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Behavioral Targeting and Privacy

JULY 29, 2008

Can informed consent put consumers at ease?

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Marketers today must face the ongoing challenge of determining the proper balance between online ad targeting and privacy. However, the general public may be less concerned about the matter than privacy advocates might suggest.

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Of the 2,513 respondents to a recent Harris Poll, 55% said they were very or somewhat comfortable with Websites that had privacy policies allowing targeted advertising and content. And, unsurprisingly, the youngest respondents—ages 18 to 31—were more comfortable than average, with 62% indicating approval of such privacy policies.

Still, 45% of the Internet users polled said they were not comfortable with policies that allow ad targeting—and that is too big a group for marketers to ignore.

Comfort of US Internet Users with Websites* with Privacy and Security Policies that Target Ads or Content to Personal Interests Based on Usage, by Generation, March 2008 (% of respondents in each group)

Research from TNS Global and TRUSTe—a privacy advocacy organization—found that 70.5% of the 3,260 US adult Internet users surveyed agreed somewhat or strongly with this statement: "When I am online, I am aware that my browsing information may be collected by a third party for advertising purposes."

Awareness and comfort diverge, however, since 57.2% of respondents also indicated they were not comfortable with advertisers using their browsing history to serve them relevant ads—even if the data used could not be tied to their name or other personal information.

Consider that in light of the TNS/TRUSTe result showing 74.3% of US adult Internet users are aware of tools that help them protect their online privacy. Further, a whopping 91% of respondents say they would take the necessary steps to protect their privacy.

US Adult Internet Users

On the Internet, however, privacy is a slippery concept. As Information Week has pointed out, the same "aggregation of the many small pieces of innocuous data" that powers behavioral targeting also allows further analysis that breaches the privacy barrier.

Advertisers, publishers and ad companies hoping to placate privacy concerns will need to expand on informed consent. Website visitors will have to actively opt in to behaviorally targeted advertising with the full understanding of the implications of their assent. They will also need to be informed of the real benefits of saying yes, including more-relevant advertising and the possibility of free services such as video, photo storage and so on.

Learn how to reach your audience without alienating it. Read eMarketer's Behavioral Targeting Attitudes: The Privacy Issues report.  

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