Online advertising

Online advertising, also called online marketing or Internet advertising or web advertising, is a form of marketing and advertising which uses the Internet to deliver
promotional marketing messages to consumers. 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, who integrates
advertisements into its online content, and an advertiser,
who provides the advertisements to be displayed on the
publishers content. Other potential participants include
advertising agencies who help generate and place the ad
copy, an ad server which technologically delivers the ad
and tracks statistics, and advertising aliates who do independent promotional work for the advertiser.

American west coast users, advertising an open house for

a new model of a DEC computer.[6][11] Despite the prevailing acceptable use policies, electronic mail marketing rapidly expanded[12] and eventually became known
as "spam.

The rst known large-scale non-commercial spam message was sent on 18 January 1994 by an Andrews University system administrator, by cross-posting a religious
message to all USENET newsgroups.[13] Four months
later, Laurence Canter and Martha Siegel, partners in
a law rm, broadly promoted their legal services in
a USENET posting titled Green Card Lottery Final One?"[14] Canter and Siegels Green Card USENET
spam raised the prole of online advertising, stimulating widespread interest in advertising via both Usenet
and traditional email.[13] More recently, spam has evolved
In 2011, Internet advertising revenues in the United States into a more industrial operation, where spammers use
surpassed those of cable television and nearly exceeded armies of virus-infected computers (botnets) to send
those of broadcast television.[1]:19 In 2013, Internet ad- spam remotely.[11]
vertising revenues in the United States totaled $42.8 billion, a 17% increase over the $36.57 billion in revenues
in 2012.[2]:45 U.S. internet ad revenue hit a historic high
of $20.1 billion for the rst half of 2013, up 18% over 1.2 Display ads
the same period in 2012.[3] Online advertising is widely
used across virtually all industry sectors.[1]:16
Online banner advertising began in the early 1990s as
Many common online advertising practices are contro- page owners sought additional revenue streams to supversial and increasingly subject to regulation. Online ad port their content. Commercial online service Prodigy
revenues may not adequately replace other publishers displayed banners at the bottom of the screen to promote
revenue streams. Declining ad revenue has led some pub- Sears products.[15] The rst clickable web ad was sold by
lishers to hide their content behind paywalls.[4]
Global Network Navigator in 1993 to a Silicon Valley law
rm.[16] In 1994, web banner advertising became mainstream when HotWired, the online component of Wired
Magazine, sold banner ads to AT&T and other compa1 History
nies. The rst AT&T ad on HotWired had a 44% clickthrough rate, and instead of directing clickers to AT&Ts
In early days of the Internet, online advertising was
website, the ad linked to an online tour of seven of the
mostly prohibited. For example, two of the predecesworlds most acclaimed art museums.[17][18]
sor networks to the Internet, ARPANET and NSFNet,
had acceptable use policies that banned network use
for commercial activities by for-prot institutions.[5][6]
The NSFNet began phasing out its commercial use ban
1.3 Search ads
in 1991.[7][8][9][10]

1.1

GoTo.com (renamed Overture in 2001, and acquired by

Yahoo! in 2003) created the rst search advertising keyword auction in 1998.[19]:119 Google launched its AdWords search advertising program in 2000[20] and introduced quality-based ranking allocation in 2002,[21] which
sorts search advertisements by a combination of bid price
and searchers likeliness to click on the ads.[19]:123

Email

The rst widely publicized example of online advertising was conducted via electronic mail. On 3 May 1978,
a marketer from DEC (Digital Equipment Corporation),
Gary Thuerk, sent an email to most of the ARPANETs
1

1.4

2 DELIVERY METHODS

Recent trends

dio, animations, buttons, forms, or other interactive elements using Java applets, HTML5, Adobe Flash, and
More recently, companies have sought to merge their other programs.
advertising messages into editorial content or valuable
services. Examples include Red Bull's Red Bull Media
House streaming Felix Baumgartner's jump from space Frame ad (traditional banner) Frame ads were the
[17]
The colloquial usage of
online, Coca-Cola's online magazines, and Nike's free ap- rst form of web banners.
[18]
banner
ads
often
refers
to
traditional
frame ads. Webplications for performance tracking.
Advertisers are
[22][23]
site
publishers
incorporate
frame
ads
by
setting aside a
and mobile advertisalso embracing social media
particular
space
on
the
web
page.
The
Interactive
Advering; mobile ad spending has grown 90% each year from
[1]:13
tising
Bureau's
Ad
Unit
Guidelines
proposes
standardized
2010 to 2013.
pixel dimensions for ad units.

