Web Privacy, Advertisting, and… Congress?

August 14th, 2008

Search engine ads that are tailored to a specific user based on his or her search data are becoming increasingly common.В  Many advertisers prefer this efficient method of marketing, but to privacy advocates and some consumers, diminishing online privacy is a growing concern.

Google’s detailed privacy policy is explanatory, but a relatively small percentage of users are knowledgeable of its actual terms and conditions.В  Late last week, Yahoo! announced that it would allow users to opt out of targeted advertising on its websites.В  Yesterday, however, Yahoo! released Fire Eagle, a location-based services (LBS) platform that helps users publish their current location to the web — a service that some have predicted will be a “potential privacy nightmare.”

As a result of advertisers’ behavioral targeting, Congress has taken steps to investigate search engine data collection and privacy policies.В  On August 1, the House Committee on Energy and Commerce ordered 34 cable and Internet companies — including Google, Yahoo!, and Cox — to provide details about their privacy standards.В  “Some type of omnibus electronic privacy legislation is needed…,” said Representative Edward J. Markey.В  What that legislation might look like is unclear at this point.

Our perspective is that the sole purpose of a search engine is to provide the most relevant results to its users.В  In turn, those users want to find precisely what they are looking for via the search engine.В  If conservative data collection is needed to achieve those results, then so be it.В  Everybody wins.В  The consumer finds what they want; the advertiser finds a targeted customer; and the search engine earns continued loyalty from both the consumer and the advertiser by providing targeted results to the right people.


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