Ad Trackers Will Persist Despite Regulation, Says Ghostery CEO” 3. “Ghostery CEO Warns That Regulation Won’t Eliminate Ad Tracking Issues

The landscape of online advertising has undergone a profound transformation since Ghostery was launched in 2009. Originally designed to help users understand and block tracking by advertisers, Ghostery has now been downloaded over 100 million times, with 7 million active users each month. As the company celebrates its 15th anniversary, TechCrunch spoke with CEO Jean-Paul Schmetz about the state of ad tracking, Ghostery’s evolution, and his views on regulation.

Jean-Paul Schmetz became involved with Ghostery in 2016 when his company acquired the platform. Reflecting on the early days of online tracking, he noted that around 2008 and 2009 marked a significant shift in the internet landscape. Initially, Google operated as a relatively private entity focused on search, while Facebook was emerging as a major player in social profiling. Schmetz and his team began to notice the increasing invisibility of tracking, prompting them to develop solutions to block these trackers.

As an independent search engine, Cliqz recognized the necessity of creating a browser to compete against giants like Google and Facebook. This led to the acquisition of Ghostery, which allowed them to integrate anti-tracking capabilities directly into their browser.

Ghostery serves as an extension that users can easily integrate into their existing browsers, allowing them to continue using their preferred tools without significant changes. Schmetz explained that Ghostery focuses on providing a user-friendly interface to cater to individuals who may not be tech-savvy. The platform aims to inform users about tracking while also providing options to temporarily disable it if necessary.

Despite efforts to enhance privacy, Schmetz pointed out that the number of trackers has increased significantly over the years. Following the introduction of GDPR in Europe, there was a temporary decrease in tracking, but this quickly rebounded as companies adapted to the new regulations. Currently, a shift from third-party to first-party cookies is occurring, though Google’s recent announcement indicates ongoing uncertainty about the future of tracking.

When discussing the effectiveness of regulation like GDPR, Schmetz noted that while it initially curtailed tracking, it did not significantly alter the overarching trend. He emphasized that companies often employ consent layers to manipulate users into agreeing to tracking, allowing the practice to persist. Big Tech companies benefit from these consent mechanisms, as users are frequently compelled to give up their data in exchange for access to services.

Schmetz expressed skepticism about the meaningful progress made by major browsers in addressing tracking. While some browsers have implemented measures that have impacted advertisers, such as Safari’s earlier changes that affected Facebook, he suggested that the influence of user base size often limits the extent of changes browsers can enact. In contrast, Ghostery can adapt quickly to emerging threats and user demands, maintaining its relevance in the evolving landscape.

While some believe that growth in ad blocker usage has plateaued, Schmetz argued that the need for ad blockers remains robust. He noted an increase in usage across various platforms, particularly with the introduction of mobile capabilities. YouTube represents a significant battleground in the ongoing cat-and-mouse game between ad blockers and platforms, with user frustration often driving people to Ghostery for protection.

The fundamental structure of the internet economy, which has relied heavily on programmatic advertising and data collection, underpins the current challenges surrounding online privacy. Schmetz emphasized that users possess the power to shift this dynamic; if a substantial number of individuals adopted privacy-focused tools like Brave, it could render programmatic advertising unsustainable. However, the challenge lies in motivating the majority of users to take action to protect their privacy.

Ultimately, Schmetz believes that meaningful change in the advertising landscape will depend on users themselves. Increased adoption of privacy tools will challenge the prevailing business model, encouraging publishers and advertisers to explore alternative monetization strategies. Regulatory efforts may play a role, but he contends that they will likely fall short of prohibiting tracking outright.

In conclusion, the evolution of online advertising and tracking is complex, shaped by user behavior, technological advancements, and the strategies employed by Big Tech. As Ghostery marks its 15-year milestone, the company remains committed to empowering users to take control of their online privacy in an ever-changing digital landscape.