Databases Reference
In-Depth Information
Let us consider an example to understand the low of information and collab-
oration between publisher, Ad Exchange, DSP, and advertiser to deliver online
advertisements. If a user initiates a web search for food in a particular zip code
on a search engine, the search engine will take the request, parse it, and start to
deliver the search result. While the search results are being delivered, the search
engine decides to place a couple of advertisements on the screen. The search
engine seeks bids for those spots, which are accumulated via Ad Exchange and
offered to a number of DSPs competing for the opportunities to place advertise-
ments for their advertisers. In seeking the bid, the publisher may supply some
contextual information that can be matched with any additional information
known to the DSP about the user. The DSP decides whether to participate in this
speciic bid and makes an offer to place an ad. The highest bidder is chosen, and
their advertisement is delivered to the user in response to the search. Typically,
this entire process may take 80 milliseconds.
A Data Management Platform (DMP) may collect valuable statistics about
the advertisement and the advertising process. The key performance indicators
(KPIs) include the number of times a user clicked the advertisement, which
provides a measure of success. If a user has received a single advertisement many
times, it may cause saturation and reduce the probability that the user will click
the advertisement.
As online advertising is integrated with online purchasing, the value of
placing an advertisement in the right context may go up. If the placement of the
ad results in the immediate purchase of the product, the advertiser is very likely
to offer a higher price to the publisher. DSP and DMP success depends directly
on their ability to track and match consumers based on their perceived informa-
tion need and their ability to ind advertising opportunities related closely to an
online sale of associated goods or services.
3.8 Improved Risk Management
A credit-card company can use cell phone location data to differentiate an
authentic user from a fraudulent one. As the credit card is used in a location, the
credit-card transaction location can be matched with the cell phone location for
the customer to reduce risk of fraudulent transactions.
My work requires me to travel often, almost once a week. Because I travel to
a variety of international destinations frequently but use my personal credit card
rarely, any purchase with it is very likely to be tagged as unusual activity. This
behavior places me under the close scrutiny of the credit-card company's fraud
engine because the usage is sporadic and geographically diverse. Invariably,
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