Online Privacy: Internet Advertising Practitioners' Knowledge and Practices

Abstract

Recent months have seen increased calls by both consumers and government agents for legislative action regarding privacy protection online. Both groups agree that self-regulation by the online industry does not appear to be working to protect consumer privacy on the Internet. This study investigates how Internet advertising practitioners perceive consumer attitudes towards practices involving information collection and usage, and whether these practitioners respond to known concerns in their work. A survey of practitioners suggests that practioners are aware of consumer privacy concerns. A content analysis of web sites developed by responding practitioners, however, indicates that the practitioners are failing to take appropriate actions to address these concerns. Few sites that collected information posted privacy policies, and sites with policies rarely addressed three of the FTCS four core principles of information privcy.

Ads are watching me

“…went so far as to state that it is 'appropriate' that Groupon allow users to opt in to systems that track users' online activities. As consumers' privacy concerns escalate, they are likely to translate to negative attitudes towards the advertiser and the brand (Sheehan & Hoy 1999;Sheehan & Gleason 2001). Online marketers are cognisant of this effect.…”

Adolescents, Online Marketing and Privacy: Predicting Adolescents’ Willingness to Disclose Personal Information for Marketing Purposes

“…Several authors have observed a negative relationship between privacy concerns and the intention to provide data (Castaneda and Montoro, 2007; Dinev and Hart, 2006). Moreover, Internet users who are less concerned about privacy are apparently more willing to provide complete information (Sheehan and Gleason, 2001). Moscardelli and Divine (2007) report that adolescents’ concern for privacy is significantly related to privacy‐protecting behaviours (e.g.…”

‘Hello, Mrs. Sarah Jones! We recommend this product!’ Consumers' perceptions about personalized advertising: comparisons across advertisements delivered via three different types of media

“…While a personalized advertising message may be more effective because the message is individualized (Pavlou and Stewart, 2000), it also may be rejected by consumers who are concerned about their privacy (Sheehan and Hoy, 1999; Miyazaki and Fernandez, 2000; Sacirbey, 2000; Phelps et al ., 2001). This could possibly lead to negative attitudes as well as the marketer (Sheehan and Gleason, 2001).…”