Understanding the Digital Advertising Ecosystem

Total Page:16

File Type:pdf, Size:1020Kb

Understanding the Digital Advertising Ecosystem UNDERSTANDING THE DIGITAL ADVERTISING ECOSYSTEM HEARING BEFORE THE SUBCOMMITTEE ON DIGITAL COMMERCE AND CONSUMER PROTECTION OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION JUNE 14, 2018 Serial No. 115–139 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PUBLISHING OFFICE 34–638 PDF WASHINGTON : 2019 VerDate Mar 15 2010 11:42 Feb 01, 2019 Jkt 037690 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 I:\115THCONGRESS\115X139DIGITALADS\115X139DIGITALADSWORKING WAYNE COMMITTEE ON ENERGY AND COMMERCE GREG WALDEN, Oregon Chairman JOE BARTON, Texas FRANK PALLONE, JR., New Jersey Vice Chairman Ranking Member FRED UPTON, Michigan BOBBY L. RUSH, Illinois JOHN SHIMKUS, Illinois ANNA G. ESHOO, California MICHAEL C. BURGESS, Texas ELIOT L. ENGEL, New York MARSHA BLACKBURN, Tennessee GENE GREEN, Texas STEVE SCALISE, Louisiana DIANA DEGETTE, Colorado ROBERT E. LATTA, Ohio MICHAEL F. DOYLE, Pennsylvania CATHY MCMORRIS RODGERS, Washington JANICE D. SCHAKOWSKY, Illinois GREGG HARPER, Mississippi G.K. BUTTERFIELD, North Carolina LEONARD LANCE, New Jersey DORIS O. MATSUI, California BRETT GUTHRIE, Kentucky KATHY CASTOR, Florida PETE OLSON, Texas JOHN P. SARBANES, Maryland DAVID B. MCKINLEY, West Virginia JERRY MCNERNEY, California ADAM KINZINGER, Illinois PETER WELCH, Vermont H. MORGAN GRIFFITH, Virginia BEN RAY LUJA´ N, New Mexico GUS M. BILIRAKIS, Florida PAUL TONKO, New York BILL JOHNSON, Ohio YVETTE D. CLARKE, New York BILLY LONG, Missouri DAVID LOEBSACK, Iowa LARRY BUCSHON, Indiana KURT SCHRADER, Oregon BILL FLORES, Texas JOSEPH P. KENNEDY, III, Massachusetts SUSAN W. BROOKS, Indiana TONY CA´ RDENAS, California MARKWAYNE MULLIN, Oklahoma RAUL RUIZ, California RICHARD HUDSON, North Carolina SCOTT H. PETERS, California CHRIS COLLINS, New York DEBBIE DINGELL, Michigan KEVIN CRAMER, North Dakota TIM WALBERG, Michigan MIMI WALTERS, California RYAN A. COSTELLO, Pennsylvania EARL L. ‘‘BUDDY’’ CARTER, Georgia JEFF DUNCAN, South Carolina SUBCOMMITTEE ON DIGITAL COMMERCE AND CONSUMER PROTECTION ROBERT E. LATTA, Ohio Chairman ADAM KINZINGER, Illinois JANICE D. SCHAKOWSKY, Illinois Vice Chairman Ranking Member FRED UPTON, Michigan BEN RAY LUJA´ N, New Mexico MICHAEL C. BURGESS, Texas YVETTE D. CLARKE, New York LEONARD LANCE, New Jersey TONY CA´ RDENAS, California BRETT GUTHRIE, Kentucky DEBBIE DINGELL, Michigan DAVID B. MCKINLEY, West Virgina DORIS O. MATSUI, California ADAM KINZINGER, Illinois PETER WELCH, Vermont GUS M. BILIRAKIS, Florida JOSEPH P. KENNEDY, III, Massachusetts LARRY BUCSHON, Indiana GENE GREEN, Texas MARKWAYNE MULLIN, Oklahoma FRANK PALLONE, JR., New Jersey (ex MIMI WALTERS, California officio) RYAN A. COSTELLO, Pennsylvania JEFF DUNCAN, South Carolina GREG WALDEN, Oregon (ex officio) (II) VerDate Mar 15 2010 11:42 Feb 01, 2019 Jkt 037690 PO 00000 Frm 00002 Fmt 0486 Sfmt 5904 I:\115THCONGRESS\115X139DIGITALADS\115X139DIGITALADSWORKING WAYNE CONTENTS Page Hon. Robert E. Latta, a Representative in Congress from the State of Ohio, opening statement ................................................................................................ 1 Prepared statement .......................................................................................... 3 Hon. Janice D. Schakowsky, a Representative in Congress from the State of Illinois, opening statement .............................................................................. 4 Hon. Frank Pallone, Jr., a Representative in Congress from the State of New Jersey, opening statement .......................................................................... 5 Prepared statement .......................................................................................... 