2
2.1

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 particular traits to increase the ads eect. Online
advertisers (typically through their ad servers) often use
cookies, which are unique identiers of specic computers, to decide which ads to serve to a particular consumer.
Cookies can track whether a user left a page without buying anything, so the advertiser can later retarget the user
with ads from the site the user visited.[24]
As advertisers collect data across multiple external websites about a users online activity, they can create a detailed picture of the users interests to deliver even more
targeted advertising. This aggregation of data is called
behavioral targeting.[25] Advertisers can also target their
audience by using contextual and semantic advertising to
deliver display ads related to the content of the web page
where the ads appear.[19]:118 Retargeting, behavioral targeting, and contextual advertising all are designed to increase an advertisers return on investment, or ROI, over
untargeted ads.[26]

Pop-ups/pop-unders A pop-up ad is displayed in a

new web browser window that opens above a website visitors initial browser window.[29] A pop-under ad opens
a new browser window under a website visitors initial
browser window.[1]:22 Pop-under ads and similar technologies are now advised against by online authorities
such as Google, who state that they do not condone this
practice.[30]
Floating ad A oating ad, or overlay ad, is a type of
rich media advertisement that appears superimposed over
the requested websites 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 dimensions upon a predened condition,
such as a preset amount of time a visitor spends on a webpage, the users click on the ad, or the users mouse movement over the ad.[31] Expanding ads allow advertisers to
t more information into a restricted ad space.
Trick banners A trick banner is a banner ad where the
ad copy imitates some screen element users commonly
encounter, such as an operating system message or popular application message, to induce ad clicks.[32] Trick
banners typically do not mention the advertiser in the initial ad, and thus they are a form of bait-and-switch.[33][34]
Trick banners commonly attract a higher-than-average
click-through rate, but tricked users may resent the advertiser for deceiving them.[35]

Advertisers may also deliver ads based on a users suspected geography through geotargeting. A users IP address communicates some geographic information (at
minimum, the users country or general region). The geographic information from an IP can be supplemented and
rened with other proxies or information to narrow the
range of possible locations.[27] For example, with mobile
devices, advertisers can sometimes use a phones GPS receiver or the location of nearby mobile towers.[28] Cookies and other persistent data on a users machine may pro- News Feed Ads News Feed Ads, also called Sponsored Stories, Boosted Posts, typically exist on Social
vide help narrowing a users location further.[27]
Media Platforms that oer a steady stream of information updates (news feed[36] ) in regulated formats (i.e.
in similar sized small boxes with a uniform style). Those
2.1.1 Web banner advertising
advertisements are intertwined with non-promoted news
Web banners or banner ads typically are graphical ads dis- that the users are reading through. Those advertisements
played within a web page. Many banner ads are delivered can be of any content, such as promoting a website, a fan
by a central ad server.
page, an app, or a product.
Banner ads can use rich media to incorporate video, au- Some examples are: Facebooks Sponsored Stories,[37]

2.1

Display advertising

LinkedIns Sponsored Updates,[38] and Twitters Pro- ding. This involves many parties interacting automatimoted Tweets.[39]
cally in real time. In response to a request from the users
This display ads format falls into its own category because browser, the publisher content server sends the web page
unlike banner ads which are quite distinguishable, News content to the users browser over the Internet. The page
Feed Ads format blends well into non-paid news updates. does not yet contain ads, but contains links which cause
This format of online advertisement yields much higher the users browser to connect to the publisher ad server
to request that the spaces left for ads be lled in with
click-through rates than traditional display ads[40][41]
ads. Information identifying the user, such as cookies and
the page being viewed, is transmitted to the publisher ad
server.
2.1.2 Display advertising process overview
The process by which online advertising is displayed can
involve many parties. In the simplest case, the web site
publisher selects and serves the ads. Publishers which
operate their own advertising departments may use this
method.
Publisher
Content
Server

Publisher
Ad Server

The publisher ad server then communicates with a supplyside platform server. The publisher is oering ad space
for sale, so they are considered the supplier. The supply
side platform also receives the users identifying information, which it sends to a data management platform. At
the data management platform, the users identifying information is used to look up demographic information,
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 website and paid media content or cross-platform data. This can
include data from customer behaviors, actions
or interests.[42]

Online advertising serving process - simple publisher case

The ads may be outsourced to an advertising agency under

contract with the publisher, and served from the advertising agencys servers.
Publisher
Content
Server

Publisher
Ad Server

Agency
Ad Server

DSP
Data
Management
Platform

Ad
Exchange

Third party data is sourced from external

providers and often aggregated from numerous
websites. Businesses sell third-party data and
are able to share this via an array of distribution avenues.[44]
This customer information is combined and returned to
the supply side platform, which can now package up the
oer of ad space along with information about the user
who will view it. The supply side platform sends that oer
to an ad exchange.

