How Real-Time Bidding Affects Online Privacy and Advertising

Every day, Google processes up to 426 reviews and traces immense online activity across the United States and Europe. An investigation by the Irish Civil Liberties Council (ICCL) released on Tuesday highlights this pervasive tracking in real time. The study shows that data is gathered at an astonishing rate, with billions of page interactions logged daily across the regions.

According to the ICCL, a leak revealed that Google can see everything a user views in their browser and can pinpoint where a user is navigating in the moment. This data enables Google to assemble detailed profiles, which are then used to tailor advertising. Users often experience highly personalized ads that reflect their visible preferences and interests.

The inquiry notes that private data from European and American users is transmitted to companies around the world. Some destinations include Russia and China, and there is little control over how that data is subsequently used. The ICCL documented instances where data was misused in social movements and sensitive situations, illustrating how Privacy data could be accessed by a wide network of firms. In the United States alone, nearly 4,700 companies could receive this data, with over 1,000 additional firms in Europe involved in the process.

With an average exposure rate of 426 events per person per day, Spain ranks as the third most affected country in Europe. The United Kingdom and Poland sit ahead, reporting higher figures. Even so, the online behavior of American users proves to be more revealing than that of European users by about 57% on average.

Your privacy as a business

The ICCL’s study marks a first in revealing the scope of Google’s advertising tracking. This process, often framed as a privacy concern, is part of a broader system known as real-time bidding. In real time, when a user visits a web page, an invisible auction unfolds among thousands of advertisers eager to display their message first. The ultimate winner is usually the advertiser willing to pay the highest price for attention. Google monitors a wide range of online activities to allow advertisers to target users on a highly personalized basis, even when the content is intimate.

Critics have pointed to the RTB model as controversial. Nonprofit groups and data protection authorities in multiple countries have condemned the practice due to the collection and sale of sensitive user data, including race, sexuality, health status, or political opinions, often without explicit consent.

This system plays a central role in Google’s business model. Alphabet, Google’s parent company, reported a revenue milestone surpassing $257 billion in the previous year. More than 80% of that total came from advertising. Google is not alone in this space; RTB has grown into a lucrative market pursued by other major players such as Microsoft through Xandr, PubMatic, Magnite, BidSwitch, Index Exchange, and OpenX, among others. [Citation: ICCL report, 2024]

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