User:Rahul~enwikiversity/Seminar Topic

Internet advertising, or online advertising, refers to advertising and marketing efforts that use the search engine, Social media, web banner advertising, mobile advertising and email to drive direct sales via electronic commerce. online advertising efforts are typically used in conjunction with traditional types of advertising like radio, television, newspapers and magazines and billboards. Online advertising involve both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. While the other active participants such as advertising agencies who help in generating and placing the ad copy, an ad server who technologically delivers the ad and tracks statistics, and Last but not least advertising affiliates, who promote the advertisement by working independently

Online advertising is growing at a mushrooming rate. Moreover, Internet advertising revenues in the United States surpassed those of cable television and nearly exceeded those of broadcast television. According to Internet Advertising Revenue Report conducted independently by PWC (PricewaterhouseCoopers) on behalf of the IAB(Interactive Advertising Bureau) who initiated this report in 1996 reveals that Internet advertisement revenues in united states totaled $20.1 billion for the first six months of 2013 which is 18% over the first six months of 2012. However in 2012 total growth from internet advertisement revenues is 15.2% ($36.57 billion) as compared to 2011($31.74 billion) revenues.

= History =

Online advertising wasn't allowed In early days of two of the predecessor networks to the Internet, ARPANET and NSFNet, had acceptable use policies that banned network use for commercial activities by for-profit institutions. The NSFNet began phasing out its commercial use ban in 1991. Email:- The first ever Spam email was sent by Gary Thuerk, on May 3, 1978 also known as the father of spam to annoy email owners. He was a marketing manager at the DEC (Digital Equipment Corporation). Although DEC had a strong presence in the East Coast, considering the fact that it was an East Coast based corporation, the email was an attempt to reach the West Coast technological enthusiasts. Specifically, the email was an invitation to West Coast users to a product demonstration of the then new Decsystem-20 by Digital. However, The recipient list was 400 users long and was taken from the ARPAnet(Advanced Research Projects Agency Network) directory. ARPAnet is considered to be the precursor to what we now know as Internet and Widely known as the “first internet”, it was used as a highly secure medium for information flow between universities and research centers across the globe. The first known large-scale non-commercial spam message was sent on 18 January 1994 by an Andrews University system administrator, by cross-posting a religious message to all USENET newsgroups.

Display Adds:- In 1994 banner ads for Zima and AT&T appear on hotwired.com and they followed the metric pay-per-impression. The first AT&T ad on HotWired had a 44% click-through rate, and instead of directing clickers to AT&T's website, the ad linked to an online tour of seven of the world's most acclaimed art museum. However before the internet Commercial online service Prodigy displayed banners at the bottom of the screen to promote sears products. Prodigy make people fascinated and excited with its ease of because people could access news, sports, email, bulletin boards, and weather info along with one un-clickable ad at the bottom of every page, prodigy provided  all things  in one place. In 1996 a next revolution took place in banner ads named as Double click which is an online ad-related-services providing agency. This platform gave online advertising an entirely new perspective, before its creation it was hard for websites to find parties interested in buying ad spaces. It not only created a way to track banner ads and consumer behavior but it also helped track the ROI(Return on investment).

Sponsered Search Adds:- In 1998 GoTo.com develops keyword-based advertising by using the metric pay-per-click and First price auction model and in 2001, GoTo.com renamed itself Overture. It allowed web portals like MSN and Yahoo to monetize their traffic. This proved to be highly profitable for both Overture and its partners. In fact, it even brought portals like AltaVista and all theWeb. In 2003, Overture was brought by Yahoo. It was in 2000 google launched its “adwords” search advertising program and in 2002 they introduced quality-based ranking allocation based on second price auctions which sorts search advertisements by a combination of bid price and searchers' likeliness to click on the ads

Social media Adds:- The next revolution begin in online advertisement world through the Social media and it become important to note its development as it become powerful in a very short period of time .For example:-Facebook: Although primarily formed for people to stay socially connected, the fact that more than 7.3% of the world’s population use Facebook has made this platform perfect to be used as a marketing tool and advertisers have spent more than $4 billion on Facebook advertising. Facebook didn’t really concentrate on advertising until 2 years after being created. In 2006, Facebook announced a one year marketing agreement with J.P. Morgan Chase to promote its credit card.

