Collecting Behavioral Data Online
The Rules are About to Change
Last week I got invited to a lunch and learn titled The Obama Factor & FTC Update. Three associates from the law firm Frost Brown Todd came into our offices to speak about this very interesting subject.
One of the topics they addressed was collecting behavioral data online, which to me, as an advertiser is key information to my clients’ businesses. Today, consumers have control over where and how they receive messages. The purpose of behavioral targeting is to send our client’s message to the right person when they are ready to receive it.
The FTC defines behavioral advertising by tracking a consumer’s online activities over time (e.g. searches, websites visited, content viewed) to deliver advertising catered to that consumer’s interests. Why is this information important? It helps tailor content to each unique individual. I frequently visit www.target.com or www.gap.com for shopping. So when I’m doing a Google search it’s no coincidence that a Gap, Target or even Macy’s web banner is served up on my screen.
We know that we are not optimizing online ad dollars when we serve ads that aren’t relevant; cost per click, engagement and ultimately conversion numbers all improve the more targeted we make the message.
This may seem a little “big brother,” but don’t get too paranoid, the data collected is not linked to you personally-only to the IP address on your computer. They are not tracking your name, address or credit card number. They are simply tracking your behaviors: what sites you visit, what content you read, how much time you spend on a site. Allowing this information to be collected and tracked often makes for a much richer online experience.
Consumers will now be aware and educated on online monitoring and will have the option to “opt-out” from being tracked. Currently, consumers have this option but it’s buried at the bottom of a web page. The FTC is working to bring it up as a focal point on a web page. And guess who the FTC thinks should be responsible for making sure this information is shared with the consumer? The advertiser-and in turn, the advertising agency creating the messaging.
What does this mean for the advertiser and agency? Consumers could now be more aware that their online behaviors are being tracked, and if they are uncomfortable with this, they can put a block on it. In doing so, this could change the way marketers find information about our consumers. It could also change the way consumers use online tools. If they “opt-out” of being monitored they may be missing out on content that they might enjoy getting.
How do you feel about this new FTC rule? Do you think it will help or hurt the consumer?
