In light of the current debate over privacy and BT, our industry can and should take three broad proactive steps to both protect consumer rights and behavioral targeting.

More so than any medium before it, the internet operates "by the people, for the people." So naturally, when it comes to the internet, the interests of the majority should come first. However, recent debate surrounding the collection and use of anonymous clickstream data to deliver targeted advertising campaigns has shown that the minority has the potential to alter the online landscape drastically in ways that may not serve the majority. 

The issue at hand is profile-based targeting, most often referred to as behavioral targeting, which delivers custom advertisements based on an anonymous web-based profile. Small groups of privacy advocates are urging the FTC to require behavioral targeting cookies to be opt-in, with the idea that this form of advertising invades personal privacy and ultimately harms the consumer. But are the demands of this vocal minority truly in the best interest of the majority of online consumers? 

Before any decision can be made by advocates, government, or the online advertising industry, the needs and wants of consumers at large must be taken into account first. 

• Free vs. pay-as-you-go internet. According to a study conducted by the Ponemon Institute, a staggering 86 percent of people would prefer to receive relevant advertising, or profile-based targeted ads, than to pay for content. This fact reflects the nearly unanimous consumer desire to keep the internet a free medium. For the vast majority of Americans, the idea of having to pay to access and share information every time they check the weather, plot directions, or post to a blog is anathema. 
  
  
• Transparency. Today, the majority of online users -- 84 percent, according to a recent study by eMarketer -- claims to be familiar with cookies. But there is still a great deal of confusion about the impact of cookies on privacy. Familiar with the concept of cookies though they may be, most consumers are unclear about the specifics: what cookies are, how they are used for behavioral targeting, and whether or not they can be used to identify individuals personally in some way. 
  
  
• Control. Recent events, like the uproar over the Facebook "Beacon" program, have shown that when the consumer loses the right to choose, things don't go well. Consumers want to be able to clearly assess the trade-offs between providing information in exchange for "free" functionality, and then make the decision for themselves about whether or not a particular trade-off is worth it.  

The role of our industry
The online advertising industry plays a major part in the overall composition and vibrancy of the internet. We think our industry should take three broad steps to preserve the interests of the majority and create a better online experience for all consumers.

1. Establish clear standards
Advocates complain that the privacy measures enacted by members of the online advertising industry vary greatly, often making it quite difficult for average consumers to digest and take control of their online experience. We as an industry need to decide upon and enforce a common set of definitions and standards for privacy protection -- not wait for rules to be imposed upon us by the government. An idea quickly gaining popularity is a common privacy notice, whereby all web publishers carrying targeted advertising include in their privacy policies an industry-standard statement that is designed to be easily identifiable and understood by the population at large. Another potential standard practice likely to go down the well is for all online advertising networks to provide consumers the ability to opt out of targeted advertisements. Just as other industries have developed consumer-focused standards, we too need to agree to a common set of terms, guidelines, and best practices that all responsible members of our online community adopt and support.

2. Educate consumers
Despite the claims of opponents of targeted advertising, our industry has nothing to gain by hiding our practices. In fact, research shows that the more knowledge people have about cookies, the more likely they are to be in favor of ad personalization. Findings drawn from the Ponemon Institute note that individuals who claim to have firm knowledge of cookie technology are much less concerned about the use of cookies and more likely to interact with personalized ads. By investing in educational efforts, such as public service announcements, our industry can help foster awareness for consumers to come to their own, well-informed opinions on targeted advertising. Seeing the mass of consumers understand and embrace profile-based advertising, marketers will be inclined to spend more of their budgets online, thus enabling more and better free content and functionality on the internet and the development of a virtuous circle that benefits all.

3. Reinforce the right to choose
It's the nature of online advertising networks to customize ad delivery to reach specific consumer targets. But a consumer who would rather not have a network determine the ads she sees should be able to turn the engine off. Fortunately, our industry already has a one-stop shop for consumers who want to pick and choose the forms of targeting they accept. The Consumer Opt-out Program of the Network Advertising Initiative (NAI) lets consumers learn about participating ad networks, see which participating ad networks' cookies are on their computers, and opt out of any network they choose. We strongly endorse the NAI, and encourage all networks to join. We all win: The more advertising networks stand united under a common set of practices that reinforce the right of consumers to choose, the more trust our industry will get in return. 

Without a doubt, the online advertising industry enables the internet to continue to grow, evolve and expand. To keep the internet vibrant and free, the online advertising industry must commit to a set of consistent and concerted privacy measures that earn the trust of the majority. With these privacy measures firmly in place, our industry will create a better online experience for all consumers, and perhaps, even earn the confidence of the vocal minority in the process.

Lauren Hudson is manager of external affairs at Mindset Media.