michael ahern santiago andujar nathan blouin rebekah gilbert min-jee hwang ana sviatschi nyu...
TRANSCRIPT
Michael Ahern
Santiago Andujar
Nathan Blouin
Rebekah Gilbert
Min-Jee Hwang
Ana Sviatschi
NYU Stern Firms & Markets Spring 2011
Early Days of IA, and the Rise of the Consumer Internet
Types of Advertising Online(Morgan Stanley Dean Whitter)
1997 1998 1999 2000 2001 2002 2003
Banners and popups
80% 52% 50% 46% 42% 41% 40%
Sponsor 15% 40% 39% 39% 34% 32% 30%
Interstitial 5% 3% 4% 5% 6% 7% 8%
Email 0% 1% 3% 6% 10% 13% 15%
Other 0% 4% 4% 4% 8% 7% 7%
The Early Consumer Internet and the Birth of Internet Advertising
America Online• 1989 AOL founded
and start of ISP Wars
MSN to Bing•1995 MSN Released, then LiveSearch, then Bing
Yahoo!•Started in 1995 as a search directory
Google•google.com was registered on September 15, 1997
How has the industry changed throughout the years?
What is Internet Advertising?• Types of ads• Types of sites that show ads
Definition• Company A has some sort of content to draw audience• Company A sells (in other words, supplies) this audience to company B so
that B can advertise their products
How has the industry changed throughout the years?
Supply has increased Demand has increased
How has the industry changed throughout the years?
What Advertising Models Have Been Most Successful?
Successful Models GSP • “generalized second-price auction”• Advertisers bid for certain keywordswith maximum willingness to pay for a click• Each bidder pays the next highest advertiser’s bid. Yahoo!
•Yahoo! only ranks advertisers in decreasing order of bids and charges the next highest advertiser’s bid.•This model ignores other factors that might be relevant to advertisers
• Google AdWords computes an advertiser’s “rank number,” which is based on Click Through Rate and other factors.
• Ads get ranked by this number. Advertisers are then charged an amount that would sufficiently exceed the next advertiser’s rank number.
• Increasing value of alphabet for advertisers • Brands who integrate this method receive more
impressions
• The Quest for a Shoe with Google Instant• S – Skype appears on the whole first page• Sh – Shoprite appears on the whole first page• Sho – Still Shoprite• Shoe – Zappos, Payless, DSW
• A consumer could be led to another product and not even end up shopping for what they originally intended. This places huge value on bidding on letters.• Ensure your ad shows up on pages where your letters appear.
What Advertising Models Have Been Most Successful?
4%
4%
5%
7%
7%
8%
8%
11%
12%
13%
21%
Media
Entertainment
Pharma & Helathcare
Leisure and Travel
Consumer Packaged Goods
Others
Computing products
Auto
Financial Services
Telecom
Retail
$18.4
$44.5
$11.9 $11.2
$49.5
$8.2
$15.3$17.6 $17.6
$22.5 $22.8$26.0
Radio Broadcast TV Magazines Cable TV Newspapers Internet
2000 2010
Industry shifting ADV budget to internet advertising
Become a chicken fun!
Consumers look for ads instead of
ads reaching consumers
Community Building web pages
Consumers Do Not Want to View Ads
• Internet Privacy & Data Security Concerns
• Consumer Distrust
• Over saturation
Main concerns for advertisers
Main concerns for advertisers
Effectiveness
• Does having more ads necessarily translate into higher sales/profits?
Main concerns for advertisers
Ethics
• Manipulating search results
Points, Badges, Quests
Big Data
Big Data has been around for a long time between credit card transactions, phone call records and financial markets. Companies like AT&T, Visa, Bank of America, Ebay, Google, Amazon and more have massive databases they mine for competitive advantage. But lately, Big Data is finding its way to the smallest startups. The Web and cloud computing brings Big Data everywhere. But what exactly is pushing Big Data forward?
Socialnomics
Inverting the paradigm
Historic Contests
Sources
• http://www.bigdoor.com/• http://techcrunch.com/2010/03/16/big-data-freedom/• http://happymediaking.com/business-on-social-media/• http://ychahla.wordpress.com/2010/11/03/rise-of-the-%E2%80%98social-media%E2%80%99/• Sources:• Overviews:http://en.wikipedia.org/wiki/Internet_marketing
• Timeline: http://www.worldata.com/wdnet7/articles/the_history_of_Internet_Advertising.htm• http://www.usatoday.com/tech/webguide/2002-08-19-internet-ads_x.htm• http://en.wikipedia.org/wiki/CompuServe• http://www.usatoday.com/tech/webguide/2002-08-19-internet-ads_x.htm
• Google: http://en.wikipedia.org/wiki/History_of_Google• http://www.google.com/corporate/history.html• http://techcrunch.com/2009/09/30/the-selling-of-google-adwords/• http://en.wikipedia.org/wiki/AdWords
• Microsoft: http://wapedia.mobi/en/MSN
• AOL http://en.wikipedia.org/wiki/ADTECH
• Early Market information: http://www.kelseygroup.com/press/pr080225.asp• http://www.ecommercetimes.com/story/19789.html?wlc=1302147525• http://www.morganstanley.com/institutional/techresearch/pdfs/emarketing.pdf• http://www.ecommercetimes.com/story/19283.html• http://en.wikipedia.org/wiki/Online_advertising• http://en.wikipedia.org/wiki/Website_monetizing• http://en.wikipedia.org/wiki/Web_banner
Sources
• http://www.kelseygroup.com/press/pr080225.asp• http://www.marketingvox.com/googles-ad-server-market-share-at-57-042692/• http://www.iab.net/insights_research/947883/adrevenuereport• http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/4230
• Technology: http://en.wikipedia.org/wiki/Hover_ad• Graphics: http://wonder-tonic.com/geocitiesizer/• http://paidcontent.org/images/editorial/_original/ad-server-marketshare-all-sites-o.jpg
http://www.marketingcharts.com/wp/wp-content/uploads/2009/01/attributor-overall-ad-server-market-share-december-2008.jpg