Chatura Atapattu [cpa2116]. Grew 17% from Q3 of 2009 to 2010 $6.4 billion 1 trillion ad...

Online Advertising and the Technology Behind It

Chatura Atapattu[cpa2116]

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”

Publishers

Remnant Inventory

Evolution of Online Advertising

Ad Networks/Exchanges

Come in-between Publisher and Advertiser

Advantages Simple arbitrage Vertical integration Platform specialization Behavioral targeting


Singular Network

Linked Networks


Daisy Chained Networks

Ad Exchange

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

http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-111710

http://blogs.reuters.com/mediafile/2010/12/20/online-advertising-catches-up-to-newspapers-in-2010/

http://www.liesdamnedlies.com/online_advertising_business_101.html

http://www.nytimes.com/2010/10/11/business/media/11privacy.html?_r=1&hp

http://www.uspirg.org/uploads/eb/6c/eb6c038a1fb114be75ecabab05b4b90b/FTCfiling_Apr7_10.pdf

http://cdn.betteradvertising.com/misc/OBA_paper.pdf

http://www.ftc.gov/os/2009/02/P085400behavadreport.pdf

http://privacy.microsoft.com/en-us/fullnotice.mspx

http://www.google.com/privacy/ads/privacy-policy.html

http://www.google.com/privacy/ads/

http://cdn.publicinterestnetwork.org/assets/2SDPw9Zo08rEL_0XahnCmg/OnlinePrivacyLEGPRIMERSEPT09.pdf

http://www.imediaconnection.com/content/28307.asp

http://www.adexchanger.com/the-debate/targeting-real-time-targeting-privacy-groups-file-overreaching-suit-with-the-ftc-against-real-time-behavioral-advertising/

http://www.adexchanger.com/the-debate/targeting-real-time-targeting-privacy-groups-file-overreaching-suit-with-the-ftc-against-real-time-behavioral-advertising/

http://www.ftc.gov/os/2007/12/P859900stmt.pdf

http://www.cdt.org/privacy/targeting

http://www.iab.net/media/file/ven-principles-07-01-09.pdf

Chatura Atapattu [cpa2116]. Grew 17% from Q3 of 2009 to 2010 $6.4 billion 1 trillion ad...

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