The document is a presentation about online advertising. It provides a brief history of advertising, describes how advertising technology works on the internet and television, and discusses how targeting of ads is done based on geography, demographics, behaviors and use of cookies. It also covers privacy issues and regulations around online advertising and data collection.
2. Alison Bellach Sonderegger
UCSB, 1999
o BS in Computer Science
o BA in Religious Studies
Full-stack Generalist
Joined BrightRoll in May, 2014
Likes memes in presentations
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4. Agenda
An Extremely Brief and Non-Exhaustive History of Advertising
Advertising Technology (AdTech)
Privacy
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5. Not On The Agenda.
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6. Television
Ads provide a significant amount of funding for most television
networks.
Sunday Night Football $593,694*
The Big Bang Theory $316,912*
Americas Next Top Model $25,513*
16 30s spots per half hour == $$$
How did this start?
*source: http://adage.com/article/media/tv-ad-prices-football-king/244832/
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9. Television, cont.
Demographic Targeting:
a section of the population sharing common characteristics,
such as age, sex, class, etc
Nielsen ratings (user diaries and set meters)
18-49: the golden demo
Popularity in this demo is more desirable than number of viewers
Friends 3x Murder She Wrote (same number of viewers
during overlap)
Then comes the internet and digital content...
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10. Internet
Ads provide revenue for the site/application that hosts them.
Revenue model is not as straightforward.
o CPM (cost per mille)
o CPC (cost per click), CPA (cost per action)
Early 70s: advertising on the internet was expressly forbidden
(ARPANET, NSFNet)
1978: Email ads/spam begin
1990s: display ads started gaining popularity
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11. First Banner Ad, Oct 1994: HotWired.com for AT&T
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12. Banner Ad, 1996
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13. Other Types of Internet Ads
Search ads Sponsored content
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14. Video Ads
Video ads (pre-roll, interstitial,
marquee, sponsored content)
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15. Internet, cont.
Targeting can be much more specific
Companies ostensibly get more value for their money
You see content that makes more sense
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16. Geo-Targeting
Tells an advertiser where you are!
informed by your IP address
reveals location, ISP
usually anonymous (most IPs are dynamically assigned)
Used for
content localization
copyright
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20. Demographic Targeting
Tells an advertiser some specific things about you!
Two cases
o site serves a specific demographic
o youve knowingly, willingly provided information to a site
usually awarded with some service (email, cloud storage space,
etc)
Used for
targeting advertisements to a demographic (like Nielsen ratings)
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22. Behavioral Targeting
Tells an advertiser a lot of things!
what search terms you use
what pages you click
how long you stay on a site
what you buy
BUT: this is not about you personally, its about your behavior!
Used for
highly targeted ads
site usage reporting
How do they do this?
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24. The Invention Of The Cookie
Cookie is a term for small objects passed between cooperating
systems
1995, Netscape: cookies used to track if a site visitor is a repeat
RFC2109, 1997: Specification indicates only writing/reading by
originating domain
Browsers can control users
acceptance of cookies
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25. What is a cookie?
Also called an HTTP cookie
key/value pairs
expire
tied to a domain and path
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27. What does a cookie look like?
session-id-time 954242000 amazon.com/
session-id 002-4135256-7625846 amazon.com/
x-main eKQIfwnxuF7qtmX52x6VWAXh@Ih6Uo5H amazon.com/
ubid-main 077-9263437-9645324 amazon.com/
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28. Cookies are not bad!
Session management
logging into sites
shopping cart persistence
Personalization
skins/custom site layouts
last user to log in
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29. Examples of Cookie Usage
First visit to zappos.com
First cookie set: session id (identifies you anonymously)
Look at shoes
web server associates shoes with session id
Go to Facebook.com
see advertisements based on zappos.com behavior huh?
Who can see these cookies?
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30. Third Party Cookies
Recall: only the domain associated with a cookie can access
information in that cookie.
Two choices
large companies share data between owned domains on the
backend
third-party data collection
BlueKai, eXelate
use tracking pixels, code snippets, or ask partners to sell
data
track over 80% of the internet
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31. How Tracking
Pixels Work*
*interactions all invented
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32. Outside the Internet...
This happens outside of the internet too!
Catalina (30 years): coupon-at-till
o Catalina understands and influences the purchasing of
more than 75 percent of American shoppers through
more than 31,000 grocery, drug, and mass merchant
stores nationwide.
In-Store Mobile Messaging (BLE): app-driven incentives
o Shopkick shopBeacon
Anonymized Visa/MC Transaction Histories
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33. The Target Pregnant Teen Story
If you use a credit card or a coupon, or fill out a survey, or mail in a refund, or
call the customer help line, or open an e-mail weve sent you or visit our Web
site, well record it and link it to your Guest ID, Pole said. We want to know
everything we can.
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34. Other Cookie Behaviors
Respawning
Flash-based cookies (Local Shared Objects)
Not analogous with browser cookies
Can recreate browser cookies
Machine Entropy
User Agent + Plugins + generic machine information =
fingerprint
https://panopticlick.eff.org/
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36. This seems scary but it isnt.
Publishers dont send most of their information to advertisers
because they want to protect their audience.
Governments have strict policies in place to protect users.
European Commission e-Privacy Directive: May 2011
o DNT policy considered by W3C
FTC enforcement of browser settings
o 2012: Google pays $22.5m for circumventing Safari settings
The advertising industry is self-regulated (and motivated!).
Internet Advertising Bureau, Digital Advertising Alliance, Direct
Marketing Association, National Advertising Initiative
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37. Digital Advertising Alliance
Established in 2010, functions like the BBB
Advocates strong, self-regulating guidelines
Participates with FTC, government bodies to define laws
In 3 years, took actions against 19 companies, bringing them
into compliance
National Advertising Initiative
Member companies participate in an opt-out program for
behavioral advertising specifically
Still allows cookies related to session management and site
customization
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