fernando bermejo: mapping online advertising, from anxiety to method
DESCRIPTION
Slides from a presentation on anxiety in advertising by Fernando Bermejo. Berkman Center for Internet & Society, Harvard University, January 12, 2010.TRANSCRIPT
Mapping Online Mapping Online Advertising:Advertising: From From Anxiety to MethodAnxiety to Method
Fernando BermejoFernando BermejoFellow, Berkman Center for Internet & Fellow, Berkman Center for Internet &
Society, Harvard UniversitySociety, Harvard University
January 12th, 2010January 12th, 2010
From Anxiety…From Anxiety…““Half the money I spend on advertising isHalf the money I spend on advertising is
……to Methodto Method““The time has come when advertising has in some The time has come when advertising has in some hands reached the status of a science. It is based hands reached the status of a science. It is based on fixed principles and is reasonably exact. The on fixed principles and is reasonably exact. The causes and effects have been analyzed until they causes and effects have been analyzed until they are well understood. The correct methods of are well understood. The correct methods of procedure have been proven and established”. procedure have been proven and established”. Scientific Advertising Scientific Advertising (1923), Claude C. Hopkins(1923), Claude C. Hopkins
The
nwasted. The trouble is, I don’t know which wasted. The trouble is, I don’t know which half”. half”. John Wanamaker (1838-1922)John Wanamaker (1838-1922)
From Anxiety…From Anxiety…
……to Methodto Method““In terms of efficiency, if not size, the In terms of efficiency, if not size, the advertising industry is only now starting to advertising industry is only now starting to grow out of its century-long infancy, which grow out of its century-long infancy, which might be called ‘the Wanamaker era’”.might be called ‘the Wanamaker era’”. The The Economist (07/06/2006)Economist (07/06/2006)
““47% of campaigns failed—how to make 47% of campaigns failed—how to make sure yours sticks. 83% of ad spending was sure yours sticks. 83% of ad spending was seriously suboptimal—how do you get more seriously suboptimal—how do you get more impact without spending a dime more?”impact without spending a dime more?” What Sticks: Why most advertising fails and how to What Sticks: Why most advertising fails and how to guarantee yours succeeds guarantee yours succeeds (2006) (2006)
Now
The source of anxietyThe source of anxiety
Gift Economy/Gift Economy/
Peer-Production Peer-Production
Property / Pay ModelProperty / Pay Model
Advertising…Advertising…
Media
Audiences
Advertisers
ADVERTISERS
MEDIA: Ads + Content
AUDIENCES /
USERS
PRODUCT & SERVICES
The MethodThe Method
Collecting informationCollecting information MetricsMetrics TargetingTargeting Having the right contextHaving the right context PricingPricing FunnelingFunneling
Collecting informationCollecting information
Previous media: Audience and Market Previous media: Audience and Market Research, Surveys and Panels.Research, Surveys and Panels.
Online: Every interaction can be automatically recorded. Every Online: Every interaction can be automatically recorded. Every page viewed, every ad viewed, every song or video played, page viewed, every ad viewed, every song or video played, every search performed, every content created… every search performed, every content created…
Collecting informationCollecting information
Berkeley study on flash cookies (Soltani et al, 2009):Berkeley study on flash cookies (Soltani et al, 2009):– 54 of top 100 sites use flash cookies (only 4 mention it in their 54 of top 100 sites use flash cookies (only 4 mention it in their
privacy policy).privacy policy).– Even with a NAI opt-out cookie, flash cookies are employed.Even with a NAI opt-out cookie, flash cookies are employed.– 31 had at least an overlap between a HTTP and a Flash cookie 31 had at least an overlap between a HTTP and a Flash cookie
(90% of the overlaps from cookies served by ad networks)(90% of the overlaps from cookies served by ad networks)– Respawing of HTTP cookies occurred on several sites (Hulu.com, Respawing of HTTP cookies occurred on several sites (Hulu.com,
About.com) and took place accross domains (Clearspring: About.com) and took place accross domains (Clearspring: Aol.com and Mapquest.com).Aol.com and Mapquest.com).
