Ahhh! My Phone Is Spying on Me!

Has this ever happened to you? You scroll through Amazon searching for the perfect chew toy for your dog. Then, for the next few days, every website you visit shows you ads for chew toys . . . and puppy treats . . . and water bowls . . . and grooming kits . . . and . . . Suddenly, the entire internet seems to know you have a dog.

Sound creepy? You may not realize it, but whatever you do online, you’re being watched. Businesses track what you search for and buy, what videos you watch, what games you play, and what you like on social media. They also gather details about where you live, how old you are, and your gender. Then they sell that information to marketers, who use it to show you ads that match your interests.

The purpose of this practice—known as ad targeting—is to reach the customers who are most likely to buy what an ad is promoting. If you’ve previously searched for dog toys, for example, a company can infer that you have a dog—and as a result are more likely to buy other items a dog owner might want.

But ad targeting raises concerns for privacy experts. They say businesses often collect people’s data without their direct consent (permission). 

“Many people don’t even realize it’s happening,” says Girard Kelly, a privacy expert at Common Sense, a nonprofit that helps kids stay safe online. “Every time you open an app or do just about anything online, companies are collecting your information and exploiting it to make money.”

Has this ever happened to you? You scroll through Amazon searching for the perfect chew toy for your dog. Then, for the next few days, every website you visit shows you ads for chew toys . . . and puppy treats . . . and water bowls . . . and grooming kits . . . and . . . Suddenly, the entire internet seems to know you have a dog.

Sound creepy? You may not realize it, but whatever you do online, you are being watched. Businesses track what you search for and buy. They track what videos you watch, what games you play, and what you like on social media. They also gather details about where you live, your age, and your gender. Then they sell that information to marketers. Marketers use it to show you ads that match your interests.

This practice is known as ad targeting. Its purpose is to reach customers who are most likely to buy what an ad is promoting. For example, if you have searched for dog toys, a company can infer that you have a dog—and are more likely to buy other items a dog owner might want.

But ad targeting raises concerns for privacy experts. They say businesses often collect people’s data without their direct consent (permission).

“Many people don’t even realize it’s happening,” says Girard Kelly. He is a privacy expert at Common Sense, a nonprofit that helps kids stay safe online. “Every time you open an app or do just about anything online, companies are collecting your information and exploiting it to make money.”

A Day in the Life: Your Privacy Matters

Watch this video from Common Sense to learn more about how marketers track kids’ online activity.

Watch this video from Common Sense to learn more about how marketers track kids’ online activity.

Most major companies, including Amazon, Facebook, and Google, use web-tracking tools to monitor people’s online activities. So do apps like TikTok and Instagram. 

These businesses collect your data largely through lines of code called cookies (see "How Targeted Ads Work," below). Many websites implant cookies on your device the first time you visit. 

Basic (or first-party) cookies can be helpful. They allow websites to remember your login information and to save the items in your shopping cart, for example. Third-party cookies, on the other hand, can track a user from one website to another. Third-party cookies are why you might see ads for shoes on one site after checking out an article about the new Air Jordans on another. 

Companies track users’ online activity in part to better understand their customers and to provide a more personalized experience. YouTube tracks which videos you watch, for instance, so it can recommend others you might like.

But the main reason websites collect your information is to make money by selling ads. In 2020, Google made nearly $40 billion in digital ad revenue in the U.S., and Facebook made about $31 billion, according to the market research firm eMarketer.

Most major companies use web-tracking tools to monitor people’s online activities. That includes Amazon, Facebook, and Google. Apps like TikTok and Instagram do the same.

These businesses collect your data largely through lines of code called cookies (see "How Targeted Ads Work," below). Many websites implant cookies on your device the first time you visit.

Basic (or first-party) cookies can be helpful. They let websites remember your login information and save your shopping cart items, for example. But third-party cookies can track a user from one site to another. Third-party cookies are why you might see ads for shoes on one site after reading about the new Air Jordans on another site.

Companies track users’ online activity in part to better understand their customers. They also do it to provide a more personalized experience. For example, YouTube tracks which videos you watch so it can recommend others you might like.

But the main reason websites collect your information is to make money by selling ads. In 2020, Google made nearly $40 billion in digital ad revenue in the U.S., and Facebook made about $31 billion. That is according to eMarketer, a market research firm.

Big businesses aren’t the only ones that profit from targeted ads, however. Small companies benefit too, because it’s cheaper and more efficient for them to target their ads toward only the customers who are likely to buy their products.

Many people say targeted ads benefit the public as well, in part because the money websites earn from such ads helps ensure that a lot of online content and services remain free. Without it, they say, we might have to pay to have an Instagram or Gmail account or read certain articles online.

In addition, some people argue that there’s no need to worry about data tracking because the information websites collect is anonymous and does not include personal details, such as your name. Instead, people are grouped into broad categories (for example, “female video game player, age 13 to 17, in Texas”).

Plus, marketers point out, seeing ads for things you’re likely to buy is often more helpful—and less annoying—than seeing random ads for things you’re not interested in. 

