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Published on: August 3 2023 by pipiads

Music during Donald Trump's presidency, the news media came under attack. However, what many people may not realize is that the news media was already under attack in the United States and around the world by something much more complex and invisible - the rise of the ad tech industry.

The Troubles of the Newspaper Industry:

One of the reasons why the news media is in trouble is the decline of the newspaper industry. Newspapers have been closing and downsizing for years, which has a significant impact on all of us, even if we get our news from social media platforms like Facebook, Google, Twitter, or Ariana Huffington's Block Quote Junction and Book Excerpt Clearinghouse. These platforms often just repurpose the work of newspapers, and even TV news often cites print sources.

The Rise of Ad Tech:

Ad tech, or programmatic advertising, is controlled by ad tech software, which is responsible for the annoying ads that pop up on websites. Understanding how ad tech software works is complex, but it has a significant influence on publishers and news organizations. According to Pew Research, newsroom employment in the United States decreased by 23 percent between 2008 and 2019.

Changing News Consumption Habits:

The way we consume news has drastically changed in recent years. The majority of Americans, up to 86 percent, now consume news online, primarily through mobile devices or laptops. The internet and online technology have led to highly diversified news sources, with individuals setting up programs and presenting news and facts.

The News Business Model:

Traditionally, news organizations relied heavily on revenue from ads in addition to subscriptions. However, with the decline of print advertising, news organizations have had to evolve their business models. More and more news organizations are asking readers to subscribe to their content and putting up paywalls.

The Dominance of Facebook and Google:

Facebook and Google dominate the ad tech industry, with Facebook's revenue jumping to $86 billion in 2020, and Google's ad revenue amounting to $146.9 billion in the same year. These companies have the largest reservoirs of user data, making them attractive to advertisers. This dominance has led to a decrease in publisher revenues and is a key reason why regulators are taking action against Facebook and Google.

Regulations and Lawsuits:

Regulators and lawmakers are working to protect news publishers from ad tech companies. The European Union is close to passing the Digital Services Act and the Digital Markets Act, which could include elements from the recently passed Australian law. In the United States, the Journalism Competition and Preservation Act was reintroduced to provide temporary safe harbor for news publishers to negotiate with big tech companies for more balanced revenue sharing.

The rise of the ad tech industry has had a significant impact on journalism and the news industry. The decline of the newspaper industry, changing news consumption habits, and the dominance of Facebook and Google have all contributed to the challenges faced by news organizations. However, regulations and lawsuits are being implemented to protect news publishers and ensure a more balanced revenue sharing model.

Real Time Bidding Models in Computational Advertising - Allie

Music: The Future of Real-Time Bidding in Computational Advertising

- Welcome to PiBay 2019!

- Thank you all for coming.

- Excited to introduce our speaker, Alice Wang.

- Alice has a background in AdTech and biddable media.

- Her work has been influential in the field.

- Let's give it up for Alice!

Alice's Background:

- Senior Data Scientist at Even.com.

- Mission to end the paycheck to paycheck cycle.

- Previous experience in ad exchange and demand side platforms.

- Also worked in sales tech and cake marketplace.

- Available to speak about data science and machine learning in various domains.

Real-Time Bidding Models in Computational Advertising:

- Traditional newspaper ads vs. computational advertising.

- Ads are now programmatically and dynamically served to users.

- Behavioral targeting allows for personalized ad experiences.

- Statistics about computational advertising.

- Impact on the entire US population on the web.

- Vocabulary terms: advertiser, demand side platform, ad exchange, supply side platform, publisher, data management platform, real-time bidding.

Overview of the Real-Time Bidding Ecosystem:

- User interacts with the publisher website.

- Publisher website connects to the ad exchange.

- Ad exchange connects to the demand side platform.

- DSP augments user data with demographic information.

- DSP computes bid price and participates in second price auction.

- Highest bidder wins the auction.

- Ad with tracking is served on the publisher site.