Online advertising serving process using an ad agency

Publisher
Content
Server

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 a deal
with a particular publisher to secure specic
data points or audiences.[43]

Demand Side
Platform

DSP

The ad exchange puts the oer out for bid to demandside platforms. Demand side platforms act on behalf of
ad agencies, who sell ads which advertise brands. Demand side platforms thus have ads ready to display, and
Online advertising serving process using online bidding
are searching for users to view them. Bidders get the inAlternatively, ad space may be oered for sale in a bid- formation about the user ready to view the ad, and decide,
ding market using an ad exchange and real-time bid- based on that information, how much to oer to buy the
Publisher
Ad Server

Agency
Ad Server

Supply side
platform

DSP

Ad
Exchange

DSP

Brand

Agency

2 DELIVERY METHODS

ad space. According to the Internet Advertising Bureau, ing optimization a moving target for advertisers.[50][51][52]
a demand side platform has 10 milliseconds to respond Many vendors oer SEO services.[1]:22
to an oer. The ad exchange picks the winning bid and
informs both parties.
2.3.2 Sponsored search
The ad exchange then passes the link to the ad back
through the supply side platform and the publishers ad Sponsored search (also called sponsored links, search
server to the users browser, which then requests the ad ads, or paid search) allows advertisers to be included
content from the agencys ad server. The ad agency can in the sponsored results of a search for selected keythus conrm that the ad was delivered to the browser.[45] words. Search ads are often sold via real-time auc[19]:118[53]
In
This is simplied, according to the IAB. Exchanges may tions, where advertisers bid on keywords.
try to unload unsold (remnant) space at low prices addition to setting a maximum price per keyword, bids
through other exchanges. Some agencies maintain semi- may include time, language, geographical, and other
[19]:118
Search engines originally sold listings
permanent pre-cached bids with ad exchanges, and those constraints.
[19]:119
Modern search engines
may be examined before going out to additional demand in order of highest bids.
side platforms for bids. The process for mobile adver- rank sponsored listings based on a combination of bid
tising is dierent and may involve mobile carriers and price, expected click-through rate, keyword relevancy
and site quality.[21]
handset software manufacturers.[45]

2.2

Interstitial

An interstitial ad displays before a user can access requested content, sometimes while the user is waiting
for the content to load.[46] Interstitial ads are a form of
interruption marketing.[47][48]
2.2.1

Text ads

A text ad displays text-based hyperlinks. Text-based ads

may display separately from a web pages primary content, or they can be embedded by hyperlinking individual
words or phrases to advertisers websites. Text ads may
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.[49]

2.4 Social media marketing

Social media marketing is commercial promotion conducted through social media websites. Many companies promote their products by posting frequent updates
and providing special oers through their social media
proles.[54]

2.5 Mobile advertising

Mobile advertising is ad copy delivered through wireless

mobile devices such as smartphones, feature phones, or
tablet computers. Mobile advertising may 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]:23
Industry groups such as the Mobile Marketing Associa2.3 Search engine marketing (SEM)
tion have attempted to standardize mobile ad unit specications, similar to the IABs eorts for general online
Search engine marketing, or SEM, is designed to in- advertising.[48]
crease a websites visibility in search engine results pages
(SERPs). Search engines provide sponsored results and Mobile advertising is growing rapidly for several reasons.
organic (non-sponsored) results based on a web searchers There are more mobile devices in the eld, connectivquery.[19]:117 Search engines often employ visual cues ity speeds have improved (which, among other things, alto dierentiate sponsored results from organic results. lows for richer media ads to be served quickly), screen
Search engine marketing includes all of an advertisers resolutions have advanced, mobile publishers are becomconactions to make a websites listing more prominent for ing more sophisticated about incorporating ads, and [1]:14
sumers
are
using
mobile
devices
more
extensively.
topical keywords.
The Interactive Advertising Bureau predicts continued
growth in mobile advertising with the adoption of
location-based targeting and other technological features
2.3.1 Search engine optimization (SEO)
not available or relevant on personal computers.[1]:14 In
Search engine optimization, or SEO, attempts to im- July 2014 Facebook reported advertising revenue for the
prove a websites organic search rankings in SERPs by in- June 2014 quarter of $2.68 billion, an increase of 67 percreasing the website contents relevance to search terms. cent over the second quarter of 2013. Of that, mobile
Search engines regularly update their algorithms to penal- advertising revenue accounted for around 62 percent, an
ize poor quality sites that try to game their rankings, mak- increase of 41 percent on the previous year.

