Online Advertising

Online advertising, also called online marketing or In- American west coast users, advertising an open house for ternet advertising or web advertising, is a form of mar- a new model of a DEC computer.[6][11] Despite the pre- keting and advertising which uses the Internet to deliver vailing acceptable use policies, electronic mail market- promotional marketing messages to consumers. It in- ing rapidly expanded[12] and eventually became known cludes email marketing, search engine marketing (SEM), as "spam.” social media marketing, many types of display advertis- The first known large-scale non-commercial spam mes- (including web banner advertising), and mobile ad- ing sage was sent on 18 January 1994 by an Andrews Uni- vertising. Like other advertising media, online advertis- versity system administrator, by cross-posting a religious ing frequently involves both a publisher, who integrates message to all USENET newsgroups.[13] Four months advertisements into its online content, and an advertiser, later, Laurence Canter and Martha Siegel, partners in who provides the advertisements to be displayed on the a law firm, broadly promoted their legal services in publisher’s content. Other potential participants include a USENET posting titled “Green Card Lottery – Fi- advertising agencies who help generate and place the ad nal One?"[14] Canter and Siegel’s Green Card USENET copy, an ad server which technologically delivers the ad spam raised the profile of online advertising, stimulat- and tracks statistics, and advertising affiliates who do in- ing widespread interest in advertising via both Usenet dependent promotional work for the advertiser. and traditional email.[13] More recently, spam has evolved In 2011, Internet advertising revenues in the United States into a more industrial operation, where spammers use surpassed those of cable television and nearly exceeded armies of virus-infected computers (botnets) to send those of broadcast television.[1]:19 In 2013, Internet ad- spam remotely.[11] vertising revenues in the United States totaled $42.8 billion, a 17% increase over the $36.57 billion in revenues in 2012.[2]:4–5 U.S. internet ad revenue hit a historic high of $20.1 billion for the first half of 2013, up 18% over 1.2 Display ads the same period in 2012.[3] Online advertising is widely used across virtually all industry sectors.[1]:16 Online banner advertising began in the early 1990s as Many common online advertising practices are contro- page owners sought additional revenue streams to sup- versial and increasingly subject to regulation. Online ad port their content. Commercial online service Prodigy revenues may not adequately replace other publishers’ displayed banners at the bottom of the screen to promote revenue streams. Declining ad revenue has led some pub- Sears products.[15] The first clickable web ad was sold by lishers to hide their content behind paywalls.[4] Global Network Navigator in 1993 to a Silicon Valley law firm.[16] In 1994, web banner advertising became main- stream when HotWired, the online component of Wired 1 History Magazine, sold banner ads to AT&T and other companies. The first AT&T ad on HotWired had a 44% click- through rate, and instead of directing clickers to AT&T’s In early days of the Internet, online advertising was website, the ad linked to an online tour of seven of the mostly prohibited. For example, two of the predeces- world’s most acclaimed art museums.[17][18] sor networks to the Internet, ARPANET and NSFNet, had “acceptable use policies” that banned network “use for commercial activities by for-profit institutions”.[5][6] The NSFNet began phasing out its commercial use ban in 1991.[7][8][9][10] 1.3 Search ads

GoTo.com (renamed Overture in 2001, and acquired by 1.1 Email Yahoo! in 2003) created the ﬁrst search advertising keyword auction in 1998.[19]:119 Google launched its “Ad- The ﬁrst widely publicized example of online advertis- Words” search advertising program in 2000[20] and intro- ing was conducted via electronic mail. On 3 May 1978, duced quality-based ranking allocation in 2002,[21] which a marketer from DEC (Digital Equipment Corporation), sorts search advertisements by a combination of bid price Gary Thuerk, sent an email to most of the ARPANET’s and searchers’ likeliness to click on the ads.[19]:123

1 2 2 DELIVERY METHODS

1.4 Recent trends dio, animations, buttons, forms, or other interactive elements using Java applets, HTML5, Adobe Flash, and More recently, companies have sought to merge their other programs. advertising messages into editorial content or valuable services. Examples include Red Bull's Red Bull Media House streaming Felix Baumgartner's jump from space Frame ad (traditional banner) Frame ads were the online, Coca-Cola's online magazines, and Nike's free ap- ﬁrst form of web banners.[17] The colloquial usage of plications for performance tracking.[18] Advertisers are “banner ads” often refers to traditional frame ads. Web- also embracing social media[22][23] and mobile advertis- site publishers incorporate frame ads by setting aside a ing; mobile ad spending has grown 90% each year from particular space on the web page. The Interactive Adver- 2010 to 2013.[1]:13 tising Bureau's Ad Unit Guidelines proposes standardized pixel dimensions for ad units.