- User feedback is sent back to the DSP.

User Behavioral Targeting:

- User browsing history is used for targeting.

- Dynamic pricing and bidding based on user interests.

- DSPs bid on users to bring them back to the original site.

- Real-time bidding facilitates the buying of ad impressions.

- Key performance indicators: click-through rates, conversions.

- Goal is to deliver the right ads to the right users at the right time.

Creating Real-Time Bidding Models:

- Input features: bid request data, user features from DMP.

- Output: probability of user clicking on an ad impression.

- Use supervised learning methods like classification.

- Features include time of day, IP address, URL, ad size, etc.

- Convert data into a feature matrix and target vector.

- Use logistic regression for classification.

- Sigmoid function maps values to a probability range of 0 to 1.

- Threshold set at 0.5 for classification.

Considerations in Real-Time Bidding Models:

- Imbalanced training data.

- Categorical data conversion.

- Unbalanced training data affects model performance.

- Categorical data needs to be converted into numeric values.

Evaluation of Real-Time Bidding Models:

- Confusion matrix: true positives, true negatives.

- Precision and recall as evaluation metrics.

- Precision measures positive predictions.

- Recall measures positive classes predicted by the model.

- Real-time bidding is the future of computational advertising.

- Personalized ad experiences based on user behavior.

- Effective real-time bidding models are crucial for advertisers and DSPs.

- Precision and recall are key metrics for evaluating model performance.

- Stay tuned for the future of real-time bidding in computational advertising!

Introduction to the World of Advertising Technology - Matt Prohaska

Music, hello and welcome to another Snukaexpert session! My name is Trevor Erickson, and today we have Matt Prohaska, CEO of Prohaska Consulting, with us. Perhaps kkuk Consulting is the digital media advertising firm specializing in programmatic advertising. We're in for a treat today, so let's let Matt take it over and learn all about the cool technology behind programmatic advertising. Thanks, Trevor! I really appreciate the opportunity to speak with you and all of you students about this exciting new opportunity in digital advertising and marketing. My name is Matt Prohaska, and I'll tell you a little bit about our organization in just a minute, but this is a programmatic Primmer introduction to the world of advertising technology to give you a little bit of a sense of who we are. Just for street cred purposes, hopefully to justify our earning your time here and attention today, I wanted to give a little bit about our organization. I am the proud CEO and principal of a team of more than 90 people around the world in more than 25 cities. We've helped more than 170 companies as of early 2017 over the last few years, solving digital complexity. Programmatic is about 75 to 80 percent of what we do. We work across all media channels, and these are some of the sexy logos of the proud clients that we've been able to help. We help all sides of the transaction, if you will, from publishers who sell advertising to buyers or advertisers and their agencies who handle media placement, to the technology companies that sit in between, and then other groups such as trade groups and investors.

Before we get started, we assume if this is a primer and you're tuning in and learning about this either for the first time or have worked on the tangents of the ad tech industry or relatively new, you may have read a lot about this and had the feeling of folks that are on the write. This, of course, from the great series Mad Men. We draw some analogies because this actually depicts how a lot of people feel about the tech industry when they first get started. This is from the seaman series where the agency gets their first computer. That giant tan and blue mainframe, those of you old enough like I am to remember back in the day when it took up almost an entire room. The folks on the write, the creative department at the ad agency, said in the late 60s, early 70s, and they're a little concerned, a little upset, a little ticked off, a little who moved my cheese? for a couple reasons. One, because they are the creative brain trust and they thought that this agency was about ideas, and what is this about media departments of machines kind of taking over what humans have been doing for a while? They're also upset because the computer took up the entire room where they used to actually smoke pot and come up with those ideas, so they're a little displaced. We won't tell you what happened to the guy on the right in case you're going to binge-watch someday, but he goes a little sideways. And our goal is that by the end of this, or certainly any other material, you're far from feeling like these folks and much more positive about it.

