Lecture 2: Introducing Java - Emory Universityeugene/cs190/lectures/0226-advertizing.pdf · • Pay...

Web Advertising

12/26/2013 CS190: Web Science and Technology, 2010

Today's Plan

Logistics

Understanding searchers (Commercial Perspective)

Search Advertising

Next project: Google advertising challenge

CS190: Web Science and Technology, 2010

Logistics

• Project 1 feedback/review returned: by tonight

• Thursday: Quiz (web search, advertising basics)

• Today: Project 2 details (will continue on Thursday)

2/26/2013 CS190: Web Science and Technology, 2010 3

Segway into Search Analytics

• Google trends

http://www.google.com/trends/explore

• Google Flu trends

http://www.google.org/flutrends/us/#US




http://www.google.org/flutrends/us/



Understanding Website Audience

Who are these people?

1. Analyze URLs

2. Analyze Keywords

Slide credits: Panos Ipeirotis, NYU

Analyzing Referral URLs: Demographics

Analyzing Referral URLs: Affinities

QuantCast for CNBC

Analyzing Keyword Queries: the "intent funnel"

• What is the intent of customers that type such queries?

• Hint: What they searched before or after?– Search Funnels: http://adlab.msn.com/searchfunnel/

– How can you catch

customers earlier?

– What customers do

when they leave?

http://adlab.msn.com/searchfunnel/

Keyword Composition

• Classification of queries in search engines– Navigational– Transactional– Informational

• Keywords with your brand are navigational– In principle, there should be no competition– Site should rank high– Typically in the head of the distribution

• Non-branded keywords are the real target

Aware/Loyal Customers

Competitive/Searchers Customers

Get Keyword Demographics

• Keywords have demographic signatures– Microsoft adCenter Demographics Prediction:

http://adlab.msn.com/DPUI/DPUI.aspx

– Quantcasthttp://www.quantcast.com/people.com#!demo

• Example: [posters]

http://adlab.msn.com/DPUI/DPUI.aspx

http://www.quantcast.com/people.com

http://www.quantcast.com/people.com

Get Keyword Demographics

• Example: [Jessica Alba]

What is Search Engine Marketing (SEM)?

• Search Engine Optimization (SEO)

– Improve “organic” result rankings on search engines

– Adjust elements important to search engine algorithms

• Pay Per Click Advertising (PPC)

– Also known as “sponsored results”, advertising that appears to the top, bottom, or side of search engine natural results

– Typically cost is generated on a “pay-per-click” model, where advertiser pays for each click a searcher makes on an ad, vs. the traditional online marketing method of “cost per impression”.

Search Marketing Facts

• 80.6% of searches use 2 or more words (current trend is 2-3 word searches)

• 87% of searchers do not search past the first page of results

• 33% of searchers believe that the top ranking is also the top brand of the industry.

• 56% of retailers say that 10-40% of their total orders come from PPC advertising

• 62% of users do not know the difference between paid vs. natural listings

(source: Pew Search Engine Users Study)

Why Search Engine Marketing?.

• Highly effective and targeted form of advertising

• High effectiveness given the cost

WEB ADVERTISINGSome slides adapted from DoubleClick, Yahoo!


16Spring 2009Eugene Agichtein CS 190: The Web:

Concepts and Technology, Emory University













The Million Dollar Webpage

http://www.milliondollarhomepage.com/http://en.wikipedia.org/wiki/The_Million_Dollar_Homepage


http://www.milliondollarhomepage.com/








http://en.wikipedia.org/wiki/The_Million_Dollar_Homepage

Web advertising

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• Banner ads

• Direct advertising (search ads)

• Focus: direct textual ads



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Ads as information

• “I do not regard advertising as entertainment or an art form, but as a medium of information….” [David Ogilvy, 1985]

• “Advertising as Information” *Nelson, 1974+

• Irrelevant ads are annoying; relevant ads are interesting

– Vogue, Skiing, etc. are mostly ads and advertorials

Ads as information supply

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Ad Selection Platform

User profile

& context

Activity context:

Browsing a

certain content

Avail info supply:

Ads inventory

Matching

Ads

User action:

•Click-thru

•Action

Feedback

Economics







Content Ads

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How it works

Advertiser

Landing page

Sponsored

search engine

I want to bid $5 on

canon camera

I want to bid $2 on

cannon camera

Engine decides when/where to show this ad.

Engine decides how much to charge advertiser on a click.

Ad Index

Search Ads

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Anatomy of a Search Ad

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“Landing Page”



Basic Revenue Models

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• – CPM= cost per thousand impressions

– Typically used for graphical/banner ads (brand advertising)

• CPC = cost per click

– Typically used for textual ads

• CPT/CPA = cost per transaction/action a.k.a. referral fees or affiliate fees

– Typically used for shopping (“buy from our sponsors”), travel, etc.

– … but now also used for textual ads (risk mitigation)

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Keyword matching: issues

• For advertisers– What keywords to buy?

– How much to pay?

– Spamming is an economic activity …

• For search engine owners– How to price the keywords?

• Let the market decide: bidding!

• For both– What are good performing keywords?

– What extra keywords to buy/sell?

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Digging deeper: beyond keyword matching

• Relatively simple on bidded keywords What about queries on which there is no bid?

• Advertiser can bid on “broad queries” and/or “concept queries”– Suppose your ad is:

• “Good prices on Seattle hotels”

– Can bid on any query that contains the word Seattle• Problems

• What about query “Alaska cruises start point”?

• What about “Seattle's Best Coffee Chicago”

• Ideally– Bid on any query related to Seattle as a travel destination

• Should these “broad matches” be priced the same?

