Monday, September 22, 2014

Privacy in an Online World: Should You Be Worried?

The discussion surrounding privacy in a world where more and more data regarding browsing, purchasing, and general online behaviors is one that's hotly contested. My belief is that the focus of the discussion, which mostly pertains to what data is being collected and how, is misguided. I view advertising as a continuum - on the left side is a world where ads are served completely randomly and there is no distinction between what I see and what my mother, for example, sees. To put it simply, this side of the spectrum would have an equal likelihood of showing relevant and non-relevant content. All the way on the right, you have a completely personalized experience where every ad you see is highly relevant and can aid your consumption experience. On the left side, I have to do all of the research to find what suits my interests. On the right side, the work has been done for me, and all I had to do was give advertisers access to information about me.

I like the idea of having this work done for me. As of right now, we are somewhere in the middle of that continuum. Users fear being tracked, and disable third-party cookies, clear their browser caches, and employ software that reduces the amount of personal data advertisers can collect. My question is, why? Advertisers don't care that you're planning to cheat on your spouse, or that you may be planning to do otherwise sinister things. What they do care about is that you're in the market for a dishwasher, or a home loan, or a pair of socks, or any other thing that can be sold to you. I like the idea of my favorite sock brand knowing that I'm in the market for a pair and targeting me with relevant ad content as I read an article in NY Times Online - it just makes my shopping experience easier.

Moreover, the advent of real-time bidding (RTB), which now comprises about 20% of the online display market, enables advertisers to bid on individual impressions (i.e., they can bid to show me, or people like me, specific ad content, and the transaction with the publisher is completed in a matter of milliseconds as the selected page loads). This market is growing rapidly and here to stay. I am all for giving up my personal data if it makes for a more engaging consumption experience. And this technology, while mostly focused on desktop browsing, is becoming increasingly relevant across other platforms such as mobile. In a perfect world, my experience across all media would be completely personalized and tailored for me and my interests. Hell if the personalized experience could extend to the TV programs I watch, or the billboards I see, all the better. It may get there someday, but for now it's mostly online. I, for one, am willing to embrace and enable the potential of enjoying that experience.

I mentioned that the privacy discussion is largely misguided. There is an important discussion related to the collection of this data, but it's not the one garnering headlines. I will share my thoughts on it in next week.

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