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A Brief Primer on the Economics of Targeted Advertising
ECONOMIC ISSUES A Brief Primer on the Economics of Targeted Advertising by Yan Lau Bureau of Economics Federal Trade Commission January 2020 Federal Trade Commission Joseph J. Simons Chairman Noah Joshua Phillips Commissioner Rohit Chopra Commissioner Rebecca Kelly Slaughter Commissioner Christine S. Wilson Commissioner Bureau of Economics Andrew Sweeting Director Andrew E. Stivers Deputy Director for Consumer Protection Alison Oldale Deputy Director for Antitrust Michael G. Vita Deputy Director for Research and Management Janis K. Pappalardo Assistant Director for Consumer Protection David R. Schmidt Assistant Director, Oÿce of Applied Research and Outreach Louis Silva, Jr. Assistant Director for Antitrust Aileen J. Thompson Assistant Director for Antitrust Yan Lau is an economist in the Division of Consumer Protection of the Bureau of Economics at the Federal Trade Commission. The views expressed are those of the author and do not necessarily refect those of the Federal Trade Commission or any individual Commissioner. ii Acknowledgments I would like to thank AndrewStivers and Jan Pappalardo for invaluable feedback on numerous revisions of the text, and the BE economists who contributed their thoughts and citations to this paper. iii Table of Contents 1 Introduction 1 2 Search Costs and Match Quality 5 3 Marketing Costs and Ad Volume 6 4 Price Discrimination in Uncompetitive Settings 7 5 Market Segmentation in Competitive Setting 9 6 Consumer Concerns about Data Use 9 7 Conclusion 11 References 13 Appendix 16 iv 1 Introduction The internet has grown to touch a large part of our economic and social lives. This growth has transformed it into an important medium for marketers to serve advertising. -
June 7, 2010 ANALYSIS of the FTC's DECISION NOT to BLOCK
June 7, 2010 ANALYSIS OF THE FTC’S DECISION NOT TO BLOCK GOOGLE’S ACQUISITION OF ADMOB Randy Stutz and Richard Brunell* Introduction On May 21, 2010, after months of investigation, the Federal Trade Commission (FTC) announced that it would not challenge Google’s $750 million acquisition of AdMob, a mobile advertising network and mobile ad solutions and services provider.1 In this white paper, we present AAI’s analysis of the FTC’s decision. The FTC found that, but for recent developments concerning Apple, the acquisition “appeared likely to lead to a substantial lessening of competition in violation of Section 7 of the Clayton Act.” According to the FTC, Google and AdMob “currently are the two leading mobile advertising networks, and the Commission was concerned about the loss of head-to-head competition between them.” The companies “generate the most revenue among mobile advertising networks, and both companies are particularly strong in … performance ad networks,” i.e. those networks that sell advertising by auction on a “per click” or other direct response basis. Without necessarily defining a relevant market, the Commission apparently saw a likelihood of unilateral anticompetitive effects, as it found “each of the merging parties viewed the other as its primary competitor, and that each firm made business decisions in direct response to this perceived competitive threat.” Yet, Apple’s acquisition of the third largest mobile ad network, Quattro Wireless, in December 2009, and its introduction of its own mobile advertising network, iAd, as part of its iPhone applications package, convinced the FTC that the anticompetitive effects of the acquisition “should [be] mitigate[d].” The Commission “ha[d] reason to believe that Apple * Randy Stutz is a Research Fellow and Richard Brunell is the Director of Legal Advocacy of the American Antitrust Institute (AAI), a non-profit research and advocacy organization devoted to advancing the role of competition in the economy, protecting consumers, and sustaining the vitality of the antitrust laws. -
July 23, 2020 the Honorable William P. Barr Attorney General United
July 23, 2020 The Honorable William P. Barr Attorney General United States Department of Justice 950 Pennsylvania Avenue, NW Washington, DC 20530 Dear Attorney General Barr: We write to raise serious concerns regarding Google LLC’s (Google) proposed acquisition of Fitbit, Inc. (Fitbit).1 We are aware that the Antitrust Division of the Department of Justice is investigating this transaction and has issued a Second Request to gather additional information about the acquisition’s potential effects on competition.2 Amid reports that Google is offering modest, short-term concessions to overseas enforcers to avoid a full-scale investigation of the transaction in Europe,3 we write to urge the Division to continue with its efforts to conduct a thorough and comprehensive review of this proposed merger and to take any and all enforcement action warranted by the law and the evidence. It is no exaggeration to say that Google is under intense antitrust scrutiny across the globe. As you know, the company has been under investigation for potential anticompetitive conduct across a number of product markets by the Department and numerous state attorneys general, as well as by a number of foreign competition enforcers, some of which are also reviewing the proposed Fitbit acquisition. Competition concerns about Google are widespread and bipartisan. Against this backdrop, in November 2019, Google announced its proposed acquisition of Fitbit for $2.1 billion, a staggering 71 percent premium over Fitbit’s pre-announcement stock price.4 Fitbit—which makes wearable technology devices, such as smartwatches and fitness trackers— has more than 28 million active users submitting sensitive location and health data to the company. -
