BlueKai, Inc was the focus of a heated Internet debate 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 gather 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 deceptive and detrimental to the online industry.
Browsing habits tracked by BlueKai cookie data
To exploit a marketing niche online called “data exchange,” BlueKai was founded in 2008. As reported by TechFlash, BlueKai packages anonymous consumer data collected by cookies it installs on leading retail, travel and automotive sites. Online auctions created by BlueKai invite bids on the data from advertisers. Online advertisers bid on the BlueKai cookie data so they can zero in on people whose browsing habits indicate they may be interested in a certain model of automobile or vacation destination.
Data exchange online is large business
Each day, BlueKai sells 50 million pieces of details about the browsing habits of specific individuals, as outlined by the Wall Street Journal. How Internet spying has become a large business with more intrusive practices than most people realize is the focus of the Journal series. A Journal study of the nation’s top 50 web sites found that an average of 64 cookers per user were installed without warning. When people visit these sites, the cookies scan and file location, income, purchasing interests and even medical conditions. Using online data exchanges that work like the stock market, companies for instance BlueKai market the customer profiles.
BlueKai cookies serve the greater good, CEO says
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’re 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. His solution, which BlueKai already provides with an online registry, is to make the online data collection process more transparent. BlueKai shows consumers precisely what is known about them and gives them control over what data they’ll allow the company to use.
Further reading
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″
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