Wireless Advertising Speaker: Jerry Gao Ph.D. San Jose State University email: jerrygao@email.sjsu.edu URL: http://www.engr.sjsu.edu/gaojerry April, 2004 Topic: Wireless Advertising Presentation Outline - What is Wireless Advertising? - Different Types of Wireless Advertising - Business Models in Wireless Advertising - Business Issues and Challenges - Technical Issues and Challenges - Existing Approaches - Major Players in Wireless Advertising - Open Issues and Future Work Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising What Is Wireless Advertising? Wireless advertising --> refers to advertising and marketing activities that deliver advertisements to mobile devices using wireless network and mobile advertising solutions. Goals: – To promote the sales of goods and services – To build brand awareness Wireless advertising ----> creates a new media channel to conduct product and business advertising and marketing through mobile devices. ---> increase product awareness and disseminating information. Wireless devices --> the major platform behind wireless marketing and advertising. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising What Is Wireless Advertising? Three main characteristics over conventional platforms: • Accessible - Since a wireless device is becoming a personal device because it is handy and portable, and available for use at all time. • Personal - It carries the user’s identity that can be used to track down to an individual, unlike PC computers that only carry a household’s identity. • “Location Aware” - It is easy to track down where a user’s physical location is as long as the device is on and connected. ---> Wireless advertising provides unique features that do not exist in traditional and current advertising media. --> highly targeted, flexible, interactive, and dynamic --> targeted audiences can search information, issue inquires, and make purchases at anytime, anywhere. Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Understanding Wireless Advertising Advertising Features Wireless Advertising Online Advertising Traditional Advertising Communication Style 2-Way Wireless Comm. 2-Way Internet Comm. 1-Way Delivery Ad Delivery Electronic and Dynamic Electronic and Dynamic Ad-hoc Delivery Reachable Consumers Global Mobile Users Global Online Users Regional Readers/Viewers Interacting with Users Supported Supported Not Supported Ad Platforms PDAs, Mobile Phones, and Pocket PCs. Web Browsers on Laptops, and Desktops Traditional media platforms, TV, Radio, and News Papers Linkage to Product Catalogs Supported Supported Not Supported Enable Trading Transactions Supported Supported Not Supported Advertising Management Systematic Management Systematic Management Ad-hoc Management Ad Targeting Personal, Content-Based, and Location-Based Targeting Content-Based and IP-Based Targeting Ad-hoc Targeting to Regional Subscribers or Receivers. Ad Tracking Systematic Tracking Systematic Tracking Very Limited Tracking Ad Performance Measurement Systematic Measurement Systematic Measurement No Systematic Measurement Comparing Wireless Advertising with Traditional Advertising and Online Advertising Jerry Gao Ph.D. 5/2004 All Rights Reserved Topic: Wireless Advertising Different Types of Wireless Advertisements • Vindigo’s Location-Based Application Advertisements: - Vindigo enables individuals on the street to find the best and closest places to eat, shop, and play. - Vindigo provides ads for media companies, directory publishers, travel agencies, real estate firms, wireless carries, as well as field supporters. • SkyGo’s advertisements: - SkyGo delivers wireless ads to any mobile phone, PDA, or pager. It supports a wide range of operating systems and protocols for delivering phone ads and PDA ads. Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Media company Wireless carries Directory publishers Travel agency Real estate firms Field technicians Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Different Types of Wireless Advertisements Location-based ads – They are delivered to mobile device users based on their mobile locations. For example, mobile users may register to receive alerts (or offers) on their mobile phones from the shops or restaurants in a specific location. Brand-building ads – They are designed and delivered to mobile users to increase the awareness of mobile users to a specific business or a product. Homepage ads – They enable advertisers to place wireless ads on the homepages of wireless service vendors. For example, AvantGo with premier placement header and anchor ads for maximum visibility. Category ads Jerry Gao Ph.D. 10/2004 - They provide customers with easily traceable well-classified ads. AvantGo's wireless category pages are typical examples. They target specific demographics with messages focused on consumers who browser channels within a specific interest category. All Rights Reserved Topic: Wireless Advertising Different Types of Wireless Advertisements Interstitial ads - They refer to the advertisements which appear on mobile devices during mobile users’ interstitial time. For example, page loading, wireless web surfing, or waiting for wireless connection. Interstitial ads can include interactivity by click-through and provide audio features. Short Message ads - They are delivered to mobile users as short alter messages (for example, SMS alerts or WAP alters) to meet the consumers’ requests. Game-based ads - They let the users to play games using mobile devices and the ads pop-up in-between