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.