• by Chad Little , March 2, 2009

I can't say that I'm surprised by the current stance the Federal Trade Commission is taking by allowing the behavioral targeting industry to continue down a self-regulatory path (for the time being, at least).

Currently the government has a few other more pressing issues to deal with. Overall, I'm impressed how the industry has responded to date, but there is no room for complacency. The industry should be prepared for regulation unless we get our act together (anyone out there looking forward to a "do not behaviorally target" list?)

I'm speaking specifically to the companies that still withhold how they gather data and what they do with it. We are marketers in a time where consumers expect experiences customized for them, but don't assume that you have access to their information. Finding a balance between providing a more customized web experience with customers feeling comfortable with how that experience is created is key.

I suggest an advancement that we should make given the challenge that the FTC has posed. Transparency is imperative! We have to make it as easy as possible for consumers to identify when their information is being leveraged and most importantly how they can stop it.

One of the easiest and most visible moves we can make is to include identifiers in each behaviorally targeted ad. With a simple click, a consumer could be taken to a landing page and learn who delivered the ad, learn why they were shown the ad (answers can vary between "you visited this Web site before" to "we thought you find this information interesting") and most importantly, opt-out if they don't want to take part in that form of advertising. (Side note, all behavioral targeters should have an opt-out mechanism easily available to consumers. If you don't, that should be a top priority for you!)

On this landing page, there should be language discussing the benefits of getting a targeted ad vs. the generic ads they would normally see -- which typically consist of a dancing alien or a "guess who this celebrity is!" advertisement. (It's usually Tom Hanks from high school -- though personally I prefer the version with Angelina Jolie, I'm just saying.) Be descriptive when explaining what you do and why you do it -- the point is to give consumers enough information to make an informed decision if they want to be behaviorally targeted or not.

In my experience, once you take away any questions people have about how and WHY they were targeted, they are more apt to accept it. We are not only marketers and service providers; we are also providing a service to consumers by giving them a more personalized experience online. If they don't want to take part in targeted advertising, they don't have to.

We have nothing to hide, so why haven't we been more transparent? The FTC is giving us time to get it right, and I suggest we do just that.