Online advertising , also called online marketing or Internet advertising or web advertising , is a form of marketing and advertising that uses the Internet to deliver promotionalmarketing messages to consumers. Consumers view online advertising as an unwanted distraction with few benefits and has gone back to ad blocking for a variety of reasons.
It includes email marketing, search engine marketing (SEM), social media marketing , many types of display advertising (including web banner advertising), and mobile advertising . Like other advertising media, online advertising frequently involves both a publisher and publishers, who advertises and publishes their content. Other potential participants include advertising agencies who help generate and place the ad copy, ad serving which technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser.
In 2011, Internet advertising revenues in the United States surpassed those of cable television and broadcasters . [1] : 19 In 2013, Internet advertising revenues in the United States totaled $ 42.8 billion, a 17% increase over the $ 36.57 billion in revenue in 2012. [2] : 4-5 US Internet ad revenue hit a historic high of $ 20.1 billion for the first half of 2013, up 18% over la même période in 2012. [3] Online advertising is Widely used across industry Virtually all Sectors. [1] : 16
Many common online advertising practices are controversial and Online ad revenues may not adequately replace other publishers’ revenue streams. Declining their content behind paywalls . [4]
History
In the early days of the Internet, online advertising was mostly prohibited. For example, two of the predecessor networks to the Internet, ARPANET and NSFNet , had “acceptable use policies” that “use for commercial activities for profit-institutions”. [5] [6] The NSFNet began phasing out its commercial use in 1991. [7] [8] [9] [10]
The first public advertising example of online advertising was conducted via electronic mail. On May 3, 1978, a marketer from DEC (Digital Equipment Corporation), Gary Thuerk , wrote an article on the ARPANET’s American west coast users, a new model for DEC computer. [6] [11] Despite the prevailing acceptable use policies, the electronic mail marketing rapidly expanded [12] and the “I have become known as” spam . ”
The first known large-scale non-commercial spam message was sent on January 18, 1994 by Andrews University system administrator, by cross-posting to a religious message to USENET newsgroups. [13] In January 1994 Mark Eberra started the first email marketing company for opt in email list under the domain Insideconnect.com. He also started the Direct Email Marketing Association to help stop unwanted email and prevent spam. [14] [15]
Four months later, Laurence Canter and Martha Siegel , partners in a law firm, broadly promoting their legal services in USENET posting titled “Green Card Lottery – Final One?” [16] Canter and Siegel’s Green Card USENET spamming the profile of online advertising, stimulating widespread interest in advertising via both Usenet and traditional email. [13] More recently, spam has evolved into a more industrial operation, where spammers use viruses-infected computers ( botnets ) to send remotely spam. [11]
Display ads
Online banner advertising began in the early 1990s. Commercial online service Prodigy displayed banners at the bottom of the screen to promote Sears products. [17] The first clickable web site was sold by Global Network Navigator in 1993 to a Silicon Valley law firm. [18] In 1994, web banner advertising became mainstream when HotWired , the online component of Wired Magazine , sold banner ads to AT & Tand other companies. The first AT & T ad on HotWired had a 44% click-through rate, and instead of directing clickers to AT & T’s website, the world’s most acclaimed art museums. [19] [20]
Search ads
GoTo.com (renamed Overture in 2001, and acquired by Yahoo in 2003). [21] : 119 Google launched its “AdWords” search advertising program in 2000 [22] and introduced quality- based ranking allocation in 2002, [23] which uses a combination of bid price and searchers’ likeliness to click on the ads. [21] : 123
Recent trends
More recently, companies have sought out their advertising messages in editorial content or valuable services. Examples include Red Bull’s Red Bull Media House streaming Felix Baumgartner’s online jump, Coca-Cola’s online magazines, and Nike’s free applications for performance tracking. [20] Advertisers are also embracing social media [24] [25] and mobile advertising; mobile ad spending has grown 90% each year from 2010 to 2013. [1] : 13
Delivery methods
Display advertising
Display advertising conveys its advertising message visually using text, logos, animations, videos, photographs, or other graphics. Display advertisers frequently target users with special features to increase the ads’ effect. Online advertisers (typically through their ad servers) often use cookies , which are unique identifiers of specific computers, to decide which ads to serve a particular consumer. Cookies can track whether a user has left page without buying anything, so the advertiser can later retarget the user with ads from the website the user visited. [26]
As advertisers collect data across multiple external websites on a user’s online activity, they can create a profile of the user’s interests to deliver even more targeted advertising. This aggregation of data is called behavioral targeting . [27] Advertisers can also target their audience by using the context of the ads appear. [21] : 118 Retargeting, behavioral targeting, and contextual advertising are all set to increase their return on investment , or ROI, over untargeted ads. [28]
Advertisers may also deliver ads based on a user’s specified geography through geotargeting . A user’s IP address communicates some geographic information (at minimum, the user’s country or general region). The geographical information from an IP can be supplemented and refined with other information or possible locations. [29] For example, with mobile devices, advertisers can use a GPS receiver or the location of nearby mobile towers. [30] Cookies and other persistent data on a user’s machine. [29]
Web banner advertising
Web banners or banner ads are typically displayed within a web page. Many banner ads are delivered by a central ad server .