2.11

Online marketing platform

2.6

Email advertising

2.8

Adware

can be presented in a variety of formats, including blogs,

news, video, white papers, e-books, infographics, case
Email advertising is ad copy comprising an entire email studies, how-to guides and more.
or a portion of an email message.[1]:22 Email marketing
Considering that most marketing involves some form of
may be unsolicited, in which case the sender may give the
published media, it is almost (though not entirely) redunrecipient an option to opt out of future emails, or it may
dant to call 'content marketing' anything other than simbe sent with the recipients prior consent (opt-in).
ply '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
2.6.1 Chat advertising
useful for identifying the type of marketing. However,
As opposed to static messaging, chat advertising refers to even these are usually merely presenting content that they
real time messages dropped to users on certain sites. This are marketing as information in a way that is dierent
is done by the usage of live chat software or tracking ap- from traditional print, radio, TV, lm, email, or web meplications installed within certain websites with the op- dia.
erating personnel behind the site often dropping adverts
on the trac surng around the sites. In reality this is a
subset of the email advertising but dierent because of 2.11 Online marketing platform
its time window.
Online marketing platform (OMP) is an integrated webbased platform that combines the benets of a business
2.7 Online classied advertising
directory, local search engine, search engine optimisation (SEO) tool, customer relationship management
Online classied advertising is advertising posted online (CRM) package and content management system (CMS).
in a categorical listing of specic products or services. Ebay and Amazon are used as online marketing and
Examples include online job boards, online real estate logistics management platforms. On Facebook, Twitter,
listings, automotive listings, online yellow pages, and on- YouTube, Pinterest, LinkedIn, and other Social Media,
line auction-based listings.[1]:22 Craigslist and eBay are retail online marketing is also used. Online business martwo prominent providers of online classied listings.
keting platforms such as Marketo, Aprimo, MarketBright
and Pardot have been bought by major IT companies
(Eloqua-Oracle, Neolane-Adobe and Unica-IBM).
Adware is software that, once installed, automatically displays advertisements on a users computer. The ads may 3 Compensation methods
appear in the software itself, integrated into web pages
visited by the user, or in pop-ups/pop-unders.[55] Ad- Advertisers and publishers use a wide range of payment
ware installed without the users permission is a type of calculation methods. In 2012, advertisers calculated
malware.[56]
32% of online advertising transactions on a cost-perimpression basis, 66% on customer performance (e.g.
cost per click or cost per acquisition), and 2% on hybrids
2.9 Aliate marketing
of impression and performance methods.[1]:17
Aliate marketing (sometimes called lead generation)
occurs when advertisers organize third parties to generate potential customers for them. Third-party aliates
receive payment based on sales generated through their
promotion.[1]:22 Aliate marketers generate trac to offers from aliate networks, and when the desired action is taken by the visitor, the aliate earns a commission. These desired actions can be an email submission,
a phone call, lling out an online form, or an online order
being completed.

2.10 Content Marketing

3.1 CPM (cost per mille)

Cost per mille, often abbreviated to CPM, means that
advertisers pay for every thousand displays of their message to potential customers (mille is the Latin word for
thousand). In the online context, ad displays are usually
called impressions. Denitions of an impression vary
among publishers,[57] and some impressions may not be
charged because they don't represent a new exposure to
an actual customer.[58] Advertisers can use technologies
such as web bugs to verify if an impression is actually
delivered.[59][60]:59

Content marketing is any marketing that involves the cre- Publishers use a variety of techniques to increase page
ation and sharing of media and publishing content in or- views, such as dividing content across multiple pages, reder to acquire and retain customers. This information purposing someone elses content, using sensational titles,

BENEFITS OF ONLINE ADVERTISING

or publishing tabloid or sexual content.[61]

pays for the number of users who perform a desired acCPM advertising is susceptible to impression fraud, and tivity, such as completing a purchase or lling out a regisadvertisers who want visitors to their sites may not nd tration form. Performance-based compensation can also
per-impression payments a good proxy for the results they incorporate revenue sharing, where publishers earn a percentage of the advertisers prots made as a result of the
desire.[62]:14
ad. Performance-based compensation shifts the risk of
failed advertising onto publishers.[62]:4, 16

3.2

CPC (cost per click)

CPC (Cost Per Click) or PPC (Pay per click) means advertisers pay each time a user clicks on the ad. CPC
advertising works well when advertisers want visitors to
their sites, but its a less accurate measurement for advertisers looking to build brand awareness.[63] CPCs market
share has grown each year since its introduction, eclipsing CPM to dominate two-thirds of all online advertising
compensation methods.[1]:18[62]:1

3.7 Fixed cost

Fixed cost compensation means advertisers pay a xed
cost for delivery of ads online, usually over a specied
time period, irrespective of the ads visibility or users response to it. One examples is CPD (cost per day) where
advertisers pay a xed cost for publishing an ad for a day
irrespective of impressions served or clicks.

Like impressions, not all recorded clicks are valuable

to advertisers. GoldSpot Media reported that up to
4
50% of clicks on static mobile banner ads are accidental and resulted in redirected visitors leaving the new site
4.1
immediately.[64]

Benets of online advertising

Cost

The low costs of electronic communication reduce the

cost of displaying online advertisements compared to ofine ads. Online advertising, and in particular social meCost per engagement aims to track not just that an ad unit dia, provides a low-cost means for advertisers to engage
[54]
Advertising onloaded on the page (i.e., an impression was served), but with large established communities.
[62]:1
also that the viewer actually saw and/or interacted with line oers better returns than in other media.
[65][66]
the ad.

3.3

CPE (cost per engagement)

3.4

CPV (cost per view)

4.2 Measurability
Cost per view video advertising. Both Google and
TubeMogul endorsed this standardized CPV metric to
the IABs (Interactive Advertising Bureau) Digital Video
Committee, and its garnering a notable amount of industry support.[67]

3.5

Attribution of ad value

Main article: Attribution (marketing)

In marketing, attribution is the measurement of eectiveness of particular ads in a consumers ultimate decision to purchase. Multiple ad impressions may lead to
a consumer click or other action. A single action may
lead to revenue being paid to multiple ad space sellers.[68]

3.6

Online advertisers can collect data on their ads eectiveness, such as the size of the potential audience or actual audience response,[19]:119 how a visitor reached their
advertisement, whether the advertisement resulted in a
sale, and whether an ad actually loaded within a visitors
view.[59][60]:59 This helps online advertisers improve their
ad campaigns over time.