Advertising Content and Consumer Engagement on Social Media: Evidence from Facebook
University of Pennsylvania ScholarlyCommons Marketing Papers Wharton Faculty Research 1-2018 Advertising Content and Consumer Engagement on Social Media: Evidence from Facebook Dokyun Lee Kartik Hosanagar University of Pennsylvania Harikesh Nair Follow this and additional works at: https://repository.upenn.edu/marketing_papers Part of the Advertising and Promotion Management Commons, Business Administration, Management, and Operations Commons, Business Analytics Commons, Business and Corporate Communications Commons, Communication Technology and New Media Commons, Marketing Commons, Mass Communication Commons, Social Media Commons, and the Technology and Innovation Commons Recommended Citation Lee, D., Hosanagar, K., & Nair, H. (2018). Advertising Content and Consumer Engagement on Social Media: Evidence from Facebook. Management Science, http://dx.doi.org/10.1287/mnsc.2017.2902 This paper is posted at ScholarlyCommons. https://repository.upenn.edu/marketing_papers/339 For more information, please contact [email protected]. Advertising Content and Consumer Engagement on Social Media: Evidence from Facebook Abstract We describe the effect of social media advertising content on customer engagement using data from Facebook. We content-code 106,316 Facebook messages across 782 companies, using a combination of Amazon Mechanical Turk and natural language processing algorithms. We use this data set to study the association of various kinds of social media marketing content with user engagement—defined as Likes, comments, shares, and click-throughs—with the messages. We find that inclusion of widely used content related to brand personality—like humor and emotion—is associated with higher levels of consumer engagement (Likes, comments, shares) with a message. We find that directly informative content—like mentions of price and deals—is associated with lower levels of engagement when included in messages in isolation, but higher engagement levels when provided in combination with brand personality–related attributes. -
If Google Is a 'Bad' Monopoly, What Should Be Done?
If Google Is A 'Bad' Monopoly, What Should Be Done? Google Inc. is currently subject to antitrust investigations by state attorneys general in the United States, as well as antitrust authorities in the European Union. Google and its allies have mounted a vigorous public defense, arguing that Google’s activity should be immune from antitrust scrutiny or that imposing a remedy on Google would transform antitrust enforcers into some kind of undesirable “software regulatory agency,” which would threaten innovation in the Internet. These arguments are reminiscent of the claims made 20 years ago that antitrust analysis was too outdated to apply to high-tech industries. That argument was rejected then, and it should be rejected now. Exclusionary conduct by a dominant firm can distort fair competition in high-tech markets, Samuel Miller just as in more traditional markets. Antitrust remedies can, and should, be imposed to make sure that a dominant company does not improperly keep rivals out of its markets or improperly strengthen its dominant position, to the detriment of consumers and innovation. EU Competition Commissioner Joaquin Almunia rejected Google’s original proposals to resolve claims of anti-competitive conduct in July 2013, and is currently considering a revised proposal submitted by Google. So what remedy proposals would make sense? This article will outline potential antitrust remedies that may appropriately be imposed upon Google, assuming antitrust authorities or courts determine that Google has violated the antitrust laws. What Is an Illegal Monopoly? A company violates Section 2 of the Sherman Act when it acquires or maintains or “monopoly power” in a relevant market by “exclusionary” conduct. -
Improving Transparency Into Online Targeted Advertising
