AT&T Defends Ad Targeting

09/15/2008

Mobile advertising is becoming more popular, and AT&T is taking full advantage of it. The company set a precedent by strongly defending its tracking of user browsing behavior across its network. Its argument basically rests on its contention that it can dramatically improve user experience, according to a New York Times article.

Using language like tracking user behavior "the right way", it emphasizes the importance of methods like opt-in, as opposed to opt out. The difference between the two is that opt-in asks customers for their permission to be monitored while browsing, while opt-out monitors all users online, unless they specifically ask not to be tracked. Opt-out is the method most commonly used by ad tracking firms.

The incident that spurred AT&T to defend its ad targeting was a inquiry from the House Committee on Energy and Commerce. The body contacted 33 companies about their ad targeting practices. The House Committee on Energy and Commerce inquiry was prompted by information that a behavioral ad firm, NebuAd, was in the market to purchase customer surfing data from numerous internet service providers (ISPs). Many of the major ISPs, e.g., Comcast, Verizon, TimeWarner Cable and AOL responded to the committee by assuring them that they do not track consumers on sites that they don't operate.

AT&T's response ran counter to these companies, insisting that behavioral targeting is a value-added proposition for customers. They argued that this kind of monitoring gives greater control to consumers, e.g., in the information they receive. Furthermore, the company contended, it ensures consumer privacy.

In defense of AT&T’s argument, a recent study by Harris Interactive found that consumers in general are fine with behavioral targeting, as long as their privacy is protected and security safeguards are in place.

An AT&T spokesperson pointed out that the company has never engaged in overall behaviorally targeted advertising. Dorothy Attwood, the spokesperson cited, pointed out that ISPs and other ad networks like Google use ad targeting to gain a better overall understanding of customer wants and needs by looking at a browsing history across numerous websites, not just one site. Ms Attwood went on to point out that the company is looking at other behavioral targeting activities, e.g., using correlating web-surfing data from several platforms (i.e., use on sites from broadband versus wireless users). This, so far though, is a future initiative, not one that has already taken place.

The government has taken a proactive role in protecting consumer privacy. A hearing was conducted in mid-July by the House to asses the extent to which ISPs and ad firms were partnering to exchange/sell consumer information. The goal was to put pressure on both sectors to reform current practices.

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