2 Delivery methods Pop-ups/pop-unders A pop-up ad is displayed in a new web browser window that opens above a website vis- 2.1 Display advertising itor’s initial browser window.[29] A pop-under ad opens a new browser window under a website visitor’s initial Display advertising conveys its advertising message visu- browser window.[1]:22 Pop-under ads and similar tech- ally using text, logos, animations, videos, photographs, or nologies are now advised against by online authorities other graphics. Display advertisers frequently target users such as Google, who state that they “do not condone this with particular traits to increase the ads’ effect. Online practice”.[30] advertisers (typically through their ad servers) often use cookies, which are unique identifiers of specific computers, to decide which ads to serve to a particular consumer. Floating ad A floating ad, or overlay ad, is a type of Cookies can track whether a user left a page without buy- rich media advertisement that appears superimposed over ing anything, so the advertiser can later retarget the user the requested website’s content. Floating ads may disap- with ads from the site the user visited.[24] pear or become less obtrusive after a preset time period. As advertisers collect data across multiple external websites about a user’s online activity, they can create a de- Expanding ad An expanding ad is a rich media frame tailed picture of the user’s interests to deliver even more ad that changes dimensions upon a predefined condition, targeted advertising. This aggregation of data is called such as a preset amount of time a visitor spends on a web- [25] behavioral targeting. Advertisers can also target their page, the user’s click on the ad, or the user’s mouse move- audience by using contextual and semantic advertising to ment over the ad.[31] Expanding ads allow advertisers to deliver display ads related to the content of the web page fit more information into a restricted ad space. where the ads appear.[19]:118 Retargeting, behavioral targeting, and contextual advertising all are designed to increase an advertiser’s return on investment, or ROI, over Trick banners A trick banner is a banner ad where the [26] untargeted ads. ad copy imitates some screen element users commonly Advertisers may also deliver ads based on a user’s sus- encounter, such as an operating system message or pop- [32] pected geography through geotargeting. A user’s IP ad- ular application message, to induce ad clicks. Trick dress communicates some geographic information (at banners typically do not mention the advertiser in the ini- [33][34] minimum, the user’s country or general region). The geo- tial ad, and thus they are a form of bait-and-switch. graphic information from an IP can be supplemented and Trick banners commonly attract a higher-than-average refined with other proxies or information to narrow the click-through rate, but tricked users may resent the ad- [35] range of possible locations.[27] For example, with mobile vertiser for deceiving them. devices, advertisers can sometimes use a phone’s GPS re- ceiver or the location of nearby mobile towers.[28] Cook- ies and other persistent data on a user’s machine may pro- News Feed Ads “News Feed Ads”, also called “Spon- vide help narrowing a user’s location further.[27] sored Stories”, “Boosted Posts”, typically exist on Social Media Platforms that offer a steady stream of information updates (“news feed”[36]) in regulated formats (i.e. 2.1.1 Web banner advertising in similar sized small boxes with a uniform style). Those advertisements are intertwined with non-promoted news Web banners or banner ads typically are graphical ads dis- that the users are reading through. Those advertisements played within a web page. Many banner ads are delivered can be of any content, such as promoting a website, a fan by a central ad server. page, an app, or a product. Banner ads can use rich media to incorporate video, au- Some examples are: Facebook’s “Sponsored Stories”,[37] 2.1 Display advertising 3

LinkedIn’s “Sponsored Updates”,[38] and Twitter’s “Pro- ding. This involves many parties interacting automati- moted Tweets”.[39] cally in real time. In response to a request from the user’s This display ads format falls into its own category because browser, the publisher content server sends the web page unlike banner ads which are quite distinguishable, News content to the user’s browser over the Internet. The page Feed Ads’ format blends well into non-paid news updates. does not yet contain ads, but contains links which cause This format of online advertisement yields much higher the user’s browser to connect to the publisher ad server click-through rates than traditional display ads[40][41] to request that the spaces left for ads be filled in with ads. Information identifying the user, such as cookies and the page being viewed, is transmitted to the publisher ad 2.1.2 Display advertising process overview server. The publisher ad server then communicates with a supply- The process by which online advertising is displayed can side platform server. The publisher is offering ad space involve many parties. In the simplest case, the web site for sale, so they are considered the supplier. The supply publisher selects and serves the ads. Publishers which side platform also receives the user’s identifying informa- operate their own advertising departments may use this tion, which it sends to a data management platform. At method. the data management platform, the user’s identifying information is used to look up demographic information, Publisher previous purchases, and other information of interest to Content Server advertisers. Broadly speaking, there are three types of data obtained Publisher through such a data management platform: Ad Server First party data refers to the data retrieved from customer relationship management (CRM) platforms, in addition to website and paid media content or cross-platform data. This can include data from customer behaviors, actions or interests.[42] Online advertising serving process - simple publisher case Second party data refers to an amalgamation The ads may be outsourced to an advertising agency under of statistics related to cookie pools on exter- contract with the publisher, and served from the advertis- nal publications and platforms. The data is ing agency’s servers. provided directly from the source (adservers, hosted solutions for social or an analytics plat- Publisher form). It is also possible to negotiate a deal Content with a particular publisher to secure specific Server data points or audiences.[43]

Publisher Third party data is sourced from external Ad Server providers and often aggregated from numerous websites. Businesses sell third-party data and are able to share this via an array of distribu- [44] Agency tion avenues. Ad Server

This customer information is combined and returned to the supply side platform, which can now package up the Online advertising serving process using an ad agency oﬀer of ad space along with information about the user who will view it. The supply side platform sends that oﬀer DSP Demand Side Publisher Platform Content Data Management to an ad exchange. Server Platform

