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Demystifying Online 
Advertising 
Alison Sonderegger 
Engineering Manager 
BrightRoll
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 
息 2013 BrightRoll, Inc. All rights reserved.
Data driven women 1.1, september 2014
Agenda 
 An Extremely Brief and Non-Exhaustive History of Advertising 
 Advertising Technology (AdTech) 
 Privacy 
息 2013 BrightRoll, Inc. All rights reserved.
Not On The Agenda. 
息 2013 BrightRoll, Inc. All rights reserved.
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/ 
息 2013 BrightRoll, Inc. All rights reserved.
WNBT/Bulova Test Pattern: July, 1941; $4-9 
息 2013 BrightRoll, Inc. All rights reserved.
Television, cont. 
Geographic Targeting: 
 geographic 
息 2013 BrightRoll, Inc. All rights reserved.
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... 
息 2013 BrightRoll, Inc. All rights reserved.
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 
息 2013 BrightRoll, Inc. All rights reserved.
First Banner Ad, Oct 1994: HotWired.com for AT&T 
息 2013 BrightRoll, Inc. All rights reserved.
Banner Ad, 1996 
息 2013 BrightRoll, Inc. All rights reserved.
Other Types of Internet Ads 
Search ads Sponsored content 
息 2013 BrightRoll, Inc. All rights reserved.
Video Ads 
Video ads (pre-roll, interstitial, 
marquee, sponsored content) 
息 2013 BrightRoll, Inc. All rights reserved.
Internet, cont. 
Targeting can be much more specific 
 Companies ostensibly get more value for their money 
 You see content that makes more sense 
息 2013 BrightRoll, Inc. All rights reserved.
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 
息 2013 BrightRoll, Inc. All rights reserved.
Content Localization 
息 2013 BrightRoll, Inc. All rights reserved.
Data driven women 1.1, september 2014
Copyright 
息 2013 BrightRoll, Inc. All rights reserved.
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) 
息 2013 BrightRoll, Inc. All rights reserved.
息 2013 BrightRoll, Inc. All rights reserved.
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? 
息 2013 BrightRoll, Inc. All rights reserved.
Cookies! 
息 2013 BrightRoll, Inc. All rights reserved.
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 
息 2013 BrightRoll, Inc. All rights reserved.
What is a cookie? 
Also called an HTTP cookie 
 key/value pairs 
 expire 
 tied to a domain and path 
息 2013 BrightRoll, Inc. All rights reserved.
息 2013 BrightRoll, Inc. All rights reserved.
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/ 
息 2013 BrightRoll, Inc. All rights reserved.
Cookies are not bad! 
Session management 
 logging into sites 
 shopping cart persistence 
Personalization 
 skins/custom site layouts 
 last user to log in 
息 2013 BrightRoll, Inc. All rights reserved.
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? 
息 2013 BrightRoll, Inc. All rights reserved.
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 
息 2013 BrightRoll, Inc. All rights reserved.
How Tracking 
Pixels Work* 
*interactions all invented 
息 2013 BrightRoll, Inc. All rights reserved.
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 
息 2013 BrightRoll, Inc. All rights reserved.
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. 
息 2013 BrightRoll, Inc. All rights reserved.
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/ 
息 2013 BrightRoll, Inc. All rights reserved.
息 2013 BrightRoll, Inc. All rights reserved.
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 
息 2013 BrightRoll, Inc. All rights reserved.
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 
息 2013 BrightRoll, Inc. All rights reserved.
息 2013 BrightRoll, Inc. All rights reserved. 
fin.

More Related Content

Data driven women 1.1, september 2014

  • 1. Demystifying Online Advertising Alison Sonderegger Engineering Manager BrightRoll
  • 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 息 2013 BrightRoll, Inc. All rights reserved.
  • 4. Agenda An Extremely Brief and Non-Exhaustive History of Advertising Advertising Technology (AdTech) Privacy 息 2013 BrightRoll, Inc. All rights reserved.
  • 5. Not On The Agenda. 息 2013 BrightRoll, Inc. All rights reserved.
  • 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/ 息 2013 BrightRoll, Inc. All rights reserved.
  • 7. WNBT/Bulova Test Pattern: July, 1941; $4-9 息 2013 BrightRoll, Inc. All rights reserved.
  • 8. Television, cont. Geographic Targeting: geographic 息 2013 BrightRoll, Inc. All rights reserved.
  • 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... 息 2013 BrightRoll, Inc. All rights reserved.
  • 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 息 2013 BrightRoll, Inc. All rights reserved.
  • 11. First Banner Ad, Oct 1994: HotWired.com for AT&T 息 2013 BrightRoll, Inc. All rights reserved.
  • 12. Banner Ad, 1996 息 2013 BrightRoll, Inc. All rights reserved.
  • 13. Other Types of Internet Ads Search ads Sponsored content 息 2013 BrightRoll, Inc. All rights reserved.
  • 14. Video Ads Video ads (pre-roll, interstitial, marquee, sponsored content) 息 2013 BrightRoll, Inc. All rights reserved.
  • 15. Internet, cont. Targeting can be much more specific Companies ostensibly get more value for their money You see content that makes more sense 息 2013 BrightRoll, Inc. All rights reserved.
  • 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 息 2013 BrightRoll, Inc. All rights reserved.
  • 17. Content Localization 息 2013 BrightRoll, Inc. All rights reserved.
  • 19. Copyright 息 2013 BrightRoll, Inc. All rights reserved.
  • 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) 息 2013 BrightRoll, Inc. All rights reserved.
  • 21. 息 2013 BrightRoll, Inc. All rights reserved.
  • 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? 息 2013 BrightRoll, Inc. All rights reserved.
  • 23. Cookies! 息 2013 BrightRoll, Inc. All rights reserved.
  • 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 息 2013 BrightRoll, Inc. All rights reserved.
  • 25. What is a cookie? Also called an HTTP cookie key/value pairs expire tied to a domain and path 息 2013 BrightRoll, Inc. All rights reserved.
  • 26. 息 2013 BrightRoll, Inc. All rights reserved.
  • 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/ 息 2013 BrightRoll, Inc. All rights reserved.
  • 28. Cookies are not bad! Session management logging into sites shopping cart persistence Personalization skins/custom site layouts last user to log in 息 2013 BrightRoll, Inc. All rights reserved.
  • 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? 息 2013 BrightRoll, Inc. All rights reserved.
  • 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 息 2013 BrightRoll, Inc. All rights reserved.
  • 31. How Tracking Pixels Work* *interactions all invented 息 2013 BrightRoll, Inc. All rights reserved.
  • 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 息 2013 BrightRoll, Inc. All rights reserved.
  • 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. 息 2013 BrightRoll, Inc. All rights reserved.
  • 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/ 息 2013 BrightRoll, Inc. All rights reserved.
  • 35. 息 2013 BrightRoll, Inc. All rights reserved.
  • 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 息 2013 BrightRoll, Inc. All rights reserved.
  • 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 息 2013 BrightRoll, Inc. All rights reserved.
  • 38. 息 2013 BrightRoll, Inc. All rights reserved. fin.