2019 ANNUAL REPORT · Collective Media, IgnitionOne, Magnetic, Netmining, and OneMarket ceased...
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ANNUAL REPORT 2019
Transcript of 2019 ANNUAL REPORT · Collective Media, IgnitionOne, Magnetic, Netmining, and OneMarket ceased...
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ENDNOTES1 IBAisdefinedintheCodeas“thecollectionofdataacrosswebdomainsownedoroperatedbydifferententitiesforthepurposeofdeliveringadvertisingbasedonpreferencesorinterestsknownorinferredfromthedatacollected”(Code§I.F.).Since2015theNAIhasalsoformallyappliedtheCode’sIBArequirementstothepracticeofRetargeting,definedas“thepracticeofcollectingdataaboutabrowser’sordevice’sactivityinoneunaffiliatedwebdomainorapplicationforthepurposeofdeliveringanadvertisementbasedonthatdatainadifferent,unaffiliatedwebdomainorapplication”(Code§I.M.).
2 TheCodeimposesrequirementswithrespecttoAdDelivery&Reporting,(ADR).ADRisdefinedintheCodeas“thecollectionoruseofdataaboutabrowserordeviceforthepurposeofdeliveringadsorprovidingadvertising-relatedservices,including,butnotlimitedto:providingaspecificadvertisementbasedonaparticulartypeofbrowser,device,ortimeofday;statisticalreporting,trafficanalysis,analytics,optimizationofadplacement;adperformance,reach,andfrequencymetrics(e.g.,frequencycapping);securityandfraudprevention;billing;andloggingthenumberandtypeofadsservedonaparticulardaytoaparticularwebsite,application,ordevice”(Code§I.A.).
3 TheCodecoversactivitiesthatoccurintheUnitedStatesoraffectconsumersintheUnitedStates.WhiletheNAIencouragesitsmemberstoapplythehighstandardsoftheCodetotheirPersonalizedAdvertisingandADRactivitiesglobally,theNAIonlyevaluatedUS-basedPersonalizedAdvertisingandADRactivityforthepurposesofthiscompliancereport.Unlessnotedotherwise,allreferencestotheNAICoderefertothe2018NAICodeofConduct,whichcanbefoundat:https://www.networkadvertising.org/sites/default/files/nai_code2018.pdf.
4 TheCodedefinesCAAas“thecollectionofdataacrossapplicationsownedoroperatedbydifferententitiesonaparticulardeviceforthepurposeofdeliveringadvertisingbasedonpreferencesorinterestsknownorinferredfromthedatacollected”(AppCode§I.B.).
5 PersonalizedAdvertisingisdefinedintheCodeas“acollectivetermforInterest-BasedAdvertising,Cross-AppAdvertising,andRetargeting,aswellasanycombinationofthesepractices”(Code§I.J.).
6 NAImembershipspansvarioustechnologyplatforms,includingdemandsideplatforms(DSPs),supplysideplatforms(SSPs),datamanagementplatforms(DMPs)andaudiencemanagementplatforms(AMPs).
7 A2014studyshowsthatofferingrelevantadvertisingtovisitorsbenefitssmallerwebsites,providingessentialrevenuetothe“longtail”ofwebcontent.SeeJ.HowardBeales&JeffreyA.Eisenach,AnEmpiricalAnalysisoftheValueofInformationSharingintheMarketforOnlineContent(2014),http://www.aboutads.info/resource/fullvalueinfostudy.pdf.
8 GuidanceforNAIMembers:ViewedContentAdvertising(ConnectedTVGuidance)canbefoundat: https://www.networkadvertising.org/sites/default/files/naiguidance_viewedcontentadvertising.pdf.
9 The2020NAICodeofConductcanbefoundat:https://www.networkadvertising.org/sites/default/files/nai_code2020.pdf.
10 GuidanceforNAIMembers:Opt-InConsentcanbefoundat:https://www.networkadvertising.org/sites/default/files/final_nai_optinconsent-guidance19_final.pdf.
11 TheGeneralDataProtectionRegulationcanbefoundat:https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32016R0679&from=EN.
12 TheCaliforniaConsumerPrivacyActcanbefoundat:https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=CIV&division=3.&title=1.81.5.&part=4.&chapter=&article=.
13 MoreinformationonthePrivacyforAmericaCoalitioncanbefoundat:www.privacyforamerica.com.
14 HearingsonCompetitionandConsumerProtectioninthe21stCentury,heldbytheFederalTradeCommission,canbefoundat:https://www.ftc.gov/news-events/events-calendar/ftc-hearing-6-competition-consumer-protection-21st-century.
