Web Advertisers: ‘Do Not Track’ Doesn’t Mean Do Not Target

By Marie Alexander

This week’s announcements by Google and Mozilla allowing Web users to opt out of tracking tools on individual websites has turned the Web advertisement eco-system up-side-down. With increasing pressure from law makers, the FTC’s recent call for a “do-not-track” system and the concern over Internet tracking of children’s websites, browser creators like Microsoft (they have also promised new opt-out tools in IE9), Firefox and Google are racing to give users the option of “opting out”of online tracking.

First, some clarity. Although Google’s “Keep My Opt-Outs” tool is available now for Chrome, it is similar to the functionality of tools such as Ghostery, a product from Evidon, who manages the aboutads.info database Google’s tool pulls from. Additionally, Google’s tool only allows consumers to stay “opt-ed out” of tracking by companies that comply with NAI self-regulatory framework, and users have to proactively deselect each company in question. Mozilla is attempting a much bigger task changing Firefox to place the user choice in the HTTP header that every site could read, with no action by the user required. This could give advertisers reason to pause.

While consumers, legislators and child privacy organizations see this week’s announcements as a win, online advertisers fear they are losing the ability to sell targeted ads the way they currently do; and fear a substantial revenue loss. However, cookies and tracking devices are not the only way to analyze a Web user’s characteristics. IP geolocation data can tell you the general location of a Web visitor using an IP address, meaning targeted information can be obtained about a visitor based on the general location of a computer they are using. This is all possible without installing cookies or tracking a person’s online behavior.

For example, major airlines can target visitors by their location. If you log-on to an airline site in San Francisco, the airline can choose to show you specials on flights to Los Angeles or San Diego, rather than showing you deals on flights from Chicago to Washington D.C. And guess what? It’s those impulse buys – the getaway to San Diego while booking the business trip to Boston – that our travel clients see as a big win, because their customers see it as a win. All of this is possible by simply using IP geolocation, no cookies or tracking needed.

As the privacy battles continue, advertisers and marketers are going to have to find innovative methods for targeting their marketing messages at the right consumer audience. Retailers that are personalizing ads by behavior can also personalize ads by zip code, or even by the weather. In an increasingly online world, everyone wants to the web to feel like home, but online privacy advocates, advertisers and retailers should know there is a safer, less invasive way to know Web visitors by knowing where they are.