• Publishers who seek to maximize their revenue potential via the sale of advertising but who are challenged by the “infinite” level of inventory of media space online and the resulting lower advertising yields due to commoditization.
• Advertisers who claim a right to pay for media that only hits their audience target market and which achieves their objectives, eg click-through, or banner impression volumes etc...
• Media Agencies/ Ad networks and other services who have invested considerably in tech development to fulfill the needs of the two parties above.
• Consumers and readers who are freely (or paying) to consume online media and who receive commercial messages from advertisers at every click – whether the ads are relevant or not to their needs and interests.
• Consumer Rights lobbyists and other protection interest groups who act in defense of consumers who are unconscious of or are powerless to the machinations (well intended or “evil!”) of commercial enterprises leveraging latest technologies.
• Governments and other legislators whose responsibility is to consider the needs and interests of the population at large and then weigh up the larger economic benefits as well as the cultural, social and ethical.

So far what has emerged of significance in recent times is two regulatory approaches – should the consumer opt-out or opt-in to intelligence-based online targeted advertising, or conversely, should the websites they visit provide opt-in or opt-out options to their visitors?

Recent moves in the USA, and representing the “media owners and sellers”, the DAA (Digital Advertisers Alliance) has taken an interesting lead. They represent the major revenue earners that want to find a solution that informs the user of why and how they are being tracked and how they can opt-out should they choose.

The DAA rolled out an identifying “logo” to be added to online adverts that alert web users that the ad has been served as part of a behavioral targeting system. The user then has the option to click through and OPT-OUT of such ads being served.

It’s a clever work-around that aims to hold off Federal Trade Commission (FTC) regulators from taking a stricter line of potentially requiring OPT-INS of cookies the first time you visit a site. As this system is “voluntary” it aims to show the US government that the industry is concerned that best practices in privacy are upheld….whilst at same time ensuring enabling technology maximizes profit potential.

Interestingly they recently released an advisory on data shared between suppliers that is not just OBA-based. This could be a measure against that airline scenario I mention in my last post (LINK TO PREVIOUS POST). 

In the EU on the other hand, the flow is in favour of requiring opt-ins before serving the OBA cookies. Click here for the approved EU law of May 2011.

EU law and how it gets applied can be a complex matter. Here in UK, from where I write, the law has been “adopted” in its full strength without amendment. There are many worried businesses here as the enforcement question has not really been answered – could people be fined or even imprisoned for breaking the law? (Note that in other data protection/privacy law areas the actions here so far have been few, but it is nevertheless a threat).

Not all other countries in Europe have yet adopted the legislation into their national law but the law will be enforceable in May 2012 and so this is work that should be concluded soon.

In its first phase of implementation it is believed the legislation will likely be an “advisory” rule on compliance rather than a hard rule. A willingness for sites to be moving in the right direction will be needed to be seen. The pace of change will be dependent on the volition of publishers and networks to move before a stick is applied. Case history and precedents can be slow to conclude, but nobody wants to become the example amongst their peers.

Opt-ins are, however, a potentially messy business. This demo was mocked up to FULLY comply with the EU law.

To counter the disruptive threat that opt-ins represent to the EU internet industry, the Interactive Advertising Bureau Europe is working on a solution for EU adoption that mirrors the US - visit here for more information.

Note that the little logos will be the same between USA and EU. Are we seeing a global standard for privacy management undertaken by the major global internet players beginning to be emerge?

Time will show how the tussle between industry and the regulators develops and  we will report on this blog with significant updates in this area and welcome input and commentary from you all any time. 

Survey time again folks. Please find it here