Post on 20-Dec-2015
Online Advertising :: The Numbers
Grew 17% from Q3 of 2009 to 2010 $6.4 billion 1 trillion ad impressions
2nd biggest advertising market 1st is Television Surpassed Newspapers in 2010
How It Works
Modern day online advertising has three major entities Publishers Advertisers Ad Networks/Exchanges
Publishers
Advertising Inventory“Advertising inventory is the supply of opportunities to display advertising in a
particular medium”
“opportunities to display” = ad impressions
Ad Impression“An ad impression is a single viewing of a
single ad by a single individual”
Ad Networks/Exchanges
Come in-between Publisher and Advertiser
Advantages Simple arbitrage Vertical integration Platform specialization Behavioral targeting
Economics of Online Advertisings
Models Cost Per Mille (CPM) Cost Per Click (CPC) Cost Per Action (CPA)
Behavioral Targeting
Profile user and serve targeted ads based on user “behavior”
Metrics Age Sex Previously visited web
pages/products/services
Real Time Bidding
Process of advertisers bidding on a single ad impression in real time
Occurs within the time taken to load a web page Highly targeted based on
Ad unit size/format on website Website name Website category Geographic location of user based off of IP address Time of day at user’s location Frequency of ads of ad campaign User profile (other information about user such as
age, gender, etc. from cookies)
Data Collection and Privacy Data collection
techniques Cookies▪ First party▪ Third party
IP Address Query strings User volunteered
information Data sharing
between Ad Networks
Privacy Implications HTML5 “Supercookie” Invasion
FTC Self Regulation Education Transparency Consumer control Data security Sensitive data Announce policy
changes
References
[1] (2010, November) Interactive Advertising Bureau. [Online]. http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-111710
[2] (2010, December) Reuters. [Online]. http://blogs.reuters.com/mediafile/2010/12/20/online-advertising-catches-up-to-newspapers-in-2010/
[3] Ian Thomas. (2008, June) Lies, Damned Lies. [Online]. http://www.liesdamnedlies.com/online_advertising_business_101.html
[4] Tanzina Vega. (2010, October) New York Times. [Online]. http://www.nytimes.com/2010/10/11/business/media/11privacy.html?_r=1&hp
[5] United States Public Interest Research Groups. [Online]. http://www.uspirg.org/uploads/eb/6c/eb6c038a1fb114be75ecabab05b4b90b/FTCfiling_Apr7_10.pdf
[6] Poneman Institute. (2010, April) Poneman Institute. [Online]. http://cdn.betteradvertising.com/misc/OBA_paper.pdf
[7] Federal Trade Commission. (2009, February) Federal Trade Commission. [Online]. http://www.ftc.gov/os/2009/02/P085400behavadreport.pdf
[8] Microsoft. (2011, January) Microsoft. [Online]. http://privacy.microsoft.com/en-us/fullnotice.mspx[9] Google. (2010, September) Google. [Online]. http://www.google.com/privacy/ads/privacy-policy.html[10] Google. Google. [Online]. http://www.google.com/privacy/ads/[11] United States Public Interest Research Groups. [Online].
http://cdn.publicinterestnetwork.org/assets/2SDPw9Zo08rEL_0XahnCmg/OnlinePrivacyLEGPRIMERSEPT09.pdf[12] Eric Picard. (2011, January) iMEDIA Connection. [Online].
http://www.imediaconnection.com/content/28307.asp[13] Ed Zimmerman, Mark Kesslen, Matthew Savare, and Lowenstein Sandler. (2010, April) Targeting Real-Time
Targeting: Privacy Groups File Overreaching Suit With The FTC Against Real-Time Behavioral Advertising. [Online]. http://www.adexchanger.com/the-debate/targeting-real-time-targeting-privacy-groups-file-overreaching-suit-with-the-ftc-against-real-time-behavioral-advertising/
[14] (2007, December) Federal Trade Commission. [Online]. http://www.ftc.gov/os/2007/12/P859900stmt.pdf[15] (2009, October) Center for Democracy and Technology. [Online]. http://www.cdt.org/privacy/targeting[16] (2009, July) Interactive Advertising Bureau. [Online].
http://www.iab.net/media/file/ven-principles-07-01-09.pdf