Display Advertising Retrieval

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1 Sisteme de regăsire a informaţiei: Display Advertising Retrieval Students: Dobromir Dragos; Zafiu Andrei; Pasatoiu George Atanasoaei Mihai; Ana Oprita; Lucian Ghinea SI Display Advertising Retrieval 1

2 1. Introduction Table of Contents 2. Advantages of online advertising 3. Online ad pricing dynamics 4. Banner ads 1. Static banners 2. Animated banners 3. Interactive banners 5. Views on banner advertising 6. Click-through effectiveness 7. Banner Advertising Findings 8. Let s take a breather 9. Contextual Advertising 10. Workflow 11. Sponsored Search 12. The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 2

3 1. Introduction (2) Display Advertising plays a critically important role in the Internet world. advertising is the main way of profiting from the Internet, the history of Internet advertising developed alongside the growth of the medium itself SI Display Advertising Retrieval 3

4 Definition: 1. Introduction (3) Display Advertising = a type of advertising that contains text, logos, photographs or other images, and appears next to content on web pages, IM applications, , etc. Types of online ads: Banner ads (Doubleclick) Standardized ad shapes with images Normally not related to content Content match / Contextual advertising(google AdSense) Related to content on page Sponsored search(google Adwords) Related to search terms SI Display Advertising Retrieval 4

5 1. Introduction (4) % Online Advertising Revenue (2007) 100% 80% 60% 40% 6% 8% 9% 17% 20% Other Rich Media Sponsorships Classifieds Banners Growth of Search: Marketers are voting with their dollars Search now the most dominant form of online advertising Banner ads come second and are still strong 20% 40% Search 0% Type of Online Media SI Display Advertising Retrieval 5

6 2. Advantages of online advertising Targeting By search keywords, context, Personalized ads. Additional information Time, history, personal data Advanced billing/effectiveness options By eyeballs, clicks, actual purchases pay only when you sell Advanced bidding options Variety of multimedia tools Enables cheap campaigns, low entry levels SI Display Advertising Retrieval 6

7 CPI/CPM Cost Per (M) Impressions impression = single appearance of an advertisement on a web page CPC Cost per Click 3. Online Ad Pricing Dynamics advertisers pay the publisher when the ad is clicked A sample AdWords ad The Destination Website SI Display Advertising Retrieval 7

8 CTR Clickthrough Rate Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare 3. Online Ad Pricing Dynamics (2) Clicks = CTR (expressed as %) Impressions CPA Cost per Acquisition (action) advertiser pays for each specified action (a purchase, a form submission) CPL Cost per Lead lead usually meaning a free registration SI Display Advertising Retrieval 8

9 4. Banner Ads The Objectives of Banner Ads: Bring visitors they would not have had otherwise to the advertiser s website Get visitors to take action on the website Increase brand awareness SI Display Advertising Retrieval 9

10 4. Banner Ads (2) Major form of online advertising 3 Primary types of banners Static Animated Interactive SI Display Advertising Retrieval 10

11 4.1 Static Banners Easy to produce Universally accepted Stale and boring Click-through rate is not terribly high A web banner ad from AT&T placed on HotWired in 1994 Clickthrough rate: 100% SI Display Advertising Retrieval 11

12 Rudimentary flip-book style movement (2 to 20 frames -- GIF technology) Higher click-through than static Deliver more information Eye-catching Universal acceptance 4.2 Animated Banners Easy and inexpensive to produce SI Display Advertising Retrieval 12

13 2 types HTML Proprietary code Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare Make a choice or insert data HTML - universally accepted Proprietary code - often requires plug-ins to be downloaded; not always accepted Highest click-through rates 4.3 Interactive Banners SI Display Advertising Retrieval 13

14 5. Views on banner advertising Academic View: Banner adverts should be considered as a form of marketing communication used to raise brand awareness. Empirical View: A banner ad is likened to a coupon in print media (the success of the banner ad should be measured through the return rate or CTR) SI Display Advertising Retrieval 14

15 6. Click-through effectiveness An internet survey by COBUS (2001) showed: Nearly 50% of the respondents reported that they looked at advertising banners if they were well-designed Less than 25% felt that banner ads were disruptive Only 30% said they ignored banners altogether The Internet Advertising Bureau (1998) reported: 60% to 70% of survey respondents approved advertisement on the internet SI Display Advertising Retrieval 15

16 6. Click-through effectiveness (2) Nielsen (1997; 2000) reported: click-through rate have decreased from 2.1% (1995) to 0.5% in Oct 1998, and reached 0.2% in May 2000 DoubleClick (1996) reported: The probability of clicking on a banner drops from a maximum of 2.7% to less than 1% at the fourth exposure SI Display Advertising Retrieval 16

17 6. Click-through effectiveness (3) This decline prompts four critical questions: why do banner ads seem to be ineffective? what can advertisers do to improve their effectiveness? does an immediate measure such as click-through rate undervalue online advertising? are memory-based measures such as recall or awareness more appropriate? SI Display Advertising Retrieval 17

