Who Do Online Advertisers Think You Are?

By JEFFREY ROSEN
November 30, 2012

Not long ago, I decided to test how much privacy I have online. I 
cleared the cookies, the bits of code that Web sites leave on my 
computer to track what I browse and buy, from my two Internet 
browsers, Safari and Firefox. Then, with my digital past 
superficially erased, I set out to create two new identities: 
Democratic Jeff and Republican Jeff.

Safari became the home of Democratic Jeff. I started by spending time 
on Barack Obama's re-election Web site and then visited some travel, 
car and shopping sites to search for flights to Los Angeles, Volvos 
and Birkenstocks. On Firefox, as Republican Jeff, I went to Mitt 
Romney's site and then searched for Cadillacs, flights to Hawaii and 
diamond rings.

Having created my new digital identities as heavy-handedly as 
possible, I returned to my usual Web sites. At first, the ads on my 
favorite Washington neighborhood blog, the Prince of Petworth, were 
the same on both browsers. But less than two days later, an ad for 
Mitt Romney suddenly appeared next to a story I was reading on 
Firefox about Gore Vidal's burial. When I opened that page on Safari, 
the ad in the exact same spot was for Catholic University's master's 
program in human resources management.

How did Republican Jeff and Democratic Jeff end up seeing entirely 
different ads? The answer is real-time bidding, a technology that's 
transforming advertising, politics, news and the way we live online. 
Advertisers compete in an auction for the opportunity to send ads to 
individual consumers. Each time a company buys access to me, it can 
bombard me with an ad that will follow me no matter where I show up 
on the Web.

To dig deeper into my new identities, I visited the Web site of 
BlueKai, one of the leading online data aggregators. The company's 
software enables its customers to sort consumers into 30,000 market 
segments like "light spenders" and "safety-net seniors," and this 
fine-grained categorization helps make real-time bidding possible. 
According to BlueKai, Republican Jeff is someone who makes between 
$60,000 and $74,999 a year, lives in Portland, Me., is interested in 
luxury cars, celebrities and TV, may have bought a cruise ticket, is 
an ideal candidate to take out a mortgage and a "midscale thrift 
spender." Democratic Jeff is someone who lives in Los Angeles, Long 
Beach or Santa Ana, runs a large company with more than 5,001 
employees and cares about advertising and marketing. Neither of these 
profiles is accurate. Nevertheless, the pigeonholing of Republican 
Jeff and Democratic Jeff represents our digital future.

...

http://www.nytimes.com/2012/12/02/magazine/who-do-online-advertisers-think-you-are.html

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