I recently watched this video in which the Wall Street Journal’s Julie Angwin speaks with CNN about online data-tracking technology and in particular, 3rd party ad networks that serve behaviorally-targeted online ads. She discusses the “shocking” amount of information that many websites collect about their users. This interview generated a lot of discussion among the team here at Quarry about how the information delivered in the news frequently doesn’t provide a holistic picture of the online data-tracking story.
More often than not, words such as “scary,” troubling” and “big brother” are used by journalists – giving no doubt about how they expect users to feel – but is online data tracking really that creepy? After all, 3rd party online browsing information is only tied to an IP address.
There is no doubt about the importance of this topic – for consumers, for online publishers and for marketers. As a consumer, knowing my personal details are secure and not falling into the wrong hands while I’m browsing the web is an essential part of my online experience. In tandem, marketers increasingly rely on IP address data-tracking to target a relevant audience, and online publishers rely on the same technology to customize their site for an enhanced user experience as well as to assist marketers in targeting their advertising message (thus generating revenue and keeping content free).
Data tracking enables better relevance
At Quarry, our media and marketing automation teams rely on online behavioral data technology to help ensure we’re delivering targeted, relevant messages on behalf of our clients to their interested potential customers. And when all goes right, we hope customers are receptive to the message because they have previously performed actions online that indicate preferences for the information we are delivering. In turn, we target our clients’ expenditures to vendors who can ensure we aren’t displaying ads or marketing messages to the wrong audience.
As always, limitations exist – because the data collected by 3rd party online tracking technology refers only to browsing history for an IP address. Marketers and publishers can’t distinguish between, for example, family members using a shared computer.
Marketers like it, but what’s in it for me?
For consumers, the benefits are fairly apparent. While I’m browsing online, I see ads for things that are relevant to me. And although I’m never required to act, when I’m delivered offers that resonate with me, I am much more likely to act upon them. For me, I’m not only fine with receiving ads about the new restaurant in town or a travel deal to the destination I looked into last week, I’m actually eager to receive the offer. In the end, these companies don’t know the ad is being displayed to Antonia Matthews – but they can be sure that their message got a person aged 25–34, interested in food and currently in-market for domestic travel.
Don’t get me wrong, there are plenty of other ways for personally identifiable information to be revealed online – and to be used in invasive and destructive ways – but the data tracking done by legitimate websites isn’t one of them. What do you think?