Online advertising


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The business of advertising, Pro & Cons, cost and benefits. Creatives effectiveness

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  • Increase visibility of the brand by using InternetAdvertiser = (interest in increase brand visibility)Fare lascenettadei 36 Miliardi solo negli USA come ultima parte di questa slide. (“36 Miliardi! It’s more effective in Italian ;)”Per quantoriguarda le quick responses to the needs citare le context aware pubblicità (e citare Primo), e dire chesonotroppovelociperchèsannocosavuoi even before you know!
  • Frauds: Numerous ways that advertisers can be overcharged for their advertising
  • CPC: Works well when advertisers want visitors to their sites, but it's a less accurate measurement for advertisers looking to build brand awareness
  • Benchmark shows average results for a group of approximately fifty advertisers on the Google AdWords ad network (variety of industries)In2012 Google provided more opportunities to target their display network with targeting options, broadened the reach of many campaigns and bought more clicks at a lower cost per click. Market seems to be very competitive and costs per conversion have been moving up.Il fattochegli advertisers rangianotrai 50 e 500K $ nell’advertisingèperfetto per collegarmiallaprossima Slide.
  • Email Marketing: The sender may give the recipient an option to opt-out of future emails, or it may be sent with the recipient's prior consent (opt-in).
  • Displays before a user can access requested content, sometimes while the user is waiting for the content to load.
  • Floating ad: overlay ad, rich media advertisement that appears superimposed over the requested website's content Frame ad: Traditional Banners, display advertisement in frames. Setting aside a particular space on the web page. Can be also tricky when the contentseems to be a system message
  • selection to a particular user based on certain features such as his browsing behavior and demographic data
  • cold start problem which is the lack of current user information at the beginning of his session Distinguish potential customers from information seeker. how more ads to the former and less ads to the latter Boredom prevention determines a periodical schedule of advertisements for the user who will prevent the frequent display of the same advertisement even if this advertisement receives the best ranking
  • Wear out:Effectiveness of a certain advertisement decrease over time (The more a user is exposed to an ad the less effective it is)Restoration effect: Effectiveness of ad is slowly recovering during a “hiatus”, which is a break period of the ad exposures.
  • This part model the Goodwill construct based on Ad StockAd stock=Effect collected over time tWe need to model the effect of accumulation and decay of advertising effect. Basically it has two factorsTwo types of wearout/restoration: - Associated to any ad in the whole campaignAssociated to a specific ad creative d(delta) rappresenta the portion of ad effectiveness mantenuta (retained)R= percentage of wearout restored each week since last impression
  • As AD stock variable evolves, his effect shift the baseline probability of visits and conversions. Mu and p are time varying along the campaign(1-r) is the zero inflated part, which corresponds to all those individuals (randomly chosen) who will never receive ad impressions, visit or convert. Time varying covariates allow us to include effects of offline advertising and other unobservable variables.
  • Same objective different content for each creative.Distribution of Ad cratives by individual visits and Conversion behaviours. I numeriindicano la quantità di visite e di conversion behaviour. Sulleascissec’èil Creative, sulle ordinate la proporzione di impressioni. Advertising Effect in model 2:
  • As we can see from those tables:Ad stock decay parameter capture how much effect the ad lose week by week (Around 37 %), On a campaign level the effect retained by the ads i around 78% (1-delta), on a creative level is around 40%. However we’ve a little restoration effect. Most creatives have an high probability of having a good impact on the Ad stock, except creative from I to O We use a MAPE to see how good the model fit with the reality. The low it is the more accurate the model is. As we can see adding more details produces a less MAPE, which means that the models become more accurate.