7 WITNESSES Rachel Glasser, Chief Privacy Officer, Wunderman ............................................. 8 Prepared statement .......................................................................................... 11 Answers to submitted questions ...................................................................... 104 Mike Zaneis, President and Chief Executive Officer, Trustworthy Account- ability Group ......................................................................................................... 20 Prepared statement .......................................................................................... 22 Answers to submitted questions 1 ................................................................... 113 Justin Brookman, Director, Privacy and Technology Policy, Consumers Union 34 Prepared statement .......................................................................................... 36 Answers to submitted questions ...................................................................... 116 J. Howard Beales III, Ph.D., Professor of Strategic Management and Public Policy, George Washington School of Business .................................................. 50 Prepared statement .......................................................................................... 52 Answers to submitted questions ...................................................................... 132 SUBMITTED MATERIAL Report of Oxford BioChronometrics, ‘‘Quantifying Online Advertising Fraud: Ad-Click Bots vs Humans,’’ January 2015, by Adrian Neal and Sander Kouwenhoven, submitted by Mr. Latta .............................................................. 87 Report of Oxford BioChronometrics, ‘‘Ad Fraud Summary,’’ June 2018, sub- mitted by Mr. Latta ............................................................................................. 95 Report of IAB, ‘‘Economic Value of the Advertising-Supported Internet Eco- system,’’ January 2017, by John Deighton, et al., 2 submitted by Mr. Latta Slide presentation, ‘‘The Rise of the 21st Century Brand Economy,’’ IAB Annual Leadership Meeting, February 12, 2018, 2 submitted by Mr. Latta Blog post of June 14, 2018, ‘‘Voluntary Advertising Initiative May Hold a Key to a Responsible Internet,’’ by Neil Fried, Motion Picture Association of America, submitted by Mr. Latta ................................................................... 101 1 Mr. Zaneis did not answer submitted questions for the record by the time of printing. 2 The information has been retained in committee files and also is available at https://docs.house.gov/Committee/Calendar/ByEvent.aspx?EventID= 108413. (III) VerDate Mar 15 2010 11:42 Feb 01, 2019 Jkt 037690 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 I:\115THCONGRESS\115X139DIGITALADS\115X139DIGITALADSWORKING WAYNE VerDate Mar 15 2010 11:42 Feb 01, 2019 Jkt 037690 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 I:\115THCONGRESS\115X139DIGITALADS\115X139DIGITALADSWORKING WAYNE UNDERSTANDING THE DIGITAL ADVERTISING ECOSYSTEM THURSDAY, JUNE 14, 2018 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON DIGITAL COMMERCE AND CONSUMER PROTECTION, COMMITTEE ON ENERGY AND COMMERCE, Washington, DC. The subcommittee met, pursuant to call, at 10:16 a.m., in room 2322, Rayburn House Office Building, Hon. Robert Latta (chairman of the subcommittee) presiding. Members present: Representatives Latta, Kinzinger, Burgess, Upton, Lance, Guthrie, Bilirakis, Bucshon, Walters, Costello, Scha- kowsky, Ca´rdenas, Dingell, Matsui, Welch, Kennedy, Green, and Pallone (ex officio). Staff present: Melissa Froelich, Chief Counsel, Digital Commerce and Consumer Protection; Adam Fromm, Director of Outreach and Coalitions; Ali Fulling, Legislative Clerk, Oversight and Investiga- tions, Digital Commerce and Consumer Protection; Elena Her- nandez, Press Secretary; Paul