The Future on online advertising is a VIDEO

This is a very useful video to give you the idea about the importance of online advertising industry.

http://www.youtube.com/watch?v=5rtiHiGmoxk

Online advertising: Pay-per-view versus pay-per-click — A comment

Abstract

We analyze the choice of pay-per-view (PPV) and pay-per-click (PPC) when a web publisher is a price taker in the market for advertising banners, and the number of visits is decreasing in advertising. Several pricing recommendations are developed. First, the web publisher should always choose either PPV or PPC. Specifically, if the click-through rate is less than the ratio of PPV to PPC prices, then PPV should be chosen, and vice versa. Furthermore, if the click-through rate is exogenous, then the optimal amount of advertising is the same for both pricing methods. Finally, if the click-through rate is endogenous, the amount of advertising will be different under PPV and PPC

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Kenneth Fjell- Journal of Revenue and Pricing Management (2009) 8, 200–206. doi:10.1057/rpm.2008.39; published online 21 November 2008

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http://www.ingentaconnect.com/content/pal/rpm/2009/00000008/F0020002/art00009

The Online Advertising Industry: Economics, Evolution, and Privacy

Abstract:

Online advertising accounts for almost 9 percent of all advertising in the United States. This share is expected to increase as more media is consumed over the Internet and as more advertisers shift spending to online technologies. The expansion of Internet-based advertising is transforming the advertising business by providing more efficient methods of matching advertisers and consumers and transforming the media business by providing a source of revenue for online media firms that competes with traditional media firms. The precipitous decline of the newspaper industry is one manifestation of the symbiotic relationship between online content and advertising. Online-advertising is provided by a series of interlocking multisided platforms that facilitate the matching of advertisers and consumers. These intermediaries increasingly make use of detailed individual data, predictive methods, and matching algorithms to create more efficient matches between consumers and advertisers. Some of their methods raise public policy issues that require balancing benefits from providing consumers more valuable advertising against the possible loss of valuable privacy.

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Evans, David S. 2009. "The Online Advertising Industry: Economics, Evolution, and Privacy." Journal of Economic Perspectives, 23(3): 37–60.


DOI:10.1257/jep.23.3.37

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http://www.aeaweb.org/articles.php?doi=10.1257/jep.23.3.37

Survey of internet users’ attitudes toward internet advertising

A B S T R A C T

Many have speculated about the current state of Internet advertising (IA), how it compares to advertising in general (GA), and its implications for traditional marketing models and practices.

Although many estimates exist regarding who uses the Internet as well as guidelines about how best to design IA, little is known about Internet users’ attitudes toward IA, much less what characterizes these attitudes. To test this, a national sample of over 400 participants with at least some exposure to the Internet was surveyed. The results revealed no majority opinion of IA approximately a third of respondents liked, disliked, and felt neutrally toward IA, respectively. A regression analysis indicated that enjoyment of looking at Internet advertisements, its informativeness, and its utility for making behavioral (purchasing) decisions.

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Authors: Ann E. Schlosser Sharon Shavitt Alaina Kanfer


© 1999 John Wiley & Sons, Inc. and Direct Marketing Educational Foundation, Inc.

CCC 1094-9968/99/030034-21

JOURNAL OF INTERACTIVE MARKETING

VOLUME 13 / NUMBER 3 / SUMMER 1999

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http://www.business.uiuc.edu/Shavitt/pdf%20files/surveyinternet_copy%281%29.pdf

Why search engines should still be part of your marketing budget

Abstract (Summary)

Every day about 70 million commercially oriented searches are done. These aren't searches for Britney Spears pictures. They're launched by consumers looking for a product or service. In a North American study done by Jupiter Media Metrix comparing paid placement search against costs-per-thousand (CPM) and costs-per-click (CPC) banner advertising with opt-in e-mail, search handily out-performed the competition. Overall satisfaction with pay-per-click (PPC) search listings was 41%, compared to 33% for e-mail and about 20% for banner advertising. In terms of satisfaction with return on investment, PPC scored 29%, compared with 24% for e-mail and 16% and 12% respectively for CPC and CPM banners.

Paid inclusion: Found on Inktomi, Teoma, AltaVista, Fast and Lycos. You pay to ensure your site will remain in the search engine's index. There's a set annual price per URL (each individual page on your Web site), ranging from $12 on Lycos to $39 for Inktomi and AltaVista. The paid inclusion fee does not guarantee position.

Influence of Web Advertising Strategies, Consumer Goal-Directedness, and Consumer Involvement on Web Advertising Effectiveness

Abstract: Determining the best way to utilize on-line media for advertising purposes is a critical question. This research, based on the Elaboration Likelihood Model (ELM), incorporates consumer goal-directedness and involvement as moderators influencing when a particular advertising strategy (i.e., variation strategy vs. appeal strategy) will be appropriate for Web advertisements. The results of a laboratory experiment supported the use of ELM in the Web environment and showed how advertising strategies should be designed and implemented in accordance with consumer goal-directedness and involvement to achieve Web advertising effectiveness. The results demonstrated the uniqueness of the Web media and the importance of goal-directedness and consumer involvement in the Web advertising context.

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Author(s): Wang K (Wang, Kai)1, Wang ETG (Wang, Eric T. G.), Farn CK (Farn, Cheng-Kiang)2 Source: INTERNATIONAL JOURNAL OF ELECTRONIC COMMERCE Volume: 13 Issue: 4 Pages: 67-95 Published: SUM 2009

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http://portal.acm.org/citation.cfm?id=1554437

Audience Selection for On-line Brand Advertising: Privacy-friendly Social Network Targeting

Abstract

Conference Information: 15th ACM SIGKDD International Conference on Knowledge Discovery and Data MiningParis, FRANCE, JUN 28-JUL 01, 2009ACM SIGKDD; ACM SIGMOD Abstract: This paper describes and evaluates privacy-friendly methods for extracting quasi-social networks from browser behaviour on user-generated content sites, for the purpose of finding good audiences for brand advertising (as opposed to click maximizing, for example). Targeting social-network neighbours resonates well with advertisers, and on-line browsing behaviour data counter intuitively can allow the identification of good audiences anonymously. Besides being one of the first papers to our knowledge on data mining for on-line brand advertising, this paper makes several important contributions. We introduce a framework for evaluating brand audiences, in analogy to predictive-modeling holdout evaluation. We introduce methods for extracting quasi-social networks from data on visitations to social networking pages, without collecting any information on the identities of the browsers or the content of the social-network pages. We introduce measures of brand proximity in the network, and show that audiences with high brand proximity indeed show substantially higher brand affinity. Finally, we provide evidence that the quasi-social network embeds a true social network, which along with results from social theory offers one explanation for the increase in brand affinity of the selected audiences.

Information about authors

Author(s): Provost F (Provost, Foster)1, Dalessandro B (Dalessandro, Brian)1, Hook R (Hook, Rod), Zhang XH (Zhang, Xiaohan)1, Murray A (Murray, Alan) Book Group Author(s): ACM Source: KDD-09: 15TH ACM SIGKDD CONFERENCE ON KNOWLEDGE DISCOVERY AND DATA MINING Pages: 707-715 Published: 2009


Conference Information: 15th ACM SIGKDD International Conference on Knowledge Discovery and Data Mining

Paris, FRANCE, JUN 28-JUL 01, 2009

ACM SIGKDD; ACM SIGMOD

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http://pages.stern.nyu.edu/~fprovost/Papers/kdd_audience.pdf