4.3 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 oine
ads, online ads also can be interactive.[18] For example,
some ads let users input queries[69] or let users follow the
advertiser on social media.[70] Online ads can even incorporate games.[71]

Other performance-based compensa- 4.4 Targeting

tion

Publishers can oer advertisers the ability to reach cusCPA (Cost Per Action or Cost Per Acquisition) or PPP tomizable and narrow market segments for targeted ad(Pay Per Performance) advertising means the advertiser vertising. Online advertising may use geo-targeting to

5.4

Technological variations

display relevant advertisements to the users geography.

Advertisers can customize each individual ad to a particular user based on the users previous preferences.[26]
Advertisers can also track whether a visitor has already
seen a particular ad in order to reduce unwanted repetitious exposures and provide adequate time gaps between
exposures.[72]

As with oine publications, online impression fraud can

occur when publishers overstate the number of ad impressions they have delivered to their advertisers. To combat
impression fraud, several publishing and advertising industry associations are developing ways to count online
impressions credibly.[82][83]

4.5

5.4 Technological variations

Coverage

Online advertising can reach nearly every global market, 5.4.1 Heterogeneous clients
and online advertising inuences oine sales.[73][74][75]
Because users have dierent operating systems, web
browsers[84] and computer hardware (including mobile
4.6 Speed
devices and dierent screen sizes), online ads may appear
to users dierently from how the advertiser intended, or
Once ad design is complete, online ads can be deployed the ads may not display properly at all. A 2012 comScore
immediately. The delivery of online ads does not need to study revealed that, on average, 31% of ads were not
be linked to the publishers publication schedule. Fur- in-view when rendered, meaning they never had an
thermore, online advertisers can modify or replace ad opportunity to be seen.[85] Rich media ads create even
copy more rapidly than their oine counterparts.[76]
greater compatibility problems, as some developers may
use competing (and exclusive) software to render the ads
(see e.g. Comparison of HTML 5 and Flash).[86]

Concerns

Furthermore, advertisers may encounter legal problems

if legally required information doesn't actually display
to users, even if that failure is due to technological
5.1 Security Concerns
heterogeneity.[87]:i In the United States, the FTC has
According to a US Senate investigation, the current state released a set of guidelines indicating that its the adof online advertising endangers the security and privacy vertisers responsibility to ensure the ads display any
required disclosures or disclaimers, irrespective of the
of users.[77]
users technology.[87]:48

5.2

Banner blindness

Eye-tracking studies have shown that Internet users often ignore web page zones likely to contain display ads
(sometimes called "banner blindness"), and this problem
is worse online than in oine media.[78] On the other
hand, studies suggest that even those ads ignored by the
users may inuence the user subconsciously.[79]

5.4.2 Ad-blocking

Ad-blocking, or ad ltering, 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.[88] Other software programs or browser add-ons
may also block the loading of ads, or block elements on a
page with behaviors characteristic of ads (e.g. HTML autoplay of both audio and video). Approximately 9% of all
5.3 Fraud on the advertiser
online page views come from browsers with ad-blocking
[89]
There are numerous ways that advertisers can be over- software installed, and some publishers have 40%+ of
[4]
charged for their advertising. For example, click fraud their visitors using ad-blockers.
occurs when a publisher or third parties click (manually
or through automated means) on a CPC ad with no legitimate buying intent.[80] For example, click fraud can 5.4.3 Anti-targeting technologies
occur when a competitor clicks on ads to deplete its rivals advertising budget, or when publishers attempt to Some web browsers oer privacy modes where users can
manufacture revenue.[80]
hide information about themselves from publishers and
Click fraud is especially associated with pornography
sites. In 2011, certain scamming porn websites launched
dozens of hidden pages on each visitors computer, forcing the visitors computer to click on hundreds of paid
links without the visitors knowledge.[81]

advertisers. Among other consequences, advertisers can't

use cookies to serve targeted ads to private browsers.
Most major browsers have incorporated Do Not Track
options into their browser headers, but the regulations
currently are only enforced by the honor system.[90][91][92]

5.5

6 REGULATION

Privacy concerns

The collection of user information by publishers and

advertisers has raised consumer concerns about their
privacy.[27][60] Sixty percent of Internet users would use
Do Not Track technology to block all collection of information if given an opportunity.[93][94] Over half of all
Google and Facebook users are concerned about their
privacy when using Google and Facebook, according to
Gallup.[95]

6 Regulation
In general, consumer protection laws apply equally to online and oine activities.[87]:i However, there are questions over which jurisdictions laws apply and which regulatory agencies have enforcement authority over transborder activity.[110]
As with oine advertising, industry participants have
undertaken numerous eorts to self-regulate and develop industry standards or codes of conduct. Several
United States advertising industry organizations jointly
published Self-Regulatory Principles for Online Behavioral Advertising based on standards proposed by the FTC
in 2009.[111] European ad associations published a similar
document in 2011.[112] Primary tenets of both documents
include consumer control of data transfer to third parties,
data security, and consent for collection of certain health
and nancial data.[111]:24 Neither framework, however,
penalizes violators of the codes of conduct.[113]

