computational advertising
TRANSCRIPT
Computational AdvertisingAhmad Shah Sultani
M.Sc. Computer Science
South Asian University, New Delhi
13-10-2014
Advertising
History
Types of Advertising
Computational Advertising
Participants
Business Models in Comp. Advertising
Landscapes
…
Outline
• Advertising is a form of marketing communication used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to take or continue to take some action. Awareness
Knowledge
Liking
Preference
Conviction
Purchase
Advertising
Egyptians used papyrus to make sales messages and wall posters, date back to 4000 BC.
In ancient China, the earliest advertising known was oral, as recorded in the Classic of Poetry (11th to 7th centuries BC) of bamboo flutes played to sell candy.
In Europe, as the towns and cities of the Middle Ages began to grow, and the general populace was unable to read, instead of signs that read "cobbler", "miller", "tailor", or "blacksmith" would use an image associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour.
In the 18th century advertisements started to appear in weekly newspapers in England.
Long History…
Papyrus
JAPAN, 1806
traditional
medicine
called
Kinseitan
A Coca-Cola advertisement from the 1890s
A 1900 advertisement for Pears soap
On the radio from the 1920s
Public service advertising in WW2
Commercial television in the 1950s
Media diversification in the 1960s
Cable television from the 1980s
On the Internet from the 1990s
Television advertising / Music in advertising Infomercials Radio advertising Online advertising New media Press advertising Billboard advertising Mobile billboard advertising In-store advertising Coffee cup advertising Street advertising Aerial advertising
Types of Advertising
Human Billboard
Brand Advertising
GOAL: Create a distinct favourable image
Classic Advertising
Direct marketing
Advertising that involves a "direct response”: buy, subscribe, vote, donate, etc, now or soon
Internet advertising is a business that is growing faster than old media advertising (radio, TV, newspapers & magazines, mail, outdoors)
Online advertising budgets still lagging in proportion to time spent online, which is growing fast at the expense of old media.
Seen as a driver to continued growth of online advertising market
•Traditional advertising:
–Few, expensive opportunities
–Targeting en-masse, by immediate context only
–Difficult to measure effectiveness
•Internet advertising:
–Billions of opportunities daily
–Open to personalization via rich context of impression
–Effectiveness is measurable: can measure click-through rates as % of impressions, and conversions as % of clicks
The Advertising Market
The Advertising Market
US Online vs. Offline advertising spend
Computational Biology Computational Chemistry Computational Finance Computational Geometry Computational Neuroscience Computational Physics Computational Mechanics Computational Economics …
All are about mixing an old science with large scale computing capabilities
Lots of computational this and that …
Classical: Relatively few venues –magazines, billboards, newspapers, handbills, TV,
etc. High cost per venue ($3Mil for a Super Bowl TV ad) No personalization possible Targeting by the wisdom of ad-people
Computational –almost the exact opposite: Billions of opportunities Billions of creatives Totally personalizable Tiny cost per opportunity Much more quantifiable
What’s computational about it?
New scientific sub-discipline, at the intersection of (involve) large scale search and text analysis: information retrieval: query-ad selection, learning-to-rank. statistical modeling machine learning: clustering, classification and regression. optimization: linear, integer, convex optimization. microeconomics: game theory, mechanism design, auction
theory. Classifications Recommender Systems
Computational Advertising
Find the "best match" between a given user in a given context and a suitable advertisement.
Examples:
Context = Web search results Sponsored search
Context = Publisher page Content match, banners
Other contexts: mobile, video, newspapers, etc.
Computational Advertising
The publisher is the owner of Web pages on which advertising is displayed.
The advertiser provides the supply of ads.
The ad network is a mediator between the advertiser and the publisher, who selects the ads that are put on the pages.
End-users visit the Web pages of the publisher and interact with the ads.
Participants: Publishers, Advertisers, Users, & “Matcher”
Overview of Ad display
Three main types of textual Web advertising:
1. Sponsored search which serves ads in response to search queries
2. Content match which places ads on third-party pages
3. Display advertising (banner ads)
Ads are information!
Computational Advertising Landscapes
context: a user issues a query.
publishers: Google (AdWords), Bing (AdCenter), Yahoo!
max: publisher revenue, s.t. advertiser campaign goal, budget, user satisfaction.
marketplace: keyword-based GSP with cost-per-click (CPC) pricing.
system sketch: query analysis ad selection and relevance click prediction GSP.
Sponsored Search
Examples
contextual ads: an extension of sponsored search;
context: page content and user behaviour.
publishers: content providers, and major search engines operate the marketplace.
system sketch: starts with keyword extraction in absence of user query.
Contextual Ads
Examples
display ads; context: page, application and user behaviour. publishers: content providers in display ad-networks operated
by Google (doubleclick), Microsoft (aquantive), and Yahoo! (rightmedia).
two types of display ads:1. reserved: delivery guaranteed, contracts negotiated upfront, pricing based on CPM (cost-per-(k)impression), e.g., brand ads, direct response.2. performance-based: max publisher revenue, s.t. advertiser budget, real-time bidding on exchange, pricing based on CPC/CPA (cost-per-action)/CPM.
Display Ads (Banner Ads)Graphical Ads
CPM (Cost Per Thousand) or Cost per Impression
– Advertisers pay for exposure of their message to a specific audience. (M in the acronym is the Roman numeral for one thousand)
Typically used for graphical/banner ads (brand advertising)
CPC (Cost Per Click) aka Pay per click (PPC)
– Advertisers pay every time a user clicks on their listing and is redirected to their website.
Typically used for textual ads
CPA (Cost Per Action) or (Cost Per Acquisition)
– The publisher takes all the risk of running the ad, and the advertiser pays only for the amount of users who complete a transaction, such as a purchase or sign-up.
Typically used for shopping (“buy from our sponsors”), travel, etc.
Search Advertising Business Models
Computational advertising = A principled way to find the "best match“ between a given user in a given context and a suitable advertisement.
Two main types of online advertising are graphical and textual advertising.
Sponsored search is the main channel for textual advertising on the web
Advertising is a form of information.
Adding ads to a context is similar to the integration problem of other types of information
Finding the “best ad” is a type of information retrieval problem with multiple, possibly contradictory utility functions.
New application domains and new techniques are emerging every day
Good area for research + new businesses.
SummaryKey Messages
query understanding
content matching
sentiment analysis
online modeling
massive optimization
text summarization
named entity extraction
computer-human interaction
economics of ads
Many active research areas & open problems
Computational Advertising course @ Stanford:http://www.stanford.edu/class/msande239/
Internet Advertising and the Generalized Second-Price Auction: Selling Billions of Dollars Worth of Keywords,
Edelman, Ostrovsky and Schwartz
From query based Information Retrieval to context driven Information Supply, Andrei Broder
Just in time contextual advertising, Anagnostopoulos et al.
Internet Advertising and Optimal Auction Design, Schwarz
References
THANK YOUQuestions?