Privacy concerns may stunt online ad growth

Anxiety about privacy could stunt the growth of Internet advertising as consumers and regulators continue to learn more about behavioral tracking.

by Helen Leggatt

Companies that track user behavior may see their Internet advertising growth slow as a result of consumer, state and federal concerns about the practice. Such are the findings of recent research conducted by The Stanford Group, a financial services group.

"We think the growing government scrutiny is likely to make it easier for consumers to opt out of behavioral tracking, which in turn will reduce the number of web surfers that can be reached through behavioral advertising," said the company in a recent announcement.

Past research has found that, given the choice, 42% of consumers would opt-out of online-tracking. The Stanford Group said that “the momentum toward disclosure/opt-out has negative implications for the rapid growth of online advertising”.

Tags: behavioral advertising, behavioral tracking, online advertising, privacy