Get documents about "IAB Europe Advertising IAB Europe
Shared by: jennyyingdi
-
Stats
- views:
- 4
- posted:
- 7/27/2012
- language:
- pages:
- 6
Document Sample
A Briefing by IAB Europe
Advertising on the Internet
A quick download for policy makers
contents
1 What is advertising on the
Page 1 1 What is advertising on the
Internet? Internet?
Page 2 2 Benefits of Internet
advertising to consumers Like other media, the Internet provides a variety of
ways that an advertiser could use to help ensure that
Page 3 3 Benefits of Internet the message it is distributing reaches the audience that
advertising to businesses will find the information most relevant.
Page 3 4 Examples of Internet
As advertisers aim to maximize the effect of their
advertising techniques
advertising campaigns they will often choose to reach
Page 4 5 Data protection and consumer the groups of consumers for whom the message in a
choices in Internet advertising given campaign is most relevant. There are a variety
of means and techniques both in offline and online
Page 5 Contacts advertising that advertisers can use to do this such as
their choice of media channel for distribution of the
message (for example, Internet, television,
newspapers), or the content that the advertisement sits
alongside.
Relevant advertising on the Internet is of more interest
to consumers as well as to businesses. Consumers
discover more of what interests them, as well as
benefit from the mass of content, services and
applications online that the advertising funds (see
below). Relevant advertising also results in cost-
savings to consumers; and businesses can more
effectively market goods and services, thereby lowering
costs and thus prices to consumers.
1 Consumers are responding to more customised advertising, resulting in increased usage of the technologies by advertisers. A recent
survey found that the number of online marketers in Western Europe who use behavioural targeting grew 150% between 2006 and
2007. See Jupiter Research, “European Search Marketing Executive Survey 2007” as cited by Internet Retailer, April 3, 2008.
1
2 Benefits of Internet advertising to number of news publishing firms (e.g. the Guardian
consumers newspaper in the UK) has been replaced by Internet
advertising, which provides free content for millions
Much of the content and many of the services and of consumers. Quality online content is costly to
applications available on the Internet is supplied by produce but is provided free to consumers because
publishers and Internet and software companies at no it is subsidised by advertising.
cost to the consumer. This business model has become
G Access to information tools, including search engines
the most successful one on the Internet and free services
(e.g. Google, Yahoo! and Microsoft Advertising’s
are consistent with what consumers now expect and
Live Search). These services have democratised the
demand. Publishers, Internet and software companies
availability and accessibility of informational and
are able to provide this material through the revenues
educational content. Countless searches are
received from the advertising served on their websites.
performed daily and many of the leading search
engines on the Internet are free to users as a result
The advantage of relevant advertising for Internet users
of advertising. Similarly, comparison shopping sites
is that they see advertising that corresponds to what
enable consumers to compare product features,
they are looking for at a given moment (contextual
prices, return policies and shipping fees and views on
advertising) or categories of information that they have
the product/service, so determining the best value
been interested in over a period of time (behavioural
for their money and their personal requirements.
advertising). This makes it more likely that the
information contained within the advertisement is of G The use of a multitude of communications services
interest or relevant to the user. and productivity tools. The creation, development
and ongoing improvement of current and future
Internet users have demonstrated that they are more communications and other online services (e.g. e-
interested in, and pay more attention to, mail, blogs, chat, conferencing and telephone
advertisements that fit their specific needs. services; productivity suites such as online-based
office software, employment services; social and
Among the significant benefits of advertising on the professional networking communities , enhanced
Internet are: classified services; video and photo storage) are
supported by advertising revenue. It is estimated
G Advertising is more suited to consumers’ wishes and
that there are one billion users of free ad-supported
needs thereby enhancing their online experience
e-mail services in the world today. Moreover, blogs,
and helping to ensure that they receive
photo and video sharing communities and similar
advertisements for content, products, and services
types of communications platforms enable users to
in which they are more likely to be interested in.
voice their opinions and create and share content
G Access is free to Internet content such as the latest and experiences for others. Internet advertising
news, business, entertainment, maps and other fosters free and more robust, diverse speech and
important information. The subscription model which, helps save consumer costs and fees they used to be
in the past, has been relied upon by a significant charged for communications and productivity services.
2 63% of online users pay more attention to advertisements that fit their specific interests & Internet (Behavioural Targeting & the
Purchase Funnel Opportunity, Jupiter Research, June 2007). 52% of respondents said that they would be more likely to click on a
banner advertisement if it was more relevant to their particular interests or needs; and 66% of respondents said that they would
find banner advertisement less intrusive if they were more relevant to their areas of interest or needs (Advertising & Consumer
Privacy, Ponemon Institute).
2
3 Benefits of Internet advertising to A Contextual Advertising
businesses
Advertisers are able to select the topic of the published
More relevant online advertising also delivers significant content that an advertisement is displayed along side.
efficiencies and benefits to business. For example, In traditional media such as print, this is achieved by
advertisers could deliver messages to relevant audience selecting the type of publication (e.g. a sports
segments independently of the content of the web magazine) or a section of a regular newspaper (such as
page on which an advertisement is served. A car the financial pages of a daily newspaper, or the travel
advertisement could be served to users interested in cars section of a Sunday newspaper). On the Internet
while they visiting the travel pages of a newspaper, advertisements can be served within a chosen context
rather than in the motoring section. This enables by the selection of a website focused on a particular
publishers to monetise a wider variety of content sections topic or by specifying sections of a more general
on their websites. It also provides opportunities for website. This is the most common form of online
advertisers to show an appropriate message to a visitor advertising and can be illustrated by the example of a
when there is no content on the site to support the mortgage company that advertises their current loan
message, but where an audience segment can be built rates on a website which compares different loan
to find the right audience. offerings.