  • No Examples of the creatives used in the research, and hence of their effectiveness, to showThe article descibes a theoretical model, which then seems to be effective based on the obtained result. Still, The analysis of the model application could have been more preciseWear-in: Ads become effective only after a certain number of repetitionImprove the model by considering also a relationship between the ad exposed and the website on which it appears.Wear in effect produce a cold start effect, in which the advertiser try to explore the user response to the advertisement. A good suggestion could be to make this term short by using an optimal scheduling ad hoc advertisement exposures which maximize the advertisement effect
  • Earned media  Un utenteche dice che un prodottoèbuonosuona trustable perchèèunaterza parteCOBRAs (Consumer’s online brand related activities) = Tactic used by advertisers stimulate users to promote their products. Activities such as uploading a picture of your “new Converse sneakers to Facebook[34]” is an example of a COBRA. eWOM= electronic word of mouth (eWOM). Any statement consumers share via the Internet.Convenient manner to have a product promoted via “consumer-to-consumer interactionsEsempio del video di domino’s Pizza.
  • SMS advertising is more reliable due to the tecnological fragmentation of mobile. With sms you know that every phone owner is reachable by the advertisement.
  • the common argument put forward by users is that it makes their online experience better and that since they were people who would never click on adverts anyway, it doesn't make any financial difference to the site they visit.
  • Il 18.02 stesso, dopo la conferenza stampa, terremo un evento di networking presso il TAG (Talent Garden) Milano nel quale presenteremo il tutto agli studenti interessati.
  • And Sorry If I’ve ran out of time and I’ve advertised you with advertising
  • Online advertising

    1. 1. Data Management for the Web Giacomo Giorgianni
    2. 2. Outline:  Briefing  Monetization  Auction Mechanism  Types of online ads  Approaches to online ads  Case Study: Modelization of the effects of different Creatives and Impressions history  New Trends (?)  Considerations
    3. 3. “QUITE” A BIG BUSINESS More than 36 BILLIONS $ in US during in 2012!! United States Only Objectives: • Increase visibility of a brand (Brand ads) • • Stimulate users to immediately buy some product Collection of user’s data and behavior to deliver him more appropriate ads Main Actors: Advertiser, Publisher, User Benefits for users: • • Free usage of applications (Too) Quick responses to their needs Briefing
    4. 4. Briefing – Pro & Cons: • Ubiquity • Frauds • Speed • Fragmentation • Low Cost • Ad-blocking • Measurability • Banner Blindness • Creative • Privacy concerns  Difficulty to track users • Customization of target
    5. 5. Briefing – Some history May 1978: Gary Thuerk, emailed ARPANET's user, DEC computer. 1993: First clickable ad sold to a Law firm by Global Network Navigator. Have some time? CHECK THIS OUT!! HotWired made banner ads mainstream 18 January 1994: Large scale (RELIGIOUS) email born SPAM. 1998: the first search advertising keyword auction
    6. 6. Let’s talk about money: Pay per click (PPC) 32% : Payment based on number of click received from ad. Not good for brand awareness Pay per action (PPA) 2%: Ad is clicked and user performes desidered conversion (purchase, form fullfilling, … ) Pay per impression (PPI) 66%: Based on number of times ad is shown. Usually stock of 1000 (CPM) Widely used in Display Advertising
    7. 7. Auction Mechanism:  Bid for keywords or better position/ranking  First-Price Auction:     English auctions: public offers Sealed-bid auction: Single and secret offer Winner pays the amount he bid (the highest) Bid are lower than WTP of bidders  Want some profit  Second-Price Auction:  Highest offer wins, second offer is paid  REVENUE!!  GSP (Generalized second-price): Ranking in slots assignment based on bid+quality. Widely used among Search engines
    8. 8. Main Types of ads:  Email & Newsletter marketing: An ad copy inside email message Consent  Opt-in /Opt out • Search advertising: Pop Under: Pop – up & Advertisements on resultsover the main Small window pages Based on queries. browser Sponnsored Search • Display Ads: Multimedia content appears on Web pages. 4 main types of Display ads (Which WE know very well!) Email advertising
    9. 9. Interstitial Next slide will be available in 7seconds. 7 4 2 6 3 5 1
    10. 10. Frame ad FLOATING ADS.. QUACK!! AND SO ON…
    11. 11. Technological PoV: Approaches Filtered: Specification of general Constraints (time, age..) Untargeted: Fixed ads displayed for a scheduled time period Personalized: - Ads exposed based on user’s behavior (history, data…). - Machine Learning and Web Mining - CHALLENGING!!
