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Article

Title: Watch Out for Online Ads That Watch You

Author: Tynan, Dan Article Type: Product Analysis
Source: PC World, v25 n3 p26(1) Publication Date: Mar 2007
  ISSN: 0737-8939
  Illustrations: Screen Layouts
URL of Publication: http://www.pcworld.com

Behavioral marketing networks are being criticized by privacy advocates for launching ads based on users' browsing habits. Companies such as Tacoda, BlueLithium and Revenue Science believe that behavioral ads are more effective as an advertising tool and are not intrusive on the consumers' side. But this position is not shared by the Center for Digital Democracy and the U.S. Public Interest Research Group, which filed a complaint with the Federal Trade Commission. The 50-page complaint accused behavioral ad networks of employing unfair techniques and deceptive marketing tactics. The group said that there is nothing wrong with ads that correspond to users' interest as long as they give their permission in tracking them from site to site. Tacoda immediately said that it would run ads periodically on its network to inform consumers how its tracking cookies are used and that such cookies would not be run after a year. BlueLithium chief marketing officer Dakota Sullivan said that connecting a person to a surfing history would attract public criticism although it is helpful for companies to gain information. Behavioral ad spending is a big market and is expected to grow from $1.5 billion in 2007 to over $2 billion in 2008, according to eMarketer, a market research company. A third of the billion-dollar spending is projected to come from video ads.

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