15 MoreinformationontheTransparencyandConsentFrameworkcanbefoundat:https://iabtechlab.com/standards/gdpr-transparency-and-consent-framework/.
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16 TheNAIurgesapplicantsandmembercompaniestoconsultwiththeirowntechnologyandlegalexpertswhenreviewingtheprivacyimplicationsofproductsandbusinessplans.
17 Opt-OutMechanismisdefinedundertheCodeas“aneasy-to-usemechanismbywhichindividualsmayexercisechoicetodisallowInterest-BasedAdvertisingwithrespecttoaparticularbrowserordevice.”(Code§I.J.;AppCode§I.K).
18 ThefollowingninecompaniescompletedthenewmemberapplicationprocessandbecameNAImembersin2019:AdFireHealth,AdForm,AudienceRate,GravyAnalytics,HiveStack,Semasio,Swoop,Ubimo,X-ID.
19 SeeInvestigationsandSanctionsinfrapp.28–29.
20 ThefollowingcompanieswereNAImembersonJanuary1,2019butwerenotamongevaluatedmembercompaniesin2019:
a. MediaInnovationGroup,Yahoo,X-ID,Sizmek,andDrawbridgewerenolongerindependentlyengagedin PersonalizedAdvertisingoperationsintheUnitedStates.ThesecompaniesterminatedtheirNAI membershipsanddidnotcompletethe2019annualcompliancereview.
b. CollectiveMedia,IgnitionOne,Magnetic,Netmining,andOneMarketceasedoperationsaltogetherin2019.
c. ClinchdidnotrenewitsNAImembershipin2019.
21 See supra,note17.
22 NAIstaffmakesanefforttoreviewitsnewestmembercompaniesfirstduringthesubsequentannualreview,inordertominimizethetimebetweenamember’sinitialmembershipapplicationreviewanditsfirstannualcompliancereview.
23 TheNAI’sConnectedTVGuidancedefinesViewedContentAdvertisingas“thecollectionofViewedContentData,ortheuseofsuchdata,forthepurposeofcustomizingadvertisingbasedonpreferencesorinterestsknownorinferredfromthedatacollected”(§I.B.).
24 Ifamemberhasanagreementwithapartnertocollectdataonthepartner’ssiteorappforPersonalizedAdvertisingpurposes,thememberisobligatedtorequirethroughitscontractualprovisionsthatthepartnerprovidenoticetotheuserandalinktoanOpt-OutMechanism(Code§§II.B.3-4.).Thisrequirementisdiscussedmorefullybelow.
25 NAImembercompaniesrepresent4ofthetop5AdNetworksaccordingtothecomScoreAdFocusRankings(DesktopOnly)lastpublishedinDecember2019,availableathttps://www.comscore.com/Insights/Rankings.
26 Onemembercompany,EyeviewDigital,completedallotherpartsofits2019NAIcompliancereviewbutceasedoperationsbeforebeingabletocompleteitsattestationformfortheyear.Twomembercompanies,NarrativandVarickMediaManagement,completedallotherpartsoftheir2019NAIcompliancereviews,butterminatedtheirmembershipsin2020beforecompletingtheir2019attestationforms.
27 Asdescribedabove,withthePrivacyDisclosureScanner,theNAImonitorsmemberprivacydisclosurestoensurethatmembersdonotinadvertentlyremovelanguagerequiredbytheCode.
28 TheDAA’sguidancecanbefoundat:http://www.aboutads.info/DAA_Mobile_Guidance.pdf.
29 SeeUpdateonViewedContentAdvertising,available at: https://www.networkadvertising.org/blog-entry/update-viewed-content-advertising/.
30 TheNAIInternetConnectedTVChoicescanbefoundat:https://www.networkadvertising.org/internet-connected-tv-choices/.
31 SeeUpdateonViewedContentAdvertising,available at:https://www.networkadvertising.org/blog-entry/update-viewed-content-advertising/.
32 In2019NAIstaffconsistedofLeighFreund,PresidentandCEO;DavidLeDuc,VicePresident,PublicPolicy;AnthonyMatyjaszewski,VicePresident,ComplianceandMemberDevelopment;MatthewNichols,SeniorCounsel,ComplianceandPolicy;JulieKarasik,Director,TechnologyandProduct;TonyFicarrota,Counsel,ComplianceandPolicy;RodGhaemmaghami,Counsel,ComplianceandPolicy;andLeannyPrieto,PolicyandCommunicationsCoordinator.
33 ConsumerSurveyonPrivacyandDigitalAdvertisingcanbefoundat:https://www.networkadvertising.org/sites/default/files/final_nai_consumer_survey_paper_22oct2019.pdf.
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