Ad Tech for Privacy Counsel November 5, Marc M. Groman, President & CEO Network Advertising Initiative

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1 Ad Tech for Privacy Counsel November 5, 2014 Marc M. Groman, President & CEO Network Advertising Initiative

2 Why?

3 What We ll Cover This Morning: Basic Client Server Transactions Maintaining State What this is Really About Cookies Targeting & Retargeting Players in the Digital Ad Ecosystem Mobile & Cross Device Beyond Cookies Next Gen Tracking Tech

4 The Basic Transaction 1. Browser Requests URL from Web Server 2. Web Server Logs Request and Responds with Content 3. Browser receives and displays content

5 Beyond the Basics Adding Other Servers Page Content Sent from Multiple Sources/Servers Client Side Redirects Server Side Redirects The Web Browser sends certain data with every request such as the IP Address of the computer and domain cookies Web Servers record the information such as IP Address, time stamp, referring URL, cookies, etc. The Brower assembles the Web Page based on instructions of the page including requests to domains that are different than the parent domain As Privacy Counsel, do you understand the data flows on your company s web site? Based on Presentation by Shane Wiley

6 Key (obvious?) Concept Maintaining State Need Mechanism to Maintain State Process of providing info necessary for first and third parties to deliver personalized information and services to end consumers, and/or respect their preferences for privacy, information transparency and control. (Source: IAB) Why? Web is inherently transient. Uses Identify a device or browser over time Store settings and data Examples Online shopping carts Account logins Multimedia Web applications (e.g., Google Maps) Online advertising Interest-Based Advertising,, Analytics, Ad Delivery and Reporting

7 The Cookies We Know 1 Way to Maintain State A cookie is a small text file held in a web browser for a specific domain. Cookies are often used to provide continuity between a user s web browser and a web server As a result, without a cookie (or other method to maintain state), what happens on a webpage is forgotten on subsequent pages Each cookie is tied to a specific domain, and thus can only be read by that domain

8 More On Cookies Cookies can be either 1 st party or 3 rd party DEPENDING ON THE CONTEXT 1 st party cookies are set by the same domain that is in the URL line 3 rd party cookies are those set by a different domain than the one in the URL line Cookies are not intrinsically first or third party it depends on the context There are a number of existing controls for standard cookies in all major browsers As a Privacy Counsel, I love cookies -- As the CMO or Project Engineer, I hate cookies

9 Ad Delivery Basics Headlines News Website Web Server Ad Server Ad Reporting Ad Delivery Pixel Tag Ad Creative Service Provider HTML Tag Pixel Tag HTML Tag Include Pixel Tag an Ad in this location on Generated by the Ad Server; provides the Web page instructions to collect information such as ad views, or the consumer's browser, operating system, date/time, etc. for Ad Reporting purposes Consumer Thanks Vinoy Goel

10 Who is Who in Online Advertising? Third-Party Data Provider Ad Exchange Real-Time Bidding (RTB) Advertiser Real-Time Bidding (RTB) Real-Time Bidding (RTB) Publisher Data Management Platform (DMP) Demand-Side Platform (DSP) Supply-Side Platform (SSP) Ad Network

11 Targeting and Retargeting Examples Geometrixx Customer Relationship Management (CRM) Data Onboarding Demographic Targeting Offer based on location / demographics Behavioral Targeting Items to consider based on previous searches the consumer conducted Contextual Targeting Product suggestions related to the items or keywords on the page (shorts)

12 Targeting and Retargeting Examples Consumer Did not purchase the item (shorts) on the Geometrixx website Retargeting Geometrixx ad for shorts on another website

13 The Holy Grail Crossing the Channels Omni-Channel Multi- Marketing Channel Geometrixx Marketing Campaign Consumer purchases item at local store after researching item online Website (site, ads, and social) Mobile (web, apps, ads and social) Retail

