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 looks at the ethical issues behind retargeting. It also explains why we need to balance effective advertising with respect for people’s privacy.
What is retargeting and how does it work?
Retargeting — also called remarketing — is a strategy that tracks a person’s online activity. The goal is to show personalised ads based on what they browsed. Marketers can follow users across websites and show ads again on later visits. They do this with cookies or other tracking tools, like pixels.
Most retargeting companies work like that. But there are cases like Blue. In this model, retargeting focuses on the device’s online activity, its location (only country and region) and the browser. It does not rely on the user’s private information.
The privacy challenge in retargeting
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.
How Blue applies ethical retargeting
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.
To make sure users don’t get spammed, Blue uses frequency caps together with its own AI to allocate media more efficiently. This way, the company reduces how many times an ad is shown.
Because the AI analyses user behaviour, it knows how many impressions are needed before a purchase happens. That insight lets Blue cut media buying costs by around 30%.
In conclusion, the outcome would be the same with or without AI. But with AI we can cut the resources needed.
That means we deliver better quality instead of just more volume.
An ideal retargeting strategy keeps intrusiveness low. You can do that by reducing ad frequency. You can also personalise the message (1:1 retargeting). And follow the IAB’s Transparency & Consent Framework so users know how and when they’re being tracked. All these key points are also ensuring that both users and potential partners will trust your brand and practices.
Data security and compliance
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.
Finding the right balance
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.