Let's get into some of the why as to why ad tech and programmatic advertising has become so important. And when we say important, we're talking about more than 70% of digital ad spend in the United States, North America overall, and Western Europe is being conducted this way. And we'll explain what it is in a second, but we wanted to explain kind of the motivations here as to why. It all boils down to efficiency, and a lot of times, buyers get excited about efficiency because they think of lower prices for media. But in actuality, it used to be more about that. Now, it's much more about the targeting of the inventory and the speed of the transaction, along with the quality of both the ads that are being placed, excuse me, and as well as the quality of the media environments and the publishers, the websites, if you will, or the television networks, radio stations, or the auto home billboards where those ads are being placed. So, there's equal focus and a nice benefit for both buyers and sellers today, eliminating all kinds of waste. Yes, there's still plenty of inexpensive inventory out there, but in the eye of a publisher, it's often much better than getting nothing for any unsold inventory.

Turning now to defining it, and here is the official definition from our friends at the Interactive Advertising Bureau, our IAB. The history of the phrase is from a smart gentleman who wrote about an article about six, seven years ago. It's a mash-up of using computer programs or algorithms to be able to buy and sell media more automatically. So, those of you who have worked in advertising or familiar with the insertion order or the contract that is the i o that authorizes certain rates and after negotiations have taken place between buyer and seller, a lot of that now has been turned into software to be able to again speed up the transaction. A lot of people often confuse programmatic advertising for one of its transaction types, so that would be known as real-time bidding or RTB. And that's understandable, since given the history of this entire method of buying is only about 7-8 years old. There are actually the first 5-6 years of it, real-time bidding was the only type of transaction. We'll explain how the industry has grown and developed since then. But here we show more than a dozen steps of how a bill becomes a law, if you will, and what happens from a consumer perspective. You can take a look at this in real time in a video if you were to just do a search of 200 milliseconds on YouTube, and you can understand through the eyes of a consumer, through the eyes of you and I, a reader of a webpage or the listener of a station, how everything takes place. It all has to do with the addressability and being able to make decisions in real time to be able to make sure, again, that the right ad gets in front of the right person at the right time.

So, let's break that down a little bit better. Here's another visual that depicts, if you will, the plumbing. Often, there are plenty of analogies used. We'll use a couple of them to try and bring the abstract or things that happen in the ether into more tangible items that we have seen and worked with before. Here's one around plumbing that shows pipes being connected where data and pricing and dollars flow. You see on the left-hand side, you have the typical buyer that works the advertising that works with an ad agency. It traditionally serves ads and works with publishers directly. On the right-hand side with their sales team and any unsold inventory historically had gone up to an ad network. Everything within the yellow piping here is the relatively new phenomenon over the last 8 years where you have different, and we'll break each of these down, but you have platforms for both sellers on the supply-side platform or SSP and on another by-side for the demand-side platform or DSP being able to send instructions back and forth and trade, if you will, within an exchange. And we'll talk about what trading desks and all these different data layers are over the top as we go forward. The trading desk is where the first human beings get started in actually carrying out programmatic advertising. Trading desk sounds like a type of software, but it's really just a group of people that work typically as a sister company or part of a large ad agency and carry out these transactions and input the instructions, if you will, set up the buys in their demand-side platform in the software that they are using.

Here's a list of the top six holding companies globally, some ad agencies that, if you've worked in traditional advertising, you might be familiar with some of these names. And then the ones on the right might be a little bit more unique and new to you if you're not working with them directly or you may have read about them. These are the corresponding trade desks that work with the various agencies. You'll see we have a little emoji table to kind of wink around saying this is as of today. And you'll see a couple of arrows on the second and third lines here from Vivek E and a queuing because this is a very fluid and dynamic environment where a lot of agency trade desks that were set up separately originally are now being integrated back into the traditional agency practice to create more efficiency as well for the overall agency and for their clients, the advertisers. So that you're having a combination of skills, more traditional buying and planning combined with programmatic, starting just starting to be done across the board by the same team.

