IAB sets behavioural ad guidelines

The trade body has collaborated with the key players in online behavioural advertising to launch Good Practice Principles, the UK’s first self-regulatory guidelines.

Behavioural ads are targeted at web users based on their browsing activity.

For example, someone browsing a lot of cricket websites will be served advertisements about cricket. The industry is keen to stress that advertisers do not know who individual users are because the information collected is anonymous.

The guidelines which have been signed by key players including Phorm, AOL, Google, Microsoft and Yahoo agree on three core commitments:

Notice. A company collecting and using online information for behavioural advertising must clearly inform a consumer that data is being collected for this purpose

Consent. A company collecting and using online data for behavioural advertising must provide a mechanism for users to decline behavioural advertising and where applicable seek a consumer's consent.

Education. A company collecting and using online data for behavioural advertising must provide consumer with clear and simple information about their use of data for this purpose and how users can decline.

All companies that sign up to the Principles have six months to comply with these three core commitments.

The Good Practice Principles is supported by the Information Commissioner’s Office (ICO), the independent data protection regulator, the Principles constitute a common industry initiative dedicated to increasing consumer awareness and choice about the kind of advertising they receive.

Phil Jones, assistant commissioner, director of data protection practice at the ICO, said: “We are pleased that the online advertising industry has come together to produce these guidelines. Given the understandable concerns of consumers about the extent to which their online activity is monitored and the importance of consumer trust, a joined-up approach to promoting transparency, choice and education makes good sense.”

Online behavioural advertising is the growing practice of delivering relevant advertising to groups of anonymous web users, based on previous internet browsing activity.

New research conducted by the IAB* found that 85% of consumers would rather have free content on the internet with advertising on websites, rather than pay a premium not to have advertising. 

More than half of those internet users surveyed would prefer to receive advertising that is relevant to them, whereas only 9% would not. 

To help consumers understand more about online behavioural advertising and the IAB Principles, signatories have launched a website www.youronlinechoices.co.uk where people can find out how behavioural advertising works, how it benefits them, how their privacy is protected and how they can decline this advertising if they wish. 

The website also includes five top tips for consumers to understand online behavioural advertising and how it benefits them. 

Once the first signatories have met the Principles, the portal will also include a centralised set of steps for consumers to decline behavioural advertising. 

Industry comments:

·         Nick Stringer, Head of Regulatory Affairs at the IAB, said: “The online advertising industry is committed to protecting privacy and the IAB has a proven track record in self-regulation.  The Good Practice Principles are a UK first, setting new standards in privacy and illustrating the proactive nature of the IAB and its members.  Underpinned by our consumer information website, www.youronlinechoices.co.uk, these are significant developments in offering people greater transparency and choice regarding behavioural advertising.”

·         Michael Steckler, Managing Director of AOL's Platform-A UK said: "AOL welcomes this timely initiative which shows the industry acting in a collaborative manner to help consumers to understand behavioural advertising better. Our business has an extensive track record in providing information and transparency, including our 'Mr Penguin on Privacy' online consumer campaigns in the United States and the UK. These have been used to help educate users about behavioural advertising and make sure consumers fully understand the issues and options for protecting their privacy,"

·         Mark Howe, Country Sales Director, Google UK, said: "Google believes in two core principles of transparency and choice when it comes to user privacy. That is why we are supportive of these new, self-regulatory principles for online advertising which will enable consumers to increase their understanding of their web surfing options."

·         Chris Ward, Commercial Director for Microsoft Advertising, said: “We take privacy issues very seriously at Microsoft and have been actively working with the IAB and its members to help shape the Good Practice Principles.  This guidance builds on Microsoft’s existing policies towards privacy which today already allows consumers to opt out of personalised advertising on all of our properties”. 

·         Kent Ertugrul, Founder & CEO, Phorm, said: “Phorm is delighted to be one of the founding signatories of the IAB’s Good Practice Principles for behavioural targeting. We believe these principles represent a world first: industry leading the way in consumer education, empowerment and choice in online advertising. Phorm believes these principles set the basis for notice and consent for behavioural targeting going forward.”

·         Mark Rabe, MD and VP Sales, Yahoo! UK & Ireland said: “Users of Yahoo! come back to us because they value the services we provide, but just as importantly, because they trust us and our brand. We take this trust incredibly seriously and for over a decade have strived to lead the way with responsible policies like anonymising server log data after 90 days. We are proud to work with the IAB on these Good Practice Principles.”

The companies currently signed-up to the IAB Good Practice Principles are:

AOL

Audience Science

Platform A

Google

Microsoft Advertising

NebuAd

Phorm

Specific Media

Yahoo! SARL

Wunderloop

www.iabuk.net