Home Government & Policy The Evolution of Online Advertising: A Conversation with Ghostery CEO Jean-Paul Schmetz

The Evolution of Online Advertising: A Conversation with Ghostery CEO Jean-Paul Schmetz

The world of online advertising has undergone significant changes over the past decade, with ad blocking becoming increasingly popular. Ghostery, a company that helps users understand and block tracking by advertisers, has played a crucial role in this shift. In its 15 years of existence, Ghostery has amassed a user base of over 100 million downloads, with 7 million monthly active users. However, despite the rise of ad-blocking technology and privacy-friendly features promised by major browsers, Ghostery CEO Jean-Paul Schmetz believes that regulation alone is not enough to protect online privacy.

Ghostery was acquired by Cliqz in 2016, a search engine that recognized the need for a browser that prioritizes user privacy. Ghostery’s browser extension allows users to continue using their preferred browsers while enjoying the benefits of ad-blocking and tracking protection. In contrast, Brave, another privacy-focused browser, offers a more comprehensive approach to online privacy but requires users to switch browsers entirely. Ghostery 10, the latest version of the extension, has been designed with a user-friendly interface suitable for both tech-savvy users and the general public.

Despite the introduction of the European Union’s General Data Protection Regulation (GDPR), which initially led to a decrease in tracking, the number of trackers has continued to increase. Companies have found ways to navigate the consent requirements imposed by GDPR, leading to a resurgence in tracking activities. While there has been a recent shift towards first-party cookies over third-party cookies, Google’s announcement that it will not block third-party cookies has created uncertainty in the industry. Schmetz emphasizes that users cannot rely on Big Tech or regulation to protect their privacy and must take matters into their own hands.

When it comes to the impact of GDPR, Schmetz notes that while there was a decrease in tracking in Europe, the United States has seen continuous growth. Consent layers implemented by companies are designed to trick users into agreeing to tracking, and once consent is given, users are not prompted again. However, with Ghostery installed, users can effectively block tracking regardless of their consent choices. Big Tech companies hold an advantage in obtaining consent due to their dominance in the browser market. Users who rely on popular browsers like Google Chrome end up granting access to their data, necessitating the use of tools like Ghostery to mitigate the risks.

Although browsers like Safari have made progress in blocking cookies and tracking, they often face the challenge of breaking certain websites, which can have far-reaching consequences due to their wide user base. Browser extensions like Ghostery can act more swiftly in protecting users and responding to their needs. While ad-blocker usage may have plateaued, Schmetz argues that the need for ad-blocking remains the same, and usage has increased on mobile platforms, such as Safari on mobile devices.

YouTube’s frequent changes to its ad-blocking policies have sparked a cat-and-mouse game between the platform and ad-blocking companies. Schmetz believes that this game is risky for YouTube, as users tend to become frustrated and seek alternative solutions such as Ghostery. Surveys indicate that users appreciate the value provided by ad-blocking tools during these moments. However, Schmetz acknowledges that the situation is not simply black and white, as the relationship between users, ad-blocking companies, and platforms is complex and multifaceted.

The prevalence of tracking in the internet economy can be attributed to the business model of programmatic advertising, which relies on data collection and monetization. Schmetz suggests that if a significant portion of the population were to adopt browsers like Brave, which prioritize privacy, programmatic advertising would cease to exist. However, he recognizes that without widespread user adoption, regulation alone cannot effectively address the issue. Authorities may attempt to address the problem indirectly rather than head-on. Therefore, individual users hold the power to drive meaningful change in the online advertising landscape by actively protecting their privacy.

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