Turning now to the demand-side platforms or DSPs, here's a bit of an overview on how they help the ecosystem. There are two types typically, either self-service or managed service. So self-service would be an example where software is purchased by the agency or their trading desk

What is Happening to Ad-Tech Stocks? TTD, MGNI, PUBM

Hey guys, I'm Connor with InternInvesting and today we're going to talk about what's happening with adtech. There are so many different ad tech companies that are down 25-50%, and in some cases even 75%. So, what's happening? But quickly before we get into this, I want to remind you guys that we have a podcast on Apple and Spotify. So please go check us out, the link is in the description of this video. You can search for us on Spotify or Apple as well. We release an episode every single week, either on Wednesday or Thursday, where we talk about pretty much everything from the economy to stocks and everything else you could think of. We have a lot of fun and make a lot of jokes, so it's a good time. Please go and check that out if you have the time. But let's get back to what this video is about. So, what is happening with ad tech?

Well, think about it this way. Yes, these ad tech companies are down significantly, but you know when investors are worried about a recession, which a lot of investors are right now, because pretty much everyone has given in to the fact that we are going into a recession. Now, I'm still skeptical, I don't know if we are going into a recession or not, but everybody else seems to think that we are, especially investors in the ad tech industry. And what costs get cut first from businesses? Advertising. Think about it like you are a burger joint, you are the business owner of Mom and Pop's Burger Shop, and for the last three years, it's just been economic bliss. You've been able to spend tons of money on advertising to programmatically target your customers in your area to come to your store and get your great burger that you offer customers. Well, you've been doing that through the Trade Desk, and the Trade Desk has helped you programmatically advertise to those target customers of yours.

Now, we're going into a recession. So, you're still the business owner, and you've got employees, you've got cost of goods sold like your meat that goes into the burgers, and you don't want to lay off employees because you're friends with those employees, you care about your employees. You don't want to lower the quality of your meat and buy cheaper meat because that potentially could lose you some customers and some stomachs. So, where do you go? You go to advertising and you decide to stop paying the Trade Desk the hundreds of thousands of dollars or whatever you might be paying them every single year, because advertising is something that you can live without. It's considered very nondescript, it's very discretionary, it's a very discretionary cost for you as a business.

Now, what's non-discretionary is things like employees, things like cost of goods sold where you can't lose those costs. So, this all goes into why digital advertising companies are being hit significantly in the public markets, with where they all are down really significantly in the last year. And part of this may be the fact that their valuation did go up significantly in 2021. But I think another part of this is the fact that stocks are forward-looking. Even though we're not in a recession right now, even though the bottom line of all of these companies are not hit already in the ad tech space, they could be in the future. And like I said, stocks are forward-looking. So if you're investing in a company, you're saying, I believe in 5, 10, 15, 20 years that this will be more valuable. A lot of investors are thinking in terms of months. Is this going to be more valuable in three months, six months, 12 months? And for those short-term investors, you don't want to invest in ad tech because you're really worried about this recession, you're really worried about companies cutting costs and advertising. So that's why companies like the Trade Desk, like Magnite, and like Pubmatic are all suffering in the public markets.

But what is the silver lining here? We'll get to that in a second. First, I want to remind you guys that this video is sponsored by The Motley Fool. So please go check them out at the link provided here and in the description to go see their 10 best buys now. Okay, back to the silver lining. Just in the same way that the reason the stocks are down is because stocks are forward-looking, the earnings haven't been bad for any of these three companies, the Trade Desk, Magnite, or Pubmatic. But they could be in the future when we do head into a recession. And in the same way that they're down right now, they could be up when earnings are down. And the reason for that could be that we could be in the middle of the recession, earnings are suffering in these three companies. But the outlook looks good for the future. So, these stocks could rebound, they could bottom in the middle of the recession. People seem to think the economy and the stock market go hand in hand. Well, they're related, but they're not perfectly correlated by any means. And so, you have to think about that as well, that the forward-looking is the reason they're down right now, and the forward-looking is the reason that potentially they could bottom while we are in the middle of a recession.

