Users Support Targeted Advertising Over Paying for Internet Content

Advertising has always been the driving force behind quality content, and the ad industry has reshaped its business models as today’s Internet-based content ecosystem continues to evolve. Generic print ads of yesterday have made way for tailored Internet ads that fuel free access to everything from local news to viral videos like the Harlem Shake!

But do Internet users know that ads tailored to their own interests helps provide for their free content? And how do they feel about seeing these ads?

A new poll shows that Americans value free Internet content, and they are comfortable with the tailored Internet advertising that powers it. The survey, released by the Digital Advertising Alliance (DAA), measured consumers’ attitudes about Internet advertising. Despite the seeming unpopularity of “behavioral advertising” the survey found that when given the choice, Americans would prefer ad-supported content to paying for ad-free content. Some key data points:

· 92 percent of Americans think free content like news, weather and blogs is important to the overall value of the Internet (64 percent extremely important, 28 percent somewhat important)

· 75 percent prefer ad supported content to paying for ad-free content

· 41 percent of users think that browser obstacles to displaying advertising will result in less access to free content

Tailored ads are worth more to advertisers than generic ads aimed at the general population. That’s why they are so vital to the future of quality Internet content. The DAA survey shows that most Internet users support this revenue model:

    · 68 percent prefer to get at least some ads Internet directed at their interests

· 40 percent prefer to get all their ads directed to their interests

· 47 percent would oppose a law that would restrict how data is used for Internet advertising but also potentially reduced free content availability, compared to only 22 percent that support such a law

 

DAA’s findings are promising for the viability of the content industry. Most Americans are comfortable with seeing ads that are directed at their interests–and all Internet users deserve a transparent experience with online advertising. To that end, the DAA runs the ad industry’s primary opt-out program, a choice tool that allows users to tailor how and whether they receive interest-based advertising.

Read more about the findings from the DAA poll.


Laura Greenback is Communications Director at SIIA. Follow the SIIA Public Policy team at @SIIAPolicy.

Do Not Track: Time for DAA to Move Forward

It is increasingly likely that the W3C process for Do Not Track will reach an impasse.  In a recent note to Federal Trade Commission Chairman Jon Leibowitz several consumer groups described their sense that the process is deadlocked, and asked the Chairman to intervene.  FTC officials are usually at the discussion, which are set to resume in Amsterdam this week, but in his letter to Congress last week Chairman Leibowitz made it clear that it is the private sector group not the government that will adopt any Do Not Track standard.  Even with more direct FTC intervention, however, it is unlikely that parties will act contrary to their perceived fundamental interests.

The key disagreement is an understanding of what the Do Not Track flag means and what actions users can expect from websites and service providers if they turn it on.  Without this, the Do Not Track standard is incompletely specified, and provides less than comprehensive guidance for browser providers, websites and their service providers, and the general public.

If the W3C cannot reach a common understanding, perhaps the industry can.  The Digital Advertising Alliance has been looking at this issue for some time.  Indeed, back in February it indicated to the White House that it was going to address it:

“…the DAA intends to begin work immediately with browser providers to develop the consistent language across browsers regarding the browser based header signal uniform consumer choice mechanism that is simple to use and in a clear manner that describes to consumers the effect of exercising such choice.”

Mozilla proposed an easy-to-understand focused definition of Do Not Track back at the beginning of 2011:  “Tracking is the accumulation and use of a profile by advertising networks through invisible or subtle noting of which sites an individual visits, and the use of the profile data to customize advertisements displayed.”  Or, more succinctly, DNT means “a way for people to opt-out of online behavioral advertising (OBA).”

These definitions make sense.  They focus on the issue that appears to be of most concern to the public and policymakers: cross-site tracking for the purpose of advertising profiling and targeting.  We need to give consumers another mechanism to say no to OBA if they wish.  Of course, the DAA definition should incorporate the current W3C consensus that DNT “on” imposes no obligation on first parties, except that first parties may not help third parties circumvent DNT.

Other uses of tracking should be permitted.  For example, if a website is doing standard analytics, such as keeping track of where their visitors come from and where they go, market research, product debugging and improvements, investigating possible fraud or intellectual property violations or security risks.

DAA is doing great work on OBA. Its AdChoices program already gives consumers a cookie-based mechanism to opt out of OBA.  With DNT, DAA can do the industry and the public a service by bridging the browser DNT flag with the existing AdChoices program.

Customers should be told clearly that they can decline online behavioral advertising and how to do it.  DAA is in a unique position to move forward and break the logjam that is threatening to derail the promising initiative that is DNT.


Mark MacCarthy, Vice President, Public Policy at SIIA, directs SIIA’s public policy initiatives in the areas of intellectual property enforcement, information privacy, cybersecurity, cloud computing and the promotion of educational technology. Follow the SIIA Public Policy team on Twitter at @SIIAPolicy