Banner ads can use rich media to integrate video, audio, animations, buttons, forms, or other interactive elements using Java applets , HTML5 , Adobe Flash , and other programs.
Frame ad (traditional banner)
Frame ads were the first form of web banners. [19] The colloquial usage of “banner ads” often refers to traditional frame ads. Website publishers incorporating ads by setting aside a particular space on the web page. The Interactive Advertising Bureau ‘s Ad Unit Proposed Guidelines standardized pixel dimensions for ad units. [31]
Pop-ups / pop-unders
A pop-up ad is displayed in a new browser window that opens up a website visitor’s initial browser window. [32] A pop-under ad opens a new browser window. [1] : 22 pop-under ads and similar technologies are now advised against by online autorités Such As Google, Who That state they “do not condone this practice.” [33]
Floating ad
A floating ad, or overlay ad, is a type of rich media advertisement that appears superimposed over the requested website’s content. Floating ads may disappear or become less obtrusive after a preset time period.
Expanding ad
An expanding ad is a rich media frame ad that changes the size of a predefined condition, such as a preset amount of time, a visitor spends a webpage, the user’s click on the ad, or the user’s mouse movement over the ad. [34]Expanding ads allow advertising.
Trick banners
A trick banner is a banner ad where the ad copy imitates some screen element users usually encounter, such as an operating system message or popular application message, to induce ad clicks. [35] Trick banners typically do not mention the advertiser in the initial ad, and thus they are a form of bait-and-switch . [36] [37] Trick banners commonly attract a higher-than-average click-through rate , but tricked users may resent the advertiser for deceiving them. [38]
News Feed Ads
“News Feed Ads”, also called “Sponsored Stories”, “Boosted Posts”, commonly known as “news feeds”, which offers a steady stream of news updates (“news feed” [39] ) boxes with a uniform style). Those advertisements are intertwined with non-promoted news that the users are reading through. Those advertisements can be of any content, such as a website, a fan page, an app, or a product.
Some examples are: Facebook’s “Sponsored Stories”, [40] LinkedIn’s “Sponsored Updates”, [41] and Twitter’s “Promoted Tweets”. [42]
This display ads format is in its own category because it is quite distinctive, News Feed Ads This size of online advertisement yields much Higher click-through rates than traditional display ads [43] [44]
Display advertising process overview
The process by which online advertising is displayed can involve many parties. In the simplest case, the website publisher selects and serves the ads. Publishers who operate their own advertising departments may use this method.
The ads may be outsourced to an advertising agency under contract with the publisher, and served by the advertising agency’s servers.
Alternatively, ad space may be offered for sale in a bidding market using an ad exchange and real-time bidding. This involves many parties interacting automatically in real time. In response to a request from the user’s browser, the publisher content server sends the web page to the user’s browser over the Internet. The page does not yet contain ads, but contains links which cause the user’s browser to the publisher ad server to request that the spaces be filled with ads. Information identifying the user, such as cookies and the page being viewed, is transmitted to the publisher ad server.
The publisher ad server then communicates with a supply-side platform server. The publisher is offering ad space for sale, so they are considered the supplier. The supply side platform also receives the user’s identifying information, which it sends to a data management platform. At the data management platform, the user’s identifying information is used in the information market, previous purchases, and other information of interest to advertisers.
Broadly speaking, there are three types of data obtained through such a data management platform:
- First party data refers to the data retrieved from customer relationship management (CRM) platforms, in addition to a website and paid media content or cross-platform data. This can include data from customer behaviors, actions or interests. [45]
- Second party data refers to an amalgamation of statistics related to cookie pools on external publications and platforms. The data is provided directly from the source (adservers, hosted solutions for social or an analytics platform). It is also possible to negotiate with a particular publisher to secure specific data points or audiences. [46]
- Third party data is sourced from external providers and often aggregated from multiple websites. Businesses sell third-party data and are able to share this via an array of distribution avenues. [47]
This customer information is combined and returned to the supply side of the platform. The supply side platform offers an exchange .