Jackson, Professional Staff Member, Digital Commerce and Consumer Protection; Bijan Koohmaraie, Counsel, Digital Commerce and Consumer Protection; Mark Ratner, Policy Coordinator; Austin Stonebraker, Press Assistant; Greg Zerzan, Counsel, Digital Commerce and Consumer Protection; Michelle Ash, Minority Chief Counsel, Digital Commerce and Con- sumer Protection; Jeff Carroll, Minority Staff Director; Lisa Gold- man, Minority Counsel; Carolyn Hann, Minority FTC Detailee; Caroline Paris-Behr, Minority Policy Analyst; and C.J. Young, Mi- nority Press Secretary. Mr. LATTA. Well, good morning, and welcome to the Sub- committee on Digital Commerce and Consumer Protection. We real- ly appreciate you all being here, and we look forward today to your testimony. And at this time, I’ll recognize myself for 5 minutes for an open- ing statement. And again, good morning and I wanted to again thank our witnesses for being with us today. OPENING STATEMENT OF HON. ROBERT E. LATTA, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OHIO An advertisement used to mean a quarter-page section in your local newspaper, a billboard along the highway, or as our chairman of the full committee would know in his radio days, a radio spot during the rush-hour commute. (1) VerDate Mar 15 2010 11:42 Feb 01, 2019 Jkt 037690 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 I:\115THCONGRESS\115X139DIGITALADS\115X139DIGITALADSWORKING WAYNE 2 While those types of advertisements still exist, targeted digital advertising has begun to dominate the advertising and marketing industry. The digital advertising ecosystem is complex and often misunder- stood. Today, we hope to clear up some of this confusion for con- sumers and discuss both the benefits and emerging, often high-pro- file, challenges of online advertising. Our expert panel of witnesses will explain how this technology works and its place in our economy and our lives. According to the Interactive Advertising Bureau, the ad-sup- ported
Recommended publications
  • Impact of Animation and Language on Banner Click-Through Rates
    Journal of Electronic Commerce Research, VOL 13, NO 2, 2012 IMPACT OF ANIMATION AND LANGUAGE ON BANNER CLICK-THROUGH RATES Steffen Zorn Business School, School of Marketing, Curtin University PO Box U1987, Perth, WA 6845, Australia [email protected] Doina Olaru Business School, University of Western Australia 35 Stirling Highway, Crawley, WA 6009, Australia [email protected] Thomas Veheim Ad’Link Media Norway Valkendorfsgaten 1A, Postboks 12, Sentrum 5803 Bergen, Norway [email protected] Sam Zhao Ineedhits.com Level 1, 229 Stirling Highway, Claremont, WA 6019, Australia [email protected] Jamie Murphy Business School, Murdoch University South Street, Murdoch, WA 6150, Australia [email protected] ABSTRACT This field experiment tested the impact of animation and language on the click-through rate (CTR) of banner advertisements across two website types. Animation results of over one million banner impressions were inconsistent for social networking and information websites. As expected, two languages, English and Norwegian, showed insignificant CTR differences. The CTR was under one tenth of one percent (0.1%), consistent with low reported CTRs for traditional advertising banners. The study contributes to research in testing different website design elements, an under researched area. Keywords: banner advertisement, click-through rates, Elaboration Likelihood Model 1. Introduction Online advertising revenue increased significantly in the past decade, for example in the US from 7.2 billion dollars in 2001 to 23.4 billion in 2008. Despite a decline to 22.6 billion in 2009, online advertising was the least affected advertising sector in the economic downturn and grew to its highest peak in history in 2010’s third quarter [Interactive Advertising Bureau, 2009, 2010].
