Retargeted Ads — a Friendlier Targeted Ad?

Targeted advertising, where Internet ads are served based on information collected secretly while the user browses the Internet,  has a slightly less creepy cousin – retarged advertising advertising.

While targeted advertising uses the vast amount of data collected on a person’s browsing history to serve a person specific ads, retargeted advertising is the serving of ads across websites based on a person’s behavior at just one website.  Those shoes you looked at on one website may follow you around the Web in a variety of ads.  There can even be a sequencing of ads with more enticing offers served as time and websites pass.  Other types of retargeted ads merely show an ad for the website you visited.

This should feel like less of an invasion of privacy — after all you did look at the shoes, although not everyone feels that way (see: http://www.nytimes.com/2010/08/30/technology/30adstalk.html?_r=2&hp).

Retargeted ads work by having the website insert a cookie in your browser which is then used to serve up ads whenever you visit a site that is affiliated with the retargeted advertising company.  This is only one step away from the usual use of cookies to record preferences or shopping cart information on a website.  In this case, the cookie is used to show you the site specific information on a different website.

Retargeted ads apparently produce results. “Generally most users served with retargeting ads return to a website within the hour. . . an average of 42.9% of users come back to a retail site. On house ware sites the number is even higher: 69.9%. Conversion falls after 12 hours to 8,5% and rise back up to 21% after 24 hours.” (http://www.searchcowboys.com/news/778).

Retargeted ad cookies would seem to pose less of a threat than flash cookies. Retargeted ad cookies, unlike flash cookies, can be found in your browser’s cookie file and deleted.  In some instances companies, such as Zappos, include a clickable  “Why am I seeing these ads? Learn more” icon. Clicking the icon brings up a page that explains why the ad is shown and how to opt out.

Also, Unlike the vast amount of information a flash cookie collects, retargeted ad cookies merely link your site preference to your browser, greatly limiting any means of identifying you and linking you to those shoes.