18 7. Banner Advertising Findings H1) Internet users avoid looking at banner ads SI Display Advertising Retrieval 18

19 7. Banner Advertising Findings (2) H1) Internet users avoid looking at banner ads (TRUE) Half of the banner exposures are not attended to Users not interested in the advertised product and thus have no reason to click on a banner. Users have learned that advertising banner often does not deliver its promise and hence chosen to ignore them. Users have experience with ads that direct users to sites with malicious code or other undesirable results. Users simply do not notice banners on Web sites, i.e. the banner blindness phenomenon SI Display Advertising Retrieval 19

20 7. Banner Advertising Findings (3) H2) The more time users have spent on the Internet, the less they pay attention to banner ads SI Display Advertising Retrieval 20

21 7. Banner Advertising Findings (4) H2) The more time users have spent on the Internet, the less they pay attention to banner ads (FALSE) The primary factor in generating click-throughs is the nature of the audience and what the inherent interest in the product category may hold for them Repetition reduces clickthroughs, but it builds brands SI Display Advertising Retrieval 21

22 7. Banner Advertising Findings (5) H3a) Banner ads will have a positive impact on aided advertising recall H3b) Banner ads will have a positive impact on brand recognition H3c) Banner ads will have a positive impact on unaided advertising recall H3d) Banner ads will have a positive impact on brand awareness (ALL TRUE) SI Display Advertising Retrieval 22

23 H3a) Banner ads will have a positive impact on aided advertising recall H3b) Banner ads will have a positive impact on brand recognition H3c) Banner ads will have a positive impact on unaided advertising recall H3d) Banner ads will have a positive impact on brand awareness (ALL TRUE) How do we know? Academic research 7. Banner Advertising Findings (6) Empirical results Business Results SI Display Advertising Retrieval 23

24 7. Banner Advertising Findings (7) H4) Advertising effectiveness increases with frequency of exposure SI Display Advertising Retrieval 24

25 7. Banner Advertising Findings (8) H4) Advertising effectiveness increases with frequency of exposure (TRUE) Repetition improves unaided advertising recall, brand recognition, and brand awareness Repetition does not improve aided advertising recall SI Display Advertising Retrieval 25

26 7. Banner Advertising Findings (9) H5a) Larger banner ads will be more effective than smaller banner ads H5b) Banner ads that are laid-out vertically will be more effective than banner ads that are laid-out horizontally SI Display Advertising Retrieval 26

27 7. Banner Advertising Findings (10) H5a) Larger banner ads will be more effective than smaller banner ads (TRUE) H5b) Banner ads that are laid-out vertically will be more effective than banner ads that are laidout horizontally (WEAK) SI Display Advertising Retrieval 27

28 7. Banner Advertising Findings (11) H6a) Banner ads that contrast with their environment will be more effective then ads that do not H6b) Animated banners will be more effective than static ones H6c) The effectiveness of a banner ad depends on its MESSAGE SI Display Advertising Retrieval 28

29 7. Banner Advertising Findings (12) H6a) Banner ads that contrast with their environment will be more effective then ads that do not (HIT or MISS) H6b) Animated banners will be more effective than static ones (TRUE) H6c) The effectiveness of a banner ad depends on its MESSAGE (Supercalifragilisticexpialidociously TRUE) SI Display Advertising Retrieval 29

30 8. Let s take a breather So, what have we learned so far? Banner ads are here to stay Banners must be designed carefully not to pester users Banners must be jazzed up and redesigned to attract users in a fresh, innovative way Users distrust is not helping the advertisers cause SI Display Advertising Retrieval 30

31 8. Let s take a breather (2) So, what have we learned so far? memory-based measures of advertising effectiveness should be applied to banner ads click-through rates fails to capture the positive effect that banners have on the brand being advertised click-through rates are not irrelevant (they provide a very large measure of advertising effectiveness) banners lead to brand awareness (click-through rate might be low, but in the long run, awareness is more important than clickthrough) advertising effectiveness can be increased by concentrating on the message they send (what is said and how often it is said is more important than how it is said) SI Display Advertising Retrieval 31

32 9. Contextual advertising Implies the existence of four entities: The publisher the owner of the website, that provides space for placing ads; his goal is to maximize the benefits while offering a good user experience The advertiser provides the ads, by marketing campaigns; his goal is to promote the products or services The ad network selects the ads that will be put on the page; it shares the revenue with the publisher The users visit the web page and interact with the ads Contextual advertising is a direct marketing method whose efficiency is easy to establish, as it is measured by user reactions SI Display Advertising Retrieval 32

33 10. Workflow When a user requests to view a page, the add selection engine provides the ad in a couple of hundreds of milliseconds = > pages must be analyzed offline Many pages are dynamic or require authentication =>the challenge is to find relevant ads while maintaining a low latency and communication cost (Text Summarization + Classification) SI Display Advertising Retrieval 33

34 Recap: 11. Sponsored Search Sponsored Search or Search Engine Marketing (SEM) is a form of advertising on the internet where advertisers pay to appear alongside organic search results. The position of the ads is determined by an auction advertisers explicitly bid for queries that they wished to display their ads for (exact match) SI Display Advertising Retrieval 34