    [Show full text]
  • Table of Contents
    Media Table of contents Media information & fast facts ......................................................................................................... 3 Important media information ....................................................................................................................................................4 Race week Media Center..............................................................................................................................................................4 Race week schedule of events ..................................................................................................................................................7 Quick Facts ...........................................................................................................................................................................................8 Top storylines ......................................................................................................................................................................................10 Prize purse .............................................................................................................................................................................................13 Time bonuses ......................................................................................................................................................................................14 Participant demographics ............................................................................................................................................................15
    [Show full text]
  • New Minority Adviser Seeks Diversity, Inclusiveness
    TCU Daily Skiff Thursday, October 3, 1991 Texas Christian University, Fort Worth, Texas 89th Year, No. 22 Committee reaches decision in fraternity alcohol violation case By LEANNA STALEY • The chapter must sponsor a risk "The case was heard by IFC (Inter- TCU Daily Skiff management seminar by the end of fratemity Council) judicial and we Spring 1992; and made recommendations to the SOC," The Sigma Chi fraternity was put • Sigma Chi must formulate goals said Bubba Mackenzie, vice president on probation for one year because of for the chapter to conform to alcohol of the council in charge of judicial an alcohol violation case involving and drug policies and the means of matters. summer rush activities. achieving these goals. In the past, the committee has gen- Subcommittee on Fraternities and According to the press release writ- erally accepted the council recom- Sororities, a branch of Student Orga- ten by Jane Kucko. chairwoman of the mendations of infractions for nization Committee, reviewed the committee, the nature of the violation fraternities, said Watson Potter, coun- violation case Monday. and the fact that similar violations cil president. Several sanctions were made by the have occurred historically were fac- Freeman said one of his biggest subcommittee against the fraternity, tors taken into account when mandat- complaints with the sanctions was including: ing the final decision. how vague some of them were. Free- • No formal or informal parties or Bowen Freeman, a junior biology man said the terms barring Sigma Chi mixers may be sponsored or attended major and president of Sigma Chi, from hosting or attending any "formal by Sigma Chi for the remainder of the said he thought the sanctions against or informal parties" were too subjec- 1991 Fall semester; Sigma Chi were harsh.
    [Show full text]
  • Selling Empowerment: a Critical Analysis of Femvertising
    Selling Empowerment: A Critical Analysis of Femvertising Persistent link: http://hdl.handle.net/2345/bc-ir:107483 This work is posted on eScholarship@BC, Boston College University Libraries. : , 2017 Copyright is held by the author, with all rights reserved, unless otherwise noted. Selling Empowerment: A Critical Analysis of Femvertising Alexandra Rae Hunt Boston College Senior Communication Honors Thesis Dr. Michael Serazio Spring 2017 ii Abstract This thesis explores the impact of femvertising on representations of women, its relation to and conversation with third wave feminism as a growing social movement, and its extension of a brand’s dedication to corporate social responsibility. Feminist critical discourse analysis from a third wave perspective was used to conduct qualitative visual and textual analysis of three different femvertising campaigns: Dove’s “Campaign for Real Beauty,” Always’ “Like a Girl” campaign, and Pantene’s “Shine Strong” campaign. Although femvertising diversifies the representation of women and girls in the media by challenging restrictive beauty standards and damaging rhetoric, it fails to accurately represent or reference the third wave movement by shying away from the feminist label and omitting mentions of intersectionality, sexuality, and storytelling. In addition, in order for femvertising to seem genuine rather than manipulative, the campaign must reflect a sustained effort on behalf of the brand to empower women and girls through philanthropic efforts and organizational partnerships. Terms: Brand Identity, Brand Personality, Corporate Social Responsibility, Brand Loyalty, Gender Roles, Hegemonic Masculinity, Second Wave Feminism, Third Wave Feminism, Body Cropping, Male Gaze, Scopophilia, Incorporation, Commodity Feminism, Commodification, Neoliberalism, Capitalism, Femvertising iii Acknowledgements I would like to extend my gratitude to my advisor, Dr.
