COMM 450 B Exam 2
DAA Principals in online behavioral advertising
1. Education principle 2. Transparency principle 3. Consumer control principle 4. Collection and use of multi-site data 5. Collection and use of mobile data
1995-1996
1. First central and local ad servers go live 2. Interactive Advertising Bureau (IAB) founded; online ad space standardized pixel dimensions established
Open Exchange
A public, almost virtual auction place with buyers bidding on the billions of ads that flow through daily Operated by big companies like Google Over 70 billion impressions daily
Factors influencing performance
Ad size Ad Placement Targeting Creative Execution Product and Offer
Geotargeting
Ads are limited to a geographic area
Demographic targeting
Ads are targeted based on demographics like a/s/l
Leakage
Ads being placed on sites where marketers/advertisers don't want them to be placed
Why is first party data valuable to advertisers?
Advertisers can target and personalize ads and is free to the advertiser since they own it
Cost per acquisition/action (CPA)
Advertisers pay a fixed amount per user action. This pricing model is infrequently used.
Placement Targeting
Advertisers place ads in channels which intersect with targeted audiences
Direct deals
Advertisers/agencies working directly with specific publishers
Supply Side Platforms
Allows publishers to list available remnant inventory. Within an SSP, publishers can set "block list" criteria to prevent certain advertisers, ad formats, and content topics.
Segment Targeting
Associated with third party data. Systems that allow publishers a way to sort site traffic into different groups; sell access to groups of advertisers
Relative Value of 1
Bid Price = Market Price What is is worth to me is equal to what I have to pay (HIGHEST YOU WILL BID)
Relative Value
Bid Price/ market price (What it is worth to me/What I have to pay)
Relative value less than 1
Bid price < Market price What it is worth to me is less than what I have to pay (DO NOT BID)
Relative value greater than 1
Bid price>Market Price What it is worth to me is more than what I have to pay (BEST BIDDING)
Retargeting is
Browser-based cookie targeting that allows advertisers to "recognize" the browsers of consumers who have visited websites, or seen online ads
Cost Per Thousand
CPM, you pay a set price for every thousand of ad impressions loaded. This is the benchmark for pricing traditional media
Where does first party data come from?
Can come from a variety of sources: website analytics platforms, customer relationship management (CRM) systems, and business analysis tools.
Why does Maddie eat so much pasta?
Carbo-loading for the downfall of the patriarchy
Optimizing Metrics
Click through rates Conversion Rate Effective cost per thousand
Native ads
Click through to the advertiser
Ad Tags
Creates a 728x90 frame Sourced at the ad server Ad server returns an HTML document that contains the actual ad Content is rendered within the 728x90 frame
Ad servers
Creative agency or house clients provide ad asset to trader Trader uploads assets to the third-party ad server (3PAS) 3PAS returns and ad tag User uploads ad tag to campaign management platform
Demand Side Platforms
DSPs offer real-time bidding (RTB), campaign optimization (such as setting targeting and tracking KPIs), and data targeting within one single interface.
Declared Data
Data that consumers share with marketers and advertisers
Observed Data
Data that is gained through technological exchanges between a consumer's browser and the Web; surfing behaviors
PII is NOT
Data used in an unidentifiable manner When an IP address is NOT linked other PII A customer number in a cookie A processor serial number used for identification
2001
Dot-com crash" leads to sharp retraction in ad tech venture capital (VC), several bankruptcies, and advertising revenues (2001 Superbowl was famous for featuring ads from several dot-com startups that were soon out of business
Market Price
Estimated by platform based on historic clearing prices
Market Forces
Eventually bad actors will be discovered and punished by the market
1994
First online ads served following widespread adoption of the first web browser, Netscape Navigator
Measures used to measure campaigns are
Frequency, Unique Impressions, In-View Time, Time Spent, Reaction Time
Private exchange assures
Fully transparency of buyers Publisher control Premium inventory
Bid Price
Goal value x Action rate
2008-2009
Google buys DoubleClick, at that point primarily an ad server (later evolves into industry leading ad network and ad exchange)
2002
Google starts AdWords program, which will become the company's primary revenue driver (establishes pay-per-click pricing approach as power and valid business model)
Traditional measures used against banner ads are
Impressions, clicks, conversions, spend
Placement in Feed of content
In a list of content or search result
Blacklists
Incentives for "cheap reach" can lead media agencies to pursue questionable inventory What you DON'T want to see, but it sometimes can still slip through
Private Policies
Individual companies in the advertising ecosystem taking measures to combat fraud and improve brand safety and user experience
Self Regulation
Industry associations set rules to improve behavior
Government Regulation
Most coercive regulation that can fine
Personally Identifying Information (PII)
Name, address, ect When used to identify a particular individual in Online Behavioral Advertising activities
Preferred deal
Occur when a publisher makes its inventory availably at a set price for a single buyer Also known as unreserved fixed rate or private rate access
Placement in atomic unit of content
On an article or single-content page
Placement outside core content
On right rail or banner near the content-page
Programmatic Umbrella
Open exchange Private Marketplace Programmatic guaranteed Preferred deal
Above the fold/below the fold
Originates from newspapers. On a website, the above the fold is the area of the page that displayed to the user without them having to scroll. Below the fold is anything beneath that.
Tracking pixels
Pixels utilize standard tags While a server is returning a 1x1 pixel it can set a cookie or read a cookie to store data
What does Jasper do while we are in class?
