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Study on impact of the memorandum of understanding on online advertising and intellectual property rights on the online advertising market
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Study on impact of the memorandum of understanding on online advertising and intellectual property rights on the online advertising market

2020 ad monitoring exercise

Study on impact of the memorandum of understanding on online advertising and intellectual property rights on the online advertising market

2020 ad monitoring exercise

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Websites and mobile applications that provide access to content, goods or services infringing intellectual property rights (IPR) on a commercial scale use the sale of advertising space as one of their revenue sources by misusing online advertising business models. The presence of mainstream advertising for major brands, as well as the availability of well-known payment services, on IPR-infringing websites and apps: (i) gives undue credibility to such websites and apps; this confuses consumers, who may mistakenly believe that such websites or apps provide access to legal content, goods or services, and erodes their confidence; (ii) damages the reputation of legitimate brands, which are often unaware of where their ads end up; (iii) damages the reputation, and undermines the value of, the advertising industry. The Memorandum of Understanding on online advertising and IPR (MoU), signed in 2018, helps build cooperation between advertising intermediaries, advertisers, technology providers and industry associations to prevent ads being placed on IPR-infringing websites and apps. Following the publication of the first study monitoring the impact of the MoU on the online advertising market (August 2020), this study aims to evaluate the amount and type of online advertising displayed on IPR-infringing websites and estimate the ad revenues collected by IPR-infringing website owners. It also monitors the impact and effectiveness of the MoU on the online advertising market, while taking into account the main impact of the COVID-19 pandemic on the online advertising market and IPR infringements. The study provides an indication of the extent and nature of the problem in different EU countries by analysing, in particular, ad types, branded advertising sectors, brands and ad intermediaries. It also compares the EU to the US over the same time period, providing a benchmark, and compares a subset of identical websites selected from 2019 and 2020 to assess changes in advertising profiles across all of the monitored territories.
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