DSP Publisher Ad DSP Ad Server Supply side Ad platform Exchange Exchange The ad exchange puts the offer out for bid to demand- Brand DSP Agency Agency Ad Server side platforms. Demand side platforms act on behalf of ad agencies, who sell ads which advertise brands. De- Online advertising serving process using online bidding mand side platforms thus have ads ready to display, and are searching for users to view them. Bidders get the in- Alternatively, ad space may be offered for sale in a bid- formation about the user ready to view the ad, and decide, ding market using an ad exchange and real-time bid- based on that information, how much to offer to buy the 4 2 DELIVERY METHODS

ad space. According to the Internet Advertising Bureau, ing optimization a moving target for advertisers.[50][51][52] a demand side platform has 10 milliseconds to respond Many vendors offer SEO services.[1]:22 to an offer. The ad exchange picks the winning bid and informs both parties. 2.3.2 Sponsored search The ad exchange then passes the link to the ad back through the supply side platform and the publisher’s ad Sponsored search (also called sponsored links, search server to the user’s browser, which then requests the ad ads, or paid search) allows advertisers to be included content from the agency’s ad server. The ad agency can in the sponsored results of a search for selected key- thus confirm that the ad was delivered to the browser.[45] words. Search ads are often sold via real-time auc- [19]:118[53] This is simplified, according to the IAB. Exchanges may tions, where advertisers bid on keywords. In try to unload unsold (“remnant”) space at low prices addition to setting a maximum price per keyword, bids through other exchanges. Some agencies maintain semi- may include time, language, geographical, and other [19]:118 permanent pre-cached bids with ad exchanges, and those constraints. Search engines originally sold listings [19]:119 may be examined before going out to additional demand in order of highest bids. Modern search engines side platforms for bids. The process for mobile adver- rank sponsored listings based on a combination of bid tising is different and may involve mobile carriers and price, expected click-through rate, keyword relevancy [21] handset software manufacturers.[45] and site quality.

2.2 Interstitial 2.4 Social media marketing

An interstitial ad displays before a user can access re- Social media marketing is commercial promotion con- quested content, sometimes while the user is waiting ducted through social media websites. Many compa- for the content to load.[46] Interstitial ads are a form of nies promote their products by posting frequent updates interruption marketing.[47][48] and providing special oﬀers through their social media proﬁles.[54]

2.2.1 Text ads 2.5 Mobile advertising A text ad displays text-based hyperlinks. Text-based ads may display separately from a web page’s primary con- Mobile advertising is ad copy delivered through wireless tent, or they can be embedded by hyperlinking individual mobile devices such as smartphones, feature phones, or words or phrases to advertiser’s websites. Text ads may tablet computers. Mobile advertising may take the form also be delivered through email marketing or text mes- of static or rich media display ads, SMS (Short Message sage marketing. Text-based ads often render faster than Service) or MMS (Multimedia Messaging Service) ads, graphical ads and can be harder for ad-blocking software mobile search ads, advertising within mobile websites, or to block.[49] ads within mobile applications or games (such as interstitial ads, "advergaming,” or application sponsorship).[1]:23 Industry groups such as the Mobile Marketing Associa- 2.3 Search engine marketing (SEM) tion have attempted to standardize mobile ad unit spec- ifications, similar to the IAB’s efforts for general online Search engine marketing, or SEM, is designed to in- advertising.[48] crease a website’s visibility in search engine results pages (SERPs). Search engines provide sponsored results and Mobile advertising is growing rapidly for several reasons. organic (non-sponsored) results based on a web searcher’s There are more mobile devices in the field, connectiv- query.[19]:117 Search engines often employ visual cues ity speeds have improved (which, among other things, al- to differentiate sponsored results from organic results. lows for richer media ads to be served quickly), screen Search engine marketing includes all of an advertiser’s resolutions have advanced, mobile publishers are becom- ing more sophisticated about incorporating ads, and con- actions to make a website’s listing more prominent for [1]:14 topical keywords. sumers are using mobile devices more extensively. The Interactive Advertising Bureau predicts continued growth in mobile advertising with the adoption of 2.3.1 Search engine optimization (SEO) location-based targeting and other technological features not available or relevant on personal computers.[1]:14 In Search engine optimization, or SEO, attempts to im- July 2014 Facebook reported advertising revenue for the prove a website’s organic search rankings in SERPs by in- June 2014 quarter of $2.68 billion, an increase of 67 per- creasing the website content’s relevance to search terms. cent over the second quarter of 2013. Of that, mobile Search engines regularly update their algorithms to penal- advertising revenue accounted for around 62 percent, an ize poor quality sites that try to game their rankings, mak- increase of 41 percent on the previous year. 2.11 Online marketing platform 5

