The Internet Advertising Bureau (IAB) has welcomed a study by the Office of Fair Trading (OFT) into behavioural advertising and targeted pricing practices online.
Behavioural advertising over the internet involves using information about a person’s web habits and browsing trends, often gained through ‘cookie’ files, to enable firms to target them with more focused advertising.
In a report unveiled on Tuesday, the OFT said that while industry self-regulation was “addressing some concerns about behavioural advertising, more could be done to provide consumers with better information about how personal information is collected and used”.
This sector of the advertising market is believed to be worth between £64m and £95m, and this is expected to grow significantly in the coming years.
While targeted advertising can help bring consumers offers that are more likely to be of interest, there are growing concerns over the use and misuse of personal data by advertisers.
Just last week, Facebook made a U-Turn after admitting it had sent data to advertisers that may have allowed them to access personal details of users.
The OFT said it will encourage the IAB to work with the online advertising industry to “provide clear notices alongside behavioural adverts and information about opting out”.
In response to the report, the IAB has said it “welcomes the OFT’s strong support for the evolving self-regulatory framework which offers ‘benefits for consumer protection and adds real value to the functioning of efficient markets’”.
Nick Stringer, director of regulatory affairs at the IAB, said: “The OFT’s document is a step forward for the industry and we will work together to raise awareness of the choices that consumers have online and create consistency across the industry.
“IAB research found that any consumer concerns decrease when presented with the relevant information about behavioural advertising as well as the tools to turn it off. The online advertising industry has already made a serious commitment and investment to safeguard consumer privacy whilst delivering a more relevant online experience.”
