AdChoices

Last updated

AdChoices is a self-regulatory program for online interest-based advertising that exists in the United States, Canada and across Europe. The program calls for advertising companies to establish and enforce responsible privacy practices for interest-based advertising, aimed to give consumers enhanced transparency and control. Companies adhere to a set of principles [1] [2] [3] that are enforced by accountability programs. [4] [5] [6]

Contents

"Interest-based advertising" (also known as "online behavioural advertising" or "behavioral targeting") selectively displays ads based on browsing history, primarily using cookies, to users most likely to identify with and respond to the ad's specific content. The AdChoices icon is shown automatically by companies part of the self-regulatory program, and is meant to indicate to consumers when interest-based advertising data is being collected or used. By clicking on the icon (which is usually found in the top right corner of an online advertisement), a consumer can learn more about the ad or a website's collection practices, and be provided with the ability to opt-out of such targeting.

Although it is possible to opt out of interest-based advertising through the AdChoices program(s), [7] [8] [9] [10] opting out does not block advertisements nor prevent tracking of web browsing history by use of other ways (e.g. Flash cookies). The US and Canadian AdChoices programs require that participating companies not use Flash cookies or similar locally shared objects for online interest-based advertising purposes. [11]

History

In 2009, the Federal Trade Commission began looking into internet advertising platforms and suggested that the industry develop guidelines for self-regulation. The American Association of Advertising Agencies, the Association of National Advertisers (ANA), the American Advertising Federation (AAF), the Direct Marketing Association (DMA), the Interactive Advertising Bureau (IAB), the Better Business Bureau (BBB), and the Network Advertising Initiative (NAI) joined together to form the Self-Regulatory Program for Online Behavioral Advertising. The alliance managing the program was called the Digital Advertising Alliance (DAA). The DAA's AdChoices program was launched in October 2010. [12] The program calls for companies to follow responsible privacy principles for internet-based advertising. Compliance with the DAA Principles is independently enforced for all companies in digital advertising by the Digital Advertising Accountability Program (DAAP) of the BBB National Programs and the accountability division of the Association of National Advertisers. [13]

In July 2013, additional principles were launched by the DAA to address interest-based data collected from smartphones and tablets. [14] [15] To give consumers a choice mechanism for that environment, in February 2015, the DAA officially launched AppChoices, [16] [17] an opt-out app for mobile devices.

In September 2013, the Canadian version of the AdChoices program was launched by the Digital Advertising Alliance of Canada (DAAC), composed of a similar set of marketing and communications trade associations [18] as in the US, to address the Office of the Privacy Commissioner of Canada (OPC)'s guidelines for online behavioural advertising. [19] The AdChoices program can be implemented in a manner consistent with existing Canadian privacy laws and the OPC's guidelines for online interest-based advertising.

Participants

The AdChoices self-regulatory programs have over 200 participants. [20] [21] [22] Participants include AOL, [23] AT&T, Bloomberg, Comcast, Conde Nast, Dow Jones, Facebook, [24] General Motors, Google Inc., [25] [26] Microsoft, [27] Procter & Gamble, [28] Taboola, Yahoo!, [29] and many others. [30]

Lists of Canadian and European program participants are found on their official websites. [21] [22]

Reception

A study conducted by Parks Associates and discussed in AdAge found that three years after the introduction of the AdChoices icon, most consumers were unaware of it, and in fact, awareness had grown only from 5% in 2011 to 6% in 2013. [31] According to a TRUSTe survey from 2015: "However, research also showed that awareness of the AdChoices icon, part of the Digital Advertising Alliance (DAA) Self-Regulatory Program for OBA [online behavioral ads, or interest-based ads] jumped to 37% – a significant increase from 21% the previous year. This program provides users with more control over their online ad experience with the option to opt-out of personal targeting." [32] Furthermore, in 10 of 13 European countries surveyed by TRUSTe and the European Interactive Digital Advertising Alliance in December 2015, at least 1 in 4 consumers who are aware of the icon say they have clicked on it. [33]

Related Research Articles

<span class="mw-page-title-main">Direct marketing</span> Model of communicating discounts and other sales offers

Direct marketing is a form of communicating an offer, where organizations communicate directly to a pre-selected customer and supply a method for a direct response. Among practitioners, it is also known as direct response marketing. In contrast to direct marketing, advertising is more of a mass-message nature.

Google AdSense is a program run by Google through which website publishers in the Google Network of content sites serve text, images, video, or interactive media advertisements that are targeted to the site content and audience. These advertisements are administered, sorted, and maintained by Google. They can generate revenue on either a per-click or per-impression basis. Google beta-tested a cost-per-action service, but discontinued it in October 2008 in favor of a DoubleClick offering. In Q1 2014, Google earned US$3.4 billion, or 22% of total revenue, through Google AdSense. AdSense is a participant in the AdChoices program, so AdSense ads typically include the triangle-shaped AdChoices icon. This program also operates on HTTP cookies. In 2021, over 38.3 million websites use AdSense.

