An Overview of Search Advertising
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Transcript of An Overview of Search Advertising
Search Advertising Overview
Ali Dasdan, Yahoo!
Disclaimers: This talk presents the opinions of the author. Some of the proposals have been submitted as patent applications.
Outline
Overall advertising market Online advertising overview Search advertising introduction Output bidding
New search advertising model
Opportunities Conclusions
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Advertising market size & growth predictions
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Online advertising overview & examples
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Online advertising
Goal: find the “best match” between an ad
and a context to maximize “value” for all stakeholders
Context: browse, search, connect, etc.
Stakeholders users, advertisers, publishers,
auctioneers
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Context to Ad Matching
Browse
Search
Connect
Buy, sell
Learn, entertain
Display banner, rich media,
sponsorship
Search Input (keyword),
output
Content Social Classifieds, referrals Email
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Context to Ad Matching
Browse
Search
Connect
Buy, sell
Learn, entertain
Display banner, rich media,
sponsorship
Search Input (keyword),
output
Content Social Classifieds, referrals Email
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More context parameters
Performance ad relevance, past or expected performance, impression, click, conversion
Behavioral search query intent (navigational, informational, transactional) browse or search history
Geographic language, country, region, city, any polygon around a center
Demographics gender, age, profession, income
Temporal workday, weekend, daytime, nighttime, month, season
Monetary bid, budget
Content URL, text, topic, color, form factor
…
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Main stakeholders of online advertising
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Publisher, content owner
User Auctioneer, network, exchange
Advertiser, agency
Often in multiple roles
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Stakeholders in an ad exchange
Examples: Display ads
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Examples: Display ads
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Examples: Display ads in social network
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Examples: Content ads
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Examples: Content ads
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Search advertising overview & examples
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Search results page for the query “air conditioner”
Input Output
Sponsored results
Organic results
Oth
er U
sefu
l Stu
ff
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Search results page for the query “air conditioner”
Examples: Keyword ads for [barack obama]
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Examples: Keyword ads for [new york university]
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Evolution of search results pages
Search results pages from major search engines follow…
Search results pages have improved beyond the “10 blue links” with query facets, results classification rich results, rich ads related searches, related results/sites local results video & image results news & (micro)blog results …
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Y! presentation modules Shortcuts Search suggestions / Search Assist
Quick links
Indentation
Rich results
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Local business results
Shopping results
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Search results page for the query “air conditioner”
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Rich ad
Organic result
Quiz: A or B is better?
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A
B
A B
Quiz: A or B is better?
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A
A
B
B
Where users focus
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Where users focus
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Reading (Yahoo! Finance) Scanning (Yahoo! Finance)
A brief history of keyword advertising
Early 1990s: Open Text & AltaVista try it but fail. Feb 1998: GoTo introduces it for paid search.
the idea is from yellowpages May 1999: GoTo files for a patent application. Oct 2000: Google introduces AdWords.
after two unsuccessful internal attempts Jul 2001: GoTo gets patent #6,269,361. Oct 2001: GoTo renames to Overture. Apr 2002: Overture sues Google. May 2002: Google hires Hal Varian as its chief economist. Mar 2003: Google acquires Applied Semantics & introduces
its AdSense contextual advertising service. Jul 2003: Yahoo! acquires Overture. Aug 2004: Yahoo! & Google settle the case out of court.
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Keyword advertising patent (Goto Overture Yahoo!)
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Cost & performance measures
Cost measures CPM: Cost per 1000x impressions
the original model CPC: Cost per click, pay per click
Yahoo! has been using since 1996. CPA: Cost per action
action: acquisition, order, engagement DoubleClick has been using since 1997.
Performance measures Click thru rate (ctr): P(click|impression) Conversion rate: P(action|click)
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Ranking ads & pricing clicks
Ranking in decreasing r = w * b by bid: r = b = bid by expected revenue: r = ctr * b by performance: r = f(…) * bs
Pricing generalized second price (gsp):
min price (+ε) to keep the current position e.g., the ith pays (wi+1*bi+1)/wi+0.01
last position holder to pay a reserve price
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Illustration
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Output bidding, a new search advertising model
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Summary of output bidding
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y = f ( x ) Search results
(output) Search engine Search query
(input)
Keyword (input) bidding is on x. Output bidding is on y.