    [Show full text]
  • A New Marketing Strategy Map for Direct Marketing
    Knowledge-Based Systems 22 (2009) 327–335 Contents lists available at ScienceDirect Knowledge-Based Systems journal homepage: www.elsevier.com/locate/knosys A new marketing strategy map for direct marketing Young Ae Kim a,*, Hee Seok Song b, Soung Hie Kim a a Business School, Korea Advanced Institute of Science and Technology (KAIST), 207-43 Cheongyangri 2-dong, Dongdaemoon-gu, Seoul 130-722, South Korea b Department of Management Information Systems, Hannam University,133 Ojung-dong, Daeduk-gu, Daejon 306-791, South Korea article info abstract Article history: Direct marketing is one of the most effective marketing methods with an aim to maximize the customer’s Received 2 May 2007 lifetime value. Many cost-sensitive learning methods which identify valuable customers to maximize Received in revised form 25 September expected profit have been proposed. However, current cost-sensitive methods for profit maximization 2008 do not identify how to control the defection probability while maximizing total profits over the cus- Accepted 17 February 2009 tomer’s lifetime. Unfortunately, optimal marketing actions to maximize profits often perform poorly in Available online 6 March 2009 minimizing the defection probability due to a conflict between these two objectives. In this paper, we propose the sequential decision making method for profit maximization under the given defection prob- Keywords: ability in direct marketing. We adopt a Reinforcement Learning algorithm to determine the sequential Sequential decision making Reinforcement Learning optimal marketing actions. With this finding, we design a marketing strategy map which helps a market- Direct marketing strategy ing manager identify sequential optimal campaigns and the shortest paths toward desirable states.
    [Show full text]
  • Social Marketing for Recycling in Ohio
    SOCIAL MARKETING FOR RECYCLING IN OHIO A Guide to Understanding, Planning and Conducting Social Marketing Projects SOCIAL MARKETING FOR RECYCLING IN OHIO SOCIAL MARKETING FOR RECYCLING IN OHIO A Guide to Understanding, Planning and Conducting Social Marketing Projects Dave Landis Division of Recycling & Litter Prevention Ohio Department of Natural Resources © 2005 Ohio Department of Natural Resources These materials may be duplicated for non-commercial educational use provided that credit is given as follows: Social Marketing for Recycling in Ohio Ohio Department of Natural Resources, 2005 Any other use or reproduction requires the written consent of the Ohio Department of Natural Resources, Division of Recycling & Litter Prevention SOCIAL MARKETING FOR RECYCLING IN OHIO SOCIAL MARKETING FOR RECYCLING IN OHIO Preface Social Marketing for Recycling in Ohio provides an introduction to social marketing for local community recycling programs. Social marketing is a systematic procedure that uses commercial marketing strategies to change behavior. Social marketing activities include setting measurable goals, conducting research about target audiences and developing unique promotional tools for different target audiences. Social marketing techniques can be applied to a variety of community recycling opportunities, both small and large in scope. For example, social marketing projects may target a single drop-off, a school recycling program or many neighborhoods in a curbside program. The social marketing approach explained in Social Marketing for Recycling in Ohio is community and opportunity-based. It provides local programs with ways to increase recycling one opportunity at a time, which is especially appropriate in communities where resources are limited. For programs with funding available to hire a consultant, the guide provides enough information about social marketing to develop a request for proposal and evaluate submissions.
    [Show full text]
  • For Transportation Noise Annoyance
    International Journal of Environmental Research and Public Health Article The Development of a Multiple-Item Annoyance Scale (MIAS) for Transportation Noise Annoyance Dirk Schreckenberg 1,* ID , Christin Belke 1 and Jan Spilski 2 1 ZEUS GmbH, Centre for Applied Psychology, Environmental and Social Research, Sennbrink 46, 58093 Hagen, Germany; [email protected] 2 Center for Cognitive Science, University of Kaiserslautern, Erwin-Schrodiger-Straße, Building 57, 67663 Kaiserslautern, Germany; [email protected] * Correspondence: [email protected]; Tel.: +49-2331-4787-194 Received: 7 April 2018; Accepted: 5 May 2018; Published: 12 May 2018 Abstract: In 2001, Team#6 of the International Commission on Biological Effects of Noise (ICBEN) recommended the use of two single international standardised questions and response scales. This recommendation has been widely accepted in the scientific community. Nevertheless, annoyance can be regarded as a multidimensional construct comprising the three elements: (1) experience of an often repeated noise-related disturbance and the behavioural response to cope with it, (2) an emotional/attitudinal response to the sound and its disturbing impact, and (3) the perceived control or coping capacity with regard to the noise situation. The psychometric properties of items reflecting these three elements have been explored for aircraft noise annoyance. Analyses were conducted using data of the NORAH-Study (Noise-Related Annoyance, Cognition, and Health), and a multi-item noise annoyance scale (MIAS) has been developed and tested post hoc by using a stepwise process (exploratory and confirmatory factor analyses). Preliminary results were presented to the 12th ICBEN Congress in 2017. In this study, the validation of MIAS is done for aircraft noise and extended to railway and road traffic noise.
