The Newspaper Association of America is touting online behavioral targeting as a partial fix for the industry's revenue woes.
"Targeted advertising shows significant promise for
newspapers seeking new ways to support local journalism," the organization writes in comments filed with the Federal Trade Commission. The comments were filed in advance of this week's FTC public
workshops about media, "From Town Crier to Bloggers: How Will Journalism Survive the Internet Age."
Sophia Cope, legislative counsel at the NAA, adds that members of Yahoo's newspaper consortium
have benefited from the company's online ad-targeting capabilities. "Based on preliminary results, it looks like targeted advertising will be one of the solutions that helps newspapers get back some
of their revenue," she says. The NAA says that Yahoo's newspaper consortium has generated at least $50 million since last year. The initiative involves Yahoo powering behavioral targeting for some
newspapers' Web sites, among other features.
"The newspaper industry wants the flexibility to figure out what's going to work," Cope says. "The industry needs time to figure out what solutions
will rise to the top and be successful."
The NAA estimates that by the end of December, newspapers' ad revenue will have plummeted almost 40% in two years.
The trade group argues in its
comments that a regulatory framework requiring companies to obtain users' affirmative consent to online tracking for ad-targeting purposes would be impractical. "While newspapers support robust
consumer notice and choice, newspapers worry that a government mandated 'opt in' choice mechanism for 'third party' targeted advertising may not be workable in practice," the organization writes. The
NAA adds that requiring online readers to opt in during their initial visits would "degrade the user experience and make it difficult to communicate the benefits of targeted or interest-based
advertising."
Privacy advocate Jeffrey Chester, executive director of the Center for Digital Democracy, says he disagrees with the NAA's stance. "It would be more effective for newspapers'
branding to be known as the place where privacy is respected," he says. "Just because everybody is engaged in this data collection melee doesn't mean everyone has to do it."
Chester, who is also
slated to speak at the FTC's workshops this week, adds that many people visit news sites without realizing the extent to which they collect data. "Few readers know that readers know that newspapers
are stealthily watching every story they read, tracking them story to story," he says. "No one knows that news sites have become a data collection den."
Current industry self-regulatory
guidelines and FTC recommendations call for companies to notify consumers about online ad targeting and allow them to opt out. Chester and other privacy advocates have recommended moving to a system where Web sites and ad companies can collect and retain
non-sensitive information about computer users for up to 24 hours, unless people opt out. After that initial period, the companies would need consumers' opt-in consent to retain the data.
Marking
an apparent shift from its position last year, the newspaper organization praised the FTC's recent endorsement of a voluntary notice and opt-out regime. But in 2008, the NAA warned that even voluntary
guidelines could have an impact on newspapers' First Amendment rights.
Other people scheduled to speak at the workshops include News Corp. chief Rupert Murdoch, Magazine Publishers of America CEO
Nina Link, Ball State University's Mike Bloxham, the Online Publishers Association President Pam Horan, and Interactive Advertising Bureau Research Director Joe Laszlo.