2.6 Email advertising can be presented in a variety of formats, including blogs, news, video, white papers, e-books, infographics, case Email advertising is ad copy comprising an entire email studies, how-to guides and more. or a portion of an email message.[1]:22 Email marketing Considering that most marketing involves some form of may be unsolicited, in which case the sender may give the published media, it is almost (though not entirely) redun- recipient an option to opt out of future emails, or it may dant to call 'content marketing' anything other than sim- be sent with the recipient’s prior consent (opt-in). ply 'marketing'. There are, of course, other forms of marketing (in-person marketing, telephone-based marketing, 2.6.1 Chat advertising word of mouth marketing, etc.) where the label is more useful for identifying the type of marketing. However, As opposed to static messaging, chat advertising refers to even these are usually merely presenting content that they real time messages dropped to users on certain sites. This are marketing as information in a way that is different is done by the usage of live chat software or tracking ap- from traditional print, radio, TV, film, email, or web me- plications installed within certain websites with the op- dia. erating personnel behind the site often dropping adverts on the traffic surfing around the sites. In reality this is a subset of the email advertising but different because of 2.11 Online marketing platform its time window. Online marketing platform (OMP) is an integrated web- based platform that combines the benefits of a business 2.7 Online classified advertising directory, local search engine, search engine optimisation (SEO) tool, customer relationship management Online classified advertising is advertising posted online (CRM) package and content management system (CMS). in a categorical listing of specific products or services. Ebay and Amazon are used as online marketing and Examples include online job boards, online real estate logistics management platforms. On Facebook, Twitter, listings, automotive listings, online yellow pages, and on- YouTube, Pinterest, LinkedIn, and other Social Media, line auction-based listings.[1]:22 Craigslist and eBay are retail online marketing is also used. Online business mar- two prominent providers of online classified listings. keting platforms such as Marketo, Aprimo, MarketBright and Pardot have been bought by major IT companies (Eloqua-Oracle, Neolane-Adobe and Unica-IBM). 2.8 Adware

Adware is software that, once installed, automatically displays advertisements on a user’s computer. The ads may 3 Compensation methods appear in the software itself, integrated into web pages visited by the user, or in pop-ups/pop-unders.[55] Ad- Advertisers and publishers use a wide range of payment ware installed without the user’s permission is a type of calculation methods. In 2012, advertisers calculated malware.[56] 32% of online advertising transactions on a cost-per- impression basis, 66% on customer performance (e.g. cost per click or cost per acquisition), and 2% on hybrids 2.9 Affiliate marketing of impression and performance methods.[1]:17 Affiliate marketing (sometimes called lead generation) occurs when advertisers organize third parties to gener- 3.1 CPM (cost per mille) ate potential customers for them. Third-party affiliates receive payment based on sales generated through their Cost per mille, often abbreviated to CPM, means that [1]:22 promotion. Affiliate marketers generate traffic to of- advertisers pay for every thousand displays of their mes- fers from affiliate networks, and when the desired ac- sage to potential customers (mille is the Latin word for tion is taken by the visitor, the affiliate earns a commis- thousand). In the online context, ad displays are usually sion. These desired actions can be an email submission, called “impressions.” Definitions of an “impression” vary a phone call, filling out an online form, or an online order among publishers,[57] and some impressions may not be being completed. charged because they don't represent a new exposure to an actual customer.[58] Advertisers can use technologies 2.10 Content Marketing such as web bugs to verify if an impression is actually delivered.[59][60]:59 Content marketing is any marketing that involves the cre- Publishers use a variety of techniques to increase page ation and sharing of media and publishing content in or- views, such as dividing content across multiple pages, re- der to acquire and retain customers. This information purposing someone else’s content, using sensational titles, 6 4 BENEFITS OF ONLINE ADVERTISING or publishing tabloid or sexual content.[61] pays for the number of users who perform a desired ac- CPM advertising is susceptible to “impression fraud,” and tivity, such as completing a purchase or filling out a regis- advertisers who want visitors to their sites may not find tration form. Performance-based compensation can also per-impression payments a good proxy for the results they incorporate revenue sharing, where publishers earn a per- desire.[62]:1–4 centage of the advertiser’s profits made as a result of the ad. Performance-based compensation shifts the risk of failed advertising onto publishers.[62]:4, 16 3.2 CPC (cost per click) 3.7 Fixed cost CPC (Cost Per Click) or PPC (Pay per click) means advertisers pay each time a user clicks on the ad. CPC Fixed cost compensation means advertisers pay a fixed advertising works well when advertisers want visitors to cost for delivery of ads online, usually over a specified their sites, but it’s a less accurate measurement for adver- time period, irrespective of the ad’s visibility or users’ re- tisers looking to build brand awareness.[63] CPC’s market sponse to it. One examples is CPD (cost per day) where share has grown each year since its introduction, eclips- advertisers pay a fixed cost for publishing an ad for a day ing CPM to dominate two-thirds of all online advertising irrespective of impressions served or clicks. compensation methods.[1]:18[62]:1 Like impressions, not all recorded clicks are valuable to advertisers. GoldSpot Media reported that up to 4 Benefits of online advertising 50% of clicks on static mobile banner ads are acciden- tal and resulted in redirected visitors leaving the new site immediately.[64] 4.1 Cost

The low costs of electronic communication reduce the 3.3 CPE (cost per engagement) cost of displaying online advertisements compared to offline ads. Online advertising, and in particular social me- Cost per engagement aims to track not just that an ad unit dia, provides a low-cost means for advertisers to engage loaded on the page (i.e., an impression was served), but with large established communities.[54] Advertising on- also that the viewer actually saw and/or interacted with line offers better returns than in other media.[62]:1 the ad.[65][66] 4.2 Measurability 3.4 CPV (cost per view) Online advertisers can collect data on their ads’ effec- Cost per view video advertising. Both Google and tiveness, such as the size of the potential audience or ac- [19]:119 TubeMogul endorsed this standardized CPV metric to tual audience response, how a visitor reached their the IAB’s (Interactive Advertising Bureau) Digital Video advertisement, whether the advertisement resulted in a Committee, and it’s garnering a notable amount of indus- sale, and whether an ad actually loaded within a visitor’s [59][60]:59 try support.[67] view. This helps online advertisers improve their ad campaigns over time.

