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 Hotwired.com . History of online advertising. 1996: First interactive ad by HP where users can play ping pong .
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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 Hotwired.com
History of online advertising • 1996: First interactive ad by HP where users can play ping pong .
Types of online advertising • Search Advertising : Google AdWords • Classifieds : Craiglist • Traditional web advertising : Banner ads, pop up ads, hover ads etc
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
Types of online advertising • Email Advertising : Legitimate marketing emails , Spam • Video Advertising: Hulu • Spyware : CoolWebSearch • Affiliate Advertising : Amazon
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
Different Types of Context • Contextual Targeting using page content • Behavioral Targeting using user behavior • Geo-Targeting using user’s location
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
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  • 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. https://adwords.google.com/select/KeywordToolExternal
Contextual Targeting based on page content • Generate a different representation of target page i.e. add more related words to the page.  This avoids the vocabulary mismatch problem.
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
Behavioral Targeting Technologies • Web Beacon
Geographical Targeting • Can be done using checking IP address • Newer systems also use GPS
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
Disadvantagesof Contextual advertising • Out of context advertisements can hurt the brand being advertised .
Disadvantagesof Contextual advertising • Ads of your competitor might be show on your website
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
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)
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
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.
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
References •  http://www.useit.com/eyetracking/ •  AD Serving 101, Revised. By Eric Picard, ClickZ, Nov 17, 2008 http://www.clickz.com/3631700 •  “Semantic Associations for contextual advertising”. Massimiliano Ciaramita, Vanessa Murdock, Vassilis Plachouras Yahoo! Research Barcelona •  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 •  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