Ankit Mehta
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Brief history of online
advertising
 May 1978: First Marketing Spam form DEC Marketing
representative.
 1994: First banner ad by AT&T on Hotwired.com
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History of online advertising
 1996: First interactive ad by HP where users can play
ping pong .
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Types of online advertising
 Search Advertising : Google AdWords
 Classifieds : Craiglist
 Traditional web advertising : Banner ads, pop up ads,
hover ads etc
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Types of online advertising
Screenshot from the game Burnout
Paradise”
 In-Game Advertising
Advertisement of IBM in the online world
Second Life
 Advertising in Online games
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Types of online advertising
 Email Advertising : Legitimate marketing emails ,
Spam
 Video Advertising: Hulu
 Spyware : CoolWebSearch
 Affiliate Advertising : Amazon
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Contextual Advertising
A system is context-aware if it uses context to provide
relevant information and/or services to the user, where
relevancy depends on the user's task.
 Primarily used on internet but also used in Cable TV,
Mobile phones
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Different Types of Context
 Contextual Targeting using page content
 Behavioral Targeting using user behavior
 Geo-Targeting using user’s location
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Types of Contextual Advertising
 In Page Contextual
Advertisement
 Google Adsense
 Behavior Based Contextual
Advertising
 Facebook
 In-Line Advertising
 Channel-Based Contextual
Advertising
 Search-based Contextual
Advertising
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How Ads are Delivered
[2]
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Context matching algorithm
Contextual Targeting based on page content
 Represent the page as set of keywords and then rank
the ads based on the keywords extracted from the
content page [3]
 Give a pre computed suggested list of keywords for the
advertiser to place in his advertisement which can lead
to better matching of ads to the pages. [4]
https://adwords.google.com/select/KeywordToolExter
nal
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Contextual Targeting based on page content
 Generate a different representation of target page i.e.
add more related words to the page. [5]
This avoids the vocabulary mismatch problem.
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Behavioral Targeting Technologies
 Storing users web information using cookies.
 Installing equipment and software at the ISP
 Deep Packet Inspection techniques to monitor user
packets in realtime and serve ads in realtime

Phorm provides this kind of service
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Behavioral Targeting Technologies
 Web Beacon
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Geographical Targeting
 Can be done using checking IP address
 Newer systems also use GPS
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Advantages of Contextual
Advertising
 Advantages
 More clicks per ad by the users.
Hence more effective advertisement . This leads to
greater revenue for both the advertiser and the site
owner where ad is placed
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Disadvantages
of Contextual advertising
Out of context advertisements can hurt the brand
being advertised .
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Disadvantages
of Contextual advertising
 Ads of your competitor might be show on your website
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Disadvantages
of Contextual advertising
 Advertisement having links to viruses etc may show up
on a proper website.
 Click fraud
 Behavioral targeting does not work if multiple users
use the same machine.
 Deep packet inspection technique for behavioral ads
is similar to phone tapping. Privacy issues
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Revenue models
Pay Per Click and Cost per lead are the more
dominant revenue models
 Pay Per Click (PPC)
 Cost Per Thousand(CPT)
 Cost Per Action (CPA)
 Cost per Impression
 Pay for placement (P4P)
 Cost Per Lead(CPL)
 Cost per engagement
 Cost-per- Acquisition
(CPA)
 Cost per View (CPV)
 Pay per call
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Disadvantage of traditional forms
 Click rate is <1% for traditional ads as compared to 2-
5% for contextual advertisement.
Banner ads affected by banner blindness[1]
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Which is the best form of online
advertising ?
 Between various forms of contextual ads , the trend
seems to be towards behavioral based ads . Google is
the latest player to join this area last month.
 Behavioral ads outperform Search based ads in term of
relevancy by 22%.
 In social networking sites there is lot of data available
for behavioral ad providers to be mined and improve
the relevance of behavior based ads.
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Future trends
 More bandwidth means more video and flash based
ads
 Real time and dynamic advertising in videos, banners
etc.
 Contextual advertising where the context is
image/video
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References
 [1] http://www.useit.com/eyetracking/
 [2] AD Serving 101, Revised. By Eric Picard, ClickZ, Nov 17, 2008
http://www.clickz.com/3631700
 [3] “Semantic Associations for contextual advertising”. Massimiliano Ciaramita, Vanessa
Murdock, Vassilis Plachouras Yahoo! Research Barcelona
 [4] Yih, W., J. Goodman, and V.R. Carvalho, “Finding Advertising Keywords on Web
Pages,” Proceedings of the 15th international conference on World Wide Web, pp. 213222, 2006. Microsoft Research
 [5] Lacerda, A., M. Cristo, M.A. Goncalves, W. Fan, N. Ziviani, and B. Ribeiro-Neto,
“Learning to Advertise,” Proceedings of the 29th annual international ACM SIGIR
conference on Research and development in information retrieval, ACM Press, pp. 549556, 2006. Google Engineering
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