<span class="mw-page-title-main">Google Ads</span> Online advertising platform owned by Google

Google Ads is an online advertising platform developed by Google, where advertisers bid to display brief advertisements, service offerings, product listings, and videos to web users. It can place ads in the results of search engines like Google Search, mobile apps, videos, and on non-search websites. Services are offered under a pay-per-click (PPC) pricing model.

Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to promote products and services to audiences and platform users. Online advertising includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising, and mobile advertising. Advertisements are increasingly being delivered via automated software systems operating across multiple websites, media services and platforms, known as programmatic advertising.

Contextual advertising refers to a form of targeted advertising for advertisements appearing on websites or other digital platforms, such as content displayed in mobile browsers. Contextual targeting involves the use of linguistic factors to control the placement of advertising material. The advertisements are selected and delivered by automated systems, taking into consideration the context of a user's search or browsing behaviour. As advertisers and marketers increasingly prioritise brand safety and suitability, contextual advertising has emergeed as a crucial aspect in safeguarding the reputation and value of a brand.

BBB National Programs, an independent non-profit organization that oversees more than a dozen national industry self-regulation programs that provide third-party accountability and dispute resolution services to companies, including outside and in-house counsel, consumers, and others in arenas such as privacy, advertising, data collection, child-directed marketing, and more. The Center for Industry Self-Regulation (CISR) is BBB National Programs' 501(c)(3) non-profit foundation. CISR supports responsible business leaders in developing fair, future-proof best practices, and the education of the public on the conditions necessary for industry self-regulation.

Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing, mobile advertising can take place as text ads via SMS, or banner advertisements that appear embedded in a mobile web site.

Location-based advertising (LBA) is a form of advertising that integrates mobile advertising with location-based services. The technology is used to pinpoint consumers location and provide location-specific advertisements on their mobile devices.

The Interactive Advertising Bureau (IAB) is an American advertising business organization that develops industry standards, conducts research, and provides legal support for the online advertising industry. The organization represents many of the most prominent media outlets globally, but mostly in the United States, Canada and Europe.

<span class="mw-page-title-main">Targeted advertising</span> Form of advertising

Targeted advertising is a form of advertising, including online advertising, that is directed towards an audience with certain traits, based on the product or person the advertiser is promoting. These traits can either be demographic with a focus on race, economic status, sex, age, generation, level of education, income level, and employment, or psychographic focused on the consumer values, personality, attitude, opinion, lifestyle and interest. This focus can also entail behavioral variables, such as browser history, purchase history, and other recent online activities. The process of algorithm targeting eliminates waste.

Social network advertising, also known as "social media targeting," is a group of terms that are used to describe forms of online advertising and digital marketing that focus on social networking services. One of the significant benefits of this type of advertising is that advertisers can take advantage of the users' demographic information, psychographics and other data points to target their ads appropriately.

Behavioral retargeting is a form of online targeted advertising by which online advertising is targeted to consumers based on their previous internet behaviour. Retargeting tags online users by including a pixel within the target webpage or email, which sets a cookie in the user's browser. Once the cookie is set, the advertiser is able to show ads to that user elsewhere on the internet via an ad exchange.

The United States Commission's fair information practice principles (FIPPs) are guidelines that represent widely accepted concepts concerning fair information practice in an electronic marketplace.

The Children’s Advertising Review Unit (CARU) is a U.S. self-regulatory organization that was established in 1974 and is administered by BBB National Programs. It is an independent self-regulatory agency for the promotion of responsible advertising and privacy practices to children under the age of 13 in all media. CARU reviews and evaluates child-directed media for truth, accuracy, appropriateness, and sensitivity to children’s still developing cognitive abilities in accordance with its Self-Regulatory Guidelines for Children's Advertising, privacy guidelines, and relevant laws.

<span class="mw-page-title-main">Network Advertising Initiative</span>

The Network Advertising Initiative is an industry trade group founded in 2000 that develops self-regulatory standards for online advertising. Advertising networks created the organization in response to concerns from the Federal Trade Commission and consumer groups that online advertising — particularly targeted or behavioral advertising — harmed user privacy. The NAI seeks to provide self-regulatory guidelines for participating networks and opt-out technologies for consumers in order to maintain the value of online advertising while protecting consumer privacy. Membership in the NAI has fluctuated greatly over time, and both the organization and its self-regulatory system have been criticized for being ineffective in promoting privacy.[Missing Citation]

<span class="mw-page-title-main">FTC regulation of behavioral advertising</span> US Regulations on Advertising Targeted by Online Activity

The United States Federal Trade Commission (FTC) has been involved in oversight of the behavioral targeting techniques used by online advertisers since the mid-1990s. These techniques, initially called "online profiling", are now referred to as "behavioral targeting"; they are used to target online behavioral advertising (OBA) to consumers based on preferences inferred from their online behavior. During the period from the mid-1990s to the present, the FTC held a series of workshops, published a number of reports, and gave numerous recommendations regarding both industry self-regulation and Federal regulation of OBA. In late 2010, the FTC proposed a legislative framework for U.S. consumer data privacy including a proposal for a "Do Not Track" mechanism. In 2011, a number of bills were introduced into the United States Congress that would regulate OBA.

