The concept of targeted ads has become a staple of our internet structure. It is the foundation of revenue for many companies, and in some cases, the sole means of success. Certain aspects of our internet activities, such as purchase history and search terms, are tracked and ran through algorithms, so that only the most relevant and meaningful advertisements are displayed to us. This has been proven incredibly effective on the web, but has thus far been unable to surpass that boundary and make its way into our living rooms. That may soon change, as targeted ads now have a good chance at popping up on your television screen.
The New York Times reports that for months now, six of the US's largest cable companies have been coming together and formalizing a plan to bring targeted ads to our living rooms. Participating cable providers include Comcast, Time Warner, CableVision, Cox Communication, and Bright House Networks . Essentially, this would place a smarter cable box under our televisions, that could potentially use a variety of methods to indicate whom shall see what advertisements. Examples of targeting could include tracking what shows you watch, what commercials you fast forward past, your environmental surroundings, etc. In essence, if you are a male, living in a penthouse and spending most of your time watching The Sopranos, advertisers would know not to waist time showing you commercials involving diapers or Broadway musicals.
Though targeted ads may seem appealing to us consumers, does such a practice pose to be anti-competitive, and a direct violation of our privacy? You may ask how it could be considered anti-competitive, when basically the same concept has been accepted when it comes to the internet. How this differs from what we are used to on the web, is that with cable ads, the service provider will also be supplying the ads. Where on the internet, Google or Microsoft may be issuing the ads while AT&T or Earthlink for example, is supplying the internet to us. As is common practice for cable television, for every hour of content, the network (ABC, CBS) is allotted around 15 minutes for advertisements, while the provider (Comcast, Time Warner) is given about 2 minutes. If and when these targeted television ads become a reality, the advertisements will be presented to us through our cable boxes, via the cable provider. The networks would then have to go through these cable companies to get their advertisements to us. It is no secret that selling advertisements provides the vein of existence for cable networks. Obviously the cable companies would potentially benefit greatly from this balance shift, while the networks could take a revenue hit. Is it only a matter of time before the cable companies become pushy and demand more advertisement time to themselves?
As for our privacy, this has always been an issue on the internet, and this concern will only increase when it enters our living rooms. When surfing the web, more knowledgeable users may be skeptical when accepting certain cookies, or when opting in to usage tracking services. Will we have this option when it comes to our cable box? It is highly unlikely that we will be able to opt-in to certain networks tracking our viewing habits, while opting out of others. We all have our guilty pleasures, be them Flava of Love or Sex and the City; will those indulgences be exposed via commercial breaks? Furthermore, do we really want the powers to be to know what we watch, when we watch it? How long before someone's cable box is held as evidence and used against them in the court of law? We have already seen many cases where a PC has been confiscated for that exact purpose. At what point exactly do we realize we are living George Orwell's prophecy?
While both the consumer and cable companies may benefit from targeted ads, what price are we willing to pay for convenience?
The New York Times reports that for months now, six of the US's largest cable companies have been coming together and formalizing a plan to bring targeted ads to our living rooms. Participating cable providers include Comcast, Time Warner, CableVision, Cox Communication, and Bright House Networks . Essentially, this would place a smarter cable box under our televisions, that could potentially use a variety of methods to indicate whom shall see what advertisements. Examples of targeting could include tracking what shows you watch, what commercials you fast forward past, your environmental surroundings, etc. In essence, if you are a male, living in a penthouse and spending most of your time watching The Sopranos, advertisers would know not to waist time showing you commercials involving diapers or Broadway musicals.
Though targeted ads may seem appealing to us consumers, does such a practice pose to be anti-competitive, and a direct violation of our privacy? You may ask how it could be considered anti-competitive, when basically the same concept has been accepted when it comes to the internet. How this differs from what we are used to on the web, is that with cable ads, the service provider will also be supplying the ads. Where on the internet, Google or Microsoft may be issuing the ads while AT&T or Earthlink for example, is supplying the internet to us. As is common practice for cable television, for every hour of content, the network (ABC, CBS) is allotted around 15 minutes for advertisements, while the provider (Comcast, Time Warner) is given about 2 minutes. If and when these targeted television ads become a reality, the advertisements will be presented to us through our cable boxes, via the cable provider. The networks would then have to go through these cable companies to get their advertisements to us. It is no secret that selling advertisements provides the vein of existence for cable networks. Obviously the cable companies would potentially benefit greatly from this balance shift, while the networks could take a revenue hit. Is it only a matter of time before the cable companies become pushy and demand more advertisement time to themselves?
As for our privacy, this has always been an issue on the internet, and this concern will only increase when it enters our living rooms. When surfing the web, more knowledgeable users may be skeptical when accepting certain cookies, or when opting in to usage tracking services. Will we have this option when it comes to our cable box? It is highly unlikely that we will be able to opt-in to certain networks tracking our viewing habits, while opting out of others. We all have our guilty pleasures, be them Flava of Love or Sex and the City; will those indulgences be exposed via commercial breaks? Furthermore, do we really want the powers to be to know what we watch, when we watch it? How long before someone's cable box is held as evidence and used against them in the court of law? We have already seen many cases where a PC has been confiscated for that exact purpose. At what point exactly do we realize we are living George Orwell's prophecy?
While both the consumer and cable companies may benefit from targeted ads, what price are we willing to pay for convenience?
