computational advertising by icha
TRANSCRIPT
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@agatestudio
ADVERTISING
Icha
Publishing
Agate Studio
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• Computational Advertising ? A principled way to find the “best match”
between a user in a context and a suitable ad.
Examples :
Context = Web search results -> Sponsored search
Context = Publisher page -> Content match, banners
Other Context = mobile, video, newspapers, etc
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INTRODUCTION
Why go “computational” ? The comparison between classical & online :
Classical :
- Relatively few venues (only magazine, billboard, newspaper, handbills, TV)
- High cost per venue
- No personalization possible
- Targeting by the wisdom of ad-people
- Hard to measure ROI
Computational --- almost the exact opposite:
- Billions of opportunities
- Billions of creatives
- Totally personalizable
- Tiny cost per opportunity
- Much more quantifiable
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• “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
John Wanamaker, ~ 1875
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Computational Advertising Landscape
Marketplace basics
What do advertisers pay?
- CPM (cost per thousand impressions)
- CPC (cost per click)
- CPT/CPA (cost per transaction/action)
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GRAPHICAL ADS
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RICH MEDIA ADS
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Computational advertising setup process:
1. Contract booked based on targeting attributes of an impression:
age, income, location, ..
2. Each contract has a duration and a desired number of impressions
3. Issues in GD
-Contract pricing
-Traffic forecasting
-Impression allocation to the active contracts
4. Graphical ads can also be placed based on performance – CPM/CPC/CPA
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PARTICIPANTS: Publishers, Advertisers, Users, &
“Matcher”
Publishers Advertisers
User
Ad Network Matcher
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Programmatic Display Advertising
Programmatic display advertising is automatic online ads activity.
The bidding, creative, targeting, and running the campaign can be done automatically through Real Time Bidding (RTB) platform.
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Search Network Advertising A method of placing online advertisements on Web pages that show
results from search engine queries.
Example :
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Essential Programmatic Advertising
Component
1. Pricing
2. Inventory
3. Insertion (Placement)
4. Data (Targeting)
Programmatic Advertising Value
1. Price/Value relationship
2. Automated process
3. Buy-side tools (Reporting)
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Display Ad Technology Evolution
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Programmatic Advertising Process
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The World of Display Advertising
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The World of Video Advertising
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THANK YOU