Online advertising versus security: Where will the conflict end?

…others are working just as hard to figure out how to block the advertisements, find ways to defraud the advertisers, or even set up fake Internet companies to run fraudulent ads and steal money from consumers.

In my opinion, this advertising versus security "cold war" is going to get ugly, and everyone stands to lose. Google recently reached a settlement in a class-action lawsuit over alleged click fraud, and Yahoo settled its own click-fraud case last month. Meanwhile, fraudsters continue to eat into these companies' revenues.

This is a battle on multiple fronts, and there will eventually be a standoff; I predict it's coming within the next two to three years. On one front, we have the Internet advertising companies spending more money than they're earning, trying to justify legitimate advertising clicks. On another front, users continue to secure computers by disabling ActiveX, JavaScript, and add-ons such as Adobe Flash, a practice that reduces the effectiveness of advertisements in general.

Other users are simply blocking advertisements using other methods, often with the assistance of their own Internet service provider. And let's not forget about all those malware authors and other fraudsters resorting to more and more nefarious methods to ensure their illegal activities continue to earn revenue.

In my opinion, the Internet is due for a massive shakeup, and I think it will come down to a battle between security and advertising. It all boils down to trust — or rather, a growing lack of it — from Internet users.

I'm not surprised some people are opting not to use the Internet at all — the costs of insecurity can far outweigh the benefits. I'm not surprised that major ISPs, looking for new revenue streams from Internet companies, are exploring the hotly debated concept of Net neutrality. And I'm not surprised that fraud on the Internet is increasing, further eroding users' trust — and consequently companies' profits. What does surprise me, however, is that so few people even grasp what's truly at stake.