14 One Example - Tapad Users can opt a device out of the cross device graph

15 What may be collected by Tapad for Device Graph management, analytics, and ad targeting: Time stamp User agent string that specifies device and browser information IP address Unique device identifier, stored in a browser cookie Hardware or operating system device identifier. For example, IDFA for ios and Android ID for Android. Web page or application where an ad may be placed Web page or application that the individual is using when a Tapad pixel fires Anonymous data that can be extrapolated from an IP address. For example, we may be able to determine a user s general location and therefore infer demographic information. Obfuscated user identifier, such as address, but only to evaluate the probability and nature of connections between devices, never to identify the individual Source: Tapad Privacy Policy

16 Cookie Sinking

17 Cookie Sync

18 Cookie Syncing Enables companies to map user IDs from one system to another Source: https://freedom-to-tinker.com/

19 Where it Gets Interesting - Beyond Cookies Why Privacy Counsel was happy with http cookies: Transparent User controls built into browsers Safe Long history, many tools to view/manage Opt-out tool uses cookies Why the Project Engineers, CMOs, etc. are not: Cookie blocking by browsers Limited utility for collecting data across apps or linking devices New state maintenance technologies New types of data, like location Issues to Consider Cookies used to maintain opt-out preferences Some alternatives are less transparent or invisible Alternatives may not have controls built into device/browser Some alternatives are temporary and/or probabilistic

20 Let s Talk Mobile The Players Types of players Mobile apps/publishers Mobile ad networks and exchanges Demand side platforms Advertisers (brands) Companies providing cross-device identification Google and Facebook controlled over 47% of all digital advertising in America last year, according to emarketer, and over 57% of mobile advertising Economist September 13, 2014 Related but separate topic the creation and ownership of identity which consumers and companies can use to manage online activities across websites, apps and devices Companies that require users to login (Google, Facebook, Twitter, etc. ) have an advantage for cross device and managing identity relationship with consumer, agreement, etc.

21 Tracking Without Cookies Possible alternatives to cookies that you are either being asked about now or will be asked about in Q 1 of Statistical IDs» Use of statistical algorithms that, using information passed by the device, browser, app or operating system, probabilistically infer a user ID which can then be used by publishers or third parties Client IDs» Deterministic identifiers that sit on the device (or app, or browser), such as the Apple Advertising Identifier (also known as the IDFA) and the Android Advertising ID

22 Statistical IDs What is a Stat-ID? Uses the unique characteristics of your browser/device to maintain state (e.g., your plug-ins, fonts, exact browser version) Been around for a number of years, but, until recently, more commonly used for fraud detection than tracking for advertising purposes. Device-specific, but can work across multiple apps or programs on a single device Can t fully replace the cookie because not sufficiently persistent; IDs may change frequently as the device changes A truly stable and persistent statistical ID that would be sufficient for maintaining a shopping cart or honoring consumer privacy preferences (for instance), would be difficult to maintain Issues with transparency & control No storage on the user s computer, so very hard to detect that it is happening Active v. Passive No native browser controls at all

23 Tracking with Client IDs Examples Set by Server Cookies still useful HTML5 local storage Similar to cookies & subject to similar native browser controls Adobe Flash LSO (sometimes called Flash Cookies ) Similar to cookies, but independent of the browser, works across browsers, and have been controversial Examples Generated By Client (operating system or otherwise) Platform IDs (Android and ios) Apple and Google have strict limitations on how their advertising identifiers can be used Device specific, like the Statistical ID Works across multiple apps and programs on a single device or operating system, but depending on the client ID implementation, may only be available through native applications and not through a mobile browser, for instance, as is the case with the Apple advertising identifier

24 Preference & Platform IDs, cont. Android, ios, and Windows phones have platform identifiers Options: opt-out or reset the identifier Android and ios are very similar in their TOS. For both: Must use for advertising Can t use any other identifiers for advertising w/o opt-in consent Android: Identifier must not be connected to personally-identifiable information or associated with any persistent device identifier (for example: SSAID, MAC address, IMEI, etc.,) without the explicit consent of the user. Can only use the identifier for advertising Must honor the opt-out : Cease interest-based advertising Don t have to cease contextual advertising, ad delivery and reporting, frequency capping, security and fraud prevention, etc. Must honor the reset Can t connect current ad id to previous ad id The use of the identifier must be disclosed in the privacy policy

25 This Week s Verizon Controversy - UIDH Source: Forbes.com 10/28/14

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