Opinion: Time to shed light on the dark art of behavioural advertising

By Martin Sloan

06 Jan 2012

Comments: 2

Martin Sloan

Last month, I was looking at hotels for a trip to Reykjavik. One of the websites I visited was Hotels.com. A week later, I was reading an article on the Guardian’s website and noticed a Hotels.com advert for a hotel in Reykjavik on the page.

Was this simply a coincidence, or based on my Google search history? Or had I misunderstood how behavioural advertising works? Was the ad served up by Hotels.com, based on my recent visit to the Hotels.com website?

Further reading

The Guardian is a member of an online behavioural advertising system provided by a company called Audience Science. Audience Science has a number of partners, each of whom shares information on your use of their websites to allow these commercial partners to provide targeted advertising.

At some point, I must have accepted a cookie in relation to the Audience Science system, but the pop-up box would not have provided any information on how the cookie would be used. What is worrying from a user’s perspective is that Audience Science’s list of partners will continue to expand. This means that you could be using one website unaware that your browsing habits could subsequently influence advertisements served up on another.

The Guardian also has a commercial partnership with an organisation, Criteo, that specialises in “retargeted advertising”. Because the set-up is so opaque, it is difficult to identify which organisation provided the Hotels.com advert, but I believe it was Criteo.

Here is what the Guardian’s privacy policy says about it:

“For example, if you have visited the website of an online clothes shop you may start seeing ads from that same shopping site displaying special offers or showing you the products that you were browsing. This allows companies to advertise to website visitors who leave their website without making a purchase.”

Again, I don’t remember opting in to this system. Clearly, I must have accepted a cookie at some point (or passively accepted Hotels.com’s privacy policy) – but I wasn’t aware that Hotels.com was going to chase me around the internet.

According to Criteo, the only way of opting out is to accept a permanent cookie. So if you don’t like cookies, but also don’t like your internet usage being tracked – tough.

I suspect that I am not alone in not fully appreciating to what I have opted in. Cookie warnings do not currently explain how your data is used. Under new European laws, behavioural advertising providers have until next May to introduce systems that require users’ express (and informed) consent before cookies can be installed. Given the lack of transparent information available, I look forwards to the clarity that this will bring.

Martin Sloan, associate, technology group, Brodies LLP

Reader comments

Education and information is the key to making the public better informed

John - thanks for your comments.

You are right; I could have enabled private browsing if I'd wanted to avoid the hotels.com adverts (for example, if the trip had been a surprise for my wife).

My point is that because the current system of accepting cookies provides no tangible information on how cookies are used and which websites are participants, I didn't know that my searches on hotels.com would lead to targeted adverts appearing on a newspaper website.

IT professionals and lawyers may well be fully aware of how behavioural advertising operates, but on the whole the general public is not. I don't think they can be blamed for not researching how the systems work. It is the industry that needs to ensure that consumers are provided with sufficient information (prior to accepting the cookie) to make an informed decision (the test under data protection laws).

It is for this reason that the EU legislated further in this area. It's just a shame that there is still no consensus between the industry and the legislators on an easily workable system for obtaining consent for third party cookies.

By the way, my experience went slightly further than your B&Q worst case scenario. The ad that was consistently served up was a revolving ad for the three hotels (out of 100 or so hotels in Reykljavik) that I'd looked at.on hotels.com.

Posted by: Martin Sloan  12 Jan 2012

privacy concerns are overegged

The sale of data from cookies in third party datamarts is well established - even Google have an offering for this - indeed, right now you can see Google's advertising tackling people's associated privacy concerns.

Nothing sinister happens to users - the absolute worst case scenario is that you google 'DIY' and B&Q advertising follows you around the net. Is that such a bad thing? Probably better than being followed by those terrible ads with the before and after diet/exercise plan ads.

Retaining your privacy online is simple - all you do is use the 'private browsing' functionality.

The people who have a problem with re-targeting fall into one of three camps:

1. They are ignorant of how it is done, and see the sinister hand of big brother (or they are looking at a lot of content which is unsavoury and don't want anyone to find out).
2. They work for a legal practise and smell a tasty lawsuit because the law is ill defined and the public are ill-informed and therefore paranoid about privacy.
3. They are politicians and think they can stir up silly and misplaced fear that might sway a few votes from ill-informed people.

Personally I can't see a problem with DIY ads following me around when I'm looking for DIY on the net.

Posted by: John Stephens  09 Jan 2012

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