Retargeting is a powerful tool that has increased its relevance in today’s digital era. Although it helps marketers re-engage with potential customers, this practice raises important ethical questions regarding privacy. This article will explore some of the ethical implications of retargeting and explain the need for a balance between effective advertising and respecting individual privacy rights.
Retargeting —also known as remarketing— is a marketing strategy based on tracking individuals’ online activity in order to deliver personalised advertisements based on their navigation data. Marketers can follow users across websites and display targeted ads on subsequent visits by utilising cookies or other tracking technologies, such as pixels. Companies specialised in retargeting tend to work this way, but there are cases like ‘Blue’ where retargeting is focused on the online activity of a device, its location (only country and region) and the browser; rather than the users’ private information.
While retargeting can be effective in increasing conversion rates, it is important to take into account the ethical dimensions of this practice. One of the primary ethical concerns surrounding retargeting is the potential infringement on individuals’ privacy rights. Tracking people’s online activity without consent is one of the main matters that the General Data Protection Regulation (GDPR) is regulating and trying to put an end to.
Regarding users’ privacy, ‘Blue’ drops cookies, and executes targeting based on unique IDs, meaning that ‘Blue’ creates a unique ID for each user that goes into a website. These IDs entitle the following information to be tracked: location (only country and region) and browser. Therefore, ‘Blue’ doesn’t get any personal information from the user, they only create a “profile” based on those two data points. Through this ID they can understand the needs, tastes and preferences of the user, which allows them to deliver a better ad service.
Furthermore, to make sure that users aren’t spammed, Blue uses frequency caps along with its own AI to allocate their resources efficiently, the company is able to reduce the times an ad needs to be shown this way. Thanks to the AI’s analysis of users’ behaviour, the system understands how many times an ad needs to be displayed before a user makes a purchase, which allows for a decrease of about 30% of the cost of media buying for Blue. In conclusion, the outcome would be the same with or without using AI, but thanks to this technology we can considerably reduce the amount of resources needed, resulting in better quality over quantity.
The ideal retargeting strategy should aim for the minimum possible intrusiveness. Some of the solutions are: reducing the number of times an individual is exposed to retargeting ads, making sure that the ads are personalised (1:1 retargeting), complying with IAB’s Transparency & Consent Framework so that the user can have any information they wish about how and when they are being tracked and providing the opportunity for opting-out, etc. All these key points are also ensuring that both users and potential partners will trust your brand and practices.
Another ethical concern is the security and protection of users’ data. Companies and organisations using retargeting solutions must prioritise great security measures to safeguard the information that they collect. Using encryption, data anonymization and complying with data protection regulations like GDPR can help mitigate privacy risks. Being certified as a member of the before mentioned IAB’s TCF entity, as ‘Blue’ is, ensures that a company follows the privacy guidelines established across all territories, therefore is synonymous with being a trusted business.
In a world in which users’ privacy is being taken more seriously than ever, retargeting practices are no different. Striking a balance between effective marketing and respecting privacy concerns is essential. By prioritising transparency, minimising intrusiveness, enhancing data security, and empowering users, organisations can navigate the ethical considerations of retargeting and establish a more ethical and privacy-conscious approach to personalised advertising.