Many consumers have reservations about online

behavioral targeting. By tracking users online activities,
advertisers are able to understand consumers quite well.
Advertisers often use technology, such as web bugs
and respawning cookies, to maximizing their abilities
to track consumers.[60]:60[96][97] According to a 2011
survey conducted by Harris Interactive, over half of
Internet users had a negative impression of online
behavioral advertising, and forty percent feared that
their personally-identiable information had been shared
with advertisers without their consent.[98][99] Consumers
can be especially troubled by advertisers targeting them 6.1 Privacy and data collection
based on sensitive information, such as nancial or health
status.[96]
Privacy regulation can require users consent before an
advertiser can track the user or communicate with the
user. However, armative consent (opt in) can be difcult and expensive to obtain.[60]:60 Industry participants
often prefer other regulatory schemes.
5.6 Trustworthiness of advertisers
Scammers can take advantage of consumers diculties
verifying an online personas identity,[100]:1 leading to artices like phishing (where scam emails look identical
to those from a well-known brand owner)[101] and condence schemes like the Nigerian 419 scam.[102][103][104]
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.[105][106]
Consumers also face malware risks, i.e. malvertising,
when interacting with online advertising. Cisco's 2013
Annual Security Report revealed that clicking on ads
was 182 times more likely to install a virus on a users
computer than surng the Internet for porn.[107][108]
For example, in August 2014 Yahoos advertising network reportedly saw cases of infection of a variant of
Cryptolocker ransomware.[109]

5.7

Dierent jurisdictions have taken dierent approaches

to privacy issues with advertising. The United States
has specic restrictions on online tracking of children in the Childrens Online Privacy Protection Act
(COPPA),[111]:1617 and the FTC has recently expanded
its interpretation of COPPA to include requiring ad networks to obtain parental consent before knowingly tracking kids.[114] Otherwise, the U.S. Federal Trade Commission frequently supports industry self-regulation, although increasingly it has been undertaking enforcement
actions related to online privacy and security.[115] The
FTC has also been pushing for industry consensus about
possible Do Not Track legislation.
In contrast, the European Unions Privacy and Electronic
Communications Directive restricts websites ability to
use consumer data much more comprehensively. The
EU limitations restrict targeting by online advertisers; researchers have estimated online advertising eectiveness
decreases on average by around 65% in Europe relative
to the rest of the world.[60]:58

Spam
6.2 Delivery methods

The Internets low cost of disseminating advertising contributes to spam, especially by large-scale spammers. Numerous eorts have been undertaken to combat spam,
ranging from blacklists to regulatorily-required labeling
to content lters, but most of those eorts have adverse
collateral eects, such as mistaken ltering.[6]

Many laws specically regulate the ways online ads are

delivered. For example, online advertising delivered via
email is more regulated than the same ad content delivered via banner ads. Among other restrictions, the U.S.
CAN-SPAM Act of 2003 requires that any commercial

9
email provide an opt-out mechanism.[110] 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.

Cost Per Click or Pay Per Click (CPC or PPC)

Compensation methods

See also
Ad server
App store optimization

Cost Per Impression (CPI)

Cost Per Mille (CPM), also known as Cost per
thousand (CPT)
eective Cost Per Mille (eCPM)
Classied advertising
Web advertising

Article marketing

Ad ltering

Classied advertising

Advertising network

Conversion rate
Digital marketing
Frequency capping
In-text advertising
Inbound marketing
Lead scoring

Article marketing
Aliate marketing
Bitcoin faucet
Central ad server
Click fraud
E-mail advertising

Media transparency

e-mail spam

Netnography

opt-in e-mail advertising

Online identity management

Online lead generation
Pay per click

spamming
In-text advertising
Mobile advertising

Post-click marketing

Mobile marketing

Product feed

Mobile development

Real-time marketing

WAP

Search engine marketing

Online classied advertising

Social media optimization

Overlay

Viral marketing
Visual marketing
Web banner
Online presence management

Pay per click

Pay per play
Performance-based advertising
Pop-up ad
Search engines

Industry calculations
Search engine marketing (SEM)
Click Through Rate (CTR)

Search engine optimization (SEO)

View-through rate (VTR)

Semantic advertising

Cost Per Action (CPA)

Unicast ad

eective Cost Per Action (eCPA)

