I Always Feel Like Somebody’s Watching Me: Behavioral Targeting on the Web

Web advertising, particularly targeted ads based on behavior, is on the rise. According to Business Week advertisers will spend $960 million on personally targeted ads next year, up from $708 million last year.

Not familiar with the term behavioral targeting? It is a technique used to collect information on an individual’s web browsing habits (pages visited, searches made, etc.) or geography and demographics to display relevant content in the form of online ads. Many of us have pretty much learned to ignore this type of advertising, but behavioral targeting ultimately works by showing content to people who are more likely to take notice and click through.

While behavioral targeting has certain advantages (including a more targeted audience and often times a lower cost) there are some disadvantages. Jon Leibowtz, Federal Trade Commission Chairman and a consumer watchdog, is talking about eliminating – or at least reigning in – behavioral targeting practices. The thought behind his proposed changes is that behaviorally targeted ads can induce a customer to make a purchase or decision that they would not have made if they didn’t see the ad. But wait a minute? Isn’t that the purpose of advertising? The FTC and some consumer advocates however further claim that the general public is not made fully aware of how their information will be used or shared which (let’s admit) can be troubling.

The increase in behavioral targeting may also backfire. Internet users are already saying that they do not like being targeted. A recent survey by the University of California at Berkley and the University of Pennsylvania found that 66% of Americans do not want marketers to tailor online ads according to their interests. Even young adults ages 18 to 24 were more likely to say “no” to behavioral targeting than to accept it. 

While I believe that behavioral targeting is here to stay in some way, shape or form for the long-term, what are your thoughts? Comment here or take this week’s poll.