Web Advertisement
description
Transcript of Web Advertisement
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Web Advertisement
Rong Jin
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Basic Forms of Advertising Brand advertising
Creates a distinct favorable image
Direct-marketing Advertising that involves a "direct response”:
buy, subscribe, vote, donate, etc, now or soon
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Examples
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Web AdvertisingThere are a lot of ad. on the web …
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Search Advertising
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Display Advertising
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Revenue of Internet Advertising
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Different Forms of Internet Ad.
Internet advertising revenues by format in percents - 1998-2004.
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Search Advertising Advertising that is related to the web search Becomes the driving force sustaining monetization
of Web services 63% of the advertisers want to target users according to
their interests 49% want to target users on their geographical locations
Two types Keyword-targeted advertising Content-targeted advertising
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Keyword-targeted Advertising Introduced by Overtune in 1998 Ads are related to the user’s queries Paid list
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Keyword-targeted Advertising Advertiser
Associate ad with keywords Bid on the keywords
The higher the bid, the greater the chances that the ad will be shown the paid list
Only pay when users click on the ad
Presentation of ads A title, a short description, and a URL Creative = title + short description Buzzing word: “free”, “click here”, “enter now to win …”
Conversion: the user jump to the landing page and starts transaction
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Content-targeted Advertising Ads are related to the
content of triggering pages
Automated selection of ads Assign each page with
keywords and key categories
The dominant contextual approach in Web marketing.
Paid list
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Search Advertising Business All large players (Google, Yahoo, MSN) now own:
Web search engine Advertising platform + network
They are both a search engine and an ad agency Google
Own engine for keyword ads (Adwords) Bought Applied Semantics (context ads, Adsense)
Yahoo Bought Inktomi, AltaVista, AlltheWeb, Overture Search: Inktomi Ads: Overture (keyword, context)
MSN Used search from Inktomi + own corpus. Has now its own (Bing) Used ads from Overture, has now own platform (“AdCenter” in 2006)
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Search Advertising Network Failure of search advertising in the early days
Poor matching between ads and keywords/content Irrelevant messages annoy users
Questionable practice popping up ads in pages without the permission of their
publishers, associating their images with improper companies
Solution: search advertising network Form a network so that all the participants are benefited
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Search Advertising Network
Search advertising network
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Search Advertising Network: Broker Responsible for the maintenance of the
network. Decide advertisers and publishers that participate
of the network Decide the publishing policies
Responsible for the auction system Interfaces, databases, controlled vocabularies Match ads to keywords/content
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Search Advertising Network
Search advertising network
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Search Advertising Network: Advertiser Goal:
Popularize their brands and commercialize their products and services.
Their ads are referred to quality users Compete among themselves for keywords by
bidding in an auction system. Pay to the broker according to the traffic Tune the parameters dynamically according to the
performance report
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Advantages of Web Ad. Accountability
Measure the performance and provide feedback about marketing campaigns and strategies.
Dynamically adjust their strategies Flexibility
Target users according to their past behavior, interests, demographic information, and local information
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Search Advertising Network
Search advertising network
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Search Advertising Network: Publisher Goal:
Monetize their pages through the loyalty of their audience Simply displaying ads will annoy most users Search-related ads are more targeted positive user
attitude Provide brokers with the description of their pages
Manually assigned keywords or categories Essential topics derived automatically
Diverse publishers search engines and online directories Small publishers
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Search Advertising Network: Users Goal: getting relevant information from the
publishers. Describing their information needs by
keywords or by surfing in Web pages Average four hundred million queries per day in
2003; 40% were of commercial nature Occasionally click on the ads exhibited, jump
to the advertisers’ pages, and start commercial transactions.
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Example (I) We advertised a tutorial of WWW 2006 Bid on keywords
www2006 $0.20 per click “www 2006” $0.07 per click “www conference” $0.10 per click Prabhakar Raghavan $0.10 per click Andrei Broder $0.07 per click
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Example (II)
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Example (III): Report
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Distribution of Cost Per Click (CPC)
Not a Zip’s law !
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Challenging Questions For advertisers
What words to buy? How much to pay? Arbitrage among keywords/suppliers, try to cherry pick
demographics How to fight with spam Dilemma between the overall cost and the number of clicks
For publisher (search engines) How to price the words?
Let the market decide: bidding! When to place ad? (a matching problem) How to price “extended” or “broad” match ? Long term costs (bad user experience) Dilemma between relevance and short term profit
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Find the Right Ad Relatively simple on bid phrases Similar to Web Search, but
Ranking depends on both bids and relevance Each ad entry = a “small page” Different metadata (keywords, title, URL) Enormous historical data (billions of searches/ad/clicks
records) What about queries on which there is no bid?
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Find the Right Ad Advertiser can bid on “broad queries” and/or
“concept queries” Bid on any query that contains “sigir”or the
“sigir”concept. Pitfall: partial matching
Ad: A seller of car water pumps might bid on “pumps”. Query: “breast pumps” or “black pumps”
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Auction and Pricing Advertisers compete for each keyword Advertiser pays the search engine when a
searcher clicked on a displayed ad Challenges
Which keywords to bid? How much to bid for each keyword? How to adjust the biding according to the
performance?
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Search Advertising System D: a collection of documents (i.e., ads) q: a user query M: q D {0, 1}
A matching function Decide if an ad is relevant to the query q
R: q D [0, 1] A ranking function Decide the relative rank of an ad to query q
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Search Advertising System
Miele ad1ad2 ad3
ad4 ad5 ad6
QueryAd Database
ad1 ad3 ad4
Identify relevant ads by M
Rank ads by RAdvertisersClick Data
Change bid
Bid different keywords
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Relevance Matching The quality of relevance matching affects the
user’s perception of the web content Exact match and approximate match
Exact match: query = ad keywords Approximate match: partial match
Similar to typical IR methods Query expansion to include synonyms and related
terms
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Conversion Rate vs. Query Size
Intuition: the longer the query the higher the conversion rate
Why?
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Conversion Rate vs. Query Size
Intuition: the longer the query the higher the conversion rate
It is because most brand names are
single word
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Conversion Rate vs. Query Size
Too specific queries
Why?
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Ranking Satisfy interests of different parties
Users: relevant information Advertisers: quality traffic at a minimum cost and
with a minimum risk of negative user attitude Brokers and publishers: maximize their revenues
at the minimum risk of negative user attitude
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Click Through Rate vs Ranking
A simple strategy: always put the most expensive ads on the top (what is wrong with this idea?)
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Paid Placement Strategy
Perceived Relevance
Expected Profits
Rank by willingness to pay (WTP ranking) Rank by willingness to pay times click-through rate (WTPC
ranking), i.e., the product between their bids and their expected click-through rate. The reward for a click is larger if it is received in a lower rank.
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Fraud Detection The more publishers have users clicking in the ads
shown in their pages, the more advertisers will pay to them.
Publisher can fake traffic to attract advertisers CompUSA spent more than $10 millions in 2004 due to
fake traffic. Characteristics of fake traffic
Distribution of clicks over time Distribution of clicks over users A standard classification
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Measurements Advertisers need to get detailed feedback about their
performance Cost per thousand impression:
Traditional pricing model Payments were measured mainly based on the quantity of
impressions of ads Uncertainty on the benefit of advertisers
Performance based metrics Direct estimate of advertiser’s return of investments
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Measurements User clicks may not convert Require reliable estimate of the return of their
investments (ROI). Keyword-targeted advertising performs better
than content-targeted advertising Users are less likely to generate a conversion
while surfing.