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Mapping Online Advertising: From Anxiety to Method

Explore the evolution of online advertising from uncertainty to scientific precision. Understand the shift in methods, data collection, targeting, pricing, and funneling strategies. Discover the challenges and opportunities in the digital advertising landscape.

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Mapping Online Advertising: From Anxiety to Method

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  1. Mapping Online Advertising:From Anxiety to Method Fernando Bermejo Fellow, Berkman Center for Internet & Society, Harvard University January 12th, 2010

  2. Then From Anxiety… wasted. The trouble is, I don’t know which half”. John Wanamaker (1838-1922) “Half the money I spend on advertising is …to Method “The time has come when advertising has in some hands reached the status of a science. It is based on fixed principles and is reasonably exact. The causes and effects have been analyzed until they are well understood. The correct methods of procedure have been proven and established”. Scientific Advertising (1923), Claude C. Hopkins

  3. Now From Anxiety… “47% of campaigns failed—how to make sure yours sticks. 83% of ad spending was seriously suboptimal—how do you get more impact without spending a dime more?”What Sticks: Why most advertising fails and how to guarantee yours succeeds (2006) …to Method “In terms of efficiency, if not size, the advertising industry is only now starting to grow out of its century-long infancy, which might be called ‘the Wanamaker era’”.The Economist (07/06/2006)

  4. The source of anxiety Gift Economy/ Peer-Production Property / Pay Model Advertising… Media Advertisers Audiences

  5. ADVERTISERS MEDIA: Ads + Content PRODUCT & SERVICES AUDIENCES / USERS

  6. Collecting information Metrics Targeting Having the right context Pricing Funneling The Method

  7. Collecting information • Previous media: Audience and Market Research, Surveys and Panels. • Online: Every interaction can be automatically recorded. Every page viewed, every ad viewed, every song or video played, every search performed, every content created…

  8. Collecting information From discrete events to profiles: 1st-party cookies, 3rd-party cookies, web bugs, and flash cookies(100KB of information, no expiry date, stored in separate location, not controlled by the browsers…) Berkeley study on flash cookies (Soltani et al, 2009): • 54 of top 100 sites use flash cookies (only 4 mention it in their privacy policy). • Even with a NAI opt-out cookie, flash cookies are employed. • 31 had at least an overlap between a HTTP and a Flash cookie (90% of the overlaps from cookies served by ad networks) • Respawing of HTTP cookies occurred on several sites (Hulu.com, About.com) and took place accross domains (Clearspring: Aol.com and Mapquest.com).

  9. Collecting information “Our results show increasing aggregation of user-related data by a steadily decreasing number of entities” (Kryshnamurthy & Willis 2009) Extent of 10 Top Third-Party Families Growth of the Google family

  10. Metrics Views Visits Unique Users Users Reach Clicks Pages Time Unduplicated Unique Users Hits Engagement Sessions

  11. Targeting From audiences, to segments, to increasingly granural criteria (individual profiles) • Demographics • Content consumed • Content produced • Search Keywords • Behavior Targeting segments

  12. Targeting ADVERTISERS MEDIA: Ads + Content PRODUCT & SERVICES AUDIENCES / USERS

  13. Having the right context Both in terms of the general environment and in terms of specific content… • In previous media: • professionalism, organizational norms, self-control • Online: • Production of specific content directly for advertising purposes: e.g. Demand Media, etc. • Need to control user-generated content: e.g. the new Technorati, Youtube video demotion, etc.

  14. Pricing • Previous media: Exposure in terms of CPM • Online: • CPM still 38% • Performance: 58% • Cost per Click (CPC) • Cost per Action: lead … purchase

  15. Pricing ADVERTISERS MEDIA: Ads + Content PRODUCT & SERVICES AUDIENCES / USERS

  16. Funneling The most uncontrolable part: • Branding • Tracking and Retargeting Yahoo! UK: “We know where users have been and we can tell where they're going” AOL: “For example, LeadBack tracks users who have visited your website but have not made a purchase. When those same users visit other sites on our network, LeadBack delivers your ads to them, driving them back to your site and increasing the likelihood of a sale.” • Placing more customer activities in controllable environments: The mobile internet

  17. Consequences • Collecting Information: A requires increasing information from individuals. • Metrics: A is not comfortable with phenomena that cannot be easily controlled, measured and reduced to numbers. • Targeting: A tries to move to the form of a transaction between advertisers and individuals, leaving third parties as accesorial.

  18. Consequences • Generating the right context: A prefers certain environments and shapes content. • Pricing: A tries to reduce its risk by asking others to assume it. • Funneling: A tries to be more intensive and more extended.

  19. Consequences Privacy: Playing cat and mouse (?) Content: De-intermediation (?) Structure: Advertising as steroids (?)

  20. The online content layer… Gift Pay Advertising

  21. Mapping Online Advertising:From Anxiety to Method Fernando Bermejo Fellow, Berkman Center for Internet & Society, Harvard University January 12th, 2010

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