From discrete events to profiles: From discrete events to profiles: 1st-party 1st-party cookies, 3rd-party cookies, web bugs, and cookies, 3rd-party cookies, web bugs, and flash flash cookiescookies (100KB of information, no expiry date, stored in separate (100KB of information, no expiry date, stored in separate location, not controlled by the browsers…)location, not controlled by the browsers…)
Collecting informationCollecting information
““Our results show increasing aggregation of user-Our results show increasing aggregation of user-related data by a steadily decreasing number related data by a steadily decreasing number of entities” (Kryshnamurthy & Willis 2009)of entities” (Kryshnamurthy & Willis 2009)
Extent of 10 Top Third-Party Families
Growth of the Google family
MetricsMetrics
Visits
Pages
Unique Users
Hits
Clicks Time
Engagement
Reach
ViewsUsers
Unduplicated Unique Users
Sessions
TargetingTargeting
DemographicsDemographics Content consumedContent consumed Content produced Content produced
– Search KeywordsSearch Keywords BehaviorBehavior
From audiences, to segments, to increasingly granural criteria (individual profiles)
Targeting segments
ADVERTISERS
MEDIA: Ads + Content
AUDIENCES /
USERS
PRODUCT & SERVICES
TargetingTargeting
Having the right contextHaving the right context
In previous media: In previous media: – professionalism, organizational norms, professionalism, organizational norms,
self-controlself-control Online:Online:
– Production of specific content directly Production of specific content directly for advertising purposes: e.g. Demand for advertising purposes: e.g. Demand Media, etc.Media, etc.
– Need to control user-generated content: Need to control user-generated content: e.g. the new Technorati, Youtube video e.g. the new Technorati, Youtube video demotion, etc.demotion, etc.
Both in terms of the general environment and in terms of specific content…
PricingPricing
Previous media: Exposure in terms of Previous media: Exposure in terms of CPMCPM
Online: Online: – CPM still 38%CPM still 38%– Performance: 58%Performance: 58%
Cost per Click (CPC)Cost per Click (CPC) Cost per Action: lead … purchaseCost per Action: lead … purchase
ADVERTISERS
MEDIA: Ads + Content
AUDIENCES /
USERS
PRODUCT & SERVICES
PricingPricing
FunnelingFunnelingThe most uncontrolable part:The most uncontrolable part: BrandingBranding Tracking and RetargetingTracking and RetargetingYahoo! UK: “We know where users have been and Yahoo! UK: “We know where users have been and
we can tell where they're going” we can tell where they're going”
AOL: “For example, LeadBack tracks users who have AOL: “For example, LeadBack tracks users who have visited your website but have not made a visited your website but have not made a purchase. When those same users visit other sites purchase. When those same users visit other sites on our network, LeadBack delivers your ads to on our network, LeadBack delivers your ads to them, driving them back to your site and them, driving them back to your site and increasing the likelihood of a sale.”increasing the likelihood of a sale.”
Placing more customer activities in Placing more customer activities in controllable environmentscontrollable environments: The : The mobile internetmobile internet
ConsequencesConsequences Collecting InformationCollecting Information: A requires : A requires
increasing information from increasing information from individuals. individuals.
MetricsMetrics: A is not comfortable with : A is not comfortable with phenomena that cannot be easily phenomena that cannot be easily controlled, measured and reduced to controlled, measured and reduced to numbers. numbers.
TargetingTargeting: A tries to move to the form : A tries to move to the form of a transaction between advertisers of a transaction between advertisers and individuals, leaving third parties and individuals, leaving third parties as accesorial. as accesorial.
ConsequencesConsequences Generating the right context:Generating the right context: A A
prefers certain environments and prefers certain environments and shapes content.shapes content.
Pricing:Pricing: A tries to reduce its risk by A tries to reduce its risk by asking others to assume it. asking others to assume it.
Funneling:Funneling: A tries to be more A tries to be more intensive and more extended. intensive and more extended.
ConsequencesConsequences
Privacy: Playing cat and mouse (?)
Content: De-intermediation (?)
Structure: Advertising as steroids (?)
The online content layer…The online content layer…
Gift
Advertising
Pay
Mapping Online Mapping Online Advertising:Advertising: From From Anxiety to MethodAnxiety to Method
Fernando BermejoFernando BermejoFellow, Berkman Center for Internet & Fellow, Berkman Center for Internet &
Society, Harvard UniversitySociety, Harvard University
January 12th, 2010January 12th, 2010