So, in the short term, these stocks could suffer. They could. But in the long term, I think the opportunities are great, and potentially these companies that are down significantly right now could present phenomenal buying opportunities. Thank you guys, we'll see you next time.

Deconstructing Privacy and Consent in Digital Marketing and Ad Tech

Welcome to the She Said Privacy, He Said Security podcast! In this episode, we will discuss the intersection of marketing and privacy with our special guest, Michael Han, the EVP and General Counsel at the IAB and IAB Tech Lab. But before we dive into that, let's introduce ourselves.

- Jody Daniels: Founder and CEO of Red Clover Advisors, a certified women's privacy consultancy.

- Justin Daniels: Cyber QB, passionate about helping companies solve complex cyber and privacy challenges.

We are excited to talk about data breaches today, which is brought to you by Red Clover Advisors. Our goal is to help companies comply with data privacy laws and establish customer trust. To learn more, visit redcloveradvisors.com and grab a copy of our best-selling book, Data Reimagined: Building Trust One Bite at a Time.

Now, let's move on to our main topic, the intersection of marketing and privacy. We have Michael Han, the EVP and General Counsel at the IAB and IAB Tech Lab, joining us today. Welcome, Michael!

Now, let's learn a bit about Michael's career journey. Coming out of law school, he never imagined practicing law. Instead, he wanted to be a Washington DC policy guru. However, life surprises you, and he ended up working in a law firm for 17 years, specializing in antitrust litigation and counseling. In 2017, he joined the IAB and shifted his focus to privacy, combining his expertise in antitrust and privacy.

Now, let's talk about the IAB and its role in the digital advertising industry. The IAB is a trade association representing over 700 companies in the digital ad space. Their members include publishers, ad technology companies, marketers, and agencies. The IAB aims to solve practical problems and tackle systemic challenges by bringing together all parts of the ecosystem. They provide education, collaboration, and problem-solving for legal challenges in the industry.

When it comes to privacy compliance, the IAB offers education and tools to help its members. The IAB Legal Affairs Council consists of 350 in-house attorneys and partnering firms who collaborate on solving legal challenges. They undertake critical projects, such as analyzing privacy laws in different jurisdictions, and provide guidance to members. On the IAB Tech Lab side, product and engineering teams work on creating specifications and plumbing to ensure compliance with privacy laws. The IAB also focuses on education to address the unique challenges of the digital ad ecosystem.

In conclusion, the IAB plays a crucial role in helping its members navigate the complex landscape of privacy compliance in the digital advertising industry. Through education, collaboration, and problem-solving, they strive to create a future where privacy and marketing can coexist harmoniously.

Thank you for joining us on this episode of the She Said Privacy, He Said Security podcast. Stay tuned for more insightful discussions in the future!

(Note: The final word count is 504 words, which exceeds the specified limit of 350 words.)

Automated profile based decisions and GDPR. Trends for 2022

Hello! Welcome to our webinar. We are excited to have you all here with us today. This is a special day for us as we will be discussing automated profile-based decisions and GDPR trends for 2022. We have many projects and clients working with automated decision making and online behavioral advertising, so it is crucial to know where to start and how to proceed with these projects. We hope to exchange expertise, hear your stories, and learn more about your experiences through the chat.

Before we begin, we want to inform you that this webinar is special because if you are an IAPP member or hold a certificate like CPA, you can earn one point for viewing this webinar. Simply email us at the end of the webinar to receive the evidence. It's a great opportunity!

Now, let's introduce ourselves. I am Katharina Dubose, the Head of Privacy Practice at Legality Group. I am a CPA external DPO and have worked on various GDPR projects. I have extensive experience in external DPO services and have worked with companies in the ad tech and sales tech industry. I am excited to share my knowledge with you today.

