Sunday, March 17, 2013

Online Marketing

The practice of behavioral or target advertising has become a marketing tool for a vast amount of online companies.  Behavioral advertising is when a collection of a user's data behavior is gathered based on their web site history, past searches, and browsing habits.  This method gives companies a competitive advantage by increasing the effectiveness of their advertisements to better suit customers.   Individual principals of the stakeholders, such as stockholders, business groups, suppliers and distributors, customers, and the community as a whole, to these companies that are participating in online marketing should be taken into account. 


Possible benefits of target advertising for customers include:
  • Free online content supported by online advertising, as in steaming online media
  • Advertising tailored to consumer's personal interests
  • Possible decrease of unwanted or non-related advertising

Some concerns for privacy due to target advertising are:
  • Customers being in the dark about the data collection by websites
    • Without knowledge of it even happening
    • Also, inadequate disclosures to users about the practice of advertising
  • Availability to acquire and store consumers detailed information
    • Adding to the risk of personal data-regarding finances, health, or children- falling into the wrong hands, allowing for unexpected uses 

Self-Regulatory principles for Online Behavioral Advertising are regulation standards for online advertising and marketing that was set in place in 2009, by the Federal Trade Commission (FTC).  However, there is still a disagreement between the advocates of privacy and the online industry over a couple issues.  With the one side, privacy advocates wanting not only an opt-in policy at all sites, but also a national do not track list.  While the  industry disapproves such notions and requests for the only way to shy away from tracking is to have the ability to opt-out (Privacy Law Affecting Online Businesses 1).  Although they do agree that in order to deal with behavioral tracking greater transparency and user control is needed.  The Network Advertising Initiative (NIA) started in 2000, has been busy trying to increase customer awareness and emphasize importance of responsible business and data management activities.  The NIA helps protect consumers' privacy while participating in advertising online by advancing self-regulatory principles for online advertisers.




http://www.atrizadeh.com/lawyer-attorney-2083860.html
http://export.gov/safeharbor/eg_main_018241.asp
http://www.ftc.gov/os/2009/02/P085400behavadreport.pdf
http://www.iabaffiliatemarketing.com/behavioural-advertising-in-affiliate-marketing-new-best-practice-guidelines-launched/
http://www.networkadvertising.org/
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2 comments:

  1. UnknownMarch 21, 2013 at 6:59 PM

    I would say that there has to be a good balance between the privacy of internet users and marketing. I know a friend who found out her boyfriend was going to propose to her because engagement rings kept showing up in the advertisements on Facebook and other websites. It can become obnoxious to constantly see advertisements on your computer, but it is nice that the advertisements are typically something that I am interested in. It is hard to imagine, however, that companies can track everything we see on the internet. This can start to make you paranoid when searching the web. I hope that they are able to maintain a good balance of keeping a persons information safe and providing advertisements to consumers.

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  2. Danielle and Laura (team 6)March 25, 2013 at 10:12 AM

    I too feel weary about my past history online being kept track of. That is certainly an example of how online marketing is unhelpful! What a way to spoil a surprise!

    Laura Mayhew

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