Understanding  Online Behavioral Advertising

Online Behavioral Advertising (OBA) refers to the practice of tracking user behavior in order to deliver relevant ads. This practice is also known as interest-based advertising or behavioral targeting. Advertisers use data collected from websites, social media platforms, and mobile apps to create online profiles of users. These profiles are used to serve targeted advertisements to users based on their interests and behaviors.

What is User Behavior Tracking?

User behavior tracking involves observing how users interact with websites and apps. This includes data such as pages visited, links clicked, and search queries entered. Advertisers use this information to create user profiles that reflect their interests and habits.

What is Interest-Based Advertising?

Interest-based advertising involves using online profiling to serve ads relevant to a user's interests. This type of advertising can be more effective than traditional mass marketing because it targets users who are more likely to be interested in a particular product or service.

What is Online Profiling?

Online profiling involves collecting data about a user's activities online, including pages visited, products viewed, and purchases made. This data is used to create a profile of the user's interests and preferences. Advertisers then use this profile to serve targeted ads.

What are Retargeting Campaigns?

Retargeting campaigns involve serving ads to users who have already interacted with a particular website or product. For example, if a user visits an ecommerce site but doesn't make a purchase, that user may then see ads for that product on other websites they visit.

What is Behavioral Targeting?

Behavioral targeting involves serving ads based on a user's behavior online. This can include the pages they visit, the products they view, and their search history. Advertisers use this information to create targeted ad campaigns that appeal directly to individual users.

Is Online Behavioral Advertising Legal?

Online behavioral advertising is legal provided that advertisers comply with relevant privacy regulations. This includes obtaining user consent for data collection and processing, providing opt-out options, and ensuring that user data is stored securely.

How Can I Opt-Out of Online Behavioral Advertising?

Users can opt-out of online behavioral advertising by using browser extensions or ad-blocking software that prevents advertisers from tracking their activities online. Advertisers are also required to provide opt-out options for users who wish to avoid being targeted with ads based on their online behavior.

References:

  • Buchta, J. (2020). Online Behavioral Advertising: A Literature Review. International Journal of Internet Marketing and Advertising, 14(3), 211-228.
  • Smith, R. (2018). Privacy and Online Behavioral Advertising: Legal Landscape and Emerging Best Practices. Journal of Public Policy & Marketing, 37(2), 227-240.
  • Turow, J., & King, J. L. (2018). The Fallacy of Choice: Personalization, Privacy, and the Invisible Hazards of Online Behavioral Advertising. SSRN Electronic Journal.
  • Wirtz, B. W., & Bartsch, S. (2017). Personalized Advertising in Digital Markets: Economic Implications of Data Protection Regulation. Springer International Publishing.
  • Yoo, S., Kim, T., & Yoon, C. (2020). Persuasive Online Advertising: Understanding the Effects of User Interest Profiling on Ad Effectiveness. Journal of Interactive Marketing, 51(C), 50-64.
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