behavioral advertising

The Web sites computer users visit, the search queries they conduct and the products they buy -- along with all the personal details they reveal on social networking pages -- can give companies insight into what Internet ads they might be interested in seeing.

But privacy watchdogs warn that too many people have no idea that Internet marketers are tracking their online habits and then mining that data to serve up targeted pitches -- a practice known as behavioral advertising.

Google Inc. has been getting more frugal with its employees and other expenses as the recession crimps its growth, but the Internet search leader isn't skimping on political lobbying, according to a recent disclosure form.

The Mountain View, Calif.-based company spent $880,000 on lobbying during the first quarter, a 42 percent increase from $620,000 at the same time last year. Google spent a total of $2.8 million on lobbying last year.

As arguments swirl over online privacy, a new survey indicates the issue is a dominant concern for Americans, who live in one of the biggest wired countries.

More than 90 percent of respondents called online privacy a "really" or "somewhat" important issue, according to the survey of more than 1,000 Americans conducted by TRUSTe, an organization that monitors the privacy practices of Web sites of companies like I.B.M., Yahoo and WebMD for a fee.

Behavioral advertising always draws the ire of privacy advocates. Nonetheless, Google rolled out technology Wednesday that uses that principle.

Google isn't calling it behavioral advertising. Rather, the search giant has labeled its initiative "interest-based" advertising and is testing the concept on its partner sites and on YouTube. Google calls it a move to drive relevance and improve the connection between advertisers and users.

Web surfers can feel more secure about their clicks and Web purchases now that three of the nation's four largest Internet service providers have pledged to stop tracking users' behavior unless given permission by the user.

AT&T, Verizon, and Time Warner Cable officials testified Thursday before the Senate Commerce, Science and Transportation Committee that they would not deliver ads based on consumer Web surfing.

'No Immediate Plans'

The Federal Trade Commission is getting an earful about Internet privacy. The opinions on the FTC's proposed self-regulatory principles to govern online advertising vary widely, with Microsoft taking bold steps to suggest an approach it deems "comprehensive."