1. Introduction
- Advertiser: people with something to sell
- Audience template: something they will draw up that encapsulates some information about who they think this is
- Audience: what advertisers refer to people as
- Sites: the websites the audience visits
- Banners: the parts of the page available to server an add to
=> Normally, larger ones and ones in better positions are worth more
- Advertising spend for a given audience template is agreed in advance
- As spending is essentially fixed, sites compete to satisfy the audience template by acquiring greater amounts of information on their audience
http://www.wordstream.com/online-advertising
2. Advertising Industry
: searching advertising is about 65% of all online advertising spend
=> Google has 90% of all searching advertising
- Google Model:
* Google works by indexing the sites. Then providing an integration to the advertiser - via Google Adwords.
* This allows them to purchase against their audience template by considering which keyword searches map best to their template
* They then leverage their massive platform capabilities to action many such mappings at once
* They get extra information on the audience and so Google can often provide a better fit for the audience template
* Google also has the infrastructure to serve the ad to its site based on complex contractual agreements with advertisers
* To compete, a range of companies provide services to sites: Adservers, Demand Side Processors (DSPs), Third Party Providers (TPPs)
https://www.google.co.uk/adwords/
3. Purchasing and Serving Ads
- Contract Buying
1) The site and advertiser do a direct deal based on the site's knowledge of their audience
2) The terms of this deal are stored in the site's adserving integration
3) When a user requests a page, a javascript tag forwards this information to adserver
4) If an appropriate contract exists, then the advertising content associated with this contract is sent back to the site to serve to the user
- Real Time Bidding
1) The advertiser sends the audience template to a demand side provider (DSP) with a series of metrics they wish to satisfy that indicate campaign success
2) When a user requests a page, a javascript tag forwards this information to adserver
3) The adserver forwards this information to the DSP's and request spot bids for the right to serve and ad to the user
- More Realistic View of the Situation
1A) The site and advertiser do a direct deal based on the site's knowledge of their audience
1B) They also send the audience template to their demand side providers (DSPs)
2) The terms of this deal are stored in the site's adserving integration
3) When a user requests a page, a javascript tag forwards this information to adserver
4A) If the contract exclusively assigns the rights to the impression to an advertiser, then the adserver serves sends this content back to the site
4B) Mostly the contract will be optional so the user-site information will be forwarded onto the DSPs plus a floor price, corresponding to the price the site would get servicing an existing contract. The DSP then bids if they can beat this price
4. Third Party Information
: As well as the infrastructure sites must compete with Google on the information they can provide to map their audience to the advertiser template
- User Announces: IP Address / User Agent / Cookies
- Website Adds: User Announces + Referring URL / Location URL / Site specific information
- Audience Augmentation: Website Adds + Geo Location / Income / Recent behaviour / Content Type
- Advertiser Specific Information: Audience Augmentation + Advertiser Cookies
5. Browser Cookies
- cookie: information that a site saves to your web browser / Record your browsing activities
- First party cookies: place by a site when you visit it
=> make your experience on the web more efficient
- Third party cookies: place by someone other than the site you are on
=> include an advertising network or a company that helps deliver the ads you see
- Transient cookies: to help "sessionise" your experience on a website
=> "set" when you visit the site, it disappears when we leave
- Persistent cookies: remain the website for the duration that the website determines
=> help identify a unique browser to the website
http://www.allaboutcookies.org/cookies/
6. Cookie Tracking
1) Consumer requests Web page from ad network member site
2) Merchant server connects to DoubleClick ad server
3) Ad server reads cookie; checks database for profile
4) Ad server selects and serves an appropriate banner ad based on profile
5) DoubleClick follows consumer from site to site through use of tracking files
http://www.tomsguide.com/us/-tracking-cookie-definition,news-17506.html
https://support.google.com/accounts/answer/61416?hl=en
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