kind of advertising is |
| This comes as a surprise to most people for the | | | | acceptable to the majority of people. Right now, |
| simple reason that few, if any, of us ever read | | | | however, this approach to marketing, regardless |
| the voluminous mass of painfully tiny-and often | | | | of what people say about wanting to see more |
| semi-legible gray-type that makes up the ISP's | | | | relevant advertising, is not beloved of the masses |
| end-user license agreement (EULA). In a Fox | | | | with a very sizeable percentage wanting it out of |
| News interview, Marvin Ammori, general counsel | | | | their lives entirely. How do you think they feel |
| of Free Press, a Washington-based consumer | | | | about the advertisers behind those unwanted |
| advocacy group, said: "The network is asserting | | | | ads? It can't be good and, ultimately, that is the |
| almost complete control of the users' ability to | | | | cost of invading people's privacy. Their opinion of |
| use their network as a gateway to the Internet. | | | | you and your company goes bad and they deny |
| They become gatekeepers rather than | | | | you the one thing you want-the very reason you |
| gateways." This role as "gatekeepers" also | | | | invaded their privacy in the first place-that sale. |
| includes monitoring your Web surfing, watching | | | | The Bottom Line |
| the way you use your e-mail and even deciding | | | | Sometimes, in the mad scramble for cash that is |
| what sites you can or cannot visit. | | | | today's marketplace, it is good to step back, take |
| Given that much power handed over by | | | | a couple of breaths and consider what you get |
| customers who just want to get online, is it any | | | | and what you lose by going with the latest and |
| wonder that some ISPs are looking at behavior | | | | greatest of anything. In the case of this |
| advertising as a new income generator? It | | | | behavioral marketing, what you might gain by |
| shouldn't be. Three of the nation's largest ISPs | | | | employing it will mostly be lost by the way people |
| have been considering a plan by a company called | | | | will be turned off by knowing that you have your |
| NebuAd, Inc., to launch behavior-based advertising | | | | eye on them. If you want to target customers, |
| on their systems. | | | | target your own, keep an eye on what they buy |
| The response from both privacy advocates and | | | | and suggest things based on that data. They have |
| public figures was quick and clear. In fact, one of | | | | already opted to do business with you so it is not |
| them, Charter Communications, dropped its plans | | | | really an invasion of privacy. Strangers haven't |
| after protests arose over privacy concerns and | | | | and the more they feel targeted, the more they |
| U.S. Rep. Edward Markey (D-Mass.), chair of the | | | | will treat these ads as what they really are, spam. |
| House Subcommittee on Telecommunications and | | | | |