Internet privacy has been a hot topic lately since the repeal of internet privacy rules passed last year by the Federal Communications Commission (FCC). The bill would have imposed internet service providers strict guidelines on how gathered data—such as browser histories—are treated. Major telecommunications companies, while defending the repeal, are assuring customers that they have never, nor will they ever sell sensitive information without consent. These companies claim that they already abide by strict guidelines set forth by the FTC, which are enforceable by state Attorneys General.
Whether or not you believe these claims or agree with the repeal, the fact remains that marketers rely on accurate data to make sure advertisements are shown to the right people. (You wouldn’t want your ad for reverse mortgages to be targeted to teenagers after all.) Since data collecting sites such as Google and Facebook already use a variety of customer information to customize experiences and target ads, service providers want to remain competitive, as well. Facebook’s Audience Network, for example, captured an impressive 34 percent of all display ad spending last year and is expected to reach 39 percent in 2017.
Targeted ads are based on data such as age, gender, location and browsing history (which is why you see the same ads pop up across multiple websites). With ad blocking on the rise, relevant marketing has never been more crucial. Mobile ad targeting is getting more accurate, according to Nielson’s Digital Ads Benchmarks and Findings report, with 60 percent of mobile ad impressions viewed by people of the age and gender intended by advertisers. This number is up from 49 percent in the same period of 2015. This is good news, considering most (75 percent) of programmatic display ads will be on mobile this year, according to forecasts by eMarketer.
By the end of this year, US digital ad spending will reach $72.09 billion, eMarketer further predicts, representing 36.8 percent of US total media ad spending. Just as internet users demand transparency from social networks and service providers, marketers have equally high standards for those selling programmatic ads.
“Advertisers are demanding a new kind of relationship that provides significantly improved control and transparency,” World Federation of Advertisers (WFA) said in a statement, “with nearly 90 percent reviewing and resetting contracts and business models to deliver on these objectives.”