    [Show full text]
  • Questionnaire on Nike Vs Adidas
    Questionnaire On Nike Vs Adidas Ult and quadrate Jephthah vibrating her isohyet doze lumpishly or carries brutally, is Rochester top? andPlanned Abyssinian Geoffrey Hymie never strolls dissociate so toxicologically so sweetly or that soundproof Charleton any terrify starkness his furies. sound. Multidimensional This was conducted through an online questionnaire. Specific on nike? The second principle is scalability. This nike vs adidas store and questionnaires were not. This one of a typical customer on ethical indicators at. To show primary benefit a van was designed which compares both athletic brand Adidas and Nike Sample Size 30 While to. Nike vs adidas have their productivity of one questionnaire of sporting needs? Bringing you prefer one questionnaire on nike vs adidas? One questionnaire is one shoe names reputation as more than other. Nike Vs Adidas Analysis 1569 Words Internet Public Library. Adidas AG is beating Nike Inc. Nike vs adidas comparison ANRIC Enterprises Inc. Based on sports brand. Ultimately means they demonstrate foot locker inc is one interesting topic as existing knowledge, language or with. The survey system include both quantitative and qualitative design, categorical and continuous variable, covering the demographic, brand awareness, brand usage, brand attributes and purchase intent. Questionnaire of Nike Course Hero. A Ye s b No Q12 is there are impact of advertisements and celebrities on your harvest of sport. Check back it also focus more options to strengthen its first. The advantage playing this technique is inexplicable it allows the researcher to knot and gap the underlying motives, objectives and choices that drive behaviour. To nike vs adidas survey questionnaires as well as! Does nike vs.
    [Show full text]
  • NIKE Investor Day 2017 Transcript
    NIKE Investor Day 2017 h This transcript is provided by NIKE, Inc. only for reference purposes. Information presented was current only as of October 25, 2017, and may have subsequently changed materially. NIKE, Inc. does not update or delete outdated information contained in this transcript, and disclaims any obligation to do so. Nitesh Sharan, Vice President, Investor Relations and Treasurer: Good morning, everyone. Welcome to NIKE and to our 2017 Investor Day. I'm Nitesh Sharan, Vice President of Investor Relations and Treasurer. I'd like to first start by apologizing for the slight delay, but I do want to say that we are excited to have you here. Thank you to all of you joining at our world headquarters, and thank you to everyone joining on our webcast. We have a full day planned for you. On your tables, you can see the agenda and speaker lineup, so you can see where we're headed. Our goal for today is to showcase how we're accelerating a consumer-led transformation to ignite our next phase of long-term growth, profitability and return for shareholders. You'll hear about the strategies underpinning this, and you'll get an opportunity to immerse yourselves in some of them throughout the day. Here's our safe harbor. As always, our discussions will stay within the guidelines expressed on the slide behind me. So please read it carefully and quickly, because we have a lot to cover. With that, let's get started. Enjoy the day. Mark Parker, Chairman, President & Chief Executive Officer, NIKE, Inc.
