Third, the brief history of online advertising:
Stage one: the traditional advertising model contract
Advertising model contract is a guarantee-type delivery (Guaranteed Delivery, GD), which is to ensure put the amount of advertising, determine the total contract amount, the amount invested is not completed implementation of the compensation package. It is produced from the early stages of online advertising, is the first transaction mode, when network traffic is monopolized by large-scale multi-media, a lot of traffic so they can be fully packaged for sale, and signed a contract, and those who have a small flow of small media is often do not deal fragmented traffic market is yet to develop
Product forms: traditional display advertising (display advertising)
Trading patterns: Contract advertising model
Billing: CPT, the CPM
Drawback : in fact, put the line advertising model, to determine the total amount of advertising by way of contract delivery and display unit price, trading and delivery method is very traditional
Phase II: Targeted advertising + contract stage
Cause: the donor / media for splitting traffic to increased revenue, audience targeting techniques have therefore been developed. In this way the public will become divided, but also to the past with an advertisement to sell two money; the first part of the audience labels set coarse granularity, then more and more precise
Product Form: targeted advertising (targeted advertising), that is no longer vote for all of the ads, but for different audiences, giving it a different user tags, and put different ads. As a result, advertisers buy advertising from, it becomes a buy for the audience crowd
Trading patterns: Contract advertising model
Billing: the CPM
Technical requirements: First, audience targeting (audience targeting), requires the use of technology will be able to accurately label of audiences; Second, advertising (ad serving) Focus into a formula put in, so to past advertising embedded directly into a page, into a real-time response, ad pages at any time change the contents of front-end requirements.
Based on the above, phase one, phase two contract belongs to Advertising Age, here on the "advertising contract" is described in detail
Contract Advertising Category:
1) advertising contracts: direct grafting traditional offline advertising way, according to CPT pay, in this case, the supply side and the demand side of technology costs are not high, the demand side only through the medium of advertising agencies (4A, etc.) to sell mining (media buy), the supply side using ad scheduling management system (DoubleClick DFP and China's Allyes)
2) audience targeting: geographical / demographic attributes / channel / context / behavior / precise position / orientation method recommend new customers / bulk purchase, as well as redirect (retargeting), namely advertisers to advertise visitors over a period of time
3) shows the amount of contracts: an impression of the amount agreed under certain conditions the audience, in accordance with the prior agreement of the display unit price settlement, namely GD (formula guarantees delivery), in the current generation of advertising is called CPM
An important part of advertising contracts:
1) traffic prediction: Estimated total number of traffic will be generated in the media, facilitate pre-guide / bid guidance, if underestimated the platform flow, may lead to inadequate sell, not to maximize profits; if overestimate platform traffic, could lead to super the sale, the contract can not be met
2) traffic shaping (traffic shaping): by actively influence the flow to achieve agreement reached, comprehensive portal is a typical example, the website by optimizing diversion and jump page layout, to facilitate the user clicks the link, to achieve maximum reach
3) Online distribution: that is, by design distribution strategies to achieve efficient traffic distribution. Contracts are facing problems show: in flow / limited advertising, and to meet the people in the case of a large number of overlapping contracts, to achieve maximum benefits, how to make the individual contracts to be satisfied?
(Online distribution: we can be understood as the allocation of mathematics: There are A students, B carts, C of cars, how to select the least cost; online distribution is that there are multiple contracts are required touch of A the name of Shanghai residents, B men, and my database how the number of users Shanghai residents, men's allocation in order to meet a number of contracts as possible, to maximize benefits)
Phase III: Targeted advertising + auction stage
Reason: the purpose of the supply side / media is to seek maximum benefits, while contracts model is facing a problem: limited advertising, the same display can often meet multiple contracts, if it continues for online distribution, wasted had a lot more expensive can sell traffic (meaning a fixed price contracts, and limited trading partners, and advertisers can bid each other to raise prices more profitable supply side), therefore auction ads appear, is milestone in the development of online advertising
Product form: the audience targeted delivery
Trading patterns: auction substitute contracts. It will amount to remove constraints (no longer guarantee a fixed amount invested with the provisions of the contract total price) from the transaction process, using only the "highest bidder" approach to achieve maximum benefits
Auction: similar foreign auction system, the buyer turns "placards asking price", the final product obtained by the highest bidder.
It is worth noting that the bidding logic to use more online advertising GSP , namely the generalized second-price theory (Generalized Second Price, GSP) , refers to only one location in the auction, the highest bid after winning advertising advertisers, pay only its next advertisers bid (the second largest advertisers), rather than according to their own bid to buy. This is one of the most reasonable bid logic
For example: the purpose of the auction is to maximize profits sellers, and therefore often charge the highest bid, but in a network environment, there is a paradox here. For example, ABC three-way race for a while advertising, bid 123 yuan, respectively, and therefore advertisers direct winner C, A, B were eliminated. Before payment, C will think: Since B is higher than 2 yuan can get advertising, why should I do the three? So C and then continue to lower prices, to 2.01 yuan, at this time if there are competitors to join D, bid 2.02 yuan, the turnover, the market income is only 2.02 yuan, discount fashion such fluctuations will make the price of advertising is not stable.
But if GSP, the advertisers bid C $ 3, actually only pay 2 yuan B, then it does not continue to lower power prices. Once there is a new competitor would like to join the competition, competitors such as D, will have a price of $ 3 or more, such as 3.5 yuan out of it, then it's the pay C $ 3, then income markets into a 3 yuan before and the one kind of pricing
Therefore, it is an optimal pricing strategy, make the whole auction system is in Nash equilibrium (Nash equilibrium) state
VCG is a new pricing method Vickrey, Clarke, Groves found in the study, that is to win advertisers a location, its cost should be paid damages equal to the value of advertising space it occupies to other market participants to bring, but because very complex and difficult to verify and explain, in practical applications less
Market Reserve Price: MRP Market Reserve Price commonly known as the reserve price or a price hike, only to get advertisers the opportunity to bid above the reserve price at the time of the bid. Starting at just about the bidding and quality of
In fact, the auction ads first appeared in search ads (Search AD) , the first search engine realizable model for paid search (Paid Search) , actually a kind of immediate interest to serve targeted advertising based on user, this method is converted into other network media, but not according to the instant word search, but be served based on keywords through the pages, that is contextual advertising (contextual advertising)
1) It is based on the context of the query words were directed to the audience size, and the sale and settlement of CPC advertising products in accordance with the auction. Liquidity search advertising eCPM (thousands earnings) is much higher than the general display advertising, which has the form of a native ad properties, search advertising has become the mainstream mode of Internet advertising, accounting for more than half of the advertising market
2) advertising mechanism: The location of the auction (position auction) that we often say that the PPC, assuming that there is a group of ad slots available, will be sorted by the value of advertising, and advertisers bid sorting, and in sequence delivery, price high will get better advertising
The above description is only a variety of product forms and auction bids logic of Advertising Age. But who is going to carry out the auction process it? Or advertisers and media docking it? On the other hand, audience targeting technology, so that small flow Focus has also been trading space, these idle traffic who will develop?
Thus, the birth of a market