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Finding the right ad (cont’d)

• Ads Database = Keywords +

Title + Description + URL

• Ad Query = Search Keywords + Context

• Search problem similar to Web Search, but– Ads have different structure

– Ad database is (somewhat) smaller

– Ad database entries are “small pages” *+ URL+

– Ranking could depend also on bids

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Similarity to Web search

• Web search trend over the past decade:

– From syntactic matching (common strings between query and document) to semantic matching (understand the query intent)

• Sponsored search

– From ads driven directly by the bid phrase (syntactic) to ads driven by the search context (semantic)

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Three sub-problems in ad selection

1. Match ads to query/context

2. Order the ads

3. Pricing on a click-through

IR

Econ

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2. Order the ads

• For each ad we now have

– A query-dependent score and

– A $ bid from the advertiser that can be used to compute an Econ score

• Ordering of retrieved ads

– Most generally, composite query+Econ score, e.g., expected revenue

• Original GoTo/Overture scheme:

– Order by bid2. Order the ads

How to price a click?

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• For the keyword emory, assume advertiser has a value of $10 per click.

• How much should she bid?

• How much should she be charged?

– The value of a slot for an advertiser, what he bids and what he is charged, may all be different.

PPC Terminology

• PPC: Pay Per Click

• CTR: Click Through Rate– Percentage of clicks to impressions

• CPC: Cost Per Click– Price an advertiser pays for each click on his/her ad

• Daily Budget– Amount advertiser is willing to spend, each day, on PPC

ads

The PPC Auction Model

• Basic model– Highest bidder gets highest slot

– Winner pays winning bid

– Not ideal! Why?

• Vickrey-Clarke-Groves (VCG) auction– Second price auction

– Optimal for single slot

– Reveals true willingness to pay, no need to be strategic

– Winner for slot i pays maximum bid of bidder that get i+1 slot

• Still not the best for Google, Yahoo, MSN etc.– Why?

Ad Quality Score + Landing Page Quality

• Search engine needs repeat customers

• Needs to improve user experience for long term

• Bid transformation:– (Bid $ amount) x (Ad Quality Score)

~ (Bid $ amount) x (CTR rate + relevance)

In other words, rank by expected revenue for Google

• High quality ads → Lower bid amount(incentive compatibility)

Details for quality score: https://adwords.google.com/support/bin/answer.py?answer=10215

Main difference between Yahoo and Google until 2007

https://adwords.google.com/support/bin/answer.py?answer=10215

https://adwords.google.com/support/bin/answer.py?answer=10215

Example Google AdWords Report

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Case Study: Cost per Click and Holidays

• CPC increases before the holidays

– Should advertisers refrain from bidding?

• How to approach the problem?

• CPC increases but conversion rate (CR) increases more!

• Cost per Acquisition (=CPC/CR) drops!

• Holiday season offers better bargain than other days











Improving PPC ROIThe “Long Tail” Concept

• “The Long Tail” by Chris Anderson

– An aggregate of less popular products can sell more in the “long tail” than the most popular products

• Same applies to PPC

– An aggregate of specific, less searched terms can provide better ROI than highly searched terms

The Long Tail Again

Does It Really Work? YES.

• Major athletic retailer case study– 80% of PPC sales come from long tail keywords

– Specific, product-name keywords

– Only 20% of sales come from broad terms, like “BRAND shoes” or “BRAND jacket”

• Most “long tail” keywords are inexpensive– [web hosting] $8.30

– [freebsd web hosting] $0.10

• Targeted at customers with specific needs, closer to purchase

Project 2: Google Ad Campaign

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NOW: – Pick your teams: 2 or 3people each. Preferably, not same as Project 1– Pick a small business (or non-profit or student organization) with a website that has not

used google AdWords in previous 6 months– Sign up for Google advertising challenge

• Today/tonight: Setup Google AdWords account; send your CID to me• Monday 3/4, send professor your campaign strategy (1 page, including website of

business you want to promote). I will give you feedback in class on Tue. • Thursday (3/6) Your Advertising campaign starts and continues at least through

spring break.• Thursday 3/21 each group does a short presentation about campaign results.• Wednesday, 3/27, submit a short (1-2 page) report about your ad campaign.

Note: If you want to be considered in the Google competition for fame, fortune, and extra credit, there are additional requirements, discuss with the instructor.

Step 1: selecting a business

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• Try to work with businesses relevant to the types of search queries that Google users conduct. A good example would be a traditional retail business, such as a home wares store, a vintage fashion store or a niche beauty store, or a non-profit/student organization.

• You should be aware that Google has content guidelines and will not run AdWords for sites promoting inappropriate items such as academic aids, alcohol, bulk marketing, counterfeit designer goods or cigarettes.

• Please note that the business or organization should not currently use AdWords in any capacity and not have had an active account within the last 6 months.

Example: Emory CS PhD Program

• https://adwords.google.com/select/snapshot


https://adwords.google.com/select/snapshot

Start planning your campaign

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• Pick a “business” – preferably, non-profit/student org, but real small business OK

• Follow the multimedia lessons in Google Adwords:http://www.google.com/adwords/learningcenter/index.html

Especially:

– 1(a, c)

– 2 (a, b, c, d)

http://www.google.com/adwords/learningcenter/index.html

Further Reading: Student Guide to the Challenge

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http://www.google.com/onlinechallenge/student_guide.pdf

Note that it contains additional requirement only needed to participate in Google’s competition. Not required for the class project.

http://www.google.com/onlinechallenge/student_guide.pdf

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