Adware is a viable option for some advertisers, but first do some independent research of best practices.

A few weeks ago, I was speaking at the iMedia Brand Summit. My topic was adware and its nefarious cousin, spyware. As we all know, adware has been the subject of great controversy for what seems like forever. Consumers are frustrated and scared by the specter of ominous pieces of spyware wreaking havoc on their desktops. Legislators are up in arms over issues of ID theft and their connection to spyware. And there are some in the online industry who are categorically opposed to working with an adware partner.

For many consumers, legislators and industry professionals, the differences between adware and spyware are negligible. Many even use the terms interchangeably.

As I’ve mentioned in previous articles, several adware firms are taking great steps to position themselves as NOT spyware. Similarly, there are other firms that place software onto consumer desktops that are seeking to position themselves as NOT adware. Some say they are not adware because they don’t use pop-up ads. Others say they are not adware because they don’t engage in any form of online profiling. And there are a few research firms that claim their desktop marketing research tools should not be considered adware. All of these organizations make very legitimate arguments. We’re going to continue to see firms lobby the industry to accept their definitions while the technological landscape changes at light speed. If nothing else, it’s going to be interesting to watch. The firm(s) that win the battle of perception will undoubtedly have a tremendous leg up over the rest of the field.

Despite all the controversy, adware is a viable option for some advertisers, many of which support large, well-respected brands. But the adware firms realize that until they get out from under the privacy issue, they won’t be able to reach or maximize their revenue potential. Why? Because too many big advertisers will remain reluctant to use adware if doing so poses an unacceptable risk to their brand.

Undoubtedly, some adware companies have a few ghosts in their past that they are trying to exorcise. But I don’t believe that adware as a medium is inherently risky -- if you go in with your eyes open, that is.

If you’re not vigilant these days, then you’re at risk of injuring your business. And that goes for adware, as well as many other nascent advertising vehicles. The trick is to find an adware partner that is exercising best practices. With that in mind, I thought I’d share part of my framework for making this type of evaluation. Here’s the Chapell view on how to select an adware partner.

What do they say they do?

First, you want to get a sense of the outward representations that an adware company makes. For example, take a look at their privacy policies and end user license agreement (EULA). Does the EULA provide clear notice to consumers downloading their software? Is there a clearly defined process for uninstalling the software if the user decides to remove it? It may even make sense to have your legal resource take a look at those documents.

Understand what they do

This is critical. And it surprises me that more professionals who are evaluating adware have not taken this step. Find a spare desktop in your office and download one of the adware clients. Get a sense of how many ads are delivered over the course of a day. Observe whether or not all the ads you receive from the adware firm’s ad client are branded. What type of software supports their ad client? What type of other advertisers are they working with? You can understand a lot about an organization by taking a look at the company they keep.

How do they distribute the adware?

Many adware companies have third parties who help them distribute their software. And similar to the email list rental and co-reg world of a few years ago, there are good distribution partners, and there are very, very shady ones. Therefore, it is important to understand the steps your adware partner takes to vet their distribution partners. For example, does the adware firm require that their distribution partners adhere to industry best practices? Is there a process in place to ensure that the distribution partners are doing the right thing? The answers to these types of questions will provide you with a framework for mitigating your risk.

The bottom line

And that’s really the point. Maybe adware is the right option for your organization. And maybe it isn’t. But you need as much objective information as possible in order to reach that decision.

Think of it this way. If you’re trying to decide which sites to add to your media plan, there is objective research to help you with that decision. If you’re trying to figure out which email marketing service provider is best for your needs, there are all kinds of excellent resources at your disposal to assist your evaluation.

Those types of resources, as they pertain to adware, are just starting to develop. For example, adware companies are beginning to look to third party seals as a way to separate out the responsible players. But for now, if you want to move into the adware space, your best bet is to conduct some independent research of your own.

Additional Resources:

2005 Privacy & Marketing Predictions
Adware's Next Generation
Legislative Watch
Spyware Q&A with BURST!'s Jarvis Coffin

Alan Chapell is a consultant focusing on Privacy-Marketing -- helping companies understand privacy and incorporate consumer perception into product development. He has been in the interactive space for more than seven years with firms such as Jupiter Research, DoubleClick and Cheetahmail. Mr. Chapell is the New York Chapter Chairman of the International Association of Privacy Professionals, and he publishes a daily blog on issues of consumer privacy.