= Delivery Methods =

Display Advertising
Display advertising is graphical advertising(text, logos, animations, videos, photographs) on the World Wide Web that appears next to content on web pages, IM applications, email, etc. To increase the ad’s effect display advertiser often use cookies, which are unique inditifiers of specific computers, to decide which ads to serve to a particular consumer. Cookies can track whether a user left a page without buying anything, so the advertiser can later retarget the user with ads from the site the user visited. .Displaying advertising to user will be successful when advertisers show the adds which are relevant for that particular user and for this advertisers collect data from different websites from user’s online activity and this process of delivering targeted adds and aggregation of data is termed as behavioral targeting. Advertisers can also target their audience by using contextual and semantic advertising to deliver display ads related to the content of the web page where the ads appear. Advertiser goal is to show most relevant and useful adds to a particular user and this also depends on the geographical location of the user which is also termed as geotargeting. User location can be determined by the country, region/state, city, metro code/zip code, organization, IP address, ISP or other criteria. this type of targeting would be important for someone who is searching for services in a location they are moving to, or searching for a job and willing to travel. Location targeting helps you focus your advertising on the areas where you'll find the right customers, and restrict it in areas where you don't which could also help in increasing your return on investment (ROI) as a result. Google Adwords is the best example which is using geotargetting based on different fields such as areas within a country, a radius around a location, or location groups.

Web Banner Adds
These adds are like a online billboard where advertisement are embedded into a web page and most of these adds are delivered by ad server. It is intended to attract traffic to a website by linking to the website of the advertiser. To detect that a web user has surfed the advertiser site from any particular website advertiser check their logfiles and send some small amount of money to that website owner or content provider but usually  advertisers use ad networks for their advertisement which result in higher revenues by placing the add in appropriate places. This type of ads can be generated by Java applets, HTML5, Adobe Flash as they include audio, video and other animation. Most of the time users avoid banners or block images so as to see actual content and save the bandwidth also and for this they use a proxy server that blocks them, such as Privoxy or by using the extensions available in web browsers such as AdThwart for Google Chrome etc…

Pop up Ads
These ads are generated onscreen when you click a link or button on a web page a separate window opens over the page you are viewing. Some viewers find these ads intrusive because they have to click to remove them and return to the original page. These ads are intended to attract traffic or capture email addresses. usually these ads are generated by JavaScript using cross-site scripting (XSS), sometimes with a secondary payload using Adobe Flash, but can also be generated by other vulnerabilities/security holes in browser security. Most of the browsers today allowed user to block unwanted pop-ups almost completely and this filtering is know as Ad filtering.

Floating Ads
A floating ad is a type of rich media Web advertisement that appears uninitiated, superimposed over a user-requested page, and disappears or becomes unobtrusive after a specific time period (typically 5-30 seconds). There are various technologies which are used in floating ads, such as a combination of Flash and dynamic HTML (DHTML), and can be displayed differently according to the user's browser capabilities. United Virtualities and Eyeblaster are two advertising media companies that offer floating ads. According to a ‘HowStuffWorks’ article about Web advertising, a floating ad generates a click through rate of about 30 clicks per thousand impressions, similar to the rates for pop-up ads and much higher than the cited 2-5 clicks per thousand impressions for a banner ad. Although the floating ads don't necessarily generate more clicks than pop-ups, they are thought to be more memorable and have a greater branding effect as a result. Floating ads can also track the number of clicks to the ads and the how much times users reload a page to see the ad again.

Expandable Ads
These type of ads can become large as upon a user mouse-over or click on ad by user and Advertisers use expandable rich media formats to do this.. The most common implementations expand leaderboard creatives vertically into larger rectangles (i.e. expand from a 90 pixel height to a 500 pixel height) Many other implementations are also possible with the expandable ad format and it changes dimensions upon a predefined condition, such as a preset amount of time a visitor spends on a webpage. These ads provides more ad space to share interactive experiences and information with the advertiser's audience and Support the inclusion of any number of rich media features, including video within a single ad unit.

Text Ads
In this type of advertising content owner of a blog or website hyperlinked some text to a specific page or another site. Whereas most of the times it link to the page or website of Advertiser and with respect to this advertiser pay the publisher or content owner of  that blog or website who published that link Publishers can get paid based on the number of clicks on the text link ad (called pay-per-click) or they could get paid a flat fee for publishing the link .However, this practice can result in droping or elimination of publisher and advertiser sites in the result of search engines so to combat this some publishers include the HTML’ No-Follow’ tag in text link ads to hide them  from search engine. Text-based ads often render faster than graphical ads and can be harder for ad-blocking software to block.

