As Mr Nielsen of GroupM puts it, the conversation between buyers and sellers of advertising is becoming unbalanced, with the former often armed with more data than the latter. Some media firms have responded by selling fewer ads through middlemen, in real time or otherwise. But that may mean ads go unsold. Media firms can also tilt the balance by discovering more about their customers than can be gleaned through auctions. The obvious way to do this is to force people to register for websites, or even to pay . In short, content is no longer king online. Information about users is what really matters.
Regulators may yet stymie the growth of real-time bidding. Targeted advertising is drawing anxious scrutiny from congressmen and journalists. A Wall Street Journal investigation into online tracking last year found that its own website dropped 60 digital markers onto a visiting computer. Before May 25th European governments must incorporate a privacy directive that is expected to make it easier for users to opt out of targeted ads. A confusing patchwork of laws may result.
But few expect radical change. So quickly has targeted advertising advanced that a ban would severely disrupt the internet economy. Web users are more likely to see little icons identifying targeted ads. If the past is any guide, people will learn to ignore them, too.
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2016-02-26
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