It's nearly the end of the year and time for another check in on the world of behavioral targeting. Some of the ongoing debate, as I've outlined in the past, revolves around the idea that companies who develop behavioral targeting technology learn to self-regulate the use of their product with regard to data privacy (both data acquisition and use). The Federal Trade Commission is not in favor of company self-regulation, believing that tech companies need to answer to an authority other than their own, while online advertisers and those that publish content believe they can regulate themselves.This is a relevant topic right now because the FTC will publish an update later this winter that will outline some online advertising privacy principles they believe need put in place. Normally this would be alarming to those companies with behavioral targeting technology, but the current direction of the FTC has been decidedly in favor of self-regulation. In fact, among the many signs the FTC has given that point to their fundamental belief in self-regulation, the pending report they’ve announced is entitled, “Privacy Principles for Industry Self Regulation” — a good clue as to their intentions toward the industry.
That said, those in charge at the FTC right now are only their through January 20, 2009. President-elect Barack Obama has already been on the receiving end of some lobbying for greater online privacy rules for data. The Center for Digital Democracy recently announced that the Bush administration gets an “F” on privacy.
Right now these lobbying efforts are centered where they have been for the past two years, on including an opt-in so consumers are fully aware and complicit in the idea that their Internet browsing behavior is being captured and used to show them ads that are relevant to their needs. While online marketers hold to the idea that these practices are not dangerous to the consumer, the advocacy groups have continued to gain steam in Washington, and the new administration is likely to lend a more listening ear to their concerns.
Once again, this ongoing debate calls out the important difference between the two levels of behavioral tracking technologies, onsite targeting and network level targeting. While network level targeting will continue to be scrutinized, onsite level targeting continues to be the safest, most effective and the most direct use of targeting technologies. For better or worse, everyone from investors to Congress to consumers will continue to demand more and more of network targeting technology, further opening the door for the success of onsite targeting.
