If "Do Not Track" becomes law, consumers would be able to opt out of behavioral advertising. That would significantly disrupt advertising revenue for a wide range of applications, rendering the Facebook Exchange virtually useless, for example, argues Eric Wheeler, 33Across CEO.
The Facebook Exchange needs anonymous cookie data about consumers who browse off Facebook in order to target them with relevant ads on Facebook, Wheeler notes.
Advertisers also require the ability to measure the online ads they run on Facebook in the same way they measure performance on other sites. Doing so requires use of anonymous third-party cookies that "Do Not Track" could block.
Paradoxically, a measure that aims to protect user privacy, arguably a good thing, also will undermine the revenue model for many applications users find valuable, thus causing unexpected harm. It's an example of how well-meaning laws to benefit consumers can have unintended consequences that actually harm consumer welfare in other ways.
Saturday, September 15, 2012
“Do Not Track” Unintended Consequences
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Post Comments (Atom)
Will AI Fuel a Huge "Services into Products" Shift?
As content streaming has disrupted music, is disrupting video and television, so might AI potentially disrupt industry leaders ranging from ...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
One recurring issue with forecasts of multi-access edge computing is that it is easier to make predictions about cost than revenue and infra...
No comments:
Post a Comment