Web banner

10

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14

9 TEXT AND IMAGE SOURCES, CONTRIBUTORS, AND LICENSES

Text and image sources, contributors, and licenses

9.1

Text

Online advertising Source: https://en.wikipedia.org/wiki/Online_advertising?oldid=714235145 Contributors: The Anome, Fubar Obfusco, Edward, Fuzzie, Pcb21, Haakon, Ronz, Mydogategodshat, Coren, Andrewman327, Tpbradbury, Ponyegg, Jni, ZimZalaBim, Sunray, HaeB, Tobias Bergemann, DocWatson42, Elf, Sinned, Moyogo, Alexf, Antandrus, Ojw, Adashiel, Vector4F, Discospinster, Bender235, ESkog, Neko-chan, Smalljim, Wrs1864, Mdd, Velella, RainbowOfLight, Versageek, Mitc0185, Bobrayner, Woohookitty, Furism, Thivierr, Stefanomione, Patheros, Qwertyca, Elvey, Charles Iliya Krempeaux, Sj, Rjwilmsi, Bruce1ee, Marcman, Ground Zero,
RexNL, Diza, DVdm, Bgwhite, Gwernol, Wavelength, Stephenb, NawlinWiki, Cleared as led, Dmoss, AnaTo, BOT-Superzerocool, Zzuuzz, Closedmouth, Pb30, Abune, Josh3580, GraemeL, Vicarious, Chez37, Emc2, Katieh5584, CIreland, Veinor, Crystallina, SmackBot,
David Kernow, McGeddon, Gilliam, Ohnoitsjamie, BenAveling, Anwar saadat, Chris the speller, Lawrence Waterhouse, NCurse, EncMstr,
Carbonrodney, Deli nk, Rrburke, Fuhghettaboutit, Nakon, DMacks, Coolmedia, Bobby9101, Bejnar, TenPoundHammer, Ohconfucius,
Cumbrowski, ArglebargleIV, Kuru, Microchip08, Jbuddle, Adam Marsh, Nagle, RomanSpa, Noian, Ckatz, 16@r, Dirtyd, GilbertoSilvaFan, InedibleHulk, H, Ginkgo100, B7T, Iridescent, Kernow, Newone, Adambiswanger1, Linkspamremover, Rafaelcosentino, J Milburn, CmdrObot, Tanthalas39, Mattbr, Mpcooke3, Gogo Dodo, Dtodd, HitroMilanese, DumbBOT, Marka2, Satori Son, Im batman,
Thijs!bot, DarkNinja, Mojo Hand, Dalahst, E. Ripley, Amykocot, Vikingbot, Calaka, Format, Widefox, Seaphoto, QuiteUnusual, JAnDbot, Barek, MER-C, Lvsubram, Wasell, SteveSims, Gogi gupta, Bongwarrior, VoABot II, Appraiser, TheMan232, Twsx, Theroadislong,
Paul-Michel~enwiki, A3nm, Punchkickinteractive, Cocytus, AVRS, Alakori, MartinBot, Anaxial, Toledonyc, El0i, RockMFR, J.delanoy,
Pharaoh of the Wizards, Jesant13, Toanke, Sphynx.ie, Vanished user 39948282, Treisijs, Bonadea, Matasm, Meiskam, VolkovBot, Dink10,
DoorsAjar, TXiKiBoT, Motivejustin, Universal prints limited, Crohnie, Aymatth2, Hypnoticcyst, DeathbyChiasmus, Krazywrath, Itemirus,
Manishrajawat, Mezadz, AlleborgoBot, Kryacek, Peterbisset, Wybert, Plinkit, Dawn Bard, Bentogoa, 123internetdesigns, EditorInTheRye, Poindexter Propellerhead, Newval, Msherkirshner, Gboone7, Capitalismojo, ArchiSchmedes, Rebeccaeskin, LightSpeed3, Kortaggio, Denisarona, ClueBot, Rustic, Schwarzenneger, Scott.friesen, Saddhiyama, Niceguyedc, Trivialist, Sabri76, Karthikeyanseo, Excirial, Jusdafax, Ykhwong, Sun Creator, Dekisugi, Abacus3, Nerious, Thingg, Scalhotrod, Mediaexpert, Rhinocerous Ranger, AZCMOMike, Callinus, Willyboy104, Johnuniq, Apparition11, Intrey, XLinkBot, Anomiemia, Jwmsfobcn, CohibAA, The Aviv, Kbdankbot,
Addbot, Grayfell, ConCompS, Some jerk on the Internet, Ledermanu, Ocdnctx, Mohamed Ouda, MrOllie, Favonian, Nigunman, Hussein
fazal, Canjimifan, Teles, Jarble, Anywhereman, Luckas-bot, Yobot, Smokieboards, Breanne.Storey, GamerPro64, QueenCake, Amitksharma325, Chingeyinabottle, Formicarius, AnomieBOT, Cyrex365, Rubinbot, Piano non troppo, MarbleRye, Materialscientist, Fmelendres, Xqbot, Eliumpd, Gilo1969, GaryLeeHenshaw, Levud, Quickqlick, Solphusion~enwiki, Ericgoldman, Wikieditor1988, Mathonius,
