It would force marketers to be more creative about finding other ways to track users.
Facebook assures users that we should not be worried about privacy issues with targeted ads. They also remind us that advertising helps keep Facebook free:
Advertising helps keep Facebook free. We believe we can create value for the people who use our services every day by offering relevant ads that also incorporate industry-leading privacy protections. In our view, this is a win-win situation for marketers and for you.
But remember, if you are not paying for it, you’re not the customer, you’re the product being sold!
Last month, I wondered about the current state of politics within Microsoft when their IE browser team announced they would ship the next browser with Do Not Track turned on by default.
Now, BI reports that Microsoft is clearly messed up:
Nonetheless, two sources tell us that times are rocky inside Microsoft Advertising.
An ad executive involved with the IE10 dispute likened Microsoft’s browser and ad departments to entirely separate companies. Indeed, IE lives within the Windows division — Microsoft’s core business, and a major source of revenue (about $19 billion a year) and profit (about $12 billion a year), while Microsoft Advertising is part of the Online group, which is on track to lose more than $2 billion this year.
The source told us that the disconnect left the advertising team in the dark about the do-not-track default.
“The decision was made with zero discussion or awareness by the Microsoft Advertising side of it,” the source said. “And yet by the same token the company has been putting them, forcing them, forward in front of the rest of the advertising world to back it, and that’s been tough.”
Microsoft announced Thursday that the next version of its browser, IE 10, will ship with the controversial “Do Not Track” feature turned on by default, a first among major browsers, creating a potential threat to online advertising giants.
This is interesting on so many levels:
- Internal politics at Microsoft since they own web advertising businesses
- IE’s role in a changing landscape where their market share is in decline
- Strategic implications on their biggest competition (Google)
- Power shift to media is can track intent without cookies (search engines)
- Whether this announcement at this juncture is good or bad for DNT
Ultimately, I’m curious whether this means Microsoft is no longer making decisions like a monopolist (or a firm with a lot of market power).