    12. 12. Technological PoV: Challenges Objective: Exploit users’ navigation history to deliver better ads General Problems: Technical Problems: • Preferences vary over time • Cold start • Inaccuracy of information • Potential customer vs Information seeker • Appropriate learning technique • Privacy constraints • Boredom prevention
    13. 13. Study case:  Facts:  Individual who sees an ad occasionally treated as individual who sees it repeatedly  different goodwill wrt the ad.  Not all creatives have the same effect on individuals.  Act: Mathematical model that consider: • Importance of different ad creatives along the campaign • “Goodwill” advertising response model • Effect of individual’s ad impression history on future exposures
    14. 14. Study case – The boring part: Ad Stock: A= Ad stock i = individual t=time α=decay E = Effect of all creatives AD= Effect of the Whole Campaign Wearout Restoration C= Effect of the creative j R= Restoration Rate ρ= restoration param. τ= time from last exposure
    15. 15. Study case – The boring part: Data Likelihoods 3 related processes (zero-inflated): 1) mit: Impressions arrival; Poisson 2) vit: Visits; Poisson distribution 3) sit: Conversions; Binomial 3 parameters in the likelihoods: 1) λ: Impression rate parameter 2) μ: Visit rate parameter 3) p: probability of conversion after visit NB: (1-r): take account of 0-inflation. Modelization of visits and conversion parameters as functions of Ad stock. Xt: Vector of variables  time varying Fixed effects γ= vectors of coefficient Offline advertising effect 1 2 3 Effect advertising on behaviour
    16. 16. Study case – Model test: CONTEXT: On Automobile Brand 10 weeks in Summer 2009 5809 individuals randomly selected Data Observed (powered by Organic): • N_Impression per creative • N_session with at least one visit • N_session with conversion 15 different creatives Benchmark with 4 Models in the Observation Period: 1. No Ads Effect 2. Campaign Ad Effect 3. Creative-Specific Ads Effect 4. Full Model
    17. 17. Study case – Results: Indicator: MAPE (Mean Absolute Percentage Error) Low MAPE  Real behaviour with less error Ad Effect over time Advertising Impression Effect Model fit comparisons
    18. 18. Considerations: PROBLEMs:  Wear-in  “Cold Start”  No Example Reported  Theoretical model  Practical results SUGGESTIONs:  Scheduled ad-exposure  Interaction among website and ad creative
    20. 20. New trends: CORRELATION Video Advertising Mobile Advertising Social Media Marketing
    21. 21. Social media marketing: Scope: Create brand awareness trough social web Viral concept (good or not) eWoM Earned media rather Than paid media COBRAs (Ex. New Converse sneakers to Facebook) Special deals with Tweets or Repost Usage of social networks Interaction with smartphones (QR code) Direct interaction among Companies and users
    22. 22. Mobile advertising: In-App Advertising Sms Advertising Mms Advertising Form of advertising via mobile phones Ubiquity CPI (Cost per install) Smartphone Technologies Battery concerns Incent for Users Interaction with Classic Advertising (Bar code/ QR code) Video: most effective mobile advertising
    23. 23. Video advertising: • Video content in a MPU • Streaming Events • Cut TV Spot before Streaming Felix Baumgartners’ Jump: Big Adventure  Around 10M users watched streaming  Big Visibility for RedBull
    24. 24. Considerations: • Is “AdBlock” a good thing?.
    25. 25. References:  Statistical Techniques for Online Personalized Advertising: A Survey (Maad Shatnawi and Nader Mohamed)  Online Display Advertising: Modeling the Effects of Multiple Creatives and Individual Impression Histories (Michael Braun, Wendy W. Moe)  Video + Tablets: The Mobile Catalyst for E-Commerce (  IAB internet advertising revenue report  Web Information Retrieval (S. Ceri, A. Bozzon, M. Brambilla, E. Della Valle, P. Fraternali, S. Quarteroni)