I know what you are thinking- I work for this company, I work with these people, and, of course, we are going to promote self-regulation on the FTC online privacy issue because we are an ad agency. Hear me out because regardless of what pays my bill, I support self-regulation and these smart people I work with make some really good points.
For those that aren't familiar with the issue, the Federal Trade Commission (FTC) is considering the introduction of a Do Not Track system for consumers in which they can opt-out of all online tracking systems. It is currently up for comment, there is no official action being taken at this time because it isn't technically feasible right now. There is also a program of self-regulation being promoted by many organizations, including the Better Business Bureau (BBB), that makes sure companies are in compliance with privacy standards that allow users to remove themselves from tracking by certain advertisers or networks by clicking the icon (I've included a picture) that will appear on ads starting in 2011. The difference is that the FTC is proposing a single place for users to opt-out of all tracking across the web, like the No Call List.
You can read the entire
POV on iCrossing.com, but below I included some of the highlights about why self-regulation is more desirable:
+ Companies operating outside of the United States, or companies deciding to identify ways to bypass the
legislation, would gain a competitive advantage
Regulations like the one the FTC is proposing lead to shady marketing practices that no one benefits from.
+The relevance of online advertising would suffer, and consumers would forgo a personalized ad experience
+ Ad prevalence may actually increase as publishers try to make up for the smaller CPM earned from less qualified
visitors
+ Websites that offer free content or services may have to change to a paid model because their revenue is typically
generated by online advertising with value derived from online tracking
Good marketing is about getting the right message to the right person at the right time. As a consumer, these advertisements are sometimes helpful. For example, a site knows I viewed a pair of their shoes on their website. It turns out I really want the shoes, but they are too expensive. Later, I see a display ad online that, thanks to tracking, knows I was at the site earlier and is now offering me 25% off my order. You got me, I'm gonna buy the shoes now! All marketing isn't bad- I got my shoes for a better price. And thank goodness for that quarterly e-mail that reminds me to reorder my contacts or I would simply forget. Not to mention that the internet is full of things we get for free because we are served ads that have value to advertisers. Every once in a while those ads introduce me to something new that I enjoy, other times I just ignore them.
I really have to wonder if people know what "online tracking" is or if it is just the way the term is perceived that leads consumers to jump quickly on to the Do Not Track bandwagon. I've heard the argument that it is just as beneficial as the Do Not Call list, but I would make the argument that I gain nothing from telemarketing calls and they are much more disruptive to my life than online advertising. Maybe if my phone was free if I listened to ten 1-minute ads a month I would think differently. I can't wait until there are Do Not Show glasses I can wear outside that will block out all the billboards, bus advertisements, and Nike logos on shoes. That's called sarcasm in case you didn't catch that.
I think this topic comes down to intrusion and if you know what online tracking is all about you'd know it isn't always appropriately explained or understood.