A new study conducted for The New York Times by Web traffic research firm comScore has analyzed the  increasing reach wielded by 15 of the top Internet media companies looking to use consumer's Web browsing history to sell more personalized online advertisements. Typical Web users could find that their Internet habits are being tracked thousands of times each month by several of the firms in the study, including Web pioneer Yahoo and social networking service MySpace, while traditional media companies tend to trail far behind, the study showed. Top Firms Have More Opportunity Than Ever To Learn About Users The comScore study analyzed Web usage in the United States for December 2007 and estimated how many times large Internet media firms could expect to gather such customer Internet usage information as what they are searching for, viewing or buying online. The results have shown that firms such as search leader Google, Time Warner Network's AOL, Facebook, eBay and Amazon are using greater interconnectedness among their groups of Web properties to learn more than ever before about the lives of consumers based on how they use the Internet.  Measuring Value of Ad Viewers, Not Only Audience Numbers Internet usage information is typically gathered to present consumers with online advertisements that have a greater chance of appealing to their interests, which can lead to greater online sales and allow media firms to charge higher amounts than for general ads or for ones not as highly targeted. The study, which was released Monday, has been hailed as one of the first to measure how much consumer information can be recorded by Internet media firms, including every time data is sent from a user's computer to a remote Web site's server, actions the study called "data transmission events." Privacy Advocates May Embrace Study Previous studies used by groups concerned about Internet privacy have had to rely on what were often rough estimates to document a rise in the level of Internet usage information being stored about Web consumers, however the comScore-New York Times study has provided new data to back up such claims. “When you start to get into the details, it’s scarier than you might suspect,” Marc Rotenberg, the Electronic Privacy Center's executive director, told the Times in a recent article by Louise Story accompanying the study. "We’re recording preferences, hopes, worries and fears," added the privacy rights organization's Rotenberg. By examining consumers' Web browsing habits in an effort to predict what they might want next, Internet media firms are building bigger networks encompassing an ever-greater number of Web sites, and in some cases acquiring firms that can provide more reach through consumer information. Large Divide Between Traditional Media and Native Web Firms Online privacy advocates have raised concerns over the growing amount of personal Internet usage data available to large online media firms, peaking last year with a program launched by social networking site Facebook that sent out information about Web purchases to users' friends. Internet media firms have touted the benefits of more relevant online ads as a positive step in the evolution of doing business online, and have been quick to point out various methods they use to keep personal information, such as consumer names and addresses, separate from usage histories and from advertisers. The comScore-New York Times study shows a large difference between how traditional media companies are able to track consumers on the Web, and the vast tracking networks in place at firms such as Sunnyvale, California-based Yahoo and Redmond, Washington-based Microsoft. Advertisers which once looked primarily at the total number of people who might view their messages, are increasingly looking at measurements showing just how apt a particular Web audience might be to click and buy their products or services, and spending more money on specifically-targeted online ads. Search Tally Has Doubled Since 2006 ComScore executive vice president Linda Abraham told the Times that traditional media companies "aren’t even in the same league," as the companies topping a list produced for the study released Monday by her firm. "They can’t really play in this sandbox," Abraham added in reference to newspapers, radio and television firms. Search engine queries have proven to offer advertisers particularly valuable information for targeting ads at consumers, and with the number of searches rising significantly - nearly doubling for American searchers since the summer of 2006 according to comScore - many advertisers have shown their willingness to pay top dollar to tap into search query information. 15 Major Web Firm's Personal Data Usage Studied The comScore-New York Times study combined the total number of searches, display ads, Web page views and videos shown on the networks owned by each of the top 15 firms, along with an estimate of how many ads each displayed throughout the Web, and produced a list that attempted to show the reach of each company. The Times' Story cautions against using the data to compare the 15, however, as a number of factors could not be accurately included in the study, such as information from AOL's recently acquired Tacoda, a so-called behavioral targeting firm. "I do not suggest using the ad network figures to make comparisons between the Internet giants," Story wrote in another recent Times article. The comScore research showed Yahoo properties with the potential to gather the most user data, some 400 billion total "data transmission events" during the month that was studied, with Time Warner-AOL second with roughly 100 billion events, followed by Google with 91 billion events. The joint study used methodology based in part on recommendations of online advertising executives at "two of the largest Internet companies," according to Story. Related Links:
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10:29 pm on Mar. 10, 2008 (utc 0)