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Cookies: Who Is Watching You?
By Scott Buresh (c) 2008 Medium Blue (http://www.mediumblue.com/) 

Have you ever been surfing the web and come upon Internet
advertising that provides a direct solution for something that
you've been researching lately? Did you think that it might be
related to your computer cookies, or did you chalk it up to
serendipity?

The fact is, it almost certainly wasn't a coincidence.
Behavior-based Internet advertising is a relatively new and
very powerful way for advertisers to get their message in front
of potential buyers that they know to be qualified. The question
is, how do they know that the surfer is qualified?

The advertisers know this because the Internet advertising
network is tracking the surfers' online activity. With tracking,
advertisers know what sites you like. They know what searches
you make. They have profiled you, and, unlike in real life,
profiling on the web is AOK -- so far.

Check Your Computer for Cookies

Before we get into the legal issues involved, perhaps a further
definition of the technology is in order. Most (but not all)
behavioral Internet advertising is based on computer "cookies."
These computer cookies are tiny files that are placed on your
machine when you visit certain websites. In the simplest form,
you go to a web page. An advertiser has a blank spot, or
placeholder, for a banner ad. But instead of serving up just
any banner ad, the advertiser parses through your computer for
cookies to discover your likes and dislikes, and then you are
fed Internet advertising based on your online behavior.

For some people, this is no big deal. They like Internet
advertising to be targeted toward them, and they don't mind
computer cookies. For others, it's a little Orwellian and
creepy. This leads us to the great debate.

Opt-in or Opt-out?

One big question to be resolved is whether ultimately this type
of Internet advertising will be "opt-in" (meaning that a user
has to sign up in order to receive targeted ads) or "opt-out"
(meaning that a user will receive targeted ads unless they
specifically ask not to).

It shouldn't surprise anyone to know which side the advertisers
are on. If governmental regulators eventually require that all
Internet advertising be "opt-in", the industry will be severely
restricted. My guess is that it would relegate behavior-based
Internet advertising to a fringe player in the online marketing
world.

The privacy advocates, naturally, are on the other side of the
fence. The vast majority of people assume that their online
activity is not being tracked, they say. Why should they have
to take a specific action in order to remove computer cookies
and to not be tracked and profiled?

A Do Not Track List?

Recently, a group of nine consumer advocate groups proposed the
idea of a "Do Not Track" list for Internet advertising, which
would work in a similar fashion as the "Do Not Call" list works
today. Naturally, this is an "Opt-out" scenario, but because of
the attention that the formation of such a list would bring, it
may be a suitable compromise between advertiser and advocate.

How to Prevent Being Tracked

It is fairly easy to prevent being tracked by advertisers. You
simply prevent your machine from accepting computer cookies. Go
to START, SETTINGS, CONTROL PANEL and click on INTERNET OPTIONS
then the PRIVACY tab. (Note that these instructions assume you
are working with a Windows XP system. The procedure will be
similar, however, for other operating systems.) Slide the bar
all the way to the top to where it says "Block All Cookies."

However, you should be aware that this change may limit your
Internet experience. Some websites will not display properly
(or at all) if you do not accept computer cookies. In my
experience, at least one of the top five search engines will
not work at all. Other engines have limited functionality when
you block Internet advertising.

Even if you do manage to turn off your computer cookies, don't
rest easy just yet.

The Newest Technology

Recently, it was announced that a Silicon Valley startup named
NebuAd has created a new technology that does not require
computer cookies. Under the NebuAd model, the company teams up
directly with service providers and installs equipment directly
at their facilities that allows them to track the behavior of
individuals on the web, even if their machine does not accept
computer cookies. This, of course, requires Internet Service
Providers (ISPs) to embrace the new technology; naturally, they
are given a piece of the Internet advertising revenue that is
generated. Whether or not any of the major players embrace this
technology will probably depend largely on public outcry, or
lack thereof. Of course, if this does become the newest
behavioral targeting standard, we will return again to the
question of "Opt-in" or "Opt-out."

Conclusion

The future of this approach to Internet advertising is unclear,
and will depend largely on public education and reaction. Will
people see value in receiving targeted ads, even if it means
that somewhere there is an "anonymous" profile of them sitting
on a server? Will they feel outraged and push for a total ban?
It's hard to say.

Will this new approach be the death of the Internet as we know
it? Probably not. But it should at least be interesting.
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Scott Buresh is the CEO of Medium Blue (http://www.mediumblue.com/),
which was recently named the number one search engine
optimization company (http://www.mediumblue.com/) in the world
by PromotionWorld. Scott has contributed content to many
publications including Building Your Business with Google For
Dummies (Wiley, 2004), MarketingProfs, ZDNet, WebProNews,
DarwinMag, SiteProNews, ISEDB.com, and Search Engine Guide.
Medium Blue serves local and national clients, including Boston
Scientific, DS Waters, and Wake Forest University Baptist Medical
Center. Visit MediumBlue.com to request a custom SEO guarantee
(http://www.mediumblue.com/seo-guarantee.html) based on your
goals and your data.
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