Importantly, more relevant advertising on the Internet B. Demographic advertising
also has had a positive impact on small businesses. It
has opened larger markets to them, lowering barriers Demographic advertising has existed in the offline
to entry and creating national markets from local, world for many years. It is based on key traits that
regional or niche ones. For example, where the reach may include gender, age, salary range, location, socio-
of a local band or clothing designer would have had a economic class and marital status. However,
local focus, their music or fashion can now reach demographic advertising on the Internet enables more
people nationally or internationally. up-to-date and interactive advertising. This can be
done through information that a consumer provides
4 Examples of Internet advertising
techniques
on a form or survey or signing up to a service, e.g. an
email account, for some traits, approximate inferences
made using behavioural advertising techniques (see
Key techniques commonly used include: below for details). For example, a teacher living in
London who has registered on a jobs board may be
G Contextual advertising served advertisements for vacant teaching opportunities
G Demographic advertising in London whilst surfing on that site, even when they
G Behavioural advertising are not currently visiting the teaching section.
3 Free social networking and online-networking sites, supported by advertising, had more than 86.6 million global users as of
December 2007 (Nielsen Online).
3
5 Data protection and consumer
C. Behavioural advertising
choices in Internet advertising
Behavioural advertising involves the creation of
audience segments based on websites visited over a More relevant advertising on the Internet takes place
period of time. These audience segments are then mostly through use of anonymous or non-personally
used to provide relevant advertising to anonymous identifiable data. Indeed, aggregated, anonymous, or
consumers. For example, a user may visit sports sites categorised data is key to effective delivery of more
often looking for sports scores and thus be added to relevant advertising. To the extent that personal data is
the "sports fan" segment. This group could then be used to further enhance customisation, such practices
served advertisements that are relevant to the interests are subject to the requirements of EU laws, notably the
of sports fans. Advertisers may also combine EU Data Protection Directive (95/46/EC) and Member
anonymous market research data with other State implementing laws. Thus transparency and
aggregated online behaviour data to create consumer meaningful consumer control over customisation
segments for online marketing, a technique known as practices in connection with personal data currently
'predictive targeting', which also helps make are addressed through the existing legislative
advertising more relevant. framework. There are a number of certification bodies
that companies can approach to earn a seal of quality
Such advertising may take place on a website or on their data protection systems, for example the EU
websites controlled by a single entity (first party Privacy Seal www.european-privacy-seal.eu Privacy Seal
providers of advertisements) (e.g. via a publisher) or under the Data Protection Act of Schleswig-Holstein
across websites controlled by multiple entities (third German Federal Land -
party providers of advertisements) (e.g. via an www.datenschutzzentrum.de/faq/guetesiegel_engl.htm
advertising network). Depending on the particular as well as TRUSTe www.truste.org
company practice or the business model, the scope
and type of data used for providing such behavioural Leading business practices widely adopted by IAB
advertising varies, as does the way in which data is Europe member companies also provide effective
collected. For example, a publisher may use data consumer controls regarding more relevant advertising.
collected on its website, whereas an advertising Regarding behavioural advertising practices in
network may collect data when a user visits the particular, many companies currently offer consumers
websites participating in that particular network. with notice and opt-out mechanisms, and are
Finally, a service provider, such as an Internet Service exploring the role for additional consumer transparency
Provider (ISP), software provider, or applications and choice mechanisms.
provider, may collect data from some of a user’s web
browsing activity to provide behavioural advertising. In addition, many of these leading practices form the
4
basis of, and are supplemented by, existing and Contact:
emerging self-regulatory good practice guidelines. For For more information on IAB Europe’s Public Affairs
example, the Network Advertising Initiative (NAI) in activities please contact:
the USA. See www.networkadvertising.org/networks/
2008%20NAI%20Principles_final%20for%20Website.pdf IAB Europe
Given the speed of technological innovation, the www.IABEurope.eu
flexibility and adaptability of these leading practices Alain Heureux
and self-regulatory initiatives, which supplement the President, IAB Europe
existing legislative framework, enable businesses to Av. Livingstone 26
respond quickly to consumer expectations thus 1000 Brussels
enhancing their online experience. Belgium
President@IABEurope.eu
Broad privacy protections also exist in the form of
technological tools that enable consumers to exercise Nick Stringer
effective control over their online experience. Browser Head of Regulatory Affairs
controls enable consumers to exercise control over IAB UK
cookies, and there are many products available – at no Nick@IABUK.net
cost to consumers – that enable them to anonymously
browse the Internet.
Finally, IAB Europe member companies recognise that
consumer education is a key component to ensuring
that consumers have meaningful choices regarding
more relevant advertising. Companies provide notice
regarding cookies and advertising practices in their
privacy policies, and IAB Europe, national IABs, as well
as member companies, continue to explore additional
consumer educational channels in accessible language
and user friendly formats.
5