The ad exchange puts the bid for demand-side platforms . Demand side platforms act on behalf of ad agencies, which sells which advertise brands. Demand side platforms thus have ads ready to display, and are searching for users to view them. Bidders get the information about the user, how to buy the ad space. According to the Internet Advertising Bureau , a request side platform has 10 milliseconds to respond to an offer. The ad exchange picks the winning bid and informs both parties.
The ad exchange then passes the link to the ad back to the supply side platform and the publisher’s ad server to the user’s browser, which then requests the ad’s content from the agency’s ad server. The ad agency can thus confirm that the ad was delivered to the browser. [48]
This is simplified, according to the IAB. Exchanges may try to unload unsold (“remnant”) space at low prices through other exchanges. Some agencies maintain semi-permanent pre-cached bids with ad exchanges, and those may be examined before going to additional platforms for bids. The process for mobile advertising is different and may involve mobile carriers and handset software manufacturers. [48]
Interstitial
An interstitial ad displays before a user can access requested content, sometimes while the user is waiting for the content to load. [49] Interstitial ads are a form of interruption marketing . [50] [51]
Text ads
A text ad displays text-based hyperlinks . Text-based ads can be added to a web page’s primary content, or they can be embedded by hyperlinking individual words or phrases to advertiser’s websites. Text ads can also be delivered through email marketing or text message marketing . Text-based ads often render faster than graphical ads and can be harder for ad-blocking software to block. [52]
Search engine marketing (SEM)
Search Engine Marketing , or SEM, is designed to increase a website’s visibility in search engine results pages (SERPs). Search engines providing sponsored results and organic (non-sponsored) results based on a web searcher’s query. [21] : 117 Search engines Often employee visual cues to Differentiate sponsored results from organic results. Search engine marketing includes all of an advertiser’s actions to make a website’s listing.
Search engine optimization (SEO)
Search engine optimization , SEO gold Attempts to Improve a website’s organic search rankings in SERPs by Increasing the website’s happy to relevant search terms. Search engines regularly update their algorithms to penalize poor quality sites that try to play their rankings, making optimization a moving target for advertisers. [53] [54] [55] Many vendors offer SEO services. [1] : 22
Sponsored search
Sponsored search (also called sponsored links, search ads, or paid search) are included in the search results. Search ads are often sold via real-time auctions, where advertisers bid on keywords. [21] : 118 [56] In addition to setting a maximum price per keyword, bids may include time, language, geographical, and other constraints. [21] : 118 Search engines originally sold in order of highest bids. [21] : 119 Modern search engines rank list based on a combination of bid price, expected click-through rate, keyword relevancy and site quality. [23]
Social media marketing
Social media marketing is promoted by social media websites. Many social media companies offering their products through their social media profiles. [57]
Mobile advertising
Mobile advertising is ad copy delivered through wireless mobile devices such as smartphones , feature phones , or tablet computers. Mobile advertising can take the form of static or rich media display ads, SMS (Short Message Service) or MMS (Multimedia Messaging Service) ads, mobile search ads, advertising within mobile websites, or ads within mobile applications or games (such as interstitial ads , ” advergaming ,” or application sponsorship). [1] : 23Industry groups such as the Mobile Marketing Association have attempted to standardize mobile ad unit specifications, similar to the IAB’s efforts for general online advertising. [51]
Mobile advertising is growing fast for several reasons. There are more mobile devices in the field, connectivity speeds have improved, screen resolutions have advanced, mobile publishers are becoming more sophisticated about incorporating ads, and consumers are using mobile devices more extensively. [1] : 14 The Interactive Advertising Bureau predicts the growth of mobile advertising. [1] : 14 In July 2014 Facebook $ 2.68 billion, an increase of 67 percent over the second quarter of 2013. Of which, mobile advertising revenue accounted for around 62 percent, an increase of 41 percent over the previous year.
Email advertising
Email advertising is ad copy of an entire email or a portion of an email message. [1] : 22 Email marketing may be unsolicited, in which case the sender may give the recipient an option to opt out of future emails, or it may be sent with the recipient’s prior consent (opt-in).
Chat advertising
As opposed to static messaging, chat advertising refers to real time messages dropped to users on certain sites. This is done by the use of live chat software or tracking applications installed within certain websites with the operating staff behind the site often dropping adverts on the traffic surfing around the sites. In reality this is a subset of the e-mail.