the games. Mobile coupons - They are delivered to mobile users to give them the permissions to receive discount coupons. Jerry Gao Ph.D. 10/2004 All Rights Reserved Topic: Wireless Advertising Wireless Ads build brand effectively by compelling concise messages within content. Palm Ads build brand effectively with compelling concise messages Figure Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Different Types of Wireless Advertisements • • AvantGo’s wireless users can access more than 1000 premium channels from wireless-enabled handhelds and smart phones. These channels provide an effective mean to deliver wireless ads for various businesses: – banking & finance, health care, publishers & media, retail shopping, computer, travel, and entertainment AvantGo provides two types of wireless advertising services: Wireless home page ads: • Advertisers can place wireless ads on the AvantGo’s wireless home page to achieve unsurpassed visibility with premier placement header and anchor ads. Wireless category ads: • Advertisers may choose AvantGo’s wireless category pages to place ads that easily reach to the desired demographics using message focused on customers who are browsing the channels within a specific interest category. Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Figure 3: Wireless Home Page Ad Sample Source: http://www.avantgo.com/products/businesses/marketing_commerce/pdf/wireless_ad.pdf Wireless Category Ad: Deliver your targeted message based on users’ interests and geographical location. Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Figure 4: Wireless Category Ad Sample Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Business Models in Wireless Advertising What is a business model? --> a business model is a blueprint for a business that highlights the business strategy about how to make revenue by specifying markets, products, customers, and where is it positioned in the value chain. Voice-subsidized: The business model has an objective to provide competitive offerings and has no intention to generate additional revenue. Safe income & no upside revenue model: The objective of this model is to subsidize acquisition of premier content to elevate quality of wireless Internet offering. This model derives revenue not only from the subscriber fees, but also the content providers’ placement fees. Jerry Gao Ph.D. 5/2004 All Rights Reserved Topic: Wireless Advertising Business Models in Wireless Advertising Diversified revenue: The objective of this model is to subsidize quality content and subscriber fees to increase \content quality and create a compelling offering that draws and retain subscribers. -> generate revenue from the placement fees -> generate revenue from the share of advertising revenues and mobile commerce fees. It requires WSP to have its own wireless ad server or sanctioned ad server for use by publishers. Media-dependent, outsource media sales revenue: - The objective of this model is to subsidize quality content and subscriber fees to grow and retain the subscriber base while generating significant revenue. - This model generates revenue wholly from a share of all advertising and m-commerce revenue from the WSP distribution channel. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Business Models in Wireless Advertising Media-dependent, in-house media sales revenue: The objective of this model is to expand the carrier’s business function to include media sales, controlling and drawing revenue from the wireless Internet property. This model is fully dependent on wireless advertising and mcommerce fees for wireless content acquisition and subscriber access. It also requires a complete technology solution to support wireless advertising in advertisement creation, management, services, such as deliver, and measurement. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Business Models for Wireless Advertising Business Model Subscrib er Fees MCommerce Fees Content Placement Fees Advertisin g Revenue Partner Technology Requirements Voicesubsidized Majority None None None None Safe income, No-upside revenue Majority None Majority None None Diversified revenue Share Share Share Share WSP sanctioned publisher, ad serving solution, outsource media sales, measurement capability. Mediadependent Outsource media sales revenue None Share None Share WSP- sanctioned publisher, ad serving solution, outsource media sales, measurement capability Mediadependent In-house media sales revenue None Majority None Majority Carrier ad serving solution, extensive in-house media sales, campaign management Interface. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Enabling Wireless Technology • WAP: - It plays as a bridge between wireless network and Internet. It can be used as an information channel between wireless devices and the Internet. • SMS: - It is a digital cellular network feature. It allows users to send short text and numeric messages to and from digital cell phones using cell phones and e-mail addresses based on public SMS messaging gateways over the Internet. • I-Mode: It provides a predominant wireless Internet service that offers wireless web access and e-mail services through mobile phones • Web Clipping – It allows users to access the updated contents dynamically through applications stored on mobile devices as well as wireless modems. