BlueKai, Inc was the focus of a heated Internet debate Tuesday. The Bellevue, Wash-based data exchange outfit rose among the hottest internet topics after the Wall Street Journal quoted BlueKai’s CEO in an article about Internet security . The article, number one in a series, alleges that cookies are “spying on consumers” when the programs collect data on browsing habits. BlueKai CEO Omar Tawakoi disagrees, saying the online industry is unfairly maligned when cookies are regarded as spying.
Browsing habit data recorded on BlueKai cookies
In 2008 BlueKai was a start-up created to carve a marketing niche online in “data exchange”. TechFlash reports that BlueKai cookies on leading travel, automotive and retail online websites compile anonymous consumer data. Advertisers bid for the data at auctions set up by BlueKai. Online promoters bid on the BlueKai cookie data so they can zero in on customers whose browsing habits indicate they may be interested in a certain model of auto or vacation destination.
Online data exchange online websites thriving
Each day, as outlined by the Wall Street Journal, BlueKai puts 50 million bits of data about individual browsing habits on the data exchange. Its series, billed as an investigation on the business of spying on Internet users, reports that data collection on consumer browsing habits has grown more intrusive than most individuals realize. The newspaper conducted a study that found the nation’s top 50 sites installed an average of 64 cookies per user, usually without warning. Location, income, purchasing interests-even medical conditions-are recorded by the cookies. Using online data exchanges that work like the stock market, corporations for instance BlueKai market the customer profiles.
BlueKai CEO defends the use of cookies
BlueKai CEO Tawakoi rebutted the Journal’s argument in a post on Advertising Age. BlueKai cookies, Tawakoi said, enable marketers to show individuals ads with stronger relevance at a more effective frequency. Content providers benefit from the revenue produced. Calling cookies spying is misleading at best and detrimental to the success of an emerging industry at its worst, he said. His solution, which BlueKai already provides with an online registry, is for making the online data collection process more transparent. People can sign up with BlueKai’s online registry to learn exactly what is known about their browsing habits and limit what pats of that data the business can put on the market.
TechFlash
techflash.com/seattle/2008/12/BlueKai_gets_105_million_to_help_advertisers_target_shoppers36189094.html
Wall Street Journal
online.wsj.com/article/SB10001424052748703940904575395073512989404.html?mod=googlenews_wsj
online.wsj.com/article/SB10001424052748703940904575395073512989404.html?mod=googlenews_wsj%3c
Advertising Age
adage.com/digitalnext/post?article_id=145208″
