Web advertisers must dispel cookie misconceptions

Improve Digital believes that online advertisers must be transparent about operations and offer value to consumers in the form of relevant ads to overcome the current misconception about cookies.

This comes as discussion continues about the ethics of behavioural targeting and advertising following recent articles in national US and UK newspapers.

Behavioural targeting enables relevant ads to be served to a pre-defined target audience, which increases the value of publishers' inventory and allows advertisers to see better returns on their budgets.

However, it also enhances the online experience for consumers, who see adverts that relate to their interests.

The general opinion that perceives cookies as 'bad' is encouraged by a lack of consumer understanding, Improve Digital said.

This is reinforced by research from TNS, which showed that 65 per cent of consumers think that targeted advertising is an abuse of their privacy, despite 64 per cent saying they would welcome ads tailored to their tastes.

Improve Digital also points out that the adverse opinion of cookies is in contrast to the popularity enjoyed by offline store loyalty cards.

These also rely on companies collecting, storing and harvesting customers' personal data to provide offers that are relevant to them.

However, this activity is rarely perceived as an intrusion of privacy precisely because it is offset by a tangible value to the customer.

With this in mind, Improve Digital believes there are three activities that need to take place for the online advertising sector to convince a sceptical audience about the value of behavioural targeting.

First, communication - the industry as a whole (advertisers, publishers, ad networks and exchanges, technology providers and so on) must take responsibility for ensuring that easily understood information is widely available to everyone.

Second, transparency - organisations using behavioural targeting must be rigorous with regard to being transparent about the way in which they collect, store and use consumer data.

Third, delivery - having collected data, organisations must ensure that they treat it as a valuable asset, using it to deliver real, tangible benefits back to consumers.

Nic Peters, managing director of Improve Digital UK, said: 'It is tempting to write off current discussions as scaremongering, particularly as the main opponents of behavioural targeting are people outside the digital marketing industry.

'However, the sector needs to remember that it is reaching out to the audience that it needs to get on side if it is not to become heavily regulated in response to fears about "online stalking".

'The best way to combat the misconceptions is to ensure that, as an industry, we communicate exactly what we are doing and show the benefits that this offers - and then deliver on those promises,' Peters added.

Improve Digital suggests that a key starting point is an explanation of the advantages that many consumers already enjoy as a result of cookies.

For example, in addition to preventing the same advertisement being repeated continuously, they are the driving force behind the personalisation of much-loved online retailers such as Amazon and Ebay.

Cookies also remove the need for users to remember countless passwords required for today's ubiquitously digital lifestyle.

Improve Digital also believes initiatives such as the IAB's guidelines to behavioural advertising principles, launched in 2009, are a clear indication that its sector is taking the issue seriously.

'The industry is certainly moving in the right direction by demonstrating to everyone that cookies can be good for us.

'If it continues to do so, behavioural targeting has huge potential to drive the online advertising sector forward, offering benefits to publishers, advertisers and consumers alike,' Peters said.

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