Are You Smarter Than an Interactive Ad?

Advertising on the web is getting smarter. And no, I don't mean "smart" as in witty and entertaining (like the Most Interesting Man in the World), I mean "smart" as in the advertising that knows a little bit about who I am, and what I'm into. It might even ask for my feedback (like Hulu ads do), and then take what I say into consideration the next time I'm served an ad. These type of ads are driven by a concept called behavioral targeting.

In short, behavioral targeting is when advertisers use info from how you surf the web (using tracking cookies, or data from searches you make) to target you with ads that are more relevant to your interests. The ads you see on Facebook and Google are a good example of where you will see behavioral targeting used.

What's that Facebook? Why yes, I am a interested in a sale on Phillies hats. Thanks for asking.

There's a lot of concern over the privacy issues with how this data is collected, and understandably so... nobody likes to feel like big brother is watching their every move. According to a recent USA Today survey, "two-thirds of Internet users don’t believe advertisers should be allowed to target online ads to their interests based on the sites they have visited". In fact, the FTC is even wants to give consumers a simple "Do Not Track" option to opt out of having their surfing info tracked and used by advertisers.

But is the end result of behavioral targeting a bad thing? Let's say you're a big Philadelphia Flyers fan (like me). While browsing the web, you visit their website, read some articles about the team, and even do some Google searches for "Flyers tickets". With behavioral targeting, ad networks could use this info to show you ads for sales on Flyers tickets, or team merchandise. Without it, the chances of you seeing ads for things that actually interest you decrease dramatically.

I think the real problem here is not that that info like this is being tracked and used by advertisers... I actually prefer that ads are somewhat catered to my interests. When done the right way, it has the potential to be a win-win situation for advertisers and consumers alike. The issue is the lack of regulation and openness for what's being tracked, and how they are storing it (or sharing / selling it), which the FTC is not addressing specifically. 

What's very important to understand here is that even with some type of "Do Not Track" solution, ads are going to happen on the Internet one way or the other... they aren't going to let you completely opt out of that. You would only be able to opt out of the tracking that drives these targeted ads. So... it's either 1) choose "do not track" and get irrelevant ads, or 2) get relevant ads without clear knowledge of exactly what's being tracked and who's tracking it. Looks like I'm out of luck...

No matter what your opinion is on the subject, if you use the Internet the use of behavioral targeting affects you... so you should be aware that it's happening. And FYI, if this catches you by surprise, or you want to opt out of some of this tracking, there already are some ways of opting out of being tracked by some major ad networks.