Care for your privacy prevents companies earn millions of dollars

According to a new report by the Ponemon Institute titled "Economic Impact of Privacy on Online Behavioral Advertising," the increasing number of advertisers are declining the use of online behavioral advertising (OBA) model which is caused mostly by the concerns over consumers’ privacy.

While 70% o the companies in the report agree that behaviorally targeted advertising has significantly increased marketing and sales performance, still most of them have limited their online ad budgets over privacy concerns.

98% of companies said they have restricted OBA because of privacy concerns, while 63% reported OBA was their most effective form of marketing.

"These numbers are disconcerting both in terms of the percentages and the potential economic impact," said Dr. Larry Ponemon, chairman and founder, Ponemon Institute.

"These data clearly indicate that, in spite of a belief that behavioral advertising is their most effective marketing channel, companies are holding back hundreds of millions of dollars from online marketing simply because of a lack of confidence that privacy concerns can be overcome"