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Enabling Wireless Technology Source: http://www.avesair.com/flash/solutions/mobile_marketing/push.html??? Figure 5(a): Push Technique Overview Jerry Gao Ph.D. 4/2004 Figure 5(b): Pull Technique Overview All Rights Reserved Topic: Wireless Advertising Wireless Data Access Audio Access Visual Access Push N/A WAP Alerts SMS Pull VXML WAP Syncing I-Mode Table 3: Data Access Overview Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Business Issues and Challenges • Cost – the current cost of wireless devices and wireless Internet subscription are considered high. • Push vs. Pull – Wireless ads are delivered to the mobile users using the Push or Pull approaches. • High business risk – Wireless marketing is still at the beginning stage, high uncertainty. • Ad reception – The challenge here is how to determine whether or not a pushed ad was ever received. --> mobile devices are on and connected? Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Business Issues and Challenges • Privacy – When discussing consumer profiling, the issue of privacy must be addressed. – A law must be made to govern to what ad agencies are allowed to request and share. – According to the Yankee Group during the WAA meeting, more than 50% of consumers have privacy concern’s on the use of their profile and location information. • Ad pitch – There are several methods that advertising agencies will attempt to sell to consumers. One is ad pitch based on wants and needs. This has been there for ages, such as paper coupon. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Technical Issues and Challenges • Smaller Screen Size – Different mobile devices have different screen sizes • Inconsistent formatting – Lack of consistent ad formats • Slow download speeds – Due to the technology limits • Broad spectrum of technologies – Various wireless networks and technologies • Lack of standardization – Presentation, formatting, protocols, payment, measurement, ... Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Wireless AD Standards GSM and Non-GSM SMS Standard for Message Alerts Features GSM SMS standards Non-GSM SMS standards Locations Applied Apply to messages carried over GSM mobile networks, predominant in Europe. Apply to all SMS messages carried by TDMA and CDMA mobile networks, predominant systems in U.S. and Asia. Sponsorship A message that is up to 34 characters in length (two lines of text on most phones), designed for sponsoring content which precedes or follows the ad unit. A message, which is up to 34 characters in length (two lines of text on most phones), designed for sponsoring content that precedes or follows the ad unit. Full Message A message up to 160 characters in length, typically delivered standalone. A message up to 100 characters in length, typically delivered standalone. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Wireless AD Standards PDA STANDARD FOR SCREEN DISPLAY Palm OS Pocket PC OS Comments Recommended 150*24 pixels 150*32 pixels 215*34 pixels 215*46 pixels 2 lines of text --- Supported 215*26 pixels 215*58 pixels 1 line of text 3 lines of text Jerry Gao Ph.D. 4/2004 150*18 pixels 150*40 pixels All Rights Reserved Topic: Wireless Advertising Wireless AD Standards WAP PHONE STANDARD FOR DISPLAY Text ADS Graphic only ADS Graphic + Text ADS Comments Standard - Fixed text size with 15 characters - 2-line fixed text with 30 characters - 1-line marquee text with 34 chars - 80*8 pixels - 80*15 pixels - 80*20 pixels - 80*8 pixels & l-line text - 80*15 pixels & lline text - Content friendly - Can be run as Interstitials 4-line High Display -- 80*31 pixels 80*15 pixels & 2-line text Can be run as Interstitials Screen Devices -- -- 80*20 pixels & 1/2line text Can be run as Interstitials Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Engineering Wireless-Based Advertising Solutions Engineering a wireless advertising solution consists of the following four tasks: - Task #1: Analyze and define a domain-specific enterprise processes and workflows for different parties in wireless advertising, including advertisers, WSPs, content providers, mobile portals, and service vendors. - Task #2: Understand and specify basic functional components in a wireless advertising solution. - Task #3: Specify the required wireless advertising techniques, algorithms, and metrics based on the underlying business model and wireless advertising standards. - Task #4: Apply and practice a selected software engineering methodology to develop, implement, and deploy the solution. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Engineering Wireless-Based Advertising Solutions AD planning AD targeting AD Planning AD design AD creation AD update AD Design AD space search AD space booking AD contracting AD delivery AD Campaign AD monitoring AD tracking AD measurement AD Monitor & Analysis AD Payment AD Report AD Closure An Engineering Process for Advertisers Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Engineering Wireless-Based Advertising Solutions AD Space catalog creation Inventory management Inventory report AD Space Catalog Space auction Space buy-and-sell Space exchange AD Space Trading Space quotation Space reservation Space scheduling AD Space Scheduling AD elicitation AD-space binding Space fulfillment AD Space Fulfillment Space monitor Space tracking Performance analysis Measurement report AD Space Measurement Payment process Payment closure AD Space Payment An Enterprise Process for Ad Publishers Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Engineering Wireless-Based Advertising Solutions AD REQ Processing Advertisers Space search Space scheduling AD Space Campaign Space buying