3.5 Attribution of ad value 4.3 Formatting Main article: Attribution (marketing) Advertisers have a wide variety of ways of presenting their promotional messages, including the ability to con- In marketing, “attribution” is the measurement of eﬀec- vey images, video, audio, and links. Unlike many oﬄine tiveness of particular ads in a consumer’s ultimate deci- ads, online ads also can be interactive.[18] For example, sion to purchase. Multiple ad impressions may lead to some ads let users input queries[69] or let users follow the a consumer “click” or other action. A single action may advertiser on social media.[70] Online ads can even incor- [68] lead to revenue being paid to multiple ad space sellers. porate games.[71]

3.6 Other performance-based compensa- 4.4 Targeting tion Publishers can oﬀer advertisers the ability to reach cus- CPA (Cost Per Action or Cost Per Acquisition) or PPP tomizable and narrow market segments for targeted ad- (Pay Per Performance) advertising means the advertiser vertising. Online advertising may use geo-targeting to 5.4 Technological variations 7 display relevant advertisements to the user’s geography. As with oﬄine publications, online impression fraud can Advertisers can customize each individual ad to a par- occur when publishers overstate the number of ad impres- ticular user based on the user’s previous preferences.[26] sions they have delivered to their advertisers. To combat Advertisers can also track whether a visitor has already impression fraud, several publishing and advertising in- seen a particular ad in order to reduce unwanted repeti- dustry associations are developing ways to count online tious exposures and provide adequate time gaps between impressions credibly.[82][83] exposures.[72]

4.5 Coverage 5.4 Technological variations

Online advertising can reach nearly every global market, 5.4.1 Heterogeneous clients and online advertising influences offline sales.[73][74][75] Because users have different operating systems, web browsers[84] and computer hardware (including mobile 4.6 Speed devices and different screen sizes), online ads may appear to users differently from how the advertiser intended, or Once ad design is complete, online ads can be deployed the ads may not display properly at all. A 2012 comScore immediately. The delivery of online ads does not need to study revealed that, on average, 31% of ads were not be linked to the publisher’s publication schedule. Fur- “in-view” when rendered, meaning they never had an thermore, online advertisers can modify or replace ad opportunity to be seen.[85] Rich media ads create even [76] copy more rapidly than their offline counterparts. greater compatibility problems, as some developers may use competing (and exclusive) software to render the ads (see e.g. Comparison of HTML 5 and Flash).[86] 5 Concerns Furthermore, advertisers may encounter legal problems if legally required information doesn't actually display 5.1 Security Concerns to users, even if that failure is due to technological heterogeneity.[87]:i In the United States, the FTC has According to a US Senate investigation, the current state released a set of guidelines indicating that it’s the ad- of online advertising endangers the security and privacy vertisers’ responsibility to ensure the ads display any of users.[77] required disclosures or disclaimers, irrespective of the users’ technology.[87]:4–8 5.2 Banner blindness 5.4.2 Ad-blocking Eye-tracking studies have shown that Internet users often ignore web page zones likely to contain display ads (sometimes called "banner blindness"), and this problem Ad-blocking, or ad filtering, means the ads do not appear is worse online than in offline media.[78] On the other to the user because the user uses technology to screen hand, studies suggest that even those ads “ignored” by the out ads. Many browsers block unsolicited pop-up ads by [88] users may influence the user subconsciously.[79] default. Other software programs or browser add-ons may also block the loading of ads, or block elements on a page with behaviors characteristic of ads (e.g. HTML au- 5.3 Fraud on the advertiser toplay of both audio and video). Approximately 9% of all online page views come from browsers with ad-blocking There are numerous ways that advertisers can be over- software installed,[89] and some publishers have 40%+ of charged for their advertising. For example, click fraud their visitors using ad-blockers.[4] occurs when a publisher or third parties click (manually or through automated means) on a CPC ad with no le- [80] gitimate buying intent. For example, click fraud can 5.4.3 Anti-targeting technologies occur when a competitor clicks on ads to deplete its ri- val’s advertising budget, or when publishers attempt to [80] Some web browsers offer privacy modes where users can manufacture revenue. hide information about themselves from publishers and Click fraud is especially associated with pornography advertisers. Among other consequences, advertisers can't sites. In 2011, certain scamming porn websites launched use cookies to serve targeted ads to private browsers. dozens of hidden pages on each visitor’s computer, forc- Most major browsers have incorporated Do Not Track ing the visitor’s computer to click on hundreds of paid options into their browser headers, but the regulations links without the visitor’s knowledge.[81] currently are only enforced by the honor system.[90][91][92] 8 6 REGULATION