Search Engine Marketing
Search engine marketing is the process to increase the traffic on a web site or the visibility of a web site and for this there are two ways one is by showing the sponsored result and the non sponsored results. Search engines usually differentiate the sponsored result from non sponsored result by showing them on the top or on the side of the search results and sometime with some visual cues.

Search engine Optimization
It falls in the category of non sponsored result and it aims to increase the website ranking in search engine result pages so advertisers can use this technique such as by using the top keywords to attract more customers to their website. However, search engines regularly update their algorithms so that advertisers always make optimization a target and poor quality sites get deleted from top rankings.

Sponsored Search
Search engines also have paid search ads and if someone pay to them their ads get listed for selected keywords in the search results. Search ads are often sold via real-time auctions, where advertisers bid on keywords. Search engine consider several factors for listing the these ads such as bid price, expected click-through rate, keyword relevancy, and site quality. Search engine originally sold listings in order of highest bids. However, this bidding models has changed from time to time for the sponsored result related to particular keywords and can be explained by theory of auctions.

Theory of Auctions
There are two main models for the auctions that decides the slot of the advertisement in a sponsored search with respect to the bids submitted by advertiser. The initial model of auctions is first price auctions which was used by go to (firstly acquired by overture and the by yahoo) in which advertiser has to pay on pay per click basis instead of per-impression basis. Advertisers were displayed in order of decreasing bids for that keyword and upon a click, advertiser is charged a price equal to his bid but this mechanism was unstable due to the dynamic nature of the environment. For Example:- Suppose there are two slots on a page and three advertisers an ad in the first slot receives 200 clicks per hour, while the second slot gets 100. Advertisers 1, 2, and 3 have values per click of $10, $4, and $2, respectively. Suppose advertiser 2 bids $2.01, to guarantee that he gets a slot and then advertiser 1 will not want to bid more than $2.02 because he does not need to pay more than that to get the top spot but advertiser 2 will want to revise his bid to $2.03 to get the top spot, advertiser 1 will in turn raise his bid to $2.04, and so on clearly, there is no pure strategy equilibrium in the one-shot version of the game, and so if advertisers best respond to each other, they will want to revise their bids as often as possible. hence advertisers who moves fastest had a substantial advantage. The mechanism therefore encouraged inefﬁcient investments in gaming the system, causing volatile prices and allocative inefﬁciencies.

The second model is second price sealed-bid auction or GSP(generalized second price auction), was first used by Google in 2002 when it introduced its own pay-per-click system, AdWords to overcome the issue of first price auction. The auction is a sealed-bid auction because advertisers do not know what other advertisers are bidding. In this model advertisers are ranked in the decreasing order of the ranking scores, where the ranking score of a merchant is deﬁned as the product of the merchant’s bid and estimated click-through rate. In second price auction each bidder at position i pay the bid placed by the bidder in position i+1. GSP insists that for each keyword, advertisers submit a single bid even though several different items are for sale. The single bid plays an important rule because the value of being in each position is proportional to the number of clicks associated with that position; the benefit of placing an ad in a higher position is that the ad is clicked more, but the users who click on ads in different positions are assumed to have the same values to advertisers. GSP also considers that that advertisers differ along dimensions other than per-click value, i.e., have different probabilities of being clicked (click-through rates,” or CTRs) when placed in the same position. Different search engines treat this possibility differently. Yahoo! ignores the differences, ranks the advertisers purely in decreasing order of bids, and charges the next highest advertiser’s bid but Google multiplies each advertiser’s bid by its CTR to compute the rank score. The advantage of Second price auction is in the term of allocative efficiency because no one will bid more than their reservation value because it will only help them get the item if the second highest bidder posted at least their reservation value which gain nothing but can loss something and you will also not post below your reservation value, because your posting doesn't influence how much you pay if you get the item so posting a lower value might only make you not get the item even when would have preferred to get it because the price is below your valuation. For a formal model http://en.wikipedia.org/wiki/Generalized_second-price_auction

Email Advertising
It means to advertise via e-mails i.e. sending a commercial message to a group of people. The different techniques of e-mail marketing are mentioned below.

