2022-10-25T08:00:23-05:00 2021-12-31 521392008 GELMAN ROSENBERG & FREEDMAN 4550 MONTGOMERY AVE SUITE 800N BETHESDA MD 208142930 990 2021-01-01 522291538 NETWORK ADVERTISING INITIATIVE NETW 5713660500 409 7TH STREET NW 250 WASHINGTON DC 20004 LEIGH FREUND PRESIDENT & CEO 5713660500 2022-10-25 1 LEIGH FREUND 999009999 RICHARD J LOCASTRO CPA P00288314 3019519090 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z LEIGH FREUND 409 7TH STREET NW 250 WASHINGTON DC 20004 3384491 0 X WWW.NETWORKADVERTISING.ORG X 1999 DC SEE PART III, LINE 1. 11 11 11 11 0 0 0 0 3296196 3381650 -177 0 0 2841 3296019 3384491 0 0 0 0 1804683 1718951 0 0 0 1556292 1425091 3360975 3144042 -64956 240449 3172248 3040800 814860 442963 2357388 2597837 X NETWORK ADVERTISING INITIATIVE (NAI) IS A TRADE ASSOCIATION FORMED TO PROVIDE ADVOCACY, EDUCATION AND A FORUM FOR THE DISCUSSION OF PRIVACY AND TECHNOLOGY IN DIGITAL ADVERTISING, AND TO CREATE AND ENFORCE A SELF-REGULATORY CODE OF CONDUCT FOR ADVERTISING TECHNOLOGY COMPANIES. 0 0 IN 2021, THE NAI'S SELF-REGULATORY PROGRAM FOCUSED ON: (1) CROSS-INDUSTRY AND CROSS-TRADE DIALOGS TO HELP DEVELOP A NEW PRIVACY FRAMEWORK AND TECHNICAL STANDARDS FOR DIGITAL ADVERTISING THAT ARE CONSISTENT WITH EMERGING STATE LAWS AND CHANGES IN BROWSERS AND OPERATING SYSTEMS; (2) LAUNCHING THE NAI'S EMAIL-BASED AUDIENCE-MATCHED ADVERTISING OPT-OUT MECHANISM; (3) COMMENCING ENFORCEMENT OF ADDITIONAL NOTICE REQUIREMENTS FOR THE COLLECTION OF PRECISE LOCATION INFORMATION; AND (4) FURTHER EXPANSION OF PUBLIC POLICY EFFORTS, ADVOCACY, AND OUTREACH ON A STATE AND FEDERAL LEVEL.IN 2021, THE NAI PARTICIPATED IN SEVERAL CROSS-INDUSTRY AND CROSS-TRADE GROUPS TO HELP CREATE A NEW SELF-REGULATORY (CONTINUED ON SCHEDULE O)FRAMEWORK TO COMPLEMENT EXISTING AND EMERGING STATE LAWS, AS WELL AS THE EVOLUTION OF ADDRESSABILITY. IN THE POLICY SPACE, THE NAI WAS A LEADER IN THE PRAM INITIATIVE WHICH HAS NOW BEEN FOLDED INTO THE DIGITAL ADVERTISING ALLIANCE (DAA) WHERE THE NAI SITS ON THE BOARD OF DIRECTORS. THE NAI IS AN ACTIVE PARTICIPANT IN TECHNOLOGY FOCUSED CROSS-INDUSTRY EFFORTS SUCH AS THE IAB TECH LAB PRIVACY AND REARC COMMIT GROUP, TCF STEERING GROUP, W3C, AND GOOGLE SANDBOX, KEEPING NAI MEMBERS APPRISED OF DEVELOPMENTS IN THESE GROUPS WHILE SPEAKING ON BEHALF OF THE MANY SMALL AND MEDIUM SIZED COMPANIES THAT REPRESENT NAI MEMBERSHIP. TO FURTHER BOLSTER COLLABORATION, THE NAI OPENED PARTICIPATION IN ITS OWN WORKING GROUPS TO PUBLISHERS, ADVERTISERS, LAW FIRMS, AND OTHER STAKEHOLDERS IN THE DIGITAL ADVERTISING ECOSYSTEM.THE NAI LAUNCHED ITS CENTRALIZED, EMAIL ADDRESS-BASED OPT-OUT MECHANISM FOR AUDIENCE-MATCHED ADVERTISING ON JULY 1, 2021, AND SUCCESSFULLY PROCESSED OVER EIGHTY THOUSAND EMAIL OPT-OUT REQUESTS IN 2021. IN A CULMINATION OF MORE THAN A YEAR OF WORK BY NAI STAFF AND MEMBER COMPANIES, THIS NEW TECHNOLOGY ALLOWS CONSUMERS TO EXERCISE CHOICE WITH RESPECT TO AUDIENCE-MATCHED ADVERTISING BASED ON DATA ASSOCIATED WITH THEIR EMAIL ADDRESSES. AS THE USE OF HASHED EMAIL ADDRESSES IS BEING EXPLORED IN NOVEL ADDRESSABILITY