“Relevant ads enhance the consumer experience,” Dave Grimaldi of the Interactive Advertising Bureau, a digital media organization, recently told Wired magazine. “They help serve the right ads to the right people at the right time.”

Big businesses are not the only ones profiting from targeted ads. Small companies benefit too, because it is cheaper and more efficient for them to aim their ads only at customers who are likely to buy their products.

Many people say targeted ads benefit the public as well. That is in part because the money websites earn from such ads helps ensure that a lot of online content and services remain free. Without it, they say, we might have to pay to have an Instagram or Gmail account or to read certain articles online.

In addition, some people argue that there is no need to worry about data tracking because the information that websites collect is anonymous. It does not include personal details like your name. Instead, people are grouped into broad categories (for example, “female video game player, age 13 to 17, in Texas”).

Plus, marketers say, seeing ads for things you are likely to buy is often more helpful, and less annoying, than seeing random ads for things you are not interested in.

“Relevant ads enhance the consumer experience,” Dave Grimaldi recently told Wired magazine. He is with the Interactive Advertising Bureau, a digital media organization. “They help serve the right ads to the right people at the right time.”

Ad targeting is legal, with some exceptions. Federal law bans companies from collecting online information from kids age 12 and under. Teens have fewer protections, however—and they’re an attractive market for advertisers. 

Why? Because teens today buy—and convince their parents to purchase—an incredible amount of stuff. Research shows that young people are responsible for tens of billions of dollars in spending each year. On top of that, most parents in the U.S. report that their kids have some influence over family and household purchases, including clothes, groceries, and even cars. 

At the same time, most young people spend hours online each day, making them especially vulnerable to targeted ads.

Ad targeting is legal, with some exceptions. Federal law bans companies from collecting online information from kids age 12 and under. But teens have fewer protections. And they are an attractive market for advertisers.

Why? Because teens today buy an incredible amount of stuff. Or they convince their parents to buy it for them. Research shows that young people are responsible for tens of billions of dollars in spending each year. Also, most parents in the U.S. report that their kids have some influence over family and household purchases. That includes clothes, groceries, and even cars.

At the same time, most young people spend hours online each day. That makes them especially vulnerable to targeted ads.

As the use of web-tracking tools and targeted advertising has increased in recent years, so too have privacy concerns. In response, lawmakers nationwide have taken steps to protect consumers. 

A new law that went into effect last year in California, for example, guarantees people in that state the right to know what personal information is being collected about them and how it is being used. It also allows consumers to opt out of having their personal information shared with marketers and to request that their data be deleted altogether. Some businesses are choosing to extend these protections to people in other states. 

Members of Congress have proposed restrictions on ad targeting as well. Last year, lawmakers introduced at least two bills that would limit the ways political campaigns can target online ads toward specific groups of voters.

The use of web-tracking tools and targeted advertising has increased in recent years. So too have privacy concerns. In response, lawmakers nationwide have taken steps to protect consumers.

For example, a new law went into effect last year in California. It guarantees people in that state the right to know what personal information is being collected about them and how it is being used. It also lets consumers opt out of having their personal information shared with marketers. And it lets people ask that their data be deleted altogether. Some businesses are choosing to give these protections to people in other states too.

Members of Congress have proposed restrictions on ad targeting as well. Last year, lawmakers introduced at least two bills that would limit the ways political campaigns can target online ads toward specific groups of voters.

Still, experts say much more needs to be done to protect consumers—including kids. For one thing, they say, existing data privacy laws need to be better enforced. Research by the kid-focused tech company SuperAwesome, for example, shows that by the time children turn 13, technology companies will have collected 72 million data points on them—despite the fact that collecting such data from kids is illegal.

That’s partly why some people want to ban targeted ads altogether. Others, however, say websites should simply be more transparent about what information they collect, who they share it with, and how it is being used—and allow customers to opt out of being tracked. 

While it’s hard to prevent ad targeting entirely, there are a few steps you can take, such as changing the privacy settings on your device (see “Stop Following Me!,” below). 

Many experts say an important first step is just being aware of the details you’re giving out when you go online. 

“Technology is being used in ways we never thought possible,” says Kelly. “So we need to demand that companies protect our privacy.” 

Still, experts say much more needs to be done to protect consumers—including kids. For example, they say existing data privacy laws need to be better enforced. Research by SuperAwesome, a kid-focused tech company, shows that by the time children turn 13, technology companies will have collected 72 million data points on them. That is despite the fact that collecting such data from kids is illegal.

That is partly why some people want to ban targeted ads altogether. But other people say websites should simply be more transparent about what information they collect, who they share it with, and how it is being used. They say websites should also let customers opt out of being tracked.

It is hard to prevent ad targeting entirely. But there are a few steps you can take, such as changing the privacy settings on your device. (See “Stop Following Me!,” below.)

Many experts say an important first step is just being aware of the details you are giving out when you go online.

“Technology is being used in ways we never thought possible,” says Kelly. “So we need to demand that companies protect our privacy.”