IAB Blasts FTC: Cookie Police Threaten $20 billion Internet Ad Economy, Ad-Tech Report
As Google comes under increasing regulatory rhetoric fire regarding the consumer privacy implications of its desired DoubleClick acquisition, the online ad industry trade association (of which Google is an important member) is stepping up its ANTI-regulatory rhetoric.
It is the best of times, it is the worst of times, so declared the leader of the leading voice of the Interactive Advertising Industry, Randall Rothenberg, IAB CEO, at Ad-Tech in New York City this morning.
The IAB assembled a power panel to discuss “The State of the Industry” and prefaced the debate by warning the audience of interactive marketers, agencies and professionals that their livelihoods are at stake, (NO) thanks to the Federal Trade Commission (FTC).
How so? Despite booming prospects for the online ad industry–$20 billion yearly revenues projected only 13 years after the introduction of the Netscape browser, Rothenberg boasted, nearly a third in importance to the TV ad business—,the online ad party could come to a schreeching halt, if the FTC and “anti-consumer groups” have their way, Rothenberg warned, implying consumer advocates are masquerading as evil doers.
Rothenberg was incredulous, indicating the FTC hearings last week had the temerity to surface the view that time is of the essence in acting on behalf of consumers because ”the time for fact-finding is over,” the FTC believes.
The FTC itself is incredulous, with Commissioner Jon Leibowitz personally coming to the defense of Web consumers: “I am concerned when my personal information is sold to third parties and when my online movements are tracked across several Websites.”
“People should have dominion over their computers. We really mean it,” Leibowitz underscored and THAT is what the IAB is afraid of, that the FTC is not paying lip service to real consumer privacy issues, but will actually take meaningful action to protect users online. In other IAB words, REGULATE.
Cookies are a prime target of the the FTC’s regulatory investigations, much to the chagrin of the IAB and the powerful member companies it represents: Google, Yahoo, Microsoft…
Rothenberg is on an IAB mission to educate the FTC, so-called “anti-consumer groups” and consumers themselves on how, according to IAB member companies, the Web’s cookie technology is not only as harmless as fresh-baked brownies, but the (not so) little engine that could, IS fueling a multi-billion dollar democratic Internet economy in which EVERYONE can be the next Google!
During the Q & A, I noted that State’s Attorney Generals are also concerned about protecting users online, the underage ones.
My queston to the panel: Arianna Huffington indicated comments are moderated at HuffingtonPost to insure a safe and civil environment. In contrast, anything goes at UGC sites MySpace and YouTube. Do you share IAB’s position that regulatory oversight is necessarily a threat to your businesses, or do you look to the government to help build your credibilty with the public?
Rothenberg rephrased my question, “So how do you feel about regulation?”
Fox Interactive Media Chief Revenue Officer, Michael Barrett, gave a thoughtful response underscoring both the MySpace safeguards in place to protect minors and the ongoing education efforts necessary to promote best online practices for the youngest MySpacers. MySpace is open to constructive input from the government, Barrett suggested, while nevetheless indicating neither technology or regulation are foolproof panaceas.
Moreover, user concerns online are not merely a function of the age of consumers, as I report and analyze in: Savvy Web Consumers Delete Cookies, Big Time.
Blasting the FTC may make for good press, but the IAB can not ignore a significant user allergy to cookies!
After all, IAB member comScore has been warning about the real world cookie deletion problem for many a months:
About 3 in every 10 Internet users delete their cookies in a month, with an average deletion frequency of about 4 times per month.
Consumer cookie deletion is rampant, IAB dreaded FTC “regulation,” or not. It is unlikely that a self-serving industry “education” program will dissuade one-third of Web consumers to change their behavior, in favor of the multi-billion dollar advertising economy.
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