Finestmail, Theni.M.Subramani, Sophus Bie, Smallman12q, Shadowjams, Darkvard, Dan6hell66, Thejadefalcon, FrescoBot, Hyju, FagusNigra, Charleslau, Giorgio-1970, D'ohBot, Craig Pemberton, A little insignicant, SpacemanSpi, Hclim65, Serols, Sfao, TobeBot,
Cgallagher3109, LogAntiLog, Rrvishewar, DragonofFire, Onlinecitizen, Wschlitz, Tbhotch, Shemeleshawty, Benhum, Mustufashah, Mean
as custard, RjwilmsiBot, Msdollars, Harleydavidsons, Prommatee, Noommos, Ecsss1, Rollins83, John of Reading, Dewritech, GoingBatty,
RA0808, Lionkingkhan, Jasonkang0816, Komfort31, Solarra, Winner 42, K6ka, Newsjessore, Checkingfax, Damenleeturks, Havefunwilltravel, Tolly4bolly, EricWesBrown, Irene33, TyA, Gray eyes, Danielraz, Thierry2008, RISCO Group, Gordon Otieno, Oona2504,
Pun, BioPupil, ChuispastonBot, Pdnocs, TYelliot, Rocketrod1960, ESMcL, ClueBot NG, Knollies, MelbourneStar, This lousy T-shirt,
Sujjsk, Vacation9, Madina domun, Frietjes, Ekphraster, NetKnight~enwiki, Psharma1720, Widr, Spraif, Helpful Pixie Bot, DDmylesy,
Herrera13, BG19bot, Ttshameer, Rovernd, Compfreak7, Expertwitness2011, Phlukie, Nimss, Stingrays06, G1u4funk, Klilidiplomus,
Sundar sah, Factsearch, WP Randomno, Droth0820, David.moreno72, Arr4, Cyberbot II, ChrisGualtieri, EuroCarGT, Kamzworld, Rezonansowy, Poltica Galega, Yash!, Codename Lisa, Webclient101, WikiAcionado12, Lugia2453, Bastianbaltazarbux, Sidelight12, Frosty,
SFK2, JiahuaWowo, Chl160, Elainelu9, Juliantrueynn, Reatlas, Crisskooper, Jshulkin, Vineeta.singh87, Ruby Murray, Enock4seth,
Saini1987, Sebastianbute, Vittoriofrancis, Abdul.sozar, RonPaul573e, Tentinator, Lovekisssoh, Captain Conundrum, Naughtybabe24,
Dolla23, Damolaphilip, Pdshrader, Moulanashahwar, Dabramsdt, Dandyboy23, Nhinguyen196, Stephanreek, Mayur G Kawale, Nscher831, UKAmerican, Ginsuloft, Shark7GB, Webtistic, Raboken, Dkwebsub, Gofreeads India, Fixuture, Daniel00019, Lakun.patra,
Paweng, Uzair Tajuddin, Snkay9, System0002, Icington Group, Nazmulhasannahid, ChantelleRautenbach, Devilsh168, Masterkruegs,
Yikkayaya, Melissawilsonn, Cesian, Nikosax, Outofcash, Ayrntl Bilgi, Mizan23, Crumbcorny, Siteadwiki, Zgsites, Taniaoberoi88,
Seosirohigulshan, Rishit2, Khairulislambappi, Brownz23, Joanna.skidmore2014, Netcraftz, Yash.056, Dai Pritchard, Greencapitalgroup,
KH-1, Ajayacharya28, Rocky3794, TheSKumawat, Rsolar31g, MegynWebCoach, Eliraeicc, Grurocks, Mediatex.europe, Boubleschicken,
ProGamerCode, RAJSINHARAJ, Jozefsanders, Sunrisingavenue, Babshaybell, Reidmoto, Stealthmaestrob, EsmeeNetwork, Evelyn Lori,
AFL Blues, Yadav007akash, Nadiabouleka, Munyez33, Shilpiguptagurgaon, Gpdlwmfsjt04, Innite0694, Kevfav, Rubetube95, Emmataylor001, Sunny0183, Day dreamerDC, KasparBot, Amiteb, Alvinclaros, Aquastony, Nidhivarnika, Distle, Jenniferrubin7, Stebinak,
ZAINSHAHBUKHARI, Davidmarkuss, Prince Gebauer, RoryGlover25, Kwamelyeon, Blazzinglight, MellinaWilliams, SophiyaGibson21,
Pkurls, Eno Lirpa and Anonymous: 526

9.2

Images

File:Adservingagency.svg Source: https://upload.wikimedia.org/wikipedia/commons/5/52/Adservingagency.svg License: CC BY-SA

4.0 Contributors: Own work Original artist: Nagle
File:Adservingfull.svg Source: https://upload.wikimedia.org/wikipedia/commons/d/da/Adservingfull.svg License: CC BY-SA 4.0 Contributors: Own work Original artist: Nagle
File:Adservingsimple.svg Source: https://upload.wikimedia.org/wikipedia/commons/f/fe/Adservingsimple.svg License: CC BY-SA 4.0
Contributors: Own work Original artist: Nagle
File:Shopping_cart_icon.svg Source: https://upload.wikimedia.org/wikipedia/commons/d/df/Shopping_cart_icon.svg License: Public
domain Contributors: Own work Original artist: Jbarta

9.3

Content license

Creative Commons Attribution-Share Alike 3.0