For several years the DNT (Do Not Track) initiative has been trying to formalise a standard feature for the worldwide web to allow users to tell a website whether they are happy to have their activities tracked by the website and their partner. These initiatives have been opposed by a group of organizations with clear interests in the digital marketing market (IAB in particular). They have confused, obfuscated and in some cases intimidated participants in the project. This lead the New York Times to describe DNT as a ‘slow death‘.
But, I came across this interesting study by Goldfarb and Tucker. Put very simply, they find that consumers respond best to ads which are contextually targeted or highly visible on screen but that contextually targeted and highly visible ads perform relatively badly. The paper speculates that consumers privacy concerns might be the explanation for this effect. A targeted and visible ad reminds consumers that the site is tracking them and makes them more critical of persuasive communication.
So, just imagine the power of knowing which consumers cared about privacy and “detargeting” them – but perhaps using highly visible ads instead. In the paper, Goldfarb and Tucker estimate that 5% of digital ad spending is wasted targeting people who are turned off by targeting. That’s a spicy meatball.