Friday, September 12, 2008

AT&T "Might" Target Ads in Future

Might AT&T monitor the Web-surfing habits of its customers to target advertising at them? Maybe, says Jeff Bounds, Dallas Business Journal staff writer. But not without giving customers control over their information, protecting their privacy, giving them value and ensuring “ransparency, AT&T says. Customers would have to opt in to the targeted ad program. 

AT&T made the remarks in a letter to the U.S. House Committee on Energy and Commerce, which is looking into Internet advertising tailored to the viewing habits of specific customers. The letter from AT&T executive Dorothy Attwood, dated Aug. 13, says the company does not currently monitor the surfing habits of its users. But the company says it is considering that option.

It is fairly clear that incentives will have to be offered to users to gain their consent to be tracked online. Opt-in programs typically do not get high penetration without inducements of some sort, and one tactic that typically works is providing some clear sort of financial inducement. Users might be offered "no additional cost" access to desired content that otherwise would be purchased. 

And behaviorally-targeted ads would fit with that scenario, as one complaint most users have is that advertising they see is not relevant. Behavioral targeting would increase the likelihood that delivered ads have more relevance, reducing the irritation factor. 

Nobody knows yet how big targeted advertising will become, but just about everybody thinks it has nowhere to go but up. Still, lots of privacy and "control of data" issues must be resolved beforehand. 

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