'Web Bug' Standards to be Developed; NAI Announces New Program to Address Important Consumer Privacy Concerns.

Business Editors/Hi-Tech Writers

CLEVELAND--(BUSINESS WIRE)--Oct. 5, 2001

The Network Advertising Initiative (NAI) today announced the launch of a program to develop online industry standards for the use of web beacons, also called "web bugs."

The announcement was timed to coincide with the Privacy 2001 Conference being held in Cleveland, Ohio.

"The use of web beacons is critical to the continued growth and success of the online economy. Web beacons allow us to provide, among other things, more relevant offers to consumers and anonymous reporting to advertisers on the effectiveness of online ad campaigns. At the same time, the online industry has recognized the need for transparency in the use of web beacons - there are important consumer privacy issues that need to be addressed," said Trevor Hughes, Executive Director of the NAI.

The NAI's web beacon program will respond to consumer privacy concerns through the development standards for the use of web beacons online. Any organization that uses web beacons will be encouraged to participate in this effort.

Web beacons are a tool that can be used online to deliver a cookie in a third party context. This allows companies to perform many important tasks - including unique visitor counts, web usage patterns, assessments of the efficacy of ad campaigns, delivery of more relevant offers, and tailoring of web site content. The web beacon's cookie is typically delivered or read through a single pixel on the host site.

In developing standards for the use of web beacons, the NAI will be building upon the successful development and implementation of the NAI self regulatory principles for Online Preference Marketing (OPM). The NAI's principles for OPM were developed with direct input from the FTC and Department of Commerce and have been widely lauded as an exemplary self regulatory system.

The NAI (Network Advertising Initiative) is a cooperative group of online companies who have joined together to address privacy issues raised by emerging media formats. The NAI's foremost commitment is to provide transparency to consumers with regard to the use of privacy-sensitive technologies.