Network Advertising Initiative

What it reported doing in 2024

In 2024, the nai's self-regulatory program focused on: (1) helping companies understand their compliance obligations with respect to an active and rapidly changing state legal environment and changes in browsers and operating systems; (2) the creation of a new self-regulatory framework that helps companies create and implement processes for compliance with state privacy laws and federal enforcement priorities; (3) updating and implementing its enhanced guidance for the collection and use of precise location information from sensitive locations; and (4) further expansion of public policy efforts, advocacy, and outreach on a state and federal level. In 2024, the nai participated in several cross-industry and cross-trade groups to help create awareness of new state privacy legal requirements, as well as planning for changes in opt-out requirements and technologies, adapting to platform changes to the treatment of third party cookies, and implementing heightened sensitive location data restrictions. The nai is an active participant in technology focused cross-industry efforts such as the iab tech lab privacy and rearc commit group, iab europe's tcf steering group, the world wide web consortium (w3c), and google's privacy sandbox, keeping nai members apprised of developments in these groups while also representing the many small and medium sized companies that are nai members. The nai held its annual member summit in may 2024 in New York, ny. Speakers and participants included member companies and their business partners, law firms, data and privacy experts, and state and federal regulators. The nai hosted the executive director of the newly established California privacy protection agency, ashkan soltani, for a fireside chat to discuss the evolving u.s. Legal landscape, the need to prevent consumer harms, and technological changes needed to enhance consumer privacy, control, and data security, and welcomed award-winning journalist and author byron tau as a keynote speaker to highlight the need for the advertising technology industry to embrace change to preserve the benefits of digital advertising. Through an additional series of virtual and in person roundtables and salon style events, nai provided its member companies with the latest information on emerging technologies, regulatory and legislative trends, and emerging business models.the nai coordinated monthly working group meetings to discuss the creation of a new self-regulatory framework, privacy and technology issues and privacy regulation and legislation, including the use of precise location data, international legislative and regulatory developments, and new state legislation and regulations. In october 2024, the nai published an update to its "nai enhanced standards for precise location information solution providers (enhanced standards) and worked with policy makers, regulators, and members to educate them on the standards. The updated guidance to the enhanced standards, which prohibit the use, sale, and transfer of precise location data from sensitive locations, clarify how nationally recognized industry classification systems, such as the north american industry classification system (naics), can be used to identify sensitive points of interest and comply with the enhanced standards, and make additional changes to improve administrability of the enhanced standards among signatories.the nai engaged substantially with various house and senate committees on legislative efforts related to privacy, including with respect to the american privacy rights act, several bills related to location data and national security, and children's privacy legislation. In addition, the nai filed comments with various state legislators, attorney general offices, and regulatory agencies to support consumer privacy legislation and regulation that preserves digital advertising's benefits to consumers and small businesses, including California, New York, Colorado, Delaware, Texas, and Virginia

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 2 of 6 controls in place; rating input score 33
  • Compensation committee: Pass
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 2 of 9 controls in place; rating input score 22
  • Conflict-of-interest policy: Fail
  • Whistleblower policy: Fail
  • Document-retention policy: Fail
  • CEO compensation review process: Pass
  • Other executive compensation review process: Fail
  • Form 990 shared with the board: Fail
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Missing
  • Independent financial-statement audit: Fail

Sustainability

• Operating margin: -11.9%; rating input score 11; 11th percentile among comparable filings
• Total-asset coverage ratio: 0.76; rating input score 28; 28th percentile among comparable filings
• Liabilities to assets ratio: 0.33; rating input score 32; 32nd percentile among comparable filings
• Officer compensation ratio: 38.9%; rating input score 3; 3rd percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: 4.4% per year; rating input score 100; 37th percentile among comparable filings
• Asset growth: 7.9% per year; rating input score 100; 50th percentile among comparable filings