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Thursday, March 19, 2009

Google introduces behavioural targeting

In a move where Google are trying to venture where others have recently failed, they have announced a move into the world of behavioural targeting. This controversial practice involves Google placing a cookie (a piece of code) onto a user's machine (and one that visits one of Google's partner sites). When that then user visits another Google partner, Google will show ads tailored specifically for that user that reflect the users' previous browsing habits. So if a user is a sports fan, and visits lots of sports sites, then when they visit another Google partner site they might be shown ads for running shoes.

Google has called this practice (on its offical blog) "interest based advertising" in an attempt to get away from the negative stigma surrounding the phrase "behavioral targeting". This negative image has been seen worldwide, as people react to the so called "Truman Show effect", where some users feel that their every movement is being tracked. In the UK advertising provider Phorm has been trying to unsuccessfully to link up with ISP's in order to introduce behavioral targeting to UK surfers. So far, privacy fears have derailed these plans.

So it is in this climate that Google, a company that is regularly accused of holding on to too much information about its users, approaches "interest based advertising".

Internet based advertising is an attempt to introduce higher click through rates into banner ads, a medium that has notoriously suffered from a lack of targeting, and thus click though rates (especially when compared to PPC search engine advertising).

Google is attempting to allay privacy concerns with its new project by making it "opt-out-able", plus giving users a range of targeting options to choose from. The buzzwords they are throwing about are "transparency", "choice" and control". It remains to be seen if Google will be able to dodge the claims about privacy. If it can circumvent these issues, then the technology has the potential of "...making ads more relevant, and improving the connection between advertisers and our users, and creating more value for everyone. Users get more useful ads, and these more relevant ads generate higher returns for advertisers and publishers." (Google's words) It would also have the added benefit of increasing Google 's currently tiny market share in the banner ad sector.

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