Monday

4th Dec 2023

Experts warn MEPs on tracking ads: 'Don't be fooled'

  • Facebook has been accused of targeting teenagers with with weight-loss and gambling ads on social media (Photo: Kenya Allmond)
Listen to article

Tech companies claim that so-called "personalised ads" - a big source of revenue for firms like Google or Facebook - can provide the best online experience for users.

But this type of 'experience' has increasingly become a source of concern for policymakers - mainly because targeted ads tend to rely on large amounts of personal data and invasive surveillance practices, of which the user is rarely aware.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The internet has drastically changed the advertising industry. What used to be a simple interaction between a publisher and an advertiser has now become a complex and dynamic ecosystem, full of intermediaries, such as ad-exchange platforms, or supply-side platforms, who facilitate real-time transactions to push a message onto users' screens.

A coalition of MEPs has been trying to mobilise support for a ban on behavioural tracking-based advertising, under amendments submitted to the Digital Market Act – a landmark piece of legislation setting a list of 'dos' and 'don'ts' for the biggest online platforms, such as Google or Facebook.

They believe that a system where huge amounts of personal data are for sale to the highest bidder, in a highly-opaque market, breaches users' right to data protection and privacy.

The selling technique actually uses huge amounts of users' data to display online ads, including the individual location, gender, income, religion, political views, sexual orientation and even whether someone is the parent of a child with special needs.

Lobbying scare tactics

However, progressive MEPs failed to convince liberal and conservative lawmakers, who fear that a total ban could be disproportionate.

Under a compromise reached on Wednesday (17 November), EU lawmakers agreed not to ban this advertising technique. Instead, they introduced stricter rules to protect minors, and impose limits to data-processing when it comes to religion, race, trade union membership, and other sensitive data.

Facebook is still tracking and collecting teenagers' personal data for ads on its social media platform, according to new research – contrary to the social media giant's claims it will end this practice. In the past, the tech giant has been accused of targeting teens with with weight-loss and gambling ads on its social media.

Earlier this month, IAB Europe, representing the digital advertising and marketing ecosystem, launched a campaign against the ban on targeted advertising, arguing that such move would penalise SMEs in Europe.

However, according to Jan Penfrat from European Digital Rights, this is just "a scare tactic". "Don't be fooled," he told MEPs during a hearing on the matter on Friday.

"As long as advertising is based on personal data, Google and Facebook will have the upper hand because they have already historically collected this huge amount of data," he argued.

An alternative to targeted ads is known as "contextual ads" – which, instead of the user, focus solely on the content of webpages. So, for example, a car insurance advert would be displayed on webpages that car shoppers may visit.

Contextual ads to reach €365bn by 2025

According to Erik Bugge, CEO of a European startup on contextual advertising called Kobler, these alternative techniques can be a real solution to enhance transparency.

"Contextual ads can solve the opacity problem… and the harm caused by the inherited black-box nature of behavioural targeting that has tricked advertisers into funding ad fraud and misinformation on the internet today," he told MEPs.

He also argued that the IAB's arguments are misleading because "an unprotected data-driven market will tend to [benefit a] few dominant players".

This is partly illustrated when, for example, SMEs give Google and Facebook data on their customers, and these tech giants use such data to also run ads for their competitors.

Bugge urged MEPs to limit the data that the dominant players have access to, arguing that "if they continue like now, where they have access to everything, they will screw European SMEs".

Privacy advocate Johnny Ryan, for his part, also warned EU lawmakers: "You can have targeted [ads] without having tracking. But the industry that makes money with tracking wants you to think otherwise".

It is estimated that a ban on targeted ads could put at risk €6bn of advertising income for app developers.

Meanwhile, contextual advertising market worldwide is projected to reach $412bn [€365bn] by 2025 as the industry is moving away from intrusive techniques.

MEPs in the internal market committee are expected to adopt their official position on the Digital Market Act on Monday (22 November).

New doubts raised on tracking ads ahead of key vote

Investors and small businesses are not, in fact, as keen on tracking-based online adverts as Big Tech's lobbying efforts have claimed, new research revealed on Monday, ahead of this week's plenary vote on stricter rules for online platforms.

Analysis

How Wilders' Dutch extremism goes way beyond Islamophobia

Without losing sight of his pervasive Islamophobia, it is essential to note Geert Wilders' far-right extremism extends to other issues that could drastically alter the nature of Dutch politics — and end its often constructive role in advancing EU policies.

Latest News

  1. Israel's EU ambassador: 'No clean way to do this operation'
  2. Brussels denies having no 'concern' on Spain's amnesty law
  3. Dubai's COP28 — a view from the ground
  4. Germany moves to criminalise NGO search-and-rescue missions
  5. Israel recalls ambassador to Spain in new diplomatic spat
  6. Migrant return bill 'obstructed' as EU states mull new position
  7. Paris and Berlin key to including rape in gender-violence directive
  8. What are the big money debates at COP28 UN climate summit?

Stakeholders' Highlights

  1. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  2. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  3. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  4. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?
  5. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  6. UNOPSFostering health system resilience in fragile and conflict-affected countries

Stakeholders' Highlights

  1. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  2. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  3. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  4. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  5. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch
  6. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations

Join EUobserver

Support quality EU news

Join us