AdReveal: Improving Transparency Into Online Targeted Advertising Bin Liu∗, Anmol Sheth‡, Udi Weinsberg‡, Jaideep Chandrashekar‡, Ramesh Govindan∗ ‡Technicolor ∗University of Southern California ABSTRACT tous and cover a large fraction of a user’s browsing behav- To address the pressing need to provide transparency into ior, enabling them to build comprehensive profiles of their the online targeted advertising ecosystem, we present AdRe- online interests. This widespread tracking of users and the veal, a practical measurement and analysis framework, that subsequent personalization of ads have received a great deal provides a first look at the prevalence of different ad target- of negative press; users associate adjectives such as creepy ing mechanisms. We design and implement a browser based and scary with the practice [18], primarily because they lack tool that provides detailed measurements of online display insight into how their data is being collected and used. ads, and develop analysis techniques to characterize the con- Our paper seeks to provide transparency into the targeted textual, behavioral and re-marketing based targeting mecha- advertising ecosystem, a capability that has not been ex- nisms used by advertisers. Our analysis is based on a large plored so far. We seek to enable end-users to reason about dataset consisting of measurements from 103K webpages why ads of a certain category are being displayed to them. and 139K display ads. Our results show that advertisers fre- Consider a user that repeatedly receives ads about cures for a quently target users based on their online interests; almost particularly private ailment. The user currently lacks a way half of the ad categories employ behavioral targeting. -
Mobile Developer's Guide to the Galaxy
Don’t Panic MOBILE DEVELOPER’S GUIDE TO THE GALAXY U PD A TE D & EX TE ND 12th ED EDITION published by: Services and Tools for All Mobile Platforms Enough Software GmbH + Co. KG Sögestrasse 70 28195 Bremen Germany www.enough.de Please send your feedback, questions or sponsorship requests to: [email protected] Follow us on Twitter: @enoughsoftware 12th Edition February 2013 This Developer Guide is licensed under the Creative Commons Some Rights Reserved License. Editors: Marco Tabor (Enough Software) Julian Harty Izabella Balce Art Direction and Design by Andrej Balaz (Enough Software) Mobile Developer’s Guide Contents I Prologue 1 The Galaxy of Mobile: An Introduction 1 Topology: Form Factors and Usage Patterns 2 Star Formation: Creating a Mobile Service 6 The Universe of Mobile Operating Systems 12 About Time and Space 12 Lost in Space 14 Conceptional Design For Mobile 14 Capturing The Idea 16 Designing User Experience 22 Android 22 The Ecosystem 24 Prerequisites 25 Implementation 28 Testing 30 Building 30 Signing 31 Distribution 32 Monetization 34 BlackBerry Java Apps 34 The Ecosystem 35 Prerequisites 36 Implementation 38 Testing 39 Signing 39 Distribution 40 Learn More 42 BlackBerry 10 42 The Ecosystem 43 Development 51 Testing 51 Signing 52 Distribution 54 iOS 54 The Ecosystem 55 Technology Overview 57 Testing & Debugging 59 Learn More 62 Java ME (J2ME) 62 The Ecosystem 63 Prerequisites 64 Implementation 67 Testing 68 Porting 70 Signing 71 Distribution 72 Learn More 4 75 Windows Phone 75 The Ecosystem 76 Implementation 82 Testing -
GOOGLE ADVERTISING TOOLS (FORMERLY DOUBLECLICK) OVERVIEW Last Updated October 1, 2019
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A Privacy-Aware Framework for Targeted Advertising
Computer Networks 79 (2015) 17–29 Contents lists available at ScienceDirect Computer Networks journal homepage: www.elsevier.com/locate/comnet A privacy-aware framework for targeted advertising ⇑ Wei Wang a, Linlin Yang b, Yanjiao Chen a, Qian Zhang a, a Department of Computer Science and Engineering, Hong Kong University of Science and Technology, Hong Kong b Fok Ying Tung Graduate School, Hong Kong University of Science and Technology, Hong Kong article info abstract Article history: Much of today’s Internet ecosystem relies on online advertising for financial support. Since Received 21 June 2014 the effectiveness of advertising heavily depends on the relevance of the advertisements Received in revised form 6 November 2014 (ads) to user’s interests, many online advertisers turn to targeted advertising through an Accepted 27 December 2014 ad broker, who is responsible for personalized ad delivery that caters to user’s preference Available online 7 January 2015 and interest. Most of existing targeted advertising systems need to access the users’ pro- files to learn their traits, which, however, has raised severe privacy concerns and make Keywords: users unwilling to involve in the advertising systems. Spurred by the growing privacy con- Targeted advertising cerns, this paper proposes a privacy-aware framework to promote targeted advertising. In Privacy Game theory our framework, the ad broker sits between advertisers and users for targeted advertising and provides certain amount of compensation to incentivize users to click ads that are interesting yet sensitive to them. The users determine their clicking behaviors based on their interests and potential privacy leakage, and the advertisers pay the ad broker for ad clicking. -
The Value of Targeted Advertising to Consumers the Value of Targeted Advertising to Consumers
