BlueKai, Inc was the focus of a heated Internet controversy Tuesday. The Wall Street Journal boosted the Bellevue, Wash.-based data exchange to the top of Google trends when an article about Internet spying quoted BlueKai’s CEO . When the cookies collect data on browsing habits, the Journal article, the first in a series, says the programs are “spying on consumers”. BlueKai CEO Omar Tawakoi disagrees with the Journal’s take, saying that calling cookies Internet spying is unreliable and damaging to the online industry.
BlueKai cookie data targets browsing habits
To exploit a marketing niche online called “data exchange,” BlueKai was founded in 2008. TechFlash reports that BlueKai compiles anonymous customer data collected from cookies on leading travel, automotive and retail websites. Advertisers bid for the data at auctions set up by BlueKai. Online companies 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 automobile or escape destination.
Online data exchange websites thriving
Each day, BlueKai sells 50 million pieces of data about the browsing habits of specific individuals, as outlined by the Wall Street Journal. 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 people realize. A study conducted by the newspaper found that without warning, the nation’s top 50 sites planted an average of 64 cookies per user. When individuals visit these websites, the cookies scan and file location, income, shopping interests and even medical conditions. Using online data exchanges that work like the stock market, corporations such as BlueKai market the customer profiles.
CEO stands up for BlueKai cookies
BlueKai CEO Omar Tawakoi fought the Journal with a rebuttal published on Advertising Age. Tawakoi said cookies give advertisers the flexibility to show consumers ads they are more likely to be interested in, also as control the frequency with which they are presented. The revenue ensures that content providers are compensated. Calling cookies spying is misleading at best and detrimental to the success of an emerging industry at its worst, he said. Making the online data collection process more transparent, which BlueKai does already with an online registry, is the solution he offers. BlueKai shows consumers precisely what is known about them and gives them control over what data they will allow the business to use.
Find more information on this subject
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″
