Targeted Advertising (Online)

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Illustration by Joe Zeff for TIME

Background

Targeted advertising is a type of advertising in which advertisers use information on consumers such as demographics, purchase history, or previous behavior in order to appeal to the interests of that specific consumer [1]. This type of advertising is popular in the online world as people's online activity can be monitored through the use of cookies. Data Mining Companies use the information they gather on people to create personal profiles that they then sell to advertising companies. Using this personalized information, advertising companies can then target specific people based on their IP address and deliver ads tailored to the user's interests [2]. This can occur because websites like Google assign each computer a cookie, which is a long string of numbers and letters that identifies that specific user. Each time the user searches something, the content of their search is categorized and paired with that user’s cookie, creating a profile. This packaged profile contains information such as the estimated age, gender, approximate location, and a list of interests of the user. Advertisers use this information to send customized advertisements to the consumer. For example, someone who frequently searches for weight loss tips on the Internet would likely receive advertisements related to weight loss because Google knows the person’s interests based on his or her search activity.

Controversy

Though targeted advertising brings consumers customized advertisements and has created a lucrative industry in Data Mining, it has become a very controversial topic in relation to online privacy. Targeted advertising online operates using an "opt-out" scheme, meaning the users' information is extracted only if that user manually opts out. Users are automatically eligible to be monitored on certain websites such as Google searches unless they explicitly opt out. On the contrary, an "opt-in" system means the users' information is only extracted if that user manually volunteers to give it. While in an “opt out” system users must remove themselves from being censored, an “opt in” system gives those interested in participating a chance to and prevents those who do not want to participate the luxury of not being automatically enrolled [3]. As a result of the "opt-out" scheme, many feel that targeted advertising is a violation of privacy. Because of a general lack of knowledge concerning cookies, targeted advertising's good intentions seem like unwanted censorship. Those who hold this position maintain that targeted advertising is an unethical practice within the framework of Computer Ethics. People feel they have a right to privacy online and that the apparent espionage by advertising companies violates that right.

Not only has targeted advertising been condemned for its alleged privacy violations, but it has also drawn much criticism for advertisements targeting children. The Internet is not the safest place for children already, so the fact that advertisers are targeting them has irritated many people [4]. In addition, advertisers have begun to use psychologists in order to better target children [5]. Those opposed are furious over this practice as a child’s mind is very fragile while it is still developing and should not be subjected to advertisements that psychologists have helped create in order to intentionally mold the child’s mind. Consequently, numerous interest groups, parents, and lobbyists have united against targeted advertising, calling for it to be banned.

Place in the Computer Ethics is Unique Debate

The controversy that surrounds targeted advertising makes it something that should be looked at in terms of Computer Ethics. There are those who feel that targeted advertising is a perfectly ethical practice as it brings more relevant advertisements to users who also have the ability to prevent their information from being used. These advocates believe it is a perfectly legal and ethical advertising technique. Others, however, believe that this new type of advertising should be re-examined as it is unlike any type of advertising used previously; in fact, the only thing resembling targeted advertising would be illegally sifting through ones mailbox to see that person’s interests, then selling that information to advertisers to use for themselves. However because targeted advertising works on such an unprecedented scale, it cannot be compared to anything even similar to it. Thus, targeted advertising fits in with the Computer Ethics is Unique thesis and should be analyzed using a new moral framework.


References

1. [ http://en.wikipedia.org/wiki/Targeted_advertising ]

2. [Stein, Joel. "Data Mining: How Companies Know Your Personal Information - TIME." Breaking News, Analysis, Politics, Blogs, News Photos, Video, Tech Reviews - TIME.com. Time Magazine, 10 Mar. 2011. Web. 06 Oct. 2011. <http://www.time.com/time/magazine/article/0,9171,2058205,00.html>.]

3. [ http://en.wikipedia.org/wiki/Opt-out ]

4. [Nairn, Agnes, and Alexander Dew. "Pop-ups, Pop-unders, Banners and Buttons: The Ethics of Online Advertising to Primary School Children." Journal of Direct, Data and Digital Marketing Practice 9.1 (2007): 30-46. Journal of Direct, Data and Digital Marketing. 1 May 2007. Web. <http://www.palgrave-journals.com/dddmp/journal/v9/n1/full/4350076a.html>.]

5. [Clay, Rebecca A. "Advertising to Children: Is It Ethical?" American Psychological Association 31.8 (2000). APA.org. Web. 7 Oct. 2011. <http://www.apa.org/monitor/sep00/advertising.aspx>.]