The Value of Targeted Advertising to Consumers The Value of Targeted Advertising to Consumers 71% of Consumers Prefer Ads Targeted to Their Interests and Shopping Habits 3 out of 4 Consumers Prefer Fewer, but More Personalized Ads Only 4% of Consumers Say Behaviorally Targeted Ads Are Their Biggest Online Concern Half (49%) of Consumers Agree That Tailored Ads are Helpful Nearly Half Say the Greatest Benefit of Targeted Ads is in Reducing Irrelevant Ads Next greatest benefits of personalization are product discovery (25%) and easier online shopping (19%) 2 71% of Consumers Prefer Personalized Ads 71% Prefer ads tailored to their interests and shopping habits 75% Prefer fewer, but more personalized ads Consider personalized ads to be targeted based on their online shopping behaviors Source: Adlucent, May, 2016 3 Adlucent surveyed 1000 US consumers in 2016 Only 4% of Consumers Say Behaviorally Targeted Ads Are Their Biggest Online Concern Source: Zogby Analytics and DAA, Apr. 2013. 4 Survey of 1000 US consumers Half of Consumers View Tailored Ads as Helpful • Targeted ads help consumers quickly find the right products and services “Advertising that is tailored to my needs is helpful because I can find the right products 49% and services more quickly.” Agree US Consumers Source: Gfk, March 2014 5 GfK surveyed 1,000 people on their attitudes to targeted advertising in March, 2014 Nearly Half Say the Greatest Benefit of Targeted Ads is in Reducing Irrelevant Ads Consumers list the greatest benefits to personalization to be: • Helping reduce irrelevant ads (46%) • Providing a way to discover new products (25%) • Making online shopping easier (19%) Source: Adlucent, May, 2016 6 Adlucent surveyed 1000 US consumers in 2016 Consumers on Targeted Ads In Their Own Words… “I don’t think ads are bad. -
Online Advertising in the UK
Online advertising in the UK A report commissioned by the Department for Digital, Culture, Media & Sport January 2019 Stephen Adshead, Grant Forsyth, Sam Wood, Laura Wilkinson plumconsulting.co.uk About Plum Plum is an independent consulting firm, focused on the telecommunications, media, technology, and adjacent sectors. We apply extensive industry knowledge, consulting experience, and rigorous analysis to address challenges and opportunities across regulatory, radio spectrum, economic, commercial, and technology domains. About this study This study for the Department of Digital, Culture, Media & Sport explores the structure of the online advertising sector, and the movement of data, content and money through the online advertising supply chain. It also assesses the potential for harms to arise as a result of the structure and operation of the sector. Plum Consulting 10 Fitzroy Square London W1T 5HP T +44 20 7047 1919 E [email protected] Online advertising in the UK Contents Executive summary 5 Introduction 5 Taxonomy of online advertising 6 Market size and growth 7 Value chain and roles 8 Market dynamics 11 Money flows 12 Data flows 14 Ad flows and control points 16 Assessment of potential harms 17 1 Introduction 20 1.1 Terms of reference 20 1.2 Methodology 20 1.3 Caveats 20 1.4 Press publishers 21 1.5 Structure of this report 21 2 Taxonomy of online advertising 22 2.1 Online advertising formats 22 2.2 Targeting of online advertising 33 2.3 Future developments 34 3 Market size and growth 35 4 Value chain and roles 40 4.1 Overview -
EU Data Protection Law and Targeted Advertising
Damian Clifford EU Data Protection Law and Targeted Advertising Consent and the Cookie Monster - Tracking the crumbs of on- line user behaviour by Damian Clifford, Researcher ICRI/CIR KU Leuven* Abstract: This article provides a holistic legal a condition for the placing and accessing of cookies. analysis of the use of cookies in Online Behavioural Alternatives to this approach are explored, and the Advertising. The current EU legislative framework implementation of solutions based on the application is outlined in detail, and the legal obligations are of the Privacy by Design and Privacy by Default examined. Consent and the debates surrounding concepts are presented. This discussion involves an its implementation form a large portion of the analysis of the use of code and, therefore, product analysis. The article outlines the current difficulties architecture to ensure adequate protections. associated with the reliance on this requirement as Keywords: Data Protection, Targeted Advertising, E-Privacy Directive, Consent, EU Data Protection Framework © 2014 Damian Clifford Everybody may disseminate this article by electronic means and make it available for download under the terms and conditions of the Digital Peer Publishing Licence (DPPL). A copy of the license text may be obtained at http://nbn-resolving. de/urn:nbn:de:0009-dppl-v3-en8. This article may also be used under the Creative Commons Attribution-Share Alike 3.0 Unported License, available at h t t p : // creativecommons.org/licenses/by-sa/3.0/. Recommended citation: Damian Clifford, EU Data Protection Law and Targeted Advertising: Consent and the Cookie Monster - Tracking the crumbs of online user behaviour 5 (2014) JIPITEC 194, para 1.