Tuesday, September 20, 2011

Tracking Users / selling to users

Less Web Tracking Means Less Effective Ads, Researcher Says - NYTimes.com

 

Research by Catherine Tucker, a professor at the M.I.T. Sloan School of Management, has found that European Union regulations that limit the tracking of Internet users were associated with a 65 percent drop in the effectiveness of online marketing. In other words, if Internet companies cannot track what you do online, they find it harder to pitch you stuff that you may be persuaded to buy.

This is relevant now because lawmakers in the United States are weighing legislation to regulate consumer privacy on the Internet, to the dismay of Internet giants that rely on advertising revenue. Ms. Tucker is scheduled to testify before a Congressional subcommittee on Thursday.