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Well, the people in our opt-in e-mail database have just agreed to receive e-mail. We have a separate database of Web site visitors, which come from our network. These are anonymous people, whose click stream [page requests] we track, using cookies. You can only target them by content, geographical location, browser type, that sort of thing.

So you can't target ads to individuals, right?

Not yet -- but we have a plan of systematically securing information about users who come into the network, so we'll be in a position to serve them ads based on their demographics. Obviously we'll do this in a way that will preserve everyone's privacy.

How will you do this?

There are basically two ways -- one, you have to make sure that the privacy policy is adhered to and make it available to consumers, and secondly, give them the option of opting-out if they don't want advertising targeted to them. I think we'll really try to educate consumers through our e-mail product to understand that if you're opting in for e-mail promotions, you might as well get Web advertising that's targeted to you -- it's to your advantage.

Can you make the assumption that if people have said they'll receive e-mail advertising, you can give them targeted Web advertising too?

Depending on how the FTC guides us, and the way the industry evolves in terms of privacy, we'll figure out some way. I don't know if we could make that assumption -- we'd probably do a re-affirmation.

Let's put it this way. If the government says that consumers have to opt into cookies, I think that would actually work pretty well, because every single Web site would put up a shield that says, "If you want our content, you have to take our cookies." Your users are going to think, "The Salon content is so important to me that I feel comfortable giving information about themselves -- how else are these guys going to make money?"

It's a quid pro quo -- if you want content for free, you have to give me information so I can sell you to an advertiser. If you won't even tell me if you're male or female, then pay me. I can tell you nine out of 10 people -- no, 99 out of 100 people -- will prefer seeing the ad to paying for content.

So you've got these two databases -- one of people who have agreed to getting e-mail, one of Web site visitors. Are you planning on merging the two?

We'd like to, but we'd secure permission from the consumer first. For instance, I could send an e-mail to 20 million people to ask them if they'd opt-in for cookies.

And we do have some user names in our Web site database already. We have a deal with a company called Naviant -- they do most online warranty registrations. When you buy a new IBM ThinkPad, you sign up on the Web so your warranty goes into effect, and Naviant will conduct the process and ask you if you want targeted Web advertising. If you say yes, they'll cookie you. So we have fairly complete profiles, with name and address, in the Web site database. But we're not targeting ads at individuals today. The new product we have will let you do this, though.

My goal is to get everybody in the world's e-mail address and get them to accept information about products targeted to them. That's a pretty big goal. If you aim a spear at the sun, you might hit the eagle; but if you aim at the eagle, you might hit the ground.
salon.com | March 6, 2000

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