(Hidden) privacy risks of online ads that you should know

Do you remember the last time you discussed with your partner about those new trendy sneakers… and suddenly after the ad popped up? Or that the ad knew you have a child, although you never posted a single thing?

Advertising service providers do not need to listen to you to show highly-relevant ads. Other currently used strategies allow to offer you personalized ads. Even if that comes with some privacy concerns.

What are the privacy risks of online ads? Do they invade your privacy at a level that you should be concerned about?

What fits under the category of online ads?

Almost every piece of promotional content on the Internet can fit under the definition of online ads.

For every ad that you see, somebody pays. It is beneficial to you because you get to search the web for “free.”

However, somebody also makes money here. The websites and apps monetize your actions, attention, and collected data by showing you ads.

Statistics suggest that as much as 60% of users are worried about the personal privacy risks of online ads. Specifically about companies sharing their collected data with other companies.

It is observed that users might even avoid clicking on ads because they do not want their data to be re-used in personalized ads.

Are personalized ads worth concern?

There is nothing wrong with personalized content per se. The majority of ads you see are relevant to you, therefore, they are not annoying or disturbing. Besides, it also feels good to be the first to catch a great deal for the product you love.

The privacy risk of online ads comes from the way that data is collected.

Facebook “is listening” to its users.

Let’s come back to the example of sneakers. Your partner showed you those nice sneakers on his (her) phone, and you two briefly talked about them. The next day you notice the ad for the same sneakers on your own device.

Let’s be clear here – Facebook did not listen to you.

However, it may seem so due to the intelligent Facebook algorithm that connected the facts:

• you two are friends on Facebook (the close ones);
• you spent time together (your phones were in the same room, or even next to each other);
• while you were together, the partner saw the ad (there is a high chance you saw it too).

It is wise for an algorithm to at least try to show you the ad. And that is what it did.

Of course, it feels good to know your conversations are not listened to. Yet, the fact that the algorithm uses location and connections to tailor ads to you does raise some privacy concerns.

After all, if you did not want to be tracked, you would need to leave your phone at home each time you go out.

Creating “personas”

Every small action you make online helps the advertiser build your accurate profile, a “persona.”

Here’s what profile Google created about you.

And here’s what Facebook thinks you are interested in. (Visit Categories used to reach you section.)

Here you can find surprisingly accurate information – for instance, your relationship status, employment, education, or even very niche interests. Most of this information you did not need to identify. It is gathered, analyzed, and predicted based on your actions online.

Risk of malicious ads

One of the most substantial privacy risks of online ads is malicious ads or malvertising. Your interests can be used to show you fraudulent ads on infected websites.

For instance, if you click on a fraudulent ad advertising a tempting deal for the sneakers you and your partner discussed, you might end up in a clone of a legitimate website. Unintentionally, you might give away all your information (username, password, credit card, etc.) to a cybercriminal, not a brand you trust.

How can one minimize the privacy risks of online ads ?

The year 2021 was the profound year for privacy-conscious changes in the advertising market.

One of the most tremendous changes was Apple’s privacy restrictions implemented in the iOS 14.5 update. Now the user has a right to choose to not be tracked by third-party companies. This means, such ad platforms as Facebook can no longer learn new information about users or re-target them. ( Google is now working on a similar solution for Android users.)

The trend is clear – because of the rising privacy concerns, the advertising platforms had no choice but to admit the risks and present some radical changes.

What can you, as a user, do?

If privacy risks of online ads concern you personally, here are some solutions that you could try to do to protect your privacy at a higher level:

• Review your profile on advertisers’ platforms: remove interests or knowledge about you that you do not want to be used for advertising;
• Use adblocker to see fewer ads and decrease the chance of clicking on a malicious ad;
• Use a password manager – this tool will help you detect a malicious website (it will not autofill your credentials if the URL is misspelled);
• Be skeptical about the ads you see – do not click on too good to believe ones.

Stay safe and protect your privacy!