Space bidding AD Space Trading AD delivery AD posting AD Delivery & Posting AD Monitor & Tracking Status Monitor Performance Data Collecting Ad Publishers AD Performance Measurement Performance Analysis And Measurement AD Service Payment Payment process Contract closure An Enterprise Workflow for Advertising Service Vendors Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Major Players in Wireless Advertising • AvantGo – Wireless advertising portal – http://www.avantgo.com • Vindigo – Wireless advertising portal – http://www.vindigo.com • I3Mobile – Wireless advertising portal – http://www.i3mobile.com • SkyGo – Marketing solution provider – http://www.skygo.com Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Major Players in Wireless Advertising • Avesair – Marketing solution provider – http://www.avesair.com • Advertising.com – Marketing solution provider – http://www.advertising.com • Doubleclick – Marketing solution provider – http://www.doubleclick.com • Windwire Inc. – Marketing solution provider – http://www.windwire.com Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Issues in Developing Wireless Advertising Solutions • Targeting issues: Who should we deliver the wireless ads? • Timing issues: When to deliver the wireless ads? • Delivery issues: How to delivery the wireless ads? • Measurement issues: How evaluate and measure the effectiveness of the wireless ads? • What kinds of ads are suitable for wireless advertising? Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Issues in Developing Wireless Advertising Solutions • Targeting issues: Who should we deliver the wireless ads? • Timing issues: When to deliver the wireless ads? • Delivery issues: How to delivery the wireless ads? • Measurement issues: How evaluate and measure the effectiveness of the wireless ads? • What kinds of ads are suitable for wireless advertising? Jerry Gao Ph.D. 10/2002 All Rights Reserved Topic: Wireless Advertising Wireless AD Targeting What is wireless ad targeting? Wireless ad targeting refers to using effective methods to deliver wireless ads and post them to mobile users who are (or might be) interested in receiving them at the right time and right location. What is the major objective? Its major purpose is to increase the effectiveness of wireless advertisements. In wireless advertising, ad targeting is to study the cost-effective methods to address the following two challenges: • How can we find and deliver the wireless ads to meet a mobile user’s interests and needs? • How can we present and post the wireless ads to a potential consumer at the right time and location? Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Wireless AD Targeting There are four basic ad targeting strategies: -Profile-based targeting --> It selects and delivers wireless ads to mobile device users based on users’ profiles, channels, and interests. For example, in profile-based targeting, a SMS alter message about a new video coupon could be sent to a user who likes to see movies. - Location-based targeting It selects and delivers wireless ads to mobile device users based on their mobile locations. For example, a list of local Italian restaurants could be sent to a mobile device based on the mobile user’s current location (say zip code) if the location-based target strategy is used. -Content-based targeting It selects and posts ads on a mobile device based on the current content page accessed by the user. For instance, when the content-based targeting is adopted, specific auto-sale ads could be posted on a mobile device whenever its user accesses a mobile portal to look for automobile sale information. Hybrid targeting It adopts a number of targeting strategies together in an intelligent way to find and deliver the right ads to mobile users at the right time and right location. For example, in a hybrid targeting strategy, whenever a Toyota brand lover accesses a mobile portal to look for automobile sale information, Toyota auto-sale ads from local auto-dealers will be sent to the user’s mobile device based on the user’s current location. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Wireless AD Tracking What is wireless ad tracking? Wireless ad tracking refers to monitoring and tracking the posting status of ads on mobile devices. Similar to online advertising, ad tracking can be done using a systematic solution. What is the major objective? The major purpose of wireless ad tracking is to allow advertisers to check and monitor their ads’ delivery and posting statuses with wireless adverting vendors or mobile portal companies. With advertisement tracking advertisers can collect, track, and analyze ad posting and delivery data, as well as users’ reactions and responses. These collected data are very useful to evaluate the ad posting performance to different user groups from selected vendors. Ad tracking is also an essential feature of a wireless advertising solution for wireless service providers and mobile portal companies, because they need to track and monitor advertising traffics on their users’ mobile devices. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Wireless AD Tracking What data could be tracked with a wireless tracking solution? They can be classified into the following classes: • Mobile user profiles, including user registration and membership information, user interests, and user selected channels. • Dynamic user access information, including user accessed contents (such as mobile pages/cards), mobile access locations and time. • Mobile device information, such as device IDs, platform, and mobile browser information. • Wireless ad profiles, including information about ads, related ad space, and its posting service company. • Ad delivery information, such as successful the delivery counts, and the received no. of receptions. • Ad posting information, including ad impression counts, ad page impression counts, and posting status (i.e. Posted/Posting/Un-Posted). • Mobile user reactions, such as ad selected/clicked counts, ad select-though or click-through counts, user direct feedbacks, and direct transaction counts leading from ads. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Wireless AD Tracking Collect and monitor wireless ad delivery and posting data that could be analyzed to answer the following basic questions: • Where and when a wireless ad has been delivered and posted to mobile devices? • How many mobile users have received the ad? • How many of them have viewed the ad? What are their reactions and responses? • Does a wireless ad has been successfully delivered and posted to mobile users based on a contracted schedule? • Does the ad reached to the targeted user groups? • What is the responding traffic for a posting ad? • How many trading transactions are generated by a posting ad? Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Wireless AD Payment Pay-by-impression -A common pay-by-impression model is the Cost-Per-Thousand Impressions CPM) model. It computes advertising cost based on the number of ad impressions. This model has been widely adopted in online advertising. It assumes there is value to every ad impression. Pay-by-click. -A common pay-by-click model is known as Click-Through model, which calculate the advertising cost of a posting ad based on the number of times the ad has been “clicked on” by viewers. Pay-by-message. - This model has been used for email-based Internet marketing. It charges to advertisers based on the following metrics: •The number of email messages which have been sent to potential consumers. •The number of email messages which have been received. •The number of email messages which have been responded. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising Wireless AD Payment Pay-by-meter -This model also known as Flat Fee. It charges a flat advertising fee for an ad space based on its posting duration time regardless of ad performance. This is the first payment model used in online advertising. This model could be very reasonable for brand building ads and interstitial ads. Pay-by-transaction -This payment model is totally based ad performance. It computes the advertising costs based on the number of the leading sale transactions from a posting ad. It could be useful for location-based and category-based wireless ads. Pay-by-display -Online game-based advertising has used this model to compute advertising payment. It charges an advertiser based on the total number of ad display for a game ad space. In wireless advertising, mobile game vendors can use a similar payment model to computer the advertising costs. Hybrid payment model. - A hybrid model usually is a complicated model defined based the other payment models. Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising AD Performance Measurement • • • • • • • • • What kinds of consumer groups have been reached by a posted ad? Has a posted ad reached to the targeted consumer groups? How many consumers have seen the ad? How many of them responded to the ads? What are the consumers’ responses and reactions to the posted ad? How many of consumers have made direct purchases through a posted ad? What is a posted ad’s impact on consumers in brand building? Is the selected advertising vendor is the right channel to reach to the targeted consumer groups? If there is more than one involved advertising vendors, which one has brought out a better performance? Jerry Gao Ph.D. 4/2004 All Rights Reserved Topic: Wireless Advertising AD Performance Measurement Measurement Category Advertising Performance Metrics Descriptions Ad posting metrics - advertisement page impression count - advertisement impression count - advertisement display time - total count of ad page display from a vendor - total count of ad posting for an ad in an ad space - total ad display time for an ad by a vendor Ad response metrics - ad-click rate (only for PDAs and Pocket PCs) - ad-select rate (only for mobile phones) - ad-response rate(only for direct responses) - ad-reception rate (only for ad alters) - the ratio of the number ad clicks to ad impression count - the ratio of the user selection count to ad impression count - the ratio of user response count to ad impression count - the ratio of user reception count to total ad-delivery count Ad delivery metrics - ad-delivery reach rate - ad-delivery frequency - ad-delivery impression rate - the ratio of the no. of delivered ads to the no. of received ads - the ad delivery frequency in a given time period - the ratio of the no. of delivered ads to the no. of posting ads Ad impact metrics - ad click-through rate (for PDAs & Pocket PCs) - ad select-through rate (for mobile phones) - user trading rate for posting ad - brand awareness rate (for brand building ad only) - the ratio of ad posting count to the total click-through counts - the ratio of ad posting count to the total select-through counts - the ratio of ad posting count to the no. of trading transactions - the ratio of users who aware the ad to the no. of reached users Jerry Gao Ph.D. 4/2004 All Rights Reserved