It was announced recently that NebuAd closed down after a fairly lengthy controversy surrounding its ISP-based targeting system. As of this writing, UK-based sister company Phorm may also be on the chopping block; however, the ax has not fallen quite yet. Frankly, I was pleased to hear the news. The behavioral marketing industry as a whole is no stranger to controversy or federal involvement in policies and practices in our space; however, a consistent peccadillo has been the lack of understanding of the widely varied differences in how behavioral targeting is addressed by different companies. All too often, behavioral firms tend to get lumped in together by both consumer advocacy groups and legislators whose good intentions of protecting consumer privacy often overlook the differences and certainly the benefits of behavioral targeting.
We all operate under the assumption that most consumers understand the value proposition of having free access to content in exchange for advertising. That understanding has evolved based on a media culture that has existed for quite some time, including most of us growing up with free television and radio access. That said, it is easy to venture that a consumer does not sit around thinking about the bargain they are making every time they visit their favorite sites. That brings us to the point: It is imperative that we, as an industry, do a much better job educating consumers, and subsequently the feds, as to what this value proposition is and how each person benefits.
First, we need to agree on what the benefits are to the consumer. We have already established that content is made available for free in exchange for a consumer being exposed to advertising. That's an easy case to make. If publishers asked consumers the question -- "Would you write us a check each month to visit our site, or would you rather see some ads instead?" -- in most cases, we know what that answer would be.
OK. So advertising keeps content free. Now what is the benefit of targeted ads? The overarching benefit is relevancy. Relevancy means that the consumer has a more appropriate experience and reduces intrusiveness. Advertising becomes content and a part of an experience based on their own interests and intents. On the business side, relevancy for an advertiser means better results, and hence, for a publisher, better yield on inventory. The importance of these business benefits to the consumer is that better yield for both the advertiser and the publisher means less exposure to ads are necessary to garner results. Less ads? Consumers can grasp that.
If we can agree on these benefits -- free content, a relevant experience, and less advertising -- we have a basis for educating consumers. The next step is agreeing on standards that protect consumers. These standards must assure consumers that the benefits far outweigh any perceived downside.
How do we do that? First off, we have to protect consumers' privacy. We must make sure that we are not collecting personally identifiable information, that consumers are aware of what we are doing and how it benefits them, and that we give consumers choice and the ability to opt-out if the value proposition is not one that interests.
One organization that is doing a very good job of leading the charge is the NAI. NebuAd was never a member of the NAI, and its practices' effect on privacy has forced the company into its current situation as a result.
Behavioral marketers should keep the following best practices in mind when utilizing behavioral targeting.
Only collect non-personally identifiable information. If the NebuAd situation has made anything clear, it's that ISP-based and deep packet inspection information collection methods leave you wide open for privacy violations. Collection methods such as pixels, tags, beacons, and cookies enable you to collect non-personal information to use for targeting, with no need to go any further into privacy grey areas.
Data confidentiality. Keep all data that you collect and store for your users strictly confidential. And ensure you hold your vendors and subcontractors to the same standards whenever they provide services related to that information. Do not allow any third-party access to the information you collect except as explicitly permitted by the user.
Data storage and usage. Whether you manage your data or you rely on a partner, ensure that the data are maintained for a rolling period of nine to 12 weeks and always take the appropriate steps to ensure that all information is secured from unauthorized access. Protect it from loss, misuse, disclosure, alteration, and destruction in storage while under your control.
Involvement in industry organizations. Network Advertising Initiative, the Internet Advertising Bureau, and the Behavioral Targeting Standards Consortium, among others, are available to marketers for guidance on industry best practices and privacy regulations. These organizations help ensure that the marketing industry continues to be allowed to self-regulate, and they are vital to the success of the industry as a whole and the comfort of consumers.
It's not only important that you follow these privacy recommendations, but it's also imperative that you insist upon your partners and contractors to do so as well. Behavioral targeting can significantly enhance the online advertising experience, but only when users feel entirely safe with regard to their information. A certain amount of the confusion will inevitably boil down to perception; some people simply find the idea of targeting to be "creepy." However, as long as we as marketers are stepping up to the plate and doing everything within our power, from a business and technology perspective, to safeguard that information, we can focus on education and eliminating the creep factor. Also importantly, we can ensure that our businesses can keep their doors open for a long time to come.
Jeff Hirsch is president and CEO of AudienceScience.
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