TOOLS AND TECHNOLOGIES, THE NAI ALSO ANNOUNCED THAT IT EXPECTS ITS MEMBERS WILL EXTEND SUCH AN OPT OUT TO ALL TAILORED ADVERTISING USING HASHED EMAIL ADDRESSES IN THE NEAR FUTURE.THE NAI BEGAN INCLUDING THE REQUIREMENT FOR ADDITIONAL NOTICE REGARDING THE SHARING AND USE OF PRECISE LOCATION INFORMATION IN ITS 2021 NAI COMPLIANCE REVIEW PROCESS AND NOTED THAT MOMENTUM SEEMED TO BE BUILDING ACROSS THE INDUSTRY FOR PROVIDING THIS ADDITIONAL NOTICE. THE NAI CODE INCLUDES PRINCIPLES RELATED TO TRANSPARENCY, CHOICE, DATA MINIMIZATION, PURPOSE AND USE RESTRICTION, DATA SECURITY, AND OTHERS. ALTHOUGH MANY OF NAI'S RESOURCES GO TO ENSURING THAT THE ADVERTISING ECOSYSTEM OPERATES IN A TRANSPARENT MANNER, AND THAT CHOICES PROVIDED TO CONSUMERS WORK AS EXPECTED, TRANSPARENCY AND CHOICE ALONE ARE BY NO MEANS SUFFICIENT TO PROTECT CONSUMERS, AND THE NAI IS ACTIVELY WORKING TO INTRODUCE NEW GUIDANCE AND REQUIREMENTS REGARDING DATA MINIMIZATION AS WELL AS USE RESTRICTIONS FOR VARIOUS DATA TYPES. FOUR NEW MEMBERS JOINED THE NAI IN 2021, WHICH INCLUDES STARTUP, SMALL TO MEDIUM SIZED ACTORS, TO SOME OF THE MOST IMPORTANT COMPANIES IN THIRD-PARTY DIGITAL ADVERTISING ECOSYSTEM. THIS DEMONSTRATES INTEREST IN NAI MEMBERSHIP PERSISTED EVEN AFTER THE PUBLIC HEALTH CRISIS INTRODUCED SIGNIFICANT ECONOMIC UNCERTAINTY AND COST-CUTTING. THE NAI IS ALSO WORKING MORE CLOSELY WITH ADVERTISERS AND PUBLISHERS AS THEY EMBRACE A LARGER ROLE IN THE DIGITAL ADVERTISING ECOSYSTEM, LEVERAGING THEIR OWN DATA TO HELP DELIVER BETTER ADVERTISING IN PRIVACY-PROMOTING WAYS. AS IN 2020, THE GLOBAL COVID-19 PANDEMIC FORCED THE NAI TO HOLD ITS 2021 SUMMIT VIRTUALLY. THROUGH A SERIES OF VIRTUAL EVENTS, NAI PROVIDED ITS MEMBER COMPANIES WITH THE LATEST INFORMATION ON EMERGING TECHNOLOGIES, REGULATORY AND LEGISLATIVE TRENDS, AND EMERGING BUSINESS MODELS, AS WELL AS THE PRIVACY IMPLICATIONS OF THE PANDEMIC.THE NAI COORDINATED SEVERAL WORKING GROUPS TO DISCUSS CODE UPDATES, EMERGING PRIVACY AND TECHNOLOGY ISSUES AND PRIVACY REGULATION AND LEGISLATION, INCLUDING THE USE OF PRECISE LOCATION DATA, INTERNATIONAL LEGISLATIVE AND REGULATORY DEVELOPMENTS, AND THE CALIFORNIA CONSUMER PRIVACY ACT (CCPA). IN SEPTEMBER 2020, THE NAI PUBLISHED GUIDANCE FOR NAI MEMBER COMPANIES ABOUT MANAGING COMPLIANCE RISKS WHILE ACTING AS A CCPA "SERVICE PROVIDER, AND IN OCTOBER 2020, THE NAI PUBLISHED A WHITE PAPER FOR DIGITAL MEDIA PUBLISHERS AND ADVERTISERS SEEKING TO ENGAGE AD TECH COMPANIES AS SERVICE PROVIDERS.THE NAI COMPLIANCE STAFF PUBLISHED THE 2020 NAI ANNUAL MEMBER COMPLIANCE REPORT AND INITIATED THE REVIEW PROCESS FOR THE 2021 REPORT. THE NAI ALSO HOSTED A VARIETY OF ROUNDTABLE DISCUSSIONS AND MEMBER BRIEFINGS ON VARIOUS CONSUMER PRIVACY INITIATIVES, GLOBAL LEGISLATIVE AND REGULATORY UPDATES, AND INDUSTRY TRADE ASSOCIATION ACTIVITIES.THE NAI SERVED ON THE GOVERNING BOARD AND STEERING COMMITTEE OF THE IAB EUROPE'S TRANSPARENCY & CONSENT FRAMEWORK (TCF), AN INDUSTRY TOOL THAT SUPPORTS COMPANIES WITHIN THE DIGITAL ADVERTISING ECOSYSTEM AS THEY MANAGE THEIR COMPLIANCE OBLIGATIONS WITH THE EU'S GENERAL DATA PROTECTION REGULATION (GDPR) AND EPRIVACY DIRECTIVE. 