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Contextual Advertising

Contextual Advertising . Ankit Mehta. Brief history of online advertising. May 1978: First Marketing Spam form DEC Marketing representative. 1994: First banner ad by AT&T on Hotwired.com . History of online advertising. 1996: First interactive ad by HP where users can play ping pong .

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Contextual Advertising

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  1. Contextual Advertising Ankit Mehta

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

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

  4. Types of online advertising • Search Advertising : Google AdWords • Classifieds : Craiglist • Traditional web advertising : Banner ads, pop up ads, hover ads etc

  5. Types of online advertising Screenshot from the game Burnout Paradise” • In-Game Advertising • Advertising in Online games Advertisement of IBM in the online world Second Life

  6. Types of online advertising • Email Advertising : Legitimate marketing emails , Spam • Video Advertising: Hulu • Spyware : CoolWebSearch • Affiliate Advertising : Amazon

  7. 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

  8. Different Types of Context • Contextual Targeting using page content • Behavioral Targeting using user behavior • Geo-Targeting using user’s location

  9. 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

  10. How Ads are Delivered [2]

  11. Context matching algorithmContextual 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/KeywordToolExternal

  12. 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.

  13. 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

  14. Behavioral Targeting Technologies • Web Beacon

  15. Geographical Targeting • Can be done using checking IP address • Newer systems also use GPS

  16. 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

  17. Disadvantagesof Contextual advertising • Out of context advertisements can hurt the brand being advertised .

  18. Disadvantagesof Contextual advertising • Ads of your competitor might be show on your website

  19. Disadvantagesof 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

  20. Revenue models Pay Per Click and Cost per lead are the more dominant revenue models • Pay Per Click (PPC) • Cost Per Thousand(CPT) • Cost Per Action (CPA) • Cost per Impression • Pay for placement (P4P) • Pay per call • Cost Per Lead(CPL) • Cost per engagement • Cost-per- Acquisition (CPA) • Cost per View (CPV)

  21. 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]

  22. 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.

  23. 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

  24. 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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