Mele’s Musings

Online Tracking: Boon or Privacy Invasion?

Ever since I have been involved in digital marketing (since 1999), the topic of online tracking and its implications on consumer privacy have been discussed.  A recent article in the New York Times and another on ClickZ discuss the latest on the topic.

Some feel that tracking is the great promise of digital - allowing advertisers to send, and consumers to receive, highly targeted advertising - and/or allowing publishers and retailers to create more relevant and personalized web experiences according to users actions and preferences.  Other’s feel that the very nature of tracking without overt permission from consumers is an invasion of privacy.

Picture Link: CNet News

Here’s what’s always bugged me about the whole conversation: the tracking and privacy violations associated with credit cards, bank cards, loans, subscriptions, etc. is generally far worse, but no one seems to be as concerned about it.

In fact, the truth is that online tracking is more anonymous and more controllable than the tracking associated with things we sign up for or buy.  Ever wondered why we get so much junk mail?  It’s not because we’re popular, it’s because some company associated with something we bought, subscribed to, or signed up for resold our information to someone else.  Yes, you can opt out of it, but it’s much harder to do via offline companies than it is on the web.

In addition, a lot of online tracking is anonymous.  When you are sent mail or get phone calls from marketers, they clearly know personal information about you - where you live and your phone number, and often know much more privacy-concerning information such as your credit card numbers or even your social security numbers.  Much of the online tracking that exists in the advertising realm contains no personal information whatsoever.

Consumers should absolutely have control over their data, and should have the expectation that the use of their data is transparent. Consumers can wipe out their cookies any time.  Websites and companies generally make it pretty easy to contact them to remove users from tracking.  Most legitimate companies that have an online presence or participate in online advertising make it easy for consumers to opt-out of tracking. Try to do it as quickly and easily with a credit card company.

I would posit that the tracking online is much less dangerous, much more controllable, and much more positive (when it provides us with more relevant advertising or experiences) than the offline tracking that we seem to have somehow accepted.

As individuals, it is our responsibility to be aware of how much tracking and data collection goes on. In reality, should we expect more privacy online any more than we should have the expectation of privacy in any other public place?  I think we forget sometimes that the internet is a public place, and our participation in it is voluntary.  Like any other media, digital often makes its revenue from advertising and marketing, which is what makes it free for the most part. As media becomes more and more digital, tracking consumers will only become easier and more universal.  Indeed advertising on TV, radio, etc. will continue to look more like digital marketing than vice versa.

Is that a bad thing?  It depends.  First, it depends on the scruples of the companies doing the tracking.  If they are going to abuse the data, are not transparent with data use, or they are not going to allow users to control their own data, then it will be a very bad thing.  But again, the end user has the ability to ultimately control the tracking by unplugging.  And, again, the ability to control the tracking online is infinitely easier than offline.

Second, it depends on how much good companies and advertisers can make of the data.  Do you enjoy shopping on Amazon?  Do you appreciate how they show you products that you might be interested in?  That all comes from tracking and data mining.  And, when done right, should lead to a more personalized or at least relevant experience.

I am a firm believer that the potential for good in digital targeting outweighs the bad.  What will make all the difference is how much control we give consumers over their data.  For all that Amazon does right, it does one thing very wrong - it does not ask me what I want to see or what’s relevant to me or if I like their suggestions.  I have said this before, but to me the great unmet promise of digital is for more and more companies to allow users to control their experiences and their data - including the types of marketing they see.  (See related postings here and here)

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