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Business

Business. Contents. Introduction Adwords Adsense Principles Other Business Applications. Introduction. The internet caused two major changes to business.

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Business

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  1. Business

  2. Contents • Introduction • Adwords • Adsense • Principles • Other Business Applications

  3. Introduction • The internet caused two major changes to business. • The first is a change from interruption-driven marketing, as captured by this quote: www.cs.pdx.edu/~len/345/Interrupt.doc , to “behavioral targeting”, customizing ads to the customer. • The second change, exemplified by Adwords and Adsense, is from selling ads to auctioning them. • Almost all of Google's $21B/yr revenue is from auctioning ads, • The story about how this happened at Google is at the paragraph beginning "The move was risky" at http://tinyurl.com/mh9xtu • The story contains some expletives

  4. Adwords • Let's look more closely at Adwords advertisements. • Do a Google Search • Called Sponsored Links • Some are on top, most on the right • Structure (on the right): • Title, two lines of text, web site • Title is a link to a directory in the web site • Top links have one line of text. • Anyone can buy these ads, online • You just need: A Google account, a web site, Money • Google will provide the web site for free, and lots of tools. • You pay only if the link is clicked!

  5. How to set up an Adwords Campaign* • Get your Adwords account at adwords.google.com • Use your Google account to sign in. • Settings • Location can be as specific as a zip code (where the ad is shown) • You can choose what kinds of devices your ad will appear on, what locations (e.g. Gmail), etc. • Ad • Served (% shown), number of clicks, number of impressions, click through rate, cost. • Keywords • Max Cost per Click (2nd highest bidder method)

  6. Adsense • Adsense is similar to Adwords • In Adsense, if you own a website and many people visit it, you can sell space to Adwords. • Ads on your site are the same ads as • Each time an ad is clicked, you are paid.

  7. Which Principles does Adwords embody? • Data Rules: The value of an application is increased by the scale and dynamism of the data it manages • The long tail: Small products/ideas make up the great majority of all products/ideas. • Use your Users: Enable users to contribute content to the application • The Power of Groups: Apply the wisdom of users to solve problems • Enable Community: Enable users to share their experiences in your application • Folksonomy, not Taxonomy: Utilize user-generated tags to classify items, instead of expertly generated categories

  8. Other Business Applications • www.amazon.com • We have recommendations for you • Click on an item, see customer reviews, including videos • Can look inside the first and last pages of some books • www.ebay.com • Auction site, also stores • Sellers have reputations • When you make a bid, ebay does the bidding for you. • Ebay bids only as high as necessary to make you the highest bidder, or tells you that you have been outbid • This is an example of a "second highest bidder" auction

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