DoubleClick Finds an Uncomfortable New Privacy

Once upon a time, companies like DoubleClick(DCLK Quote) and Engage (ENGA Quote) fought for the right to target particular Internet ads at specific people.

Now they're not quite so picky -- and investors aren't nearly as interested. As a matter of fact, the history of targeted Internet advertising, including a courtroom development last week, is a tale of how the supply-demand relationship in Internet advertising still isn't working in the sell side's favor.

One can't help thinking about the extent to which the online advertising market has changed, given the news late last week that DoubleClick had agreed to settle a raft of class-action lawsuits filed two years ago -- lawsuits that pitted the company's desire to collect data about Internet users against crusaders for privacy on the Internet.

At the time, it was believed that the ability to target ads according to the behavior and interests of individual Internet users would mean billions of dollars of additional revenue for companies, such as DoubleClick, which were selling online advertising. But now that DoubleClick is settling, the angst and noise generated over the targeting issue seems to have been all for naught. ...