Opt-in e-mailing
In this marketers take the consumer permission to send them messages on particular topics. This system is intended to eventually result in a high degree of satisfaction between consumers and marketers. Consumers in this receive messages which are of their interest rather than unsolicited messages.

Phishing
Sending illegal e-mail to acquire information such as usernames, passwords and credit card details. For Ex:- Spams

Mobile Advertisement
Mobile Advertisements can be of many types such as mobile web banner(top of page), Mobile Web Poster (bottom of page banner), SMS(Short Message Service) which is growing at a very fast rate and last but not the list MMS(Multimedia Message) it includes advertising within mobile games and mobile videos, during mobile TV receipt, full-screen interstitials, which appear while a requested item of mobile content or mobile web page is loading up, and audio advertisements that can take the form of a jingle before a voicemail recording, or an audio recording played while interacting with a telephone-based service such as movie ticketing or directory assistance.

Mobile Advertisement has many metrics such cost per impression and Cost per click and on the basis of these metric advertisement are sold to advertiser. However in mobile advertisement there are some other metric also such as Cost per Install which can be calculated by how much user are installing the app after watching the advertisement because mobile media or advertisement can be run on mobile application.CPI Mobile Advertising Networks work either as incent or non-incent. In the incent model the user is given virtual points or rewards to install the game or App

Online Pricing Models
Advertisers and publishers use a wide range of payment calculation methods. In 2012, advertisers calculated 32% of online advertising transactions on a cost-per-impression basis, 66% on customer performance (e.g. cost per click or cost per acquisition), and 2% on hybrids of impression and performance methods.

content provider or search engine attracts viewers on their site and then sell some space to those who are interested in these viewers and to calculate their revenue they use the various models which are listed below:-

CPA( Cost per action or Cost pre acquisition)
Advertisers always consider the CPA the optimal model because they only have to pay whenever a user performed a transaction or do some action such as purchase, sign up or something linked to advertisement. In CPA publisher have to take risk to publish the advertisement because if user will not do transaction the advertisers will not pay. CPA sometimes referred to as “cost per acquisition” which typically has to do with acquiring new consumers with advertising

CPM( Cost per mile or cost per thousand)
CPM is mostly used for Display advertisement such as banner ads and rich media ads. In CPM advertisers has to pay for 1000 impression or 1000 display for example a $1 CPM means that the advertiser pays $1 for every thousand impressions. CPM is not a good model for those advertisers who want visitors on their site. Advertisers can use technologies such as web bugs to verify if an impression is actually delivered

CPE( Cost per engagement)
It is a form of cost per action pricing first introduced in March 2008, different from cost per impression or cost per click models, here engagement means that advertising impression are free and advertisers will only pay whenever a user interact with ad in any number of ways.

CPC( Cost per click)
Most of the big players like Google and Yahoo are in the market are using this model. In this a advertiser will pay to content publisher if the user will click on the add. Pay per clicking advertising methodology is designed to help clients achieve their search engine marketing goals. In this scheme Advertisers have loss sometime because all recorded clicks are not valuable to advertisers. For example: GoldSpot Media reported that up to 50% of clicks on static mobile banner ads are accidental and resulted in redirected visitors leaving the new site immediately. CPC's market share has grown each year since its introduction, eclipsing CPM to dominate two-thirds of all online advertising compensation methods. However, the another reason for the popularity of this model is that, most of the search engines use this model for there sponsored results. Advantage of CPC over CPM is that it tells us something about how effective the advertising was because clicks are a way to measure attention and interest. Search engine usually use the auction system where advertisers bid for a particular keyword or keyword phrases and decide how much they will pay for each click. While Content sites commonly charge a fixed price per click rather than use a bidding system. This model is vulnerable by means of click fraud where as Google and some other companies have implemented automated system to reduce this kind of attacks

Bounce Rate
Bounce rate means how much people stay on your website after watching the advertisement if the site has high bounce rate it means people are not staying longer or just bounce away after watching the advertising so for a successful advertising campaign bounce rate should be low.

Review remarks
I like the structure of this seminar work,all sessions are related to each other and the structure is presented clearly.Theory of Auctions are well explain but i found some weakness in this seminar work no graphs/Pictures are added and there are some long sentences which are hard to read.There are some small mistakes I have marked with red color and most important Quizzes are not included which can help people understand the knowledge better.