Behavioral Targeted Advertising Raising Consumer Privacy Concerns [8/19/2008]

By the end of 2009, almost 200 million US consumers will be online. This means an incredible opportunity for Internet marketers savvy enough to use behavioral targeted advertising. And, therein lies the problem. Behaviorally targeted advertising raises privacy concerns across the board -- from Internet privacy groups to online consumers themselves.

Why Behavioral Targeted Advertising Raises Privacy Concerns

Behaviorally targeted advertising raises privacy concerns because: (I) of the amount of data necessary to collect from consumers to make it effective; (ii) the way in which the data is collected; and (iii) the manner in which the data is stored.

The FTC report, "Protecting Consumers in the Next Tech-ade,” flat out states all of these as a major concern, stating, "Given the amount of information—personal and otherwise—about consumers that is likely to be collected, used and stored, privacy will continue to be a top consumer protection priority . . ."

Internet Marketers Make the Case for Behavioral Targeted Advertising

Internet marketers take the stand that behaviorally targeted advertising benefits the consumer in the end because it returns more relevant results. The Deloitte and Harrison Group study appears to give some validity to this stance.

The study found that two-thirds of Internet users are inclined to click on additional ads if they were better targeted, and almost as many (67%) would be willing to tolerate additional ads -- if free, value-added content was the exchange.

Consumers Weigh in on Behavioral Targeted Advertising

The Deloitte and Harrison Group study highlighted the fact that consumers seem to be perplexed by behaviorally targeted advertising.

In spite of the statistics that have been mentioned above, two-thirds (65%) of consumers thought that online ads were more intrusive than print ads. And yet, according to a TNS Global survey commissioned by TRUSTe, almost three quarters (73%) of online consumers found irrelevant advertising “annoying.“

So, what are Internet marketers to do if they want to take advantage of behaviorally targeted advertising, yet not alienate Internet users? Heeding consumer concerns about privacy issues seems to be one way to allay their fears. This means asking for permission.

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