Internet Advertising Bureau (IAB) response to the Office of Fair Trading's (OFT) online targeting of advertising and prices market study.
The Office of Fair Trading (OFT) has today published its market study setting out its views on online behavioural advertising and targeted pricing practices.
The Internet Advertising Bureau (IAB) has worked closely with the OFT since the study was commissioned in October 2009.
During the past 18 months the IAB has addressed concerns about online behavioural advertising with a series of initiatives committing the industry to protecting consumers through a self regulatory framework and good practice verified by independent ABCe audit.
The IAB welcomes the OFT's strong support for the evolving self-regulatory framework which offers "benefits for consumer protection and adds real value to the functioning of efficient markets".
IAB UK's Good Practice Principles for behavioural advertising - published in March 2009 - aim to increase transparency, user choice and education and are widely supported by the UK Government (such as the June 2009 Digital Britain report), communications regulator, Ofcom, and the Information Commissioner's Office (ICO).
The OFT recognises that behavioural advertising offers significant benefits to both consumers and the digital economy. Its consumer research supports the IAB's own research which found that consumers themselves would prefer to receive online advertising that is relevant to their interests and preferences, particularly when it helps to pay for the content, services and applications they use online every day.
Signatories to the Good Practice Principles (AOL / AOL Advertising, Audience Science, Crimson Tangerine, Google UK, MSN / Microsoft Advertising, Specific Media UK, Yahoo! SARL) are given a 'badge' to prove their compliance and commitment to good practice.
Nick Stringer, director of regulatory affairs at the IAB, said: "We welcome the OFT's strong support and endorsement of the IAB's work to create a self regulatory framework and good practice for behavioural advertising.
"The OFT's document is a step forward for the industry and we will work together to raise awareness of the choices that consumers have online and create consistency across the industry.
"IAB research found that any consumer concerns decrease when presented with the relevant information about behavioural advertising as well as the tools to turn it off. The online advertising industry has already made a serious commitment and investment to safeguard consumer privacy whilst delivering a more relevant online experience.
"As the OFT recognises, this is an evolving process and the IAB is developing Good Practice guidelines for all EU markets that will address some of the OFT's outstanding concerns. This work involves an unprecedented level of cooperation among different stakeholders in the advertising industry. We look forward to discussing these issues with the OFT and those stakeholders at the proposed roundtable talks in June, as well as continuing our engagement as we seek to continually improve our self-regulatory work."
For more information on behavioural advertising visit youronlinechoices.co.uk.
