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F.C.C. Opt-Out Privacy Plan May Hit Some Businesses Harder Than Others

     
2:43 pm on Dec 6, 2010 (gmt 0)

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F.C.C. Opt-Out Privacy Plan May Hit Some Businesses Harder Than Others [nytimes.com]
The Federal Trade Commission’s proposed privacy mechanism could cause a major shift in the online advertising industry, as companies that have relied on consumers’ browsing history try to make up for what could be billions in lost revenue.

If the vast majority of online users chose not to have their Internet activity tracked, the proposed “do not track” system could have a severe effect on the industry, some experts say. It would cause major harm to the companies like online advertising networks, small and midsize publishers and technology companies like Yahoo that earn a large percentage of their revenue from advertising that is tailored to users based on the sites they have visited.

2:38 am on Dec 7, 2010 (gmt 0)

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.. companies that have relied on consumers’ browsing history ..


Good news then ..

Might be that a business would actually have to do a bit of work now for a change? .. Tsk Tsk ..

No sympathy on this end
3:35 am on Dec 7, 2010 (gmt 0)

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So affiliate cookie will not be placed to such user computers?
6:13 am on Dec 7, 2010 (gmt 0)

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Ridiculous idea IMHO. The user doesn't even know what this means in laymens terms or how tracking actually benefits them many times in finding what they want online.

Behavioral targeting happens in every facet of your life. You already fit a specific model and niche, a role and a demographic - every time you get in your car in drive, go to the store, visit the mall, watch a Lions Football game.

Reversing this type of targeting is akin to simply abolishing the TV.
6:51 am on Dec 7, 2010 (gmt 0)

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coming soon:
"warning, this site may not function properly if you use "do not track "option
9:45 am on Dec 7, 2010 (gmt 0)

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coming soon:
"warning, this site may not function properly if you use "do not track "option

You would kick out a potential customer rather than trying to work out another way to push your product?
4:02 pm on Dec 7, 2010 (gmt 0)

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Behavioral targeting happens in every facet of your life. You already fit a specific model and niche, a role and a demographic - every time you get in your car in drive, go to the store, visit the mall, watch a Lions Football game.


Yes but the difference being that StoreA gets to see all your history on StoreB with browser tracking but in the real world StoreA has no idea about your history at StoreB

I agree that behavioral targeting happens and it is mostly good, but if people don't want siteA to know what you do on siteB then I support their right to not allow this.

Most people on here would explode in anger if they found that the book store they go to shared all their purchasing info with the drug store.

Imagine going to pick up prescriptions and the pharmacist says "Hey I saw you bought a book on mens fashion last month... can I show you our fashion magazines?"

I would lose it
4:29 pm on Dec 7, 2010 (gmt 0)

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This may be a bit misguided, but it's kind of nice to see at least a token gesture from the government about privacy on the Internet.
5:22 pm on Dec 7, 2010 (gmt 0)

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While I somewhat agree with this move, I can't help but feel bad for the display ad people. It seems like this is going to whack them again. First it was decreased click throughs, then CPA deals, and now this. Pretty soon they are going to start having to sell this stuff like billboards on the highway.

I'm sure this will also impact those of us that use adsense. Not that I was making much from that anyways, but it was something.
4:25 am on Dec 8, 2010 (gmt 0)

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I wonder how this will impact cpc networks like Adsense or revenue share companies like eBay and Amazon.
5:24 am on Dec 8, 2010 (gmt 0)

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If it comes to pass, we'll see the resurrection of "Madison Ave" marketing/advertising, ie. companies that can produce real ads... and kick google in the "auction advertising" breadbasket. True advertising. This might be a good thing. Only time will tell...

Starting with whether the FCC can actually put their money where their mouth is.
2:46 pm on Dec 8, 2010 (gmt 0)

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"It would cause major harm to the companies like online advertising networks, small and midsize publishers and technology companies like Yahoo that earn a large percentage of their revenue from advertising that is tailored to users based on the sites they have visited.

"Under a situation where many users opt out of being tracked, other companies, like Google, may take a much smaller hit because the vast majority of its revenue comes through search ads that would not be affected by a do-not-track mechanism."

Can anyone explain how Yahoo! is different than Google, insofar as they could be affected more severely?
5:37 am on Dec 10, 2010 (gmt 0)

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I'd be completely in favor of users being able to block the behavioral targeted ads and the tracking associated with them. A click on an ad and tracking through to purchase for 90 days, fine, but not building a profile and sharing that data all over the place. I think that (BT) just makes it look like banner ads work better because of the attribution model (crediting impressions with generating sales) for the most part and not because it actually does work better. Doubt the FCC will actually do anything though.
 

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