In today’s rough economy, marketers are finding revenue growth in digital media. Many companies are shifting their marketing budgets to online campaigns to meet consumer expectations. With the shift in spending companies want to know just how effective Internet marketing can be, which in turn is leading companies like Google to change how they use consumer data (i.e. geo-targeting, behavioral ad targeting, etc). Despite the newness of behavioral ad targeting, the most recent SEMPO survey revealed that , “Three-quarters of advertisers indicated they were willing to pay more for behavioral targeting opportunities, particularly for in-market consumers.”
It’s apparent that behavioral advertising has the potential to drastically change online marketing. But is this the direction business should be taking? Is this an ethical business practice? This question needs to be answered for the business decisions that are being made right now. If we don't, then we risk repeating the mistakes of the past (and getting ourselves into a mess like what we are experiencing today).
To get a discussion on the ethics of marketing and media in the digital age started, I asked the Elixir team what they thought of these developments.
Are online marketing practices, such as geo-targeting and behavioral ad targeting, ethical?
Fionn: I believe that if people are willing to share their information that it is ethical to use it. The world has changed traditional marketing does not work as well as it did. Marketers are simply responding to new ways to sell and market their products and behavioral and demographic targeting has never been easier. Collecting that data on your customer base in the past was laborious and expensive. My guess is that eventually it will be regulated but for now if I open up my information I expect to be marketed to. If I say I am 40 years old in my Facebook profile I can expect to see Ads targeting what is important to 40 year old women (they all think I am fat), if I don’t want to see those ads then I don’t fill out my profile on Facebook. I think the ethics issue comes into play where people do not realize that their information is being used this way. Nobody reads the TOS except maybe attorneys. The TOS are written by attorney so nobody understands them anyways. We do because of who we are but the average web user or social media participant really doesn’t. But until they wise up marketers are going to use the information and the sites themselves are going to use it to further monetize their properties and provide value to their investors.
Jason: The common complaints with email are that the messages are not relevant and that they are delivered either too often or not often enough. So – from the email recipient perspective – they want to receive messages that are relevant to their needs, lifestyle, personality and delivered at just the right time.
Translate these needs to the greater web. The experience online should be relevant to one’s particular online “journey” and the timing of any messaging should be appropriate for that particular visitor. Using behavioral and other data points to customize the user experience can provide incredible benefits to the consumer.
I would however agree with Tim Berners-Lee where he notes “The power of this information is so great that the commercial incentive for companies or individuals to misuse it will be huge.”
Used in a manner where the consumer’s experience is paramount and the business benefits are ancillary, there could be big rewards for the marketer.
Unfortunately, as we have seen with email, there are those that abuse this power and flood our inboxes with Spam.”
Christine: I DON’T LIKE IT! I know it is inevitable and that just makes me sad….just keep taking away my right/ability to think. When I am doing a search on G it is because I am choosing to. If I am checking my email and I get an ad because of some content in someone’s else’s email that’s maddening. It is not targeting me at all and I DON’T WANT TO BE ANYONE’S TARGET. Let me search, let me choose, let me find my content to read, let me find my own products to buy. I want to be an active participant in my life. Don’t target me, just keep delivering me the most relevant content possible by my own search queries.
I thought we were on the right track with marketing civility. Google was leading, now they are serving up corporations in our searches just because THEY view it as relevant. Wrong move G, stop serving up the corporations who have done nothing to deserve it. I can find the big corporations on my own.
Ashley: I do believe that geo-targeting and behavioral ad targeting can be used in an ethical manner to better survive customers and make online shopping and searching easier for individuals, as long as the information gathered and used cannot be linked to a specific identity. By this I mean a company should not gathering information such as an individual’s full name, home address and other identification information then pairing it up with information they get form marketing techniques such as the behavioral ad targeting. There is a such thing as storing too much information on your clients and many would view this as an invasion of personal privacy. I personally would find it unsettling to find if a company stored my name, home address, favorite shoes, times of day I usually browse online and other information that tells about my personality and habits all in one place.
There is another way these techniques can become unethical in the way they are used. For example, if the information is used to specifically target children, marketing alcohol to known addicts, or concealing media and news from people that live in specific regions I would consider this to be all unethical uses of these marketing techniques. It is up to the individual companies to make sure they are not using these marketing techniques in an unethical manner and keep from crossing that line. It is also important to keep in mind that when a company practices unethical marketing techniques they are risking serious damage to their online reputation. Customers communicate and value the opinions and incites of individuals.
Caitlin: The ethics rulebook for online marketing is continuously evolving as new websites and technologies constantly redefine the Internet landscape. Google's decision to incorporate behavioral target ads using data collected from search queries and website visits exemplifies the unyielding power Google possesses and the impending complete transition into web transparency.
I don't consider it unethical for Google to leverage the consumer information they collect. But making that information public to advertisers or any company with an invested interest in their customers' search habits is irresponsible.
As a culture we've become reliant upon Google as a trusted resource and confidant. In that tiny, unassuming search box, we divulge our most intimate curiosities and unspeakable thoughts. For many people, search history is not a direct reflection of their consumer interests. To be followed by ads that underline your health problems, work concerns or other personal interests may not be an outright ethical issue (at least not until your queries are sold to a prospective employer), but it's a clear infringement of space and privacy.
Dave: I have no issue with geo-targeting ads. The location of where I’m accessing the internet is generally not a private matter and consequently I don’t mind if ads are targeted towards me based on that information.
Behavioral targeting is something I have no issue with IF PEOPLE VOLUNTARILY OPT IN. I have a far bigger problem with the collection of that level of data because it’s so insanely valuable to advertisers and businesses that it’s ripe for abuse. As the creator of the web, Tim Berners-Lee, alluded to, it will be a sad day when my ‘user profile’ which is created from my web usage habits, is sold to a prospective employer or insurance company to be used against me by either of those parties. It will feel very big brother-ish when I see the same ads following me around the web due to some action I recently took online a while back. People need to realize that their fears, concerns, and insecurities which they use the web to research are being tracked and marketed back to them. I think once people understand this they will be far more vocal about this egregious abuse of privacy.

What do you think? Is behavioral advertising ethical? Please join us in the discussion.