Do Not Track (DNT) is a formerly official HTTP header field, designed to allow internet users to opt-out of tracking by websites—which includes the collection of data regarding a user's activity across multiple distinct contexts, and the retention, use, or sharing of data derived from that activity outside the context in which it occurred.

Pulse 360, Inc was a online advertising and marketing network which was based in Getzville, New York. The company was founded in October 1999 under the name Kanoodle. The company reached over 65% of online users monthly and also at one time reached 141 million unique visitors across over 1000 websites. The ad distribution centered on highly visited national and local news sites across the United States including NBCNews.com, Comcast, Weather.com, and ABCNews.com.

Tapad Inc. is a venture-funded startup company based in New York City that develops and markets software and services for cross-device advertising and content delivery. It uses algorithms to analyze internet and device data and predict whether two or more devices are owned by the same person. Participating websites and apps then cater their advertisements based on a collective knowledge of the user's actions across all of their devices.

<span class="mw-page-title-main">Digital Advertising Alliance of Canada</span>

The Digital Advertising Alliance of Canada (DAAC) is a Canadian non-profit trade association.

References

  1. "The DAA AdChoices Principles" . Retrieved June 6, 2016.
  2. "The DAAC AdChoices Principles" . Retrieved June 6, 2016.
  3. "The EDAA AdChoices Principles" . Retrieved June 6, 2016.
  4. "Enforcement of the Principles" . Retrieved June 6, 2016.
  5. "Enforcement of the Canadian AdChoices Principles" . Retrieved June 6, 2016.
  6. "Enforcement of the European AdChoices Principles" . Retrieved June 6, 2016.
  7. "US Opt-Out Tool" . Retrieved June 6, 2016.
  8. "Canadian Opt-Out Tool" . Retrieved June 6, 2016.
  9. "UK Opt-Out Tool" . Retrieved June 6, 2016.
  10. "Other EU Opt-Out Tools". Available once country is selected. Retrieved June 6, 2016.
  11. "Does the consumer opt-out page give me choices about the use of Flash cookies for online interest-based advertising?" . Retrieved June 3, 2016.
  12. "DAA Celebrates its First Anniversary". Oct 25, 2011. Retrieved June 6, 2016.
  13. "YourAdChoices.com | Consumer Assistance | WebChoices, AppChoices and YourAdChoices". youradchoices.com. Retrieved 2022-02-28.
  14. "Application of Self-Regulatory Principles to the Mobile Environment" (PDF). Archived from the original on December 19, 2016. Retrieved June 6, 2016.
  15. Bachman, Katy (April 11, 2013). "Want to Opt Out of Targeted Mobile Ads? There's an App for That. Meets forthcoming DAA mobile privacy standards" . Retrieved January 21, 2015.
  16. "AppChoices". Oct 25, 2011. Retrieved June 6, 2016.
  17. "About the launch of AppChoices" . Retrieved June 6, 2016.
  18. "About the DAAC". Archived from the original on June 3, 2016. Retrieved June 6, 2016.
  19. "Office of the Privacy Commissioner of Canada's Guidelines on Privacy and Online Behavioural Advertising". June 1, 2015.
  20. "Companies using the AdChoices icon in the US". Your AdChoices - how interest based advertising finds you. Retrieved August 23, 2015.
  21. 1 2 "Companies using the AdChoices icon in Canada". Archived from the original on June 3, 2016. Retrieved June 6, 2016.
  22. 1 2 "Companies using the AdChoices icon in Europe" . Retrieved June 6, 2016.
  23. "Ad Choices: Why Did I Get This Ad?". AOL . Retrieved June 6, 2016.
  24. "How can I adjust how ads are targeted to me based on my activity off of Facebook?". Facebook . Retrieved June 3, 2016.
  25. "About Google Ads" . Retrieved January 20, 2015.
  26. Parker, Pamela (March 22, 2011). "Goodbye "Ads By Google" & Hello "AdChoices" As Google's Backs Industry Label Effort". Search Engine Land . Retrieved January 20, 2015.
  27. "About Our Ads" . Retrieved June 6, 2016.
  28. "About Interest-Based Advertising". Procter & Gamble . Retrieved January 20, 2015.
  29. "Why This Ad?". Yahoo! . Retrieved January 20, 2015.
  30. "Companies Using the Your AdChoices Icon" . Retrieved January 20, 2015.
  31. Kaye, Kate (January 29, 2014). "Study: Consumers Don't Know What AdChoices Privacy Icon Is. After Three Years Just 6% Awareness Of the Industry's Opt-Out Program". AdAge . Retrieved January 20, 2015.
  32. "68% of US Smartphone Users Concerned About Having Their Activity Tracked for Use in Targeted Ads = February 20, 2015".
  33. "New Research Shows Growing Awareness of the OBA Icon, and Understanding of this EU Industry Initiative to Give Control Over Targeted Advertising Choices = December 16, 2015".