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recently concluded Olympics in London provided a testament to the popularity of
mobile and other online media distribution channels as compared with television.
Almost half of the Internet video delivered during the Olympics went to mobile
phones and tablets. That's a watershed for portable TV. Nearly 28 million people
visited NBCOlympics.com , eight percent higher as compared with the Beijing
Olympics four years ago. Sixty four million video streams were served across
all platforms, a 182 percent increase over Beijing. Nearly 6.4 million people used
mobile devices. 18
Online advertising is also becoming increasingly sophisticated. I discussed
the supply chain for digital advertising with a number of specialized players
in Section 2.3. The biggest focus is the advertisement bidding managed for a
publisher, such as Google, by either a Supply Side Platform (SSP) or Advertising
Exchange. Online advertising provides tremendous opportunity for advertising to
a micro-segment and also for context-based advertising. How do we deliver these
products, and how do they differ from traditional advertising?
The advertiser's main goal is to reach the most receptive online audience in
the right context, who will then engage with the displayed ad and eventually take
the desired action identiied by the type of campaign. 19 Big Data provides us with
an opportunity to collect myriads of behavioral information. This information can
be collated and analyzed to build two sets of insights about the customers, both
of which are very relevant to online advertising. First, the micro-segmentation
information and associated purchase history described in Section 3.6 allows us to
establish buyer patterns for each micro-segment. Second, we can use the context
of an online interaction to drive context-speciic advertising. For example, for
someone searching and shopping for a product, a number of related products can
be offered in the advertisements placed on the web page.
Over the past year, I found an opportunity to study these capabilities with
the help of Turn Advertising. Turn's Demand Side Platform (DSP) delivers over
500,000 advertisements per second using ad bidding platforms at most major
platforms, including Google, Yahoo, and Facebook. A DSP manages online
advertising campaigns for a number of advertisers through real-time auctions or
bidding. Unlike a direct buy market (e.g., print or television), where the price
is decided in advance based on reach and opportunities to see, the real-time Ad
Exchange accept bids for each impression opportunity, and the impression is sold
to the highest bidder in a public auction. DSPs are the platforms where all the
information about users, pages, ads, and campaign constraints come together to
make the best decision for advertisers.
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