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

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Contextual Advertising

Ankit Mehta

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Brief history of online advertising

  • May 1978: First Marketing Spam form DEC Marketing representative.

  • 1994: First banner ad by AT&T on

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History of online advertising

  • 1996: First interactive ad by HP where users can play ping pong .

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Types of online advertising

  • Search Advertising : Google AdWords

  • Classifieds : Craiglist

  • Traditional web advertising : Banner ads, pop up ads, hover ads etc

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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

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Types of online advertising

  • Email Advertising : Legitimate marketing emails , Spam

  • Video Advertising: Hulu

  • Spyware : CoolWebSearch

  • Affiliate Advertising : Amazon

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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

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Different Types of Context

  • Contextual Targeting using page content

  • Behavioral Targeting using user behavior

  • Geo-Targeting using user’s location

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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

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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]

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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.

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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

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Geographical Targeting

  • Can be done using checking IP address

  • Newer systems also use GPS

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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

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Disadvantagesof Contextual advertising

  • Out of context advertisements can hurt the brand being advertised .

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Disadvantagesof Contextual advertising

  • Ads of your competitor might be show on your website

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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

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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)

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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]

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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.

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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

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  • [1]

  • [2] AD Serving 101, Revised. By Eric Picard, ClickZ, Nov 17, 2008

  • [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