Uneasy Truce Over Web Ads Makes for Rough Surfing
By TIM HANRAHAN AND JASON FRY
Wall Street Journal

July 18, 2005

http://online.wsj.com/article/0,,SB112074210728879482,00.html?mod=technology%5Ffeatured%5Fstories%5Fhs


Sometimes it seems people love to hate online ads, lustily complaining about everything from animated banner ads that distract the eye to pop-ups and hard-to-find "close" buttons. To say nothing of the anger over adware and spyware, sleazy cousins whose misdeeds often get conflated in people's minds with run-of-the-mill advertising annoyances.

People like to complain about offline ads too, of course, but there's a difference: The online world offers a host of tools for suppressing ads and the technical infrastructure that supports them. The adoption of ad-blocking tools has led to tumult in the online world, as even a cursory tour of recent headlines will show. Consider marketers' efforts to get antispyware-program makers to stop identifying tracking cookies as potential threats in sweeps of consumers' machines, as discussed by our WSJ.com colleague David Kesmodel last month. Or our print colleague Walt Mossberg's most-recent Personal Technology column, challenging the idea that tracking cookies aren't a form of spyware. Or the Journal's report about the internal debate at Microsoft over acquiring Claria, an adware maker which became infamous in its days as Gator Corp.

There's nothing new about a technological arms race between Internet users who don't want to be reached and those trying to reach them, except for this: The implicit bargain underlying the free Internet is that consumers get access to content because they're looking at ads. "You get to see things and experience things that you might not have otherwise because of the revenue derived from the advertising experience," as Bennie Smith, chief privacy officer for third-party ad server DoubleClick Inc., puts it. (In an earlier version of this column we incorrectly referred to DoubleClick as an online ad network.)

Look, pop-ups drive us crazy too – we never leave our corporate home page without having ours armed – and corner-Xing overly aggressive ads makes us homicidal. (Same goes for the electronics-store inserts that slide out of our Sunday papers and straight into the recycling bin.) But that said, we have trouble criticizing ad makers for pushing the envelope. Advertisers naturally want to craft the most eye-catching ads, in the hardest-to-ignore formats, and it behooves them to know as much as they can about the people seeing those ads. The whole idea of ads is to get your attention; unfortunately, it can be a fine line between catching someone's eye and annoying that person. Of course, supplying relevant ads is one key to getting someone's attention, and Google and others have succeeded by offering ads that are relevant because they analyze what someone's looking at now, as opposed to what sites they've visited before. There's huge promise here, but it's hard to expect advertisers to abandon attention-getting tactics honed for generations in other media, or to give up any advantage they might be able to exploit. This is their job, after all: Are they supposed to do them poorly?

From a consumer perspective, at least one can fight back immediately and effectively. Pop-up blockers are now ubiquitous, and now there's a certain buzz around tools that block "in-line" ads embedded in Web pages, such as AdBlock, which can block ads based on certain criteria (such as "doubleclick") by simply right-clicking on the ad. Consumers have every right to install whatever they want on their machines, of course, but we can't stop thinking about that implicit bargain. (The folks at Firefox creators Mozilla have thought about this too: Their download page for AdBlock reminds users that "many websites are supported by revenue from ads. … Perhaps just blocking intrusive ads like popups and flash ads with sound is enough?") That lends the push-and-pull between consumers and advertisers a certain queasiness, as it at least raises the prospect of a widespread consumer revolt that could undermine the free-Internet model.

To be sure, that's very unlikely. But we do wonder if we wouldn't all be better off if the ads-for-content model were a little more stable – a concern we discussed with DoubleClick's Mr. Smith and Greg Stuart, president and CEO of the Interactive Advertising Bureau, a trade group representing online advertisers.

Neither seems particularly concerned with what consumers will do. Mr. Stuart says he thinks most consumers do understand the ads-for-content deal, but certain forms of advertising cause them to rethink things. "There are times they say, 'That doesn't work for me,' " he says. Pop-ups and pop-unders are the obvious examples: Mr. Smith says that consumers have demonstrated "very clearly and consistently that pop-ups and pop-unders don't work," and as a result many companies have pulled back from using them.

Instead, both appear more concerned with what middlemen, such as Internet-service providers and software makers, might do on consumers' behalf. It's "perfectly fine" if the ads-for-content model changes because of consumers' actions, Mr. Smith says: "The industry will change along with that. What I would say isn't quite appropriate is forcing that change, or the potential for that change, on consumers without their full knowledge and awareness."

Two potential flashpoints: tracking cookies and in-line ads.

"If you introduce a tool into the marketplace designed to combat spyware – which is clearly a threat – you need to be clear in an objective way about your treatment of cookies," Mr. Smith says. "Because I don't think using interchangeable terminology … serves the consumer." (Anyone who's swept their PC for spyware and malware, turned up a large number of cookies and wondered whether to give them the Roman emperor's thumbs-up or down will know exactly what Mr. Smith is talking about.)

Mr. Smith says that "it's not apparent to me that consumers have expressed the same level of discomfort with in-line ads. To extend that particular feeling about pop-ups to online ads on behalf of consumers is, I think, a step that's inappropriately taken." (For more of Mr. Smith's thoughts on ad blockers, see this ZDNet story, which got us thinking about the issue.)

Tools that block in-line ads aren't being widely used: Mr. Stuart says less than 1% of consumers have used one. But numbers can change quickly, particularly if ISPs or software makers start rolling out such tools or adding them to software suites. Symantec Inc. already does this: Its Norton AntiSpam product includes the ability to block banner ads. Asked about the uptake of such tools, Mr. Stuart says "we're watching it."

Then there's the peril of bad actors tarring all advertisers with the spyware brush. While the debate about how tracking cookies should be used is a healthy one, it's also an old one. It's obvious to us that the intensity of that debate is a direct result of PC users' anxiety about adware that sleazy marketers use to turn PCs into ever-changing forests of billboards and spyware that tracks them across the Net. To some consumers, that makes any ads or talk of tracking frightening – and they have the tools to do something about it, just as many of them did with pop-ups.

So what's the ad industry to do? Mr. Smith says it's important for advertisers and publishers to recognize consumer sensitivities not to an advertisement's message, but to the medium that delivers that message. In his view, learning, testing and customer feedback will improve that understanding, and let advertisers and publishers educate consumers about the value proposition of online ads and the source of ads they see, "so I know I'm on a site that I trust."

When it comes to trust, Mr. Stuart says the IAB will continue to take "an ever-increasing, aggressive stance" against practices that could hurt online advertisers, while discussing online-ad issues with the makers of software tools and those who employ them: Mr. Stuart notes that established companies are often also advertisers, and are concerned about the overall "ecosystem" of the free Net.

Mr. Smith agrees. "We're after the same thing – creating an environment where consumers feel they have a safe, secure positive online experience," he says, adding that "to the extent [tools] are coming from companies, we'll knock on their door and say, 'We need to talk.' I think we have common ground to talk. … There's a lot we can do together here. We don't need to be working at cross-purposes."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu


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