Online classified advertising
Online classified advertising is advertising a category of services. Examples include online job boards, online real estate listings, online listings, online yellow pages , and online auction-based listings. [1] : 22 Craigslist and eBay are two prominent providers of online classified listings.
Adware
Adware is software that, once installed, automatically displays advertisements on a user’s computer. The ads may appear in the software itself, integrated into web pages visited by the user, or in pop-ups / pop-unders. [58] Adware installed without the user’s permission is a type of malware . [59]
Affiliate marketing
Affiliate marketing occurs when advertisers organize third parties to generate potential customers for them. Third-party affiliates receive payment based on sales through their promotion. [1] : 22 Affiliate marketers generate traffic to the affiliation of affiliated networks , and when the desired action is taken by the visitor, the affiliate earns a commission. These options can be obtained from an email submission, a phone call, filling out an online form, or an online order being completed.
Content marketing
Content marketing is any marketing that involves the creation and sharing of media and publishing content in order to acquire and retain customers. This information can be presented in a variety of formats, including blogs, news, video, white papers, ebooks, infographics, case studies, how-to guides and more.
Considering that most marketing involves some form of published media, it is almost (though not entirely) redundant to call ‘content marketing’ anything other than simply ‘marketing’. There are, of course, other forms of marketing (in-person marketing, telephone-based marketing, word of mouth marketing, etc.) where the label is more useful for identifying the type of marketing. However, even these are usually merely presenting content, which are different from traditional print, radio, TV, film, email, or web media.
Online marketing platform
Online marketing platform (OMP) is an integrated web-based platform that combines the benefits of a business directory , local search engine, search engine optimization (SEO) tool, customer relationship management (CRM) package and content management system (CMS). Ebay and Amazon are used as online marketing and logistics management platforms. On Facebook , Twitter , YouTube , Pinterest , LinkedIn , and other Social Media , Retailonline marketing is also used. Online business marketing platforms such as Marketo , Aprimo , MarketBright and Pardot have been bought by major IT companies ( Eloqua – Oracle , Neolane – Adobe and Unica – IBM ).
Unlike television marketing in qui Nielsen TV Ratings can be relied upon for viewing metrics , online Advertisers do not-have an independent party to verify claims made by viewing the big online platforms. [60]
Compensation methods
Advertisers and publishers use a wide range of payment methodologies. In 2012, advertisers calculated 32% of online advertising transactions on a cost-per-print basis, 66% on customer performance (eg cost per click or cost per acquisition), and 2% on hybrid printing and performance methods. [1] : 17
CPM (cost per thousand)
Cost Per Mile, often abbreviated to CPM , means that it is thousands of dollars for the customers of the world. In the online context, ad displays are usually called “impressions.” Definitions of an “impression” vary among publishers, [61] and some impressions may not be important because they do not represent a new exposure to an actual customer. [62] Advertisers can use technologies such as web bugs to verify if an impression is actually delivered. [63] [64] : 59
Publishers a variety of techniques to increase page views, such as dividing content across multiple pages, repurposing someone else’s content, using sensational titles, or publishing tabloid or sexual content. [65]
CPM advertising is likely to “print fraud,” and advertisers who want to visit their sites can not find a good impression. [66] : 1-4
CPC (cost per click)
CPC (Cost Per Click) or PPC ( Pay per click ) means advertising each time a user clicks on the ad. CPC advertising works well when advertisers want to visit their sites, but it is a less accurate measurement for advertisers. [67]CPC’s market share has grown each year since its introduction, eclipsing CPM to dominate two-thirds of all online advertising compensation methods. [1] : 18 [66] : 1
Like impressions, not all recorded clicks are valuable to advertisers. GoldSpot Media reported that they were accidental and ended up in the new site immediately. [68]
CPE (cost per engagement)
Cost per engagement aims to be not only an ad unit loaded on the page (ie, an impression was served), but also that the viewer actually has to be seen and / or interacted with the ad. [69] [70]
CPV (cost per view)
Cost per view video advertising. Both Google and TubeMogul endorsed this CPV metric to the IAB’s ( Interactive Advertising Bureau ) Digital Video Committee, and it’s garnering a notable amount of industry support. [71] CPV is the primary benchmark used in YouTube Advertising Campaigns, as part of Google’s AdWords platform.
CPI (cost per install)
The CPI compensation method is specific to mobile applications and mobile advertising . In CPI ad contracts, the brands are only available when the application is installed.