0 0 0 1 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 8 0 1 11 1 0 0 0 0 0 0 0 0 X 11 11 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0 1 0 0 X LEIGH FREUND 5713660500 409 7TH STREET NW 250 WASHINGTON DC 20004 DOUGLAS MILLER CHAIR 5.00 X X 0 0 0 ALAN CHAPELL VICE-CHAIR 5.00 X X 0 0 0 DANA EDWARDS SECRETARY 5.00 X X 0 0 0 KEN DREIFACH TREASURER 5.00 X X 0 0 0 GHITA HARRIS-NEWTON BOARD MEMBER 5.00 X 0 0 0 DUNCAN MCCALL BOARD MEMBER 5.00 X 0 0 0 PAUL HARRISON BOARD MEMBER 5.00 X 0 0 0 TAMERA REYNOLDS BOARD MEMBER 5.00 X 0 0 0 ILEANA FALTICENI BOARD MEMBER 5.00 X 0 0 0 FIONA CAMPBELL-WEBSTER BOARD MEMBER 5.00 X 0 0 0 MATTHEW PINDER BOARD MEMBER 5.00 X 0 0 0 LEIGH FREUND PRESIDENT & CEO 40.00 X 452100 0 39877 FARAH ZAMAN GENERAL COUNSEL (FROM 8/2021) 40.00 X 103038 0 140 DAVID LEDUC VICE PRESIDENT, PUBLIC POLICY 40.00 X 294509 0 12258 ANTHONY MATYJASZEWSKI VICE PRESIDENT, COMPLIANCE 40.00 X 237496 0 24876 JULIE KARASIK DIRECTOR, TECHNOLOGY & PRODUCT 40.00 X 111527 0 27651 1198670 0 104802 5 0 1 0 RATIONAL 360 1828 L ST NW WASHINGTON DC 20036 PR & MARKETING 207066 1 MEMBERSHIP DUES 900099 3207275 3207275 DAA REVENUE 900099 110300 110300 NAI SUMMIT 900099 64075 64075 3381650 OTHER INCOME 900099 2841 2841 2841 3384491 3381650 0 2841 491977 998139 12181 132879 83775 56042 57290 44951 226715 19475 131132 101632 77632 1513 43526 DAA EXPENSES 473977 INDUSTRY PUBLIC POLICY 117500 DUES AND SUBSCRIPTIONS 57425 MISCELLANEOUS 12045 4236 3144042 2874226 2808895 266312 198443 16227 19492 12105 11235 2383 870 13100 13100 3172248 3040800 772703 408708 42157 34255 814860 442963 X 2240388 2497837 117000 100000 2357388 2597837 3172248 3040800 240449 0 X 0 0 0 0 0 1 3200275 300000 -23045 276955 320028 -43073 10878 10376 502 1227 859 368 870 DEFERRED RENT 34255 34255 X X 0 0 0 LEIGH FREUND PRESIDENT & CEO 336600 0 115500 0 0 0 13563 0 26314 0 491977 0 0 0 DAVID LEDUC VICE PRESIDENT, PUBLIC POLICY 243181 0 51328 0 0 0 8835 0 3423 0 306767 0 0 0 ANTHONY MATYJASZEWSKI VICE PRESIDENT, COMPLIANCE 189997 0 47499 0 0 0 0 0 24876 0 262372 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS ONE CLASS OF MEMBERSHIP. FORM 990, PART VI, SECTION A, LINE 7A NETWORK ADVERTISING INITIATIVE MEMBERS VOTE FOR AT-LARGE BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN CHANGES TO THE NETWORK ADVERTISING INITIATIVE CODE OF CONDUCT ARE APPROVED BY FULL MEMBERSHIP. FORM 990, PART VI, SECTION B, LINE 11B THE PRESIDENT & CEO REVIEWED THE FORM 990 BEFORE IT WAS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 15A AN EXECUTIVE COMMITTEE PREPARES A BUDGET FOR THE COMPENSATION OF THE PRESIDENT AND CEO, AND THE BOARD OF DIRECTORS APPROVES THIS BUDGET. THE PRESIDENT AND CEO SETS A BUDGET FOR STAFF COMPENSATION, WHICH IS THEN REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS. THE LAST REVIEW TOOK PLACE IN DECEMBER 2020. FORM 990, PART VI, SECTION C, LINE 19 THE NETWORK ADVERTISING INITIATIVE MAKES DOCUMENTS AVAILABLE UPON REQUEST.