Research Questions

Topic One: Advertising, Two-Sided Markets, and the Role of Network Operators (ISPs, MSOs)

The emergence of more precisely targeted (interest-based or so-called “behavioral”) advertising offers potential benefits to consumers while at the same time raising possible concerns about privacy. Application providers, network owners, advertisers, content providers, and other interested parties may play a role in allowing these potential benefits to be realized. By facilitating two-sided markets, or platforms that enable two distinct but related groups of customers (such as advertisers and consumers) to obtain value, service providers can expand the scale and scope of their offerings to consumers. Industry groups and the Federal Trade Commission have developed principles for self-regulation online, while some advocacy organizations and members of Congress have pointed to potential harm from more targeted advertising and are calling for new government mandates. Key questions concern the types of disclosures and the level of consumer consent that should be required.

Questions

What are the benefits of more precisely targeted advertising, and how prevalent is the practice?
What technological innovations support the development of more targeted advertising over digital media?
How are consumers affected by increasingly prevalent forms of targeted advertising, and what is the appropriate public policy response?
What is the role for self-regulation, government intervention, and industry standard-setting?
What role should network operators play in regulation (voluntary or prescriptive)?
Describe the future of the advertising marketplace and the role of new and potential entrants, such as Internet service providers (ISPs), cable operators, and other multichannel video programming distributors (MVPDs) offering interactive television services.
How can two-sided markets help encourage the development of new broadband and video services?
How can regulation of advertising or privacy affect, promote, or retard the development of these new services?