Online advertising: when better is worse
There I was, reading this paper called “Online Advertising, Identity and Privacy” by Randal Picker of the University of Chicago Law School, and learning quite a bit from it. He’s obviously thought hard about the conflicts (privacy) and opportunities (advertising) that arise when people provide their identity to online services, and about what kind of regulation may be needed to ensure those services behave responsibly with the data they collect. After all, as he says:
In the past, we have regulated intermediaries at these transactional bottlenecks – banks, cable companies, phone companies and the like – and limited the ways in which they can use the information that they see. Presumably the same forces that animated those rules – fundamental concerns about customer privacy – need to be assessed for our new information intermediaries.
In introducing the topic of advertising, Picker makes the standard point that “Ads in these [traditional] media are targeted to rough demographics. The Internet, in contrast, promises advertising matched to me”. And this, he claims, is a good thing: “Think about TV advertising and how many ads that you see for products that you never consume. Those ads are almost all wasted. Behavioral advertising … Continue reading