Behavioral Targeting Firms: Don't Call Us Spyware

Publishers and representatives from behavioral targeting firms voiced their opposition to the practices of adware and spyware companies at this week's IAB/MediaPost Interactive Advertising World conference.

"Spyware tricks consumers, and consumers are not quick to forgive," said David Hills, 24/7 Real Media's president of media solutions.

Spyware and adware programs collect user data by following consumers as they surf the Web. Based on the consumers' demonstrated behaviors, spyware/adware companies then serve ads--usually pop-ups-from a network of advertisers. Because such companies track users throughout the Web, some advocates worry that the companies violate consumers' privacy. What's more, many consumers don't realize that adware and spyware programs are tracking them, because spyware and adware programs are often bundled with other pieces of software that consumers choose to download from the Web.

Behavioral targeting firms fear that their businesses, which are also based on tracking users' online activity, will be tarred with the same privacy-violating brush as spyware. Currently, spyware and adware account for between one-third and one-half of the $627 million targeting industry, said Geoff Ramsey, CEO of eMarketer.

Unlike adware or spyware companies, behavioral targeting firms mine data from specific publishers' Web sites only--although some firms, like 24/7 Real Media, track users across their network of publishers.

Weight Watchers director of eCRM, Mark Creasy, said he worried that consumers don't draw a line between spyware and targeting technologies. He suggested that behavioral marketers must spell out the differences for customers--and the government. "We all need to work together to let federal regulators get it right," he said.

Dave Morgan, president and CEO of the behavioral targeting firm Tacoda Systems, agreed that spyware was bad for the targeting business. "We have to call it out, and say this has got to stop," he said.

Behavioral targeting executives say there is a key difference between the way they collect data and the way adware/spyware firms collect data. Whereas publishers hire behavioral targeting firms to compile their audience data into segments to sell to advertisers, adware and some spyware programs gain permission from users to track and serve them ads wherever they are on the Web.

This sending of pop-ups infuriates publishers, especially when the ad promotes a direct competitor. Another key difference is that generally, publishers own the data the behavioral targeting firms compile; with adware/spyware, publishers are virtually powerless, unless they take these companies to court--which has happened on several occasions.

But some on the interactive buy-side say they're skeptical that the differences between spyware companies and publisher-endorsed targeting companies are meaningful. Cari Weissberg, interactive media director for Hill, Holiday, said she failed to see the distinction between data collection via adware or behavioral targeting. Some marketers like adware and spyware because such tactics have been known to provide a high return on investment.

Walker Jacobs, vice president of media sales for Reuters.com, said his company strongly considers not working with agencies that advertise with adware companies, even though such companies "get great results," he said. "It's very tempting for a direct response advertiser to use Claria or WhenU because they get great results, but the problem arises when you see your competitor show up on your URL...it's distasteful at best. I mean, what right do I have to be there?"

Nick Johnson, senior vice president of business development for the behavioral targeting firm Revenue Science, added that adware companies dilute publishers' brands by serving their advertiser's ads over their Web property. Johnson also said that advertisers that buy from adware companies risk "strip-mining their consumers."

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