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

Types of online advertising Advertising : Legitimate marketing s, 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 10 [2]

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] nal 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 17 Out of context advertisements can hurt the brand being advertised.

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 (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) 20 Pay Per Click and Cost per lead are the more dominant revenue models

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] [2] AD Serving 101, Revised. By Eric Picard, ClickZ, Nov 17, [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 , 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 , Google Engineering 24

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