After yesterday's discussion about how online publishers and ad networks rely on tracking our activity so they can optimally target ads to us, I read the following article in the New York Times ("A Push to Limit the Tracking of Web Surfers’ Clicks") about New York State legislators trying to limit the practice. As Professor Kagan mentioned, and this article reaffirms, the wealth of free online content and services that we take for granted rely on the ability of publishers to use all tools at their disposal to effectively target ads for the companies that are paying their bills. If a bill emerges that undercuts this business model, consumers are likely to see a lot of companies they love disappear.
The most interesting thing about this issue is the fact that this new legislation is being proposed in New York State but may become a national requirement since it would be too difficult to employ different tracking and targeting standards for users in different states. Of course, I'm certain that the legislators and privacy advocates will find some reasonable compromise with the online ad community. Nobody wants to kill the golden goose of online advertising just as it's starting to lay bigger eggs.
1 comment:
I think this is a case of politicians trying to show they are doing some work. It is not initiated by any sort of public opinion. I agree that people probably don't know how much is being tracked, so what is needed is transparency in terms of what information is being collected. All internet companies need to disclose the level of information they have of users. If users are not comfortable with that level, it can then turn into regulation, etc. However, I agree with Mr Zaneis that the ad-based model that has fueled free services is one that people have accepted, so it will be extremely difficult for people to start paying for these services now. Can we imagine a world of paid search or news?
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