5.5 Privacy concerns 6 Regulation

The collection of user information by publishers and In general, consumer protection laws apply equally to on- advertisers has raised consumer concerns about their line and offline activities.[87]:i However, there are ques- privacy.[27][60] Sixty percent of Internet users would use tions over which jurisdiction’s laws apply and which reg- Do Not Track technology to block all collection of in- ulatory agencies have enforcement authority over trans- formation if given an opportunity.[93][94] Over half of all border activity.[110] Google and Facebook users are concerned about their As with offline advertising, industry participants have privacy when using Google and Facebook, according to undertaken numerous efforts to self-regulate and de- Gallup.[95] velop industry standards or codes of conduct. Several Many consumers have reservations about online United States advertising industry organizations jointly behavioral targeting. By tracking users’ online activities, published Self-Regulatory Principles for Online Behav- advertisers are able to understand consumers quite well. ioral Advertising based on standards proposed by the FTC Advertisers often use technology, such as web bugs in 2009.[111] European ad associations published a similar and respawning cookies, to maximizing their abilities document in 2011.[112] Primary tenets of both documents to track consumers.[60]:60[96][97] According to a 2011 include consumer control of data transfer to third parties, survey conducted by Harris Interactive, over half of data security, and consent for collection of certain health Internet users had a negative impression of online and financial data.[111]:2–4 Neither framework, however, behavioral advertising, and forty percent feared that penalizes violators of the codes of conduct.[113] their personally-identifiable information had been shared with advertisers without their consent.[98][99] Consumers can be especially troubled by advertisers targeting them 6.1 Privacy and data collection based on sensitive information, such as financial or health status.[96] Privacy regulation can require users’ consent before an advertiser can track the user or communicate with the user. However, affirmative consent (“opt in”) can be dif- ficult and expensive to obtain.[60]:60 Industry participants 5.6 Trustworthiness of advertisers often prefer other regulatory schemes. Different jurisdictions have taken different approaches Scammers can take advantage of consumers’ difficulties to privacy issues with advertising. The United States verifying an online persona’s identity,[100]:1 leading to ar- has specific restrictions on online tracking of chil- tifices like phishing (where scam emails look identical dren in the Children’s Online Privacy Protection Act [111]:16–17 to those from a well-known brand owner)[101] and confi- (COPPA), and the FTC has recently expanded dence schemes like the Nigerian “419” scam.[102][103][104] its interpretation of COPPA to include requiring ad net- The Internet Crime Complaint Center received 289,874 works to obtain parental consent before knowingly track- [114] complaints in 2012, totaling over half a billion dollars in ing kids. Otherwise, the U.S. Federal Trade Com- losses, most of which originated with scam ads.[105][106] mission frequently supports industry self-regulation, al- though increasingly it has been undertaking enforcement Consumers also face malware risks, i.e. malvertising, actions related to online privacy and security.[115] The when interacting with online advertising. Cisco's 2013 FTC has also been pushing for industry consensus about Annual Security Report revealed that clicking on ads possible Do Not Track legislation. was 182 times more likely to install a virus on a user’s computer than surfing the Internet for porn.[107][108] In contrast, the European Union’s “Privacy and Electronic For example, in August 2014 Yahoo’s advertising net- Communications Directive” restricts websites’ ability to work reportedly saw cases of infection of a variant of use consumer data much more comprehensively. The Cryptolocker ransomware.[109] EU limitations restrict targeting by online advertisers; re- searchers have estimated online advertising effectiveness decreases on average by around 65% in Europe relative to the rest of the world.[60]:58 5.7 Spam 6.2 Delivery methods The Internet’s low cost of disseminating advertising con- tributes to spam, especially by large-scale spammers. Nu- Many laws specifically regulate the ways online ads are merous efforts have been undertaken to combat spam, delivered. For example, online advertising delivered via ranging from blacklists to regulatorily-required labeling email is more regulated than the same ad content deliv- to content filters, but most of those efforts have adverse ered via banner ads. Among other restrictions, the U.S. collateral effects, such as mistaken filtering.[6] CAN-SPAM Act of 2003 requires that any commercial 9 email provide an opt-out mechanism.[110] Similarly, mo- • Cost Per Click or Pay Per Click (CPC or PPC) bile advertising is governed by the Telephone Consumer • Cost Per Impression (CPI) Protection Act of 1991 (TCPA), which (among other restrictions) requires user opt-in before sending advertising • Cost Per Mille (CPM), also known as Cost per via text messaging. thousand (CPT) • effective Cost Per Mille (eCPM) 7 See also • Compensation methods • Classified advertising • Ad server Web advertising • App store optimization • • Article marketing Ad filtering • • Classified advertising Advertising network • Article marketing • Conversion rate • Affiliate marketing • Digital marketing • Bitcoin faucet • Frequency capping • Central ad server • In-text advertising • Click fraud • Inbound marketing E-mail advertising • Lead scoring • • Media transparency e-mail spam • • Netnography opt-in e-mail advertising • spamming • Online identity management • In-text advertising • Online lead generation

• Pay per click Mobile advertising

• Post-click marketing • Mobile marketing • Product feed • Mobile development

• Real-time marketing • WAP

• Search engine marketing • Online classiﬁed advertising • • Social media optimization Overlay • Pay per click • Viral marketing • Pay per play • Visual marketing • Performance-based advertising • Web banner • Pop-up ad • Online presence management Search engines Industry calculations • Search engine marketing (SEM) • Click Through Rate (CTR) • Search engine optimization (SEO) • View-through rate (VTR) • Semantic advertising • Cost Per Action (CPA) • Unicast ad • eﬀective Cost Per Action (eCPA) • Web banner 10 8 REFERENCES

