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Online Advertising and the Technology Behind It

Chatura Atapattu [cpa2116]. Online Advertising and the Technology Behind It. Online Advertising :: The Numbers. Grew 17% from Q3 of 2009 to 2010 $6.4 billion 1 trillion ad impressions 2 nd biggest advertising market 1 st is Television Surpassed Newspapers in 2010. How It Works.

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Online Advertising and the Technology Behind It

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  1. Chatura Atapattu [cpa2116]

    Online Advertising and the Technology Behind It

  2. 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
  3. How It Works Modern day online advertising has three major entities Publishers Advertisers Ad Networks/Exchanges
  4. 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”
  5. Publishers Remnant Inventory
  6. Evolution of Online Advertising
  7. Evolution of Online Advertising
  8. Ad Networks/Exchanges Come in-between Publisher and Advertiser Advantages Simple arbitrage Vertical integration Platform specialization Behavioral targeting
  9. Ad Networks/Exchanges Singular Network Linked Networks
  10. Ad Networks/Exchanges Ad Exchange Daisy Chained Networks
  11. Economics of Online Advertisings Models Cost Per Mille (CPM) Cost Per Click (CPC) Cost Per Action (CPA)
  12. Behavioral Targeting Profile user and serve targeted ads based on user “behavior” Metrics Age Sex Previously visited web pages/products/services
  13. 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)
  14. 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
  15. 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
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