Plan his attack on the yoga mat
Digital Advertising Alliance (DAA)
Primary body self-regulating digital advertising
Private Marketplace
Private exchanges are more controlled environments, typically run by major publishers or a group of them with ads sold though carefully selected agencies or advertisers using trading desks and demand-side-platforms
Placement recommendation widget
Provided by a third party most commonly below content
Models in-house "brand studios"
Publisher has complete control of nature of native ads and sponsored content
Models in Programmatic native
Publisher opens up space on their site to third party that sells native ads and sponsored content programmatically
Models in Direct deals
Publisher sells directly, but does not have complete control over content
Programmatic benefits
Reach goals more quickly Faster reaction times More protections in place Save money Better targeting Real-time reactions Frees up time Better use of data
Big Data
Refers to the abundance of data that is generated and quantified from online and offline interactions. Marketers can use big data to tailor and target messages to consumers
Whitelists
Restricts impressions to websites on the "Nice" list Only select what you DO want to see
First party data is associated with what?
Retargeting
Top native advertising/ sponsored content platforms
Taboola Revcontent ZergNet Outbrain
1997
Takeoff year (widespread rapid adoption) for the web as an e-commerce channel and publishing platform
Contextual Targeting
Targeting an individual based on a subject of a particular interest to them sometimes known as "keyword targeting"
Daypartying Targeting
Targeting that hones in on users at a certain time of day or day of week using their browser settings
Programmatic guaranteed
The buyer and seller negotiate directly for a guaranteed inventory at a fixed price. This is good for strict brand safety, inventory control, high-value placements
Cost Per Click
The cost or cost-equivalent paid per click-through. This is most often associated with search engine marketing
Buy Side
The goal of marketers and advertisers is to get the right message in front of the right person at the right time for the best price (return on investment).
Sell Side
The goal of the publishers is to maximize the amount of money they make selling advertising space to advertisers (called INVENTORY).
Real Time Bidding (RTB)
The valuation and bidding on individual impressions in real time. The buying takes place over online media exchanges - basically media marketplaces - which connect sellers (publishers) and buyers (advertisers).
Second Party Data
This is another company's first party data that is shared between advertisers who have a mutually beneficial relationship that is passed through a private data exchange
Ad Networks
Today, ad networks aggregate inventory and audiences from numerous sources (including ad exchanges and DSPs) as a single buying opportunity for advertisers.
ISP Targeting
Users are targeted based on their internet service provider. This is usually used at universities or government employees
Technical Targeting
Uses the consumer's computer or mobile device to identify the consumer's communication capabilities
Behavioral Targeting
Using cookies to track a browser's path when surfing the web in order to reach the right consumer with the right ad
What are the most viewable ads?
Vertical ads
Private marketplaces
Where buyers and sellers are confident of each other's identity
Viewability is
Whether or not a user has actually seen an advertisement. It varies significantly across content verticals
Banner ads provide...
a scalable, easy-to-deploy solution when it comes to marketing.
What are most non-viewable impressions made up of?
a small number of publishers
Third Party Data
aggregated from sources other than an advertiser or website such as data providers. This is typically collected through cookies on the website
Accurate, data-based targeting
allows marketers to cut through the "white noise" of the vast Internet and find customers who will actually be interested in a product or service.
Sponsored content
clicks through to another publisher
Dynamic CPM (dCPM) pricing model for RTB platforms
dCPM looks to mix the best of all pricing models, but requires additional technology - an algorithm to succeed. algorithms find equilibrium or relative value between bid price and market price, allowing advertisers to bid on the "right" impression opportunities (those that will achieve campaign objectives for the lowest price)
First Party Data
data a company collects directly from its customers that provides specifics about existing users and customers. Considered to be the best, most pure form of data.
Image pixels facilitate two core functions
enabling retargeting and tracking conversions
Action rate
estimated by platform based historical audience behavior
Negatives of programatic advertising and sponsored content
i. "Fake" headlines ii. Can lead to websites of dubious quality iii. Reduces reputation of publisher iv. Unwanted adjacencies v. Slate dropped all sponsored content after "10 Celebs Who Lost Their Hot Bods" appeared in article on objectification of women (among other problems)
Positives of programatic advertising and sponsored content
i. Provided much-needed revenue for publisher ii. Replaces revenues being lost with control of content iii. As much as 30% of publisher revenue! iv. #1 revenue channel for many publishers v. Relatively affordable reach for advertisers vi. Eliminates need for publishers to create relationships
Over half of all display impressions...
never display on screen
Analytics allows for
real-time assessment of the performance of marketing campaigns. These kinds of capabilities were previously accomplished via tedious research or sample size focus groups - which were not very accurate.
Goal value
set by marketer advertiser
Ad Exchanges
technology platforms that facilitate the automated auction-based pricing and buying in real-time known as RTB. Gives buyers/sellers transparent access to one another
Agency trading desks
the "managed service" arm of the agency, wherein it can execute campaigns through multiple channels, including DSPs, ad exchanges, and ad networks.
The higher the relative value
the better and more attractive the bidding opportunity
Advertising Inventory
the number of advertisements, or amount of traditional or ad time/space or digital impression opportunities, a publisher has available to sell to an advertiser.
Programmatic digital display advertising is
the use of software to purchase digital advertising, as opposed to the traditional process that involves RFPs, human negotiations and manual insertion orders.