Creation of the Digital Advertising Alliance is an important step for the $26 billion U.S. online advertising industry, according to Parks Associates' new report Trends in Behavioral and Contextual-based Advertising.

Current data show online consumers are amenable to advanced advertising practices, and privacy concerns, if not properly addressed, could negatively impact future growth in this market. Parks research shows formation of organizations such as the DAA is the right approach for online publishers, ad networks, and industry trade organizations to show their commitment to full transparency and consumer empowerment.

Young broadband users are willing to provide personal information to receive customized Internet ads. Over 50% of adults 18-34 and approximately 40% of adults 25-54 are positive or indifferent to advanced advertising practices. These targeting tactics stoke privacy concerns by delivering ads to specific consumers based on individual online behavior, but these concerns are less intense when consumers are given opt-out management tools.