• by Wendy Davis  @wendyndavis, August 13, 2008

As lawmakers increasingly turn their attention to whether online marketing techniques compromise privacy, the Interactive Advertising Bureau is boosting its lobbying efforts.

The group has hired Experian veteran Alison Pepper to serve as director of public policy. She reports to Mike Zaneis, vice president of public policy, who came to the IAB as its first lobbyist in February of 2007.

Pepper's appointment comes as officials throughout the country are examining the privacy ramifications of online ad techniques like behavioral targeting, which involves tailoring ads to users based on their Web activity.

The IAB generally opposes new laws that would limit online ad techniques, arguing that new restrictions would harm small businesses and Web publishers. Pepper said she intends to evangelize that Web ads support free content. "As these issues progress at the federal and state level, I hope to help our member companies establish the value of online advertising," she said.

The House and Senate have recently held hearings about behavioral targeting companies like NebuAd and Phorm, which partner with Internet service providers to gather information about subscribers' Web activity and then send them targeted ads. NebuAd and Phorm are both members of the IAB.

In addition, Rep. Ed Markey (D-Mass) said last month that companies should not deploy this type of ad targeting without first obtaining users' express consent.

The Federal Trade Commission last year also came out with proposed voluntary guidelines for what it termed "behavioral advertising," or serving ads to users based on their Web history. The FTC recommends that companies notify users about such advertising techniques and allow them to opt out.

Separate from the recent federal activity, lawmakers in New York and Connecticut have recently introduced bills that would require online ad companies to allow users to opt out of behavioral targeting.

Hiring Pepper is not the IAB's only effort to bolster lobbying activities. Earlier this year, the proposed New York bill spurred the group to create a new, discounted class of membership to draw in small publishers that could argue against the measure. The new memberships--only available to Web publishers with less than $1 million in revenue annually--cost just $500 a year, compared to the regular $5,000.