Companies like Google and Yahoo that track users online behavior could see their Internet advertising growth slow because of federal, state and consumer uneasiness with such practices, a financial services research group predicts.
The Stanford Group pointed to initiatives by state legislatures in New York and Connecticut to protect consumer's online privacy along with the Federal Trade Commission's call for industry self regulation and complaints by lawmakers as an indication that online advertising may face more regulation.
The group also cited a survey by research company TNS Global that found 42 percent of Internet users would choose to opt out of online tracking if they were able, the Standford Group said.
"We think the growing government scrutiny is likely to make it easier for consumers to opt out of behavioral tracking, which in turn will reduce the number of web surfers that can be reached through behavioral advertising," the group said in a statement.
"The momentum toward disclosure/opt-out has negative implications for the rapid growth of online advertising," the group said.
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