Advertising business

Google’s latest privacy flap emerged this week when it announced its “interest-based” ads, which are behaviorally targeted banner ads based on a user’s web-browsing activity. It’s nothing particularly new or ground-breaking, and the company was kind enough to give people a way to opt out, but the way the company presented the new system to users was a little odd. It titled its blog post announcing the new system “Making ads more interesting,” and it later said, “We believe there is real value to seeing ads about the things that interest you.” But are better-targeted ads really something that delivers any benefit to users? The benefit to advertisers and marketers is obvious, but it’s hard to see users really caring enough to forfeit some privacy just so they can help out advertisers.

But web browsing is just the tip of the iceberg: lots of marketers are looking at how to take information generated by mobile phones to hit users with targeted ads. They’re not talking about the worn-out Starbucks example of hitting people’s phones with a coupon when they walk past a store, but building profiles of people based on their travel patterns, favorite applications and web sites, and even gender, age and income information. Again, all of this info given up for the sake of seeing “better” or “more interesting” advertising. That really doesn’t benefit the user, so why should they give up — or be forced to give up — all of this information?
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