    [Show full text]
  • Intermediation in Open Display Advertising
    Appendix M: intermediation in open display advertising Introduction 1. This appendix discusses intermediation in open display advertising. It provides background information to the analysis of the open display market developed in Chapter 5, presents the evidence supporting the claims we make in the chapter, and develops the analysis of some issues that, although useful for a full understanding of open display intermediation, have not been included in the main report. This is an updated version of Appendix H to our interim report. Compared to the interim report, the scope of the appendix has been expanded: • We include an analysis of advertiser ad servers. • We do not just describe how the intermediation industry works, but also develop a detailed analysis of the issues affecting competition between intermediaries, looking at lack of transparency, conflicts of interests and leveraging practices. • We discuss how competitive dynamics can be affected by the future evolution of the industry. 2. The appendix is divided into eight sections. In the first section, we describe how advertising intermediation works. We outline the overall structure of the industry, analyse its evolution in the course of the last ten years, present the different types of transactions that publishers use to sell their advertising inventory, describe the activities performed by the different types of intermediaries and discuss the technical advantages of vertical integration across the intermediation chain. 3. The second section deals with competition among providers at each stage of the intermediation chain. For each type of intermediary, we discuss the main dimensions of competition and the main factors affecting the strength of competition, such as customers’ homing behaviour, economies of scale and scope, and switching costs.
    [Show full text]
  • SICEM 2011 Presentation
    Distributed Computing & Stochastic Control for Demand Response In Mass Markets Federal Energy Regulatory Commission Washington DC, June 27, 2018 Alex Papalexopoulos, Ph.D. CEO & Founder, ECCO International, Inc. CEO & Chairman of the Board, ZOME Energy Networks, Inc. San Francisco, CA [email protected] [email protected] Outline Current DR Programs Key Challenges of a New Approach High Level Process of the New Approach Technology and the Load Controller ColorPower ™ Algorithm Formal Control Problem & Important Constraints Control Design Issues Cloud-Based Architecture ColorPower ™ Energy Token Conclusions 2 © Copyright 2018 ECCO International, Inc. Multi-Market Integrated Electricity Framework Market Operator / Transmission System Operator DSO DSO T-D Interface DSO DSO DSO DER Merchant DER Merchant End Use Customers End Use Customers & Behind the Meter & Behind the Meter DR DR 3 © Copyright 2018 ECCO International, Inc. Where is the Problem (The Era of Coercion Should Come to an End) Current DR programs are based on command and control approaches; programs are grouped in 4 groups: Customers submit their appliances to direct utility on/off load control Customers are exposed to price volatility—a concept called “prices-to-devices”; this is the “holy grail” today for activating DR in wholesale organized markets DR aggregators pay people for remote shutoff options; growth has stalled because customers see no other value than trading inconvenience for cash Finally, some programs rely on advanced analytics to predict customer
    [Show full text]
  • Transcript of Hearing Relating to the Issue of Liability in Cases 1021/1
    This transcript has not been proof read or corrected. It is a working tool for the Tribunal for use in conducting these appeals. It has been placed on the Tribunal website for readers to see how matters were conducted at the main oral hearing of these proceedings and is not to be relied on or cited in the context of any other proceedings. The Tribunal's judgment in this matter will be the final and definitive record 1 Friday, 12th March 2004 2 (10.00 am) 3 (Proceedings in camera) 14 (10.10 am) 15 (Proceedings in open court) 16 THE PRESIDENT: Mr Ronnie, you are still under oath. 17 MR CHRISTOPHER RONNIE (continued) 18 Cross-examination by MR WEST-KNIGHTS (continued) 19 Q. Good morning, Mr Ronnie. We had been looking at 20 the note of the discussions between you and the OFT on 21 26th February 2002. I would like to take you back very 22 briefly if I may to Umbro pleading file 2, the yellow 23 file, and we are inside tab C of that bundle which is of 24 course an annexure to Umbro's own pleading. 25 THE PRESIDENT: Yes, and we are in the file note; is that 8 1 right? 2 MR WEST-KNIGHTS: We are in the note of the pleading which 3 starts a few pages into that. I was simply going to go 4 to two matters in here. First to paragraph 54, which 5 the tribunal will find at running page 20 in that file, 6 in that transcription by Umbro's lawyers.
    [Show full text]