Could an Ad Targeting Law Be Good News?

• Posted: Sunday, March 30, 2008
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• Author: pradhana
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• Filed under: Advertising, Internet Advertising, Online Advertising

Opt-in could increase ad value.

The New York Times reported yesterday on a New York state bill that would make it a crime to use personal information for advertising without consumers' consent—punishable by a fine.

The Times said that such a law could "force Web sites to give consumers obvious ways to opt out of advertising based on their browsing history and Web actions."

The article said that this would effectively be a national law, since it would be tough for affected companies to apply the rules just to people in New York.

That sounds like a potentially serious blow to online advertisers. But it could be a blessing in disguise, according to David Hallerman, a senior analyst at eMarketer.

"While transparency about marketer intent will lead some portion of consumers to opt-out, those who say 'yes' will be more valuable, since their willingness to trade Web site tracking in exchange for more relevant ads will clearly signal their preference."

"In fact," he said, "clearer opt-out and opt-in mechanisms for online display advertising will likely make it more effective. It's similar to e-mail marketing: opt-in recipients are hugely more responsive than those who have not agreed to see the marketing messages."

Read more - eMarketer

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