Differentiating Online Ads

Recently, Google started offering behavioral ads in addition to its contextual ads. There was an interesting article in the NYTimes blog section this morning about it.

Google allows you to opt out of its behavioral ads, and also provides generalized information on why you're getting specific ads. The author of the blog suggests going further, to display exactly why the ad is displayed and why it's displayed the way it is. For example, whether the image, text, or price displayed are variable, and if so, exactly what information about you was used to determine its value.

What I found most interesting about the article was a quote from a Google representative which suggests that few consumers understand the difference between contextual and behavioral ads.

It's simple (or it can be, at least). Contextual targeting uses information about what you are currently doing. For example, search for 'Prius repair' and you'll get ads about local repair shops. Search 'Prius 2009', and you'll get ads about new Priuses. Or in an offline sense, an ad for sugary kids cereals during Saturday morning cartoons.

Behavioral targeting uses information about what you have been doing. For example, if you've been browsing for new Priuses, you may see ads for cars even when you're browsing a news site. In an offline sense, this could be like if you go to the same waitress every Saturday morning, and one week she offers you a coupon for being a loyal customer.

Of course, there's a difference between online and offline. Most people fully understand, or *could* understand offline collection methods. But 'online' is a black-box to many. I think the author's idea is an interesting one, if unlikely to come to fruition any time soon. I would probably use it, but most wouldn't. I think the most benefecial aspect would be one mentioned in the article, that companies would behave more ethically or risk public press because of watchdog agencies and the media having access to the information.