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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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brief history of online advertising
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
History of online advertising
  • 1996: First interactive ad by HP where users can play ping pong .
types of online advertising
Types of online advertising
  • Search Advertising : Google AdWords
  • Classifieds : Craiglist
  • Traditional web advertising : Banner ads, pop up ads, hover ads etc
types of online advertising5
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 advertising6
Types of online advertising
  • Email Advertising : Legitimate marketing emails , Spam
  • Video Advertising: Hulu
  • Spyware : CoolWebSearch
  • Affiliate Advertising : Amazon
contextual advertising7
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
Different Types of Context
  • Contextual Targeting using page content
  • Behavioral Targeting using user behavior
  • Geo-Targeting using user’s location
types of contextual advertising
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 algorithm contextual targeting based on page content
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]
contextual targeting based on page content
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.

behavioral targeting technologies
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
geographical targeting
Geographical Targeting
  • Can be done using checking IP address
  • Newer systems also use GPS
advantages of contextual advertising
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
disadvantages of contextual advertising
Disadvantagesof Contextual advertising
  • Out of context advertisements can hurt the brand being advertised .
disadvantages of contextual advertising18
Disadvantagesof Contextual advertising
  • Ads of your competitor might be show on your website
disadvantages of contextual advertising19
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
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
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]

which is the best form of online advertising
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
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
  • [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