35 Possible Solution: Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare 11. Sponsored Search (2) Determine keywords that best describe the merchandise Determine keywords that are less frequent than the query keyword and possibly cheaper SI Display Advertising Retrieval 35

36 The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 36

37 The World's Best Banner Ads (And Why They Worked) SORRY STEVE, IT S MUCH MORE THAN JUST INTERACTION + EMOTION THERE ARE 6 COMMANDMENTS FOR GREAT ONLINE ADS WHICH NO OTHER MEDIUM CAN OFFER SIMULTANEOUSLY SI Display Advertising Retrieval 37

38 IS THE IDEA? 1 INTERACTIVE Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 38

39 The World's Best Banner Ads (And Why They Worked) REWARD THE USER FOR CLICKING SI Display Advertising Retrieval 39

40 The World's Best Banner Ads (And Why They Worked) INTERACTIVITY INCREASES BRAND RECALL 63% MORE THAN NON INTERACTIVE ADS *Barnum Sulley Research SI Display Advertising Retrieval 40

41 The World's Best Banner Ads (And Why They Worked) TELL ME AND I'LL FORGET; SHOW ME AND I MAY REMEMBER; INVOLVE ME AND I'LL UNDERSTAND. ANCIENT CHINESE PROVERB SI Display Advertising Retrieval 41

42 The World's Best Banner Ads (And Why They Worked) TELL ME AND I'LL FORGET 86%; SHOW ME AND I MAY REMEMBER 19%; INVOLVE ME AND I'LL UNDERSTAND 63% UPDATED CHINESE TWEET SI Display Advertising Retrieval 42

43 Interactive Agency: CP+B [US] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 43

44 Interactive Agency: Bridge [US] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 44

45 Interactive Agency: Glue [UK] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 45

46 IS THE IDEA? 1 INTERACTIVE Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) 2 CUSTOMIZABLE SI Display Advertising Retrieval 46

47 Customizable Agency: Weapon 7 [UK] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 47

48 Customizable Agency: Tribal DDB [UK] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 48

49 IS THE IDEA? 1 INTERACTIVE Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) 2 CUSTOMIZABLE 3 CONTEXTUAL SI Display Advertising Retrieval 49

50 Contextual Agency: Mediafront [NO] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 50

51 IS THE IDEA? 1 INTERACTIVE Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) 2 CUSTOMIZABLE 3 CONTEXTUAL 4 ENTERTAINING SI Display Advertising Retrieval 51

52 Entertaining Agency: Soap [US] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 52

53 Entertaining Agency: Boondoggle [NL] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 53

54 IS THE IDEA? 1 INTERACTIVE Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) 2 CUSTOMIZABLE 3 CONTEXTUAL 4 ENTERTAINING 5 PLAYABLE SI Display Advertising Retrieval 54

55 The World's Best Banner Ads (And Why They Worked) YOU CAN T PLAY WITH A TV AD FOR 5 MINUTES SI Display Advertising Retrieval 55

56 Playable Agency: CP+B [US] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 56

57 Playable Agency: DM9 DDB [BR] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 57

58 IS THE IDEA? 1 INTERACTIVE Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) 2 CUSTOMIZABLE 3 CONTEXTUAL 4 ENTERTAINING 5 PLAYABLE 6 USEFUL* SI Display Advertising Retrieval 58

59 The World's Best Banner Ads (And Why They Worked) Useful! SI Display Advertising Retrieval 59

60 The World's Best Banner Ads (And Why They Worked) Useful? SI Display Advertising Retrieval 60

61 Useful Agency: Holst Digital [UK] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 61

62 The World's Best Banner Ads (And Why They Worked) BRIEF FOR SOLUTIONS, NOT ADS SI Display Advertising Retrieval 62

63 The World's Best Banner Ads (And Why They Worked) JUST FOR STEVE JOBS EMOTIONAL SI Display Advertising Retrieval 63

64 Emotional Agency: BBH [UK] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 64

65 The World's Best Banner Ads (And Why They Worked) YOU FORGOT WHAT THE INTERNET WAS BUILT ON! SI Display Advertising Retrieval 65

66 Sex! Agency: Grand Union [UK] Universitatea Politehnica Bucureşti - Facultatea de Automatică şi Calculatoare The World's Best Banner Ads (And Why They Worked) SI Display Advertising Retrieval 66

67 The World's Best Banner Ads (And Why They Worked) FINAL THOUGHT SI Display Advertising Retrieval 67

68 The World's Best Banner Ads (And Why They Worked) WHY ARE AGENCIES (ADVERTISING, DESIGN, MEDIA) HAVING TROUBLE DOING ONLINE WELL? SI Display Advertising Retrieval 68

69 The World's Best Banner Ads (And Why They Worked) THINK DIFFERENT FOR ONLINE SI Display Advertising Retrieval 69

70 The World's Best Banner Ads (And Why They Worked) UNDERSTAND PEOPLE, THEN TECHNOLOGY SI Display Advertising Retrieval 70

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