Google Plans Interest Based Advertising
Google has announced a new ‘interest based’ standard for its AdSense marketing platform. The browsing, shopping and viewing habits of internet users will be analyzed, and on-line advertisements will be matched to their patterns. The intent is to feed pertinent ads to viewers, rather than the current, mostly random loading of on-line ads. For example, if you frequent dog oriented websites, the ad may feature a special on dog food. Google cites efficiency and improved user experience as motives for the new ad program.
Advertisers are excited about the concept, saying the more targeted ads should yield more click-throughs. Investors also warmed to the idea, sending Google stock up 3 percent after the announcement.
Opponents are concerned about an ad strategy based on user habits. Privacy advocates say it is an unwarranted intrusion and liken Google to a big-brother type spy. The Federal Trade Commission calls the new program ‘behavioral advertising’, a less complimentary term than Google’s. Congress has investigated companies practicing user tracking, such as NebuAd and Phorm, and the US House of Representative’s Energy & Commerce Committee has expressed concern over Google’s strategy to have users opt-out of interest based ads. The combination of legislative and privacy pressures may make Google change to an opt-in format.
Yahoo unveiled a similar ad strategy three weeks ago, prompting expectations of a Google response.
