Presentation Transcript

1. Sponsored Search: History and Terminology Fain, D., & Pedersen, J. (2006) Sponsored search: A brief history. Bulletin of the American Society for Information Science and Technology, 32(2), 12-13. Course Portal: http://www.itu.dk/~rkva/2011-Spring-EB22 Facebook: http://www.facebook.com/group.php?gid=133258548012 Etherpad: http://ietherpad.com/7y3drhMCnq Thursday, 17-Mar-2011 EB22: Online Marketing: Lecture 23 Auditorium 4, ITU, Copenhagen, Denmark

2. Elements of Sponsored Search

   Advertiser-provided content Advertiser-provided bids Review process to ensure relevance Dynamic matching of ad contents & search queries Displaying ads in some rank order Metrics and Billing

3. Brief History of Adoption

   “In 1998, GoTo, later Overture Services, was the first to combine these elements. (Yahoo! acquired Overture in 2003, re-branding it to Yahoo! Search Marketing in 2005) BeFirst – now MIVA – followed with a similar product in 1999 Google adopted the model and modified it to incorporate click feedback in 2002 In 2005, Ask.com adopted it, and MSN Search extended it to support behavioral targeting”

4. Original Motivation

   <meta> html tags used to indicate keywords Irrelevant websites included in the search results due to keyword tampering Hand-crafted results page for top 1000 queries by GoTo Sponsored search: listing associated with a keyword

5. Early Internet Advertising

   Banner Ads Paid Search Ads Placement Search Ads

6. Measurement and Pricing

   Advertisers: Measuring Effectiveness Publishers: Setting Prices CPM: Cost Per Mille CPC: Cost Per Click (1996 Yahoo with P&G, LinkStar introduced CPC to Search Advertising) CPA: Cost Per Action eCPC Conversion Rate= CPA/CPC Click Through Rate= CPC/1000*CPM

7. Terminology

   “Search engine optimization (SEO) is the process of improving the volume or quality of traffic to a web site from search engines via "natural" or un-paid ("organic" or "algorithmic") search results as opposed to search engine marketing (SEM) which deals with paid inclusion.” (Wikipedia) SERP: Search Engine Results Page Paid Inclusion: Sponsored query results rank ordered

8. Terminology

   ad impression: Each time someone views an advertisement online. ad networks: A company that sells ad inventory in aggregated packages to advertisers. One example of an ad network for blogs is called BlogAds. banner ad: Graphical advertisement on a web page that allows people to click through to a special advertiser's site. behavorial ads: Advertising that's served up according to a person's recent online web surfing, matching their interest even if they are not currently on a relevant site. clickthrough rates (CTR): The percentage of times that a person seeing an ad online clicks on the ad. cost per action (CPA): A type of ad in which the advertiser only pays the publisher for each time someone completes a transaction, whether that's registering for a site or buying a product. cost per thousand (CPM): The rate it costs for the ad to reach a certain number of viewers online. So a site with a $10 CPM would charge $100 for every 10,000 viewers reached. pay-per-click (PPC): An ad in which the advertiser only pays for each click made by viewers, with the price set by bidding against other advertisers online. opt-in marketing: Ads or commercial emails sent with the prior approval of recipients. http://www.pbs.org/mediashift/2007/06/your-guide-to-online-advertising178.html

9. Discussion