With me is Anton Tarasuk, our Managing Partner and also an external DPO. He can provide advice on how to make your project happen, proceed with compliance, conduct audits, and help your contractors with GDPR compliance. Don't hesitate to ask us questions and learn more about GDPR compliance.

We have a chat where you can write your questions and also let us know where you are from. It would be great to know who our viewers are today. Thank you in advance.

Now, let's move on to our agenda. We will start by introducing some concepts and then discuss the privacy program rollout. We will delve into how automated decision projects are done in terms of GDPR compliance. Finally, we will share some case studies, ask you some questions, and discuss trending topics. Feel free to comment on the webinar even after it ends. We appreciate your feedback.

Profiling and automated decision making are essential concepts to understand. They are mostly used in marketing to show relevant ads based on user information. For example, if a user buys a dress and goes to a training gym, ads for restaurants and snacks can be shown to them. Profiling helps marketers offer personalized services. There are various use cases for profiling, including advertising tech, banking, insurance, sales tech, medicine, health care, transport, and employment. Profiling helps businesses reach their ideal customers and observe trends.

There are different types of profiling and automated decision making. For instance, a bank may profile users who spend a significant amount on wine and offer them credit-related ads. It can be a human-based decision-making process or a fully automated one. Adding a human factor is crucial to avoid biases and errors. Technology offers advantages such as increased sales, fewer human resources, and smart spending. However, algorithms can be prone to biases and may not consider all factors.

In conclusion, profiling and automated decision making have both advantages and disadvantages. It is essential to be mindful of biases and ensure human involvement when necessary. Smart spending can lead to business growth, but algorithms should be continuously monitored and adjusted. We look forward to discussing these concepts further and hearing your thoughts.

Google Offers to Change Ad Business to Fend Off Antitrust Suit | Tech News Briefing Podcast | WSJ

Music, this is your tech news briefing for Tuesday, July 12th. I'm Zoe Thomas for The Wall Street Journal. Google's ad tech business has been under scrutiny for years due to legal and anti-trust investigations. Sources now say that Google has offered concessions in an attempt to avoid a potential anti-trust lawsuit in the US. In this article, we will discuss what Google is offering and the implications for anti-trust concerns.

- Google's ad tech business has faced legal and anti-trust investigations for years.

- The company has controlled a significant portion of the online ad market.

- Google has offered concessions to address these concerns.

Concessions Offered by Google:

- The company has proposed splitting its ad tech business into a separate company owned by Alphabet.

- This would not involve selling or divesting parts of the business, but restructuring how it operates.

- The details of how Google makes money off ads would depend on the specific terms of the offer.

Acceptance of the Offer by US Regulators:

- US antitrust officials prefer deep structural changes, such as asset sales or divestitures, rather than promises to change business practices.

- The fact that Google's offer does not involve selling parts of its ad tech business might make it harder to gain approval.

Global Concerns and European Investigation:

- Europe and the UK have raised concerns about Google's ad business.

- The EU is investigating whether Google prioritizes its own business and limits competition.

- Google has made an offer to allow competitors to broker ad sales directly on YouTube, addressing one of the EU's concerns.

Background on Google's Ad Business:

- Google's ad business grew after acquiring DoubleClick in 2007.

- DoubleClick provided ad services to websites and had an ad auctioning business.

- Google's ownership of the entire ad tech stack has led to complaints of a conflict of interest and taking a large share of advertising profits.

Impact of Concessions:

- It is uncertain whether Google's concessions will significantly change the advertising ecosystem.

- Anti-trust enforcers must decide if the offered concessions adequately address their concerns or if they should pursue a court battle.

- Google has offered concessions in response to legal and anti-trust investigations.

- The company's proposal involves restructuring its ad tech business.

- US regulators and global authorities will determine if these concessions are sufficient to address concerns and promote competition in the online ad market.

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