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9 Text and image sources, contributors, and licenses

9.1 Text

• Online advertising Source: https://en.wikipedia.org/wiki/Online_advertising?oldid=714235145 Contributors: The Anome, Fubar Ob- fusco, Edward, Fuzzie, Pcb21, Haakon, Ronz, Mydogategodshat, Coren, Andrewman327, Tpbradbury, Ponyegg, Jni, ZimZalaBim, Sun- ray, HaeB, Tobias Bergemann, DocWatson42, Elf, Sinned, Moyogo, Alexf, Antandrus, Ojw, Adashiel, Vector4F, Discospinster, Ben- der235, ESkog, Neko-chan, Smalljim, Wrs1864, Mdd, Velella, RainbowOfLight, Versageek, Mitc0185, Bobrayner, Woohookitty, Fu- rism, Thivierr, Stefanomione, Patheros, Qwertyca, Elvey, Charles Iliya Krempeaux, Sjö, Rjwilmsi, Bruce1ee, Marcman, Ground Zero, RexNL, Diza, DVdm, Bgwhite, Gwernol, Wavelength, Stephenb, NawlinWiki, Cleared as filed, Dmoss, AnaTo, BOT-Superzerocool, Zzu- uzz, Closedmouth, Pb30, Abune, Josh3580, GraemeL, Vicarious, Chez37, Emc2, Katieh5584, CIreland, Veinor, Crystallina, SmackBot, David Kernow, McGeddon, Gilliam, Ohnoitsjamie, BenAveling, Anwar saadat, Chris the speller, Lawrence Waterhouse, NCurse, EncMstr, Carbonrodney, Deli nk, Rrburke, Fuhghettaboutit, Nakon, DMacks, Coolmedia, Bobby9101, Bejnar, TenPoundHammer, Ohconfucius, Cumbrowski, ArglebargleIV, Kuru, Microchip08, Jbuddle, Adam Marsh, Nagle, RomanSpa, Noian, Ckatz, 16@r, Dirtyd, GilbertoSil- vaFan, InedibleHulk, H, Ginkgo100, B7T, Iridescent, Kernow, Newone, Adambiswanger1, Linkspamremover, Rafaelcosentino, J Mil- burn, CmdrObot, Tanthalas39, Mattbr, Mpcooke3, Gogo Dodo, Dtodd, HitroMilanese, DumbBOT, Markaff2, Satori Son, Im batman, Thijs!bot, DarkNinja, Mojo Hand, Dalahäst, E. Ripley, Amykocot, Vikingbot, Calaka, Format, Widefox, Seaphoto, QuiteUnusual, JAnD- bot, Barek, MER-C, Lvsubram, Wasell, SteveSims, Gogi gupta, Bongwarrior, VoABot II, Appraiser, TheMan232, Twsx, Theroadislong, Paul-Michel~enwiki, A3nm, Punchkickinteractive, Cocytus, AVRS, Alakori, MartinBot, Anaxial, Toledonyc, El0i, RockMFR, J.delanoy, Pharaoh of the Wizards, Jesant13, Toanke, Sphynx.ie, Vanished user 39948282, Treisijs, Bonadea, Matasm, Meiskam, VolkovBot, Dink10, DoorsAjar, TXiKiBoT, Motivejustin, Universal prints limited, Crohnie, Aymatth2, Hypnoticcyst, DeathbyChiasmus, Krazywrath, Itemirus, Manishrajawat, Mezadz, AlleborgoBot, Kryacek, Peterbisset, Wybert, Plinkit, Dawn Bard, Bentogoa, 123internetdesigns, EditorInTh- eRye, Poindexter Propellerhead, Newval, Mfisherkirshner, Gboone7, Capitalismojo, ArchiSchmedes, Rebeccaeskin, LightSpeed3, Ko- rtaggio, Denisarona, ClueBot, Rustic, Schwarzenneger, Scott.friesen, Saddhiyama, Niceguyedc, Trivialist, Sabri76, Karthikeyanseo, Ex- cirial, Jusdafax, Ykhwong, Sun Creator, Dekisugi, Abacus3, Nefirious, Thingg, Scalhotrod, Mediaexpert, Rhinocerous Ranger, AZC- MOMike, Callinus, Willyboy104, Johnuniq, Apparition11, Intrey, XLinkBot, Anomiemia, Jwmsfobcn, CohibAA, The Aviv, Kbdankbot, Addbot, Grayfell, ConCompS, Some jerk on the Internet, Ledermanu, Ocdnctx, Mohamed Ouda, MrOllie, Favonian, Nigunman, Hussein fazal, Canjimifan, Teles, Jarble, Anywhereman, Luckas-bot, Yobot, Smokieboards, Breanne.Storey, GamerPro64, QueenCake, Amitk- sharma325, Chingeyinabottle, Formicarius, AnomieBOT, Cyrex365, Rubinbot, Piano non troppo, MarbleRye, Materialscientist, Fmelen- dres, Xqbot, Eliumpd, Gilo1969, GaryLeeHenshaw, Levud, Quickqlick, Solphusion~enwiki, Ericgoldman, Wikieditor1988, Mathonius, Finestmail, Theni.M.Subramani, Sophus Bie, Smallman12q, Shadowjams, Darkvard, Dan6hell66, Thejadefalcon, FrescoBot, Hyju, Fa- gusNigra, Charleslau, Giorgio-1970, D'ohBot, Craig