1. Chatura Atapattu [cpa2116]

2.  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

3.  Modern day online advertising has three major entities  Publishers  Advertisers  Ad Networks/Exchanges

4.  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.  Remnant Inventory

8.  Come in-between Publisher and Advertiser  Advantages  Simple arbitrage  Vertical integration  Platform specialization  Behavioral targeting

9. Singular Network Linked Networks

10. Daisy Chained Networks Ad Exchange

11.  Models  Cost Per Mille (CPM)  Cost Per Click (CPC)  Cost Per Action (CPA)

12.  Profile user and serve targeted ads based on user “behavior”  Metrics  Age  Sex  Previously visited web pages/products/services

13.  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 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. [1](2010, November) Interactive Advertising Bureau. [Online]. http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-111710 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/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 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 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 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 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 http://www.ftc.gov/os/2009/02/P085400behavadreport.pdf [8]Microsoft. (2011, January) Microsoft. [Online]. http://privacy.microsoft.com/en-us/fullnotice.mspxhttp://privacy.microsoft.com/en-us/fullnotice.mspx [9]Google. (2010, September) Google. [Online]. http://www.google.com/privacy/ads/privacy-policy.htmlhttp://www.google.com/privacy/ads/privacy-policy.html [10]Google. Google. [Online]. http://www.google.com/privacy/ads/http://www.google.com/privacy/ads/ [11]United States Public Interest Research Groups. [Online]. http://cdn.publicinterestnetwork.org/assets/2SDPw9Zo08rEL_0XahnCmg/OnlinePrivacyLEGPRIMERSEPT09.pd f http://cdn.publicinterestnetwork.org/assets/2SDPw9Zo08rEL_0XahnCmg/OnlinePrivacyLEGPRIMERSEPT09.pd f [12]Eric Picard. (2011, January) iMEDIA Connection. [Online]. http://www.imediaconnection.com/content/28307.asphttp://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/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.pdfhttp://www.ftc.gov/os/2007/12/P859900stmt.pdf [15](2009, October) Center for Democracy and Technology. [Online]. http://www.cdt.org/privacy/targetinghttp://www.cdt.org/privacy/targeting [16](2009, July) Interactive Advertising Bureau. [Online]. http://www.iab.net/media/file/ven-principles-07-01-09.pdfhttp://www.iab.net/media/file/ven-principles-07-01-09.pdf