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Contextual Advertising - PowerPoint

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Contextual Advertising - PowerPoint Powered By Docstoc
					Ankit Mehta




              1
        Brief history of online
              advertising
 May 1978: First Marketing Spam form DEC Marketing
  representative.
 1994: First banner ad by AT&T on Hotwired.com




                                                      2
History of online advertising
 1996: First interactive ad by HP where users can play
 ping pong .




                                                          3
Types of online advertising


 Search Advertising : Google AdWords


 Classifieds : Craiglist


 Traditional web advertising : Banner ads, pop up ads,
  hover ads etc



                                                          4
Types of online advertising
                            Screenshot from the game Burnout
                            Paradise”



 In-Game Advertising




                                Advertisement of IBM in the online world
                                Second Life


 Advertising in Online games




                                                                      5
Types of online advertising
 Email Advertising : Legitimate marketing emails ,
  Spam
 Video Advertising: Hulu
 Spyware : CoolWebSearch
 Affiliate Advertising : Amazon




                                                      6
Contextual Advertising
  A system is context-aware if it uses context to provide
  relevant information and/or services to the user, where
  relevancy depends on the user's task.
 Primarily used on internet but also used in Cable TV,
  Mobile phones




                                                            7
Different Types of Context
 Contextual Targeting using page content


 Behavioral Targeting using user behavior


 Geo-Targeting using user’s location




                                             8
Types of Contextual Advertising
 In Page Contextual
  Advertisement
    Google Adsense
 Behavior Based Contextual
  Advertising
    Facebook
 In-Line Advertising
 Channel-Based Contextual
  Advertising
 Search-based Contextual
  Advertising

                                  9
How Ads are Delivered




                        [2]

                              10
      Context matching algorithm
      Contextual Targeting based on page content


 Represent the page as set of keywords and then rank
 the ads based on the keywords extracted from the
 content page [3]

 Give a pre computed suggested list of keywords for the
 advertiser to place in his advertisement which can lead
 to better matching of ads to the pages. [4]
 https://adwords.google.com/select/KeywordToolExter
 nal
                                                           11
  Contextual Targeting based on page content

 Generate a different representation of target page i.e.
  add more related words to the page. [5]
  This avoids the vocabulary mismatch problem.




                                                            12
Behavioral Targeting Technologies
 Storing users web information using cookies.

 Installing equipment and software at the ISP
    Deep Packet Inspection techniques to monitor user
     packets in realtime and serve ads in realtime
       Phorm provides this kind of service




                                                         13
Behavioral Targeting Technologies
 Web Beacon




                                    14
Geographical Targeting
 Can be done using checking IP address
 Newer systems also use GPS




                                          15
       Advantages of Contextual
             Advertising
 Advantages
    More clicks per ad by the users.
     Hence more effective advertisement . This leads to
     greater revenue for both the advertiser and the site
     owner where ad is placed




                                                            16
Disadvantages
of Contextual advertising
    Out of context advertisements can hurt the brand
    being advertised .




                                                 17
            Disadvantages
       of Contextual advertising
 Ads of your competitor might be show on your website




                                                         18
            Disadvantages
       of Contextual advertising
 Advertisement having links to viruses etc may show up
  on a proper website.
 Click fraud
 Behavioral targeting does not work if multiple users
  use the same machine.
 Deep packet inspection technique for behavioral ads
  is similar to phone tapping. Privacy issues


                                                          19
                 Revenue models
  Pay Per Click and Cost per lead are the more
  dominant revenue models


 Pay Per Click (PPC)        Cost Per Lead(CPL)
 Cost Per Thousand(CPT)     Cost per engagement
 Cost Per Action (CPA)      Cost-per- Acquisition
                              (CPA)
 Cost per Impression
                             Cost per View (CPV)
 Pay for placement (P4P)
 Pay per call

                                                      20
Disadvantage of traditional forms
 Click rate is <1% for traditional ads as compared to 2-
  5% for contextual advertisement.
  Banner ads affected by banner blindness[1]




                                                            21
  Which is the best form of online
            advertising ?
 Between various forms of contextual ads , the trend
  seems to be towards behavioral based ads . Google is
  the latest player to join this area last month.
 Behavioral ads outperform Search based ads in term of
  relevancy by 22%.
 In social networking sites there is lot of data available
  for behavioral ad providers to be mined and improve
  the relevance of behavior based ads.



                                                              22
Future trends
 More bandwidth means more video and flash based
  ads
 Real time and dynamic advertising in videos, banners
  etc.
 Contextual advertising where the context is
  image/video




                                                         23
References
 [1] http://www.useit.com/eyetracking/
 [2] AD Serving 101, Revised. By Eric Picard, ClickZ, Nov 17, 2008
  http://www.clickz.com/3631700
 [3] “Semantic Associations for contextual advertising”. Massimiliano Ciaramita, Vanessa
  Murdock, Vassilis Plachouras Yahoo! Research Barcelona
 [4] Yih, W., J. Goodman, and V.R. Carvalho, “Finding Advertising Keywords on Web
  Pages,” Proceedings of the 15th international conference on World Wide Web, pp. 213-
  222, 2006. Microsoft Research
 [5] Lacerda, A., M. Cristo, M.A. Goncalves, W. Fan, N. Ziviani, and B. Ribeiro-Neto,
  “Learning to Advertise,” Proceedings of the 29th annual international ACM SIGIR
  conference on Research and development in information retrieval, ACM Press, pp. 549-
  556, 2006. Google Engineering




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