Note: • y >> x in size & context • y is where innovation happens
Review of input & output
Search engine as a mapping: Output = SE( Input ) y = f( x )
Input: What users give to SEs a few keywords as a query very limited (given) context
Output: What SEs produce lots of data and metadata far richer context & getting richer where innovation happens
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Intent bidding & ad association
What do advertisers bid on? users’ (purchasing) intent signal for intent: keywords
How do advertisers bid? associate their ads with keywords
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Output bidding proposal
Claims use output as a far richer signal for
intent associate ads with output too
Proposal direct use: Bidding on output explicitly indirect use: Use of output as part of
input bidding
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Output bidding variations
Paid (self) association (PA): Ads with organic results from the same site
More expressive input bidding: Output as conditions: Conditions on output parameters Output as expansion: “Keywords” from output for
keyword bidding Direct output bidding:
Bid for organic search result, show ad closeby
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Sponsored: Discount on air conditioners
Issues to resolve
Mindset – probably the most difficult issue User interface: New ads as an extension of sponsored results
space or next to target organic result? News ads shown with mouse over or always on?
Auction modeling: What if an advertiser bids for both input and output, or multiple outputs? How not to undermine input bidding revenue with output bidding? What is the role of organic content publisher in auctions regarding its content?
Search advertising: Should ‘Ace Hardware’ be just a “organic related site” instead of a “sponsored related site” to ‘Home Depot’? Should search engines charge for commercial-looking organic results (local business, shopping, etc.)?
Implementation: How to hide the latency of output dependence?
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Benefits & limitations
Benefits taking better advantage of content &
search engine investments better ad targeting and relevance with
richer context potentially establishing publishers as a
first-class partner to search auctions Limitations
search engines manipulating their organic content based on output bids?
Not likely due to potential loss of relevance
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Related work
Output bidding Dasdan (2007) – conceived in early 2006; Dasdan & Gonen
(2008); Bids on search results
Dasdan (2007); Manavoglu, Popescul, Dom, & Brunk (2008). Interplay between organic and sponsored results
Ghose & Yang (2009); Katona & Sarvary (2009); Xu, Chen, & Whinston (2009).
Bids on more parameters of input bidding Aggarwal, Feldman, & Muthukrishnan (2006); Muthukrishnan
(2009); Benisch, Sadeh, & Sandholm (2008). Use of top search results for enhancing keyword context
and ad matching Broder, Ciccolo, Fontoura, Gabrilovich, Josifovski, & Riedel
(2008).
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Questions & opportunities
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Local business results
Shopping results
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Should such results be sponsored too?
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For the query “zappos”, what is the need for the two results (one organic and one ad) for zappos.com? Should the ‘similar to this’ sites stay organic?
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Rich ad
Organic result
For the query “charles schwab”, what is the need for the two results (one organic and one ad) for schwab.com?
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What are the potential uses of the box on the right, which allows a peek into the destination page?
Short list
Theory and practice of output bidding Fusing organic & sponsored processing
pipelines Bringing publishers to search auction
Interactions between organic and sponsored results
New opportunities for ads in search results pages
Ads for shopping lists (e.g., ebay results) Life with a few, very powerful players
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Conclusions
Web search and advertising at the intersection of many scientific disciplines
Lots of challenges but huge rewards uncertainty, scale
Too early to call the field advanced beyond reach so help invent its future
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Thank you
Q&A
http://www.dasdan.net/ali/
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Thank you
Q&A
Misc
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Experimental Results 1/2
Hypothesis #1: An ad has higher CTR if it is correlated to an organic result. Correlation: Being from the same site Dataset: Queries from 3 days of Yahoo!
Web Search logs Result: 3x & 10x CTR increases for non-
navigational and navigational queries
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Experimental Results 2/2
Hypothesis #2: Organic results do contain terms to match for (input bidding) ads. Dataset: 100 queries producing no or
few ads Result: 5x increase in total number of
ads, some queries with lots of ads See the next figure
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Experimental Results 2/2
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Examples 1/2
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Ads here?
Examples 2/2
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Rank by auction?
Combine?
Content advertising patent application (Google owns)
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http://www.milliondollarhomepage.com/
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