Pemberton, A little insignificant, SpacemanSpiff, Hclim65, Serols, Sfao, TobeBot, Cgallagher3109, LogAntiLog, Rrvishewar, DragonofFire, Onlinecitizen, Wschlitz, Tbhotch, Shemeleshawty, Benhum, Mustufashah, Mean as custard, RjwilmsiBot, Msdollars, Harleydavidsons, Prommatee, Noommos, Ecsss1, Rollins83, John of Reading, Dewritech, GoingBatty, RA0808, Lionkingkhan, Jasonkang0816, Komfort31, Solarra, Winner 42, K6ka, Newsjessore, Checkingfax, Damenleeturks, Havefun- willtravel, Tolly4bolly, EricWesBrown, Irene33, TyA, Gray eyes, Danielraz, Thierry2008, RISCO Group, Gordon Otieno, Oona2504, Puffin, BioPupil, ChuispastonBot, Pdnocs, TYelliot, Rocketrod1960, ESMcL, ClueBot NG, Knollies, MelbourneStar, This lousy T-shirt, Sujjsk, Vacation9, Madina domun, Frietjes, Ekphraster, NetKnight~enwiki, Psharma1720, Widr, Spraif, Helpful Pixie Bot, DDmylesy, Herrera13, BG19bot, Ttshameer, Roverfind, Compfreak7, Expertwitness2011, Phlukie, Nimss, Stingrays06, G1u4funk, Klilidiplomus, Sundar sah, Factsearch, WP Randomno, Droth0820, David.moreno72, Arr4, Cyberbot II, ChrisGualtieri, EuroCarGT, Kamzworld, Rezo- nansowy, Política Galega, Yash!, Codename Lisa, Webclient101, WikiAficionado12, Lugia2453, Bastianbaltazarbux, Sidelight12, Frosty, SFK2, JiahuaWowo, Chl160, Elainelu9, Juliantrueflynn, Reatlas, Crisskooper, Jshulkin, Vineeta.singh87, Ruby Murray, Enock4seth, Saini1987, Sebastianbute, Vittoriofrancis, Abdul.sofizar, RonPaul573e, Tentinator, Lovekisssoh, Captain Conundrum, Naughtybabe24, Dolla23, Damolaphilip, Pdshrader, Moulanashahwar, Dabramsdt, Dandyboy23, Nhinguyen196, Stephanreek, Mayur G Kawale, Nfis- cher831, UKAmerican, Ginsuloft, Shark7GB, Webtistic, Raboken, Dkwebsub, Gofreeads India, Fixuture, Daniel00019, Lakun.patra, Paweng, Uzair Tajuddin, Snkay9, System0002, Icington Group, Nazmulhasannahid, ChantelleRautenbach, Devilfish168, Masterkruegs, Yikkayaya, Melissawilsonn, Cesian, Nikosax, Outofcash, Ayrıntılı Bilgi, Mizan23, Crumbcorny, Siteadwiki, Zgsites, Taniaoberoi88, Seosirohigulshan, Rishit2, Khairulislambappi, Brownz23, Joanna.skidmore2014, Netcraftz, Yash.056, Dai Pritchard, Greencapitalgroup, KH-1, Ajayacharya28, Rocky3794, TheSKumawat, Rsolar31g, MegynWebCoach, Eliraeicc, Grurocks, Mediatex.europe, Boubleschicken, ProGamerCode, RAJSINHARAJ, Jozefsanders, Sunrisingavenue, Babshaybell, Reidmoto, Stealthmaestrob, EsmeeNetwork, Evelyn Lori, AFL Blues, Yadav007akash, Nadiabouleka, Munyez33, Shilpiguptagurgaon, Gpdlwmfsjt04, Infinite0694, Kevfav, Rubetube95, Em- mataylor001, Sunny0183, Day dreamerDC, KasparBot, Amiteb, Alvinclaros, Aquastony, Nidhivarnika, Distle, Jenniferrubin7, Stebinak, ZAINSHAHBUKHARI, Davidmarkuss, Prince Gebauer, RoryGlover25, Kwamelyeon, Blazzinglight, MellinaWilliams, SophiyaGibson21, Pkurls, Eno Lirpa and Anonymous: 526

9.2 Images

• File:Adservingagency.svg Source: https://upload.wikimedia.org/wikipedia/commons/5/52/Adservingagency.svg License: CC BY-SA 4.0 Contributors: Own work Original artist: Nagle • File:Adservingfull.svg Source: https://upload.wikimedia.org/wikipedia/commons/d/da/Adservingfull.svg License: CC BY-SA 4.0 Con- tributors: Own work Original artist: Nagle • File:Adservingsimple.svg Source: https://upload.wikimedia.org/wikipedia/commons/f/fe/Adservingsimple.svg License: CC BY-SA 4.0 Contributors: Own work Original artist: Nagle • File:Shopping_cart_icon.svg Source: https://upload.wikimedia.org/wikipedia/commons/d/df/Shopping_cart_icon.svg License: Public domain Contributors: Own work Original artist: Jbarta

9.3 Content license

• Creative Commons Attribution-Share Alike 3.0