In my continuing research on the semantic web, I make it a priority to catch everything going by that affects the monetization of the web.  Harris Interactive performed a poll asking people about their attitude towards targeted advertising on the web.  After a few questions, the interviewer told the user about new FCC privacy regulations.  The results were somewhat surprising.

The eWeek article purports to find out if Americans of various age groups are open to targeted advertising, that is, does the idea of on-line advertisers tracking you to give you a better experience bother you?  The simple majority in all demographic categories was yes.  With all the talk of users giving away their privacy in exchange for “free stuff” on the web, I was surprised.  However, when informed about proposed FCC regulations, every demographic changed to a simple majority of “No”, they don’t mind.

As I think about monetizing the web, the obvious question is whether users want to continue seeing “spank the monkey” Flash ads, or would they rather see something useful.  I think the resounding answer is “Yes, show me something useful!”  The problem involves how to determine what is useful.  If users can’t/won’t maintain their own APML profiles, then advertisers must determine what ads to show somehow.  Just because sites like Digg have started elementary initiatives towards building an APML profile for you doesn’t mean that it will be adopted.  In fact, I doubt APML or anything like it will ever be adopted in its current form.  Most users will NOT maintain a profile–it must be automatic, seamless and transparent.  But wait!  Some software does transparently report on your usage.  When it lets us opt-in, most do not.  If it is not opt-in, then it is SpyWare.

Let’s face it.  There are only 3 major ways to pay for content on the web: 1) advertising, 2) micro- or macro-payments, or 3) government funding.

#1, as we all know, is the primary method today.  If people did demand higher levels of privacy online, then this won’t work forever.

#2 hasn’t worked yet, and won’t as long as #1 is available.  I’ve thought about the idea of providers managing the macro-payments, then doling out the micro-payments, but they we’ll end up with the another ringtone economy, and yet another middle-man.

#3 works well for some television systems–BBC for instance.   Since I’m a capitalist through-and-through, this really doesn’t appeal to me.

It really comes down to users deciding, silently voting, with their clicks.  I believe that when users think about being tracked, they object.  When they are simply consuming services for free, they don’t mind.

Next, part II–when do users even see the ads we’re trying to use to pay for the services they’re consuming.