Advertisers are taking their ads elsewhere for 2020, but it’s the Internet that’s leading the way
Posted December 20, 2020 11:04:54A major change in the way ads are seen on the Internet will impact how companies sell their services, the companies said Tuesday.
The industry has been trying to develop a way to provide consumers with more information about the ads they see and how they’re consumed, in an effort to prevent people from clicking on misleading or deceptive content.
The Internet Advertising Bureau said it has decided to shift its focus away from ads and into information technology, with its new role as the “information service provider.”
Advertisers will no longer have to use traditional ad sales tactics to make money on advertising, which are still needed to run online ads, the agency said.
The new role means advertisers will have to rely more on information technology to reach consumers, rather than relying on the traditional methods of buying and selling digital advertising, said Michael Anderson, chief executive officer of the agency.
The change will require companies to reevaluate the types of ads they are willing to show on their sites and to invest more in data and analytics to make sure their audiences are not misled.
The agency also said that it will work with consumers to educate them on the importance of information privacy, including how to choose what information is shared with advertisers and how to use it.
The biggest change is likely to come in the form of better search engines that will let users search for advertising based on topics that interest them, including consumer privacy, health, finance, entertainment, education and travel, the bureau said.
“The Internet is becoming a new place for advertisers to reach their customers,” said Michael Vazquez, president of the nonprofit Information Technology and Innovation Foundation.
“Advertiser platforms have to think about how to help their consumers understand and take advantage of the opportunities for better, more relevant ads.”
In the meantime, companies are working to build a new generation of tools to help advertisers understand what’s important to consumers, Vazada said.
The Internet Advertising Initiative, an industry group, will work to develop the new tools.
The move comes after the International Trade Commission ruled that the U.S. Trade Representative was not required to take a strong position on online advertising.
In its ruling, the commission said the U:s digital advertising market is unregulated, with the potential for substantial abuse and potential for unfair competitive advantage.
It also said the government should act to strengthen the digital advertising industry and protect consumer interests by making it easier for companies to advertise online.
The ruling came as the ITC has been working with U.K. regulators to address the issue of online ad fraud.
The commission said online advertising has become the most important source of consumer information for consumers and that consumers have a right to know how they are being served and how their information is being used.