Attribution of ad value
In marketing, “attribution” is the measurement of effectiveness of a particular consumer’s ultimate decision to purchase. Multiple ad impressions can lead to a consumer “click” or other action. Single action can be paid to multiple ad space sellers. [72]
Other performance-based compensation
CPA ( Cost Per Action Gold Cost Per Acquisition) or PPP (Pay Per Performance) advertising means the advertiser country for the number of users who perform a desired activity, such as completing a purchase or filling out a registration form. Performance-based compensation can also include revenue sharing , where publishers earn a percentage of the advertiser’s profits as a result of the ad. Performance-based compensation shifts the risk of failed advertising to publishers. [66] : 4, 16
Fixed cost
Fixed cost compensation means advertisers pay a fixed cost for delivery of ads, usually over a specified time period, irrespective of the ad’s visibility or users’ response to it. One examples is CPD (cost per day) where advertisers pay a fixed cost for publishing an ad for a day irrespective of impressions served or clicks.
Benefits of online advertising
Cost
The low cost of electronic communication reduces the cost of advertising compared to offline ads. Online advertising, and in particular social media, provides a low-cost means for advertisers to engage with large established communities. [57] Advertising online offers better results than in other media. [66] : 1
Measurability
Online Advertisers can collect data on Their ads’ effectiveness, Such As the size of the potential audience or actual audience response, [21] : 119 how a visitor atteint Their advertisement, whether the advertisement resulted in a dirty, and whether an ad Actually loaded within a visitor’s view. [63] [64] : 59 helps helps.. Advertis……….
Formatting
Advertisers have a wide variety of ways of presenting their promotional messages, including the ability to convey images, video, audio, and links. Unlike many offline ads, online ads also can be interactive. [20] For example, some users and some users input queries [73] or users follow the advertiser on social media. [74] Online ads can even incorporate games. [75]
Targeting
Publishers can offer advertisers the ability to reach customizable and narrow market segments for targeted advertising. Online advertising can use geo-targeting to display advertisements to the user’s geography. Advertisers can customize each individual ad to a particular user based on the user’s previous preferences. [28] Advertisers may also be considered to be in the public domain and to provide adequate exposures and provide adequate time gaps between exposures. [76]
Coverage
Online advertising can reach almost every global market, and online advertising influences offline sales. [77] [78] [79]
Speed
Once ad design is complete, online ads can be deployed immediately. The delivery of online advertisements does not need to be linked to the publisher’s publication schedule. Moreover, online advertisers can modify or replace their counterparts. [80]
Concerns
Security concerns
According to a US Senate investigation, the current state of the art of advertising endangers the security and privacy of users. [81]
Banner blindness
Eye-tracking studies have shown that Internet users often ignore web page areas likely to contain display ads (sometimes called ” banner blindness “), and this problem is worse than offline media. [82] The users may be influenced by the users who influence the user subconsciously. [83]
Fraud on the advertiser
There are many ways that advertisers can be overcharged for their advertising. For example, click here to open the door to a publisher or a third party. [84] For example, click fraud can occur when a competitor clicks on ads to deplete its rival’s advertising budget, or when publishers attempt to manufacture revenue. [84]
Click fraud is especially associated with pornography sites. In 2011, some scamming porn websites launched dozens of hidden pages on each visitor’s computer, forcing the visitor’s computer to click on the link with the visitor’s knowledge. [85]
As with offline publications, online fraud printing can occur when publishers overstate the number of ad impressions they have delivered to their advertisers. To fight fraud printing, several publishing and advertising industry associations are developing ways to count credibly online impressions. [86] [87]
Technological variations
Heterogeneous customers
Because users have different operating systems, web browsers [88] and computer hardware (including mobile devices and different screen sizes), online ads may appear to be more appropriate. A 2012 comScore study revealed that, on average, 31% of ads were not “in-view” when rendered, meaning they never had an opportunity to be seen. [89] Rich media ads create even greater compatibility problems, as some developers can use competing (and exclusive) software to render the ads (see eg Comparison of HTML 5 and Flash ). [90]
Furthermore, advertisers may encounter legal problems if it is not necessary to report to users. [91] : i In the United States, the FTC HAS released a set of guidelines indicating indication That It’s the Advertisers ‘responsibility to Ensure the display ads Any disclosures required disclaimers gold, irrespective of the users’ technology. [91] : 4-8
Ad blocking
Ad blocking , or ad filtering, means the ads do not appear to the user because the user uses technology to screen out ads. Many browsers block unsolicited pop-up ads by default. [92] Other software programs or browser add-ons may also contain the loading of ads, or block elements on a page with behaviors characteristic of ads (eg HTML autoplay of both audio and video). Approximately 9% of all online page views come from browsers with ad-blocking software installed, [93] and some publishers have 40% + of their visitors using ad-blockers. [4]
Anti-targeting technologies
Some web browsers offer privacy modes where they can hide information about themselves from publishers and advertisers. Among other consequences, advertisers may not use cookies. Most major browsers have not only been included in their browsers , but the regulations are currently enforced by the honor system . [94] [95] [96]
Privacy concerns
The collection of user information by publishers and advertisers [29] [64] Sixty percent of the Internet users would use the information available. [97] [98] Over half of all Google and Facebook users are worried about their privacy when using Google and Facebook, according to Gallup . [99]
Many consumers have reservations about online behavioral targeting . By tracking users’ online activities, advertisers are able to understand consumers. Advertisers often use technology, such as web bugs and respawning cookies, to maximize their abilities to track consumers. [64] : 60 [100] [101] According to a 2011 survey conducted by Harris Interactive, one of the Internet users had a negative impression of online behavioral advertising, and forty percent feared that their personally-identifiable information had been shared with advertisers. without their consent. [102] [103]Consumers can be particularly troubled by advertisers targeting them based on sensitive information, such as financial or health status. [100] Additionally, some advertisers attach the MAC address of users’ devices to their ‘demographic profiles’ so they can be retargeted (regardless of the accuracy of the profile) even if the user clears their cookies and browsing history. [ quote needed ]
Trustworthiness of advertisers
Scammers can take advantage of consumers’ difficulties verifying an online persona’s identity, [104] : 1 leading to artifices like phishing (where scam emails look identical to those of a well-known brand owner) [105] and confidence schemes like the Nigerian 419 “scam . [106] [107] [108] The Internet Crime Complaint Center received 289,874 complaints in 2012, totaling over half a billion dollars in losses, most of which originated with scam ads. [109] [110]
Consumers also face malware risks, ie, malvertising , when interacting with online advertising. Cisco ‘s 2013 Annual Security Report revealed that clicking on ads is more likely to install a virus on the Internet than for the internet. [111] [112] For example, in August 2014 Yahoo’s advertising network reportedly saw boxes of infection of a variant of Cryptolocker ransomware . [113]
Spam
The Internet’s low cost of disseminating spam, especially by large-scale spammers . Numerous efforts have been made to combat spamming, but they have been made to increase the number of times they have been used. [6]
Regulation
In general, consumer protection laws apply to online and offline activities. [91] : i HOWEVER, there are issues over jurisdiction’s laws apply qui qui and regulatory agencies-have enforcement authority over transhipment activity. [114]
As with offline advertising, industry participants have made numerous efforts to self-regulate and develop industry standards or codes of conduct. Several United States advertising industry organisms Jointly published Self-Regulatory Principles for Online Behavioral Advertising based is standard Proposed by the FTC in 2009. [115] European ad associations published a similar paper in 2011. [116] Primary tenets of Both papers include consumer control of data transfer to third parties, data security, and consent for the collection of certain health and financial data. [115] : 2-4 Neither framework, however, penalizes violators of the codes of conduct. [117]
Privacy and data collection
Privacy regulation can require users’ consent before advertising to the user or to the user. However, affirmative consent (“opt in”) can be difficult and expensive to obtain. [64] : 60 Industry participants often prefer other regulatory schemes.
Different jurisdictions have taken different approaches to privacy issues with advertising. The United States Privacy Policy (COPPA), [115] : 16-17 and the FTC has recently expanded its understanding of parental consent before knowingly tracking kids. [118] Otherwise, the US Federal Trade Commission frequently supports the industry’s self-regulation. [119] The FTC has also been pushing for industry consensus about possibleDo not track legislation .
In contrast, the European Union’s “Privacy and Electronic Communications Directive” restricts websites’ ability to use consumer data much more comprehensively. The EU limitations restrict targeting by online advertisers; 65% in Europe relative to the rest of the world. [64] : 58
Delivery methods
Many laws are regulated. For example, online advertising delivered via email is more regulated than the same ad content delivered via banner ads. Among other restrictions, the US CAN-SPAM Act of 2003 requires an opt-out mechanism. [114] Similarly, mobile advertising is governed by the Telephone Consumer Protection Act of 1991 (TCPA), which (among other restrictions) requires user opt-in before sending advertising via text messaging.