@agatestudio

ADVERTISING

Icha

Publishing

Agate Studio

COMPUTATIONAL ADVERTISING

& PROGRAMMATIC ADVERTISING

LANDSCAPE

ANNISA DESIANI

annisa@agatestudio.com

• Computational Advertising ? A principled way to find the “best match”

between a user in a context and a suitable ad.

Examples :

Context = Web search results -> Sponsored search

Context = Publisher page -> Content match, banners

Other Context = mobile, video, newspapers, etc

INTRODUCTION

Why go “computational” ? The comparison between classical & online :

Classical :

- Relatively few venues (only magazine, billboard, newspaper, handbills, TV)

- High cost per venue

- No personalization possible

- Targeting by the wisdom of ad-people

- Hard to measure ROI

Computational --- almost the exact opposite:

- Billions of opportunities

- Billions of creatives

- Totally personalizable

- Tiny cost per opportunity

- Much more quantifiable

• “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

John Wanamaker, ~ 1875

Computational Advertising Landscape

Marketplace basics

What do advertisers pay?

- CPM (cost per thousand impressions)

- CPC (cost per click)

- CPT/CPA (cost per transaction/action)

GRAPHICAL ADS

RICH MEDIA ADS

Computational advertising setup process:

1. Contract booked based on targeting attributes of an impression:

age, income, location, ..

2. Each contract has a duration and a desired number of impressions

3. Issues in GD

-Contract pricing

-Traffic forecasting

-Impression allocation to the active contracts

4. Graphical ads can also be placed based on performance – CPM/CPC/CPA

PARTICIPANTS: Publishers, Advertisers, Users, &

“Matcher”

Publishers Advertisers

User

Ad Network Matcher

Programmatic Display Advertising

Programmatic display advertising is automatic online ads activity.

The bidding, creative, targeting, and running the campaign can be done automatically through Real Time Bidding (RTB) platform.

Search Network Advertising A method of placing online advertisements on Web pages that show

results from search engine queries.

Example :

Essential Programmatic Advertising

Component

1. Pricing

2. Inventory

3. Insertion (Placement)

4. Data (Targeting)

Programmatic Advertising Value

1. Price/Value relationship

2. Automated process

3. Buy-side tools (Reporting)

Display Ad Technology Evolution

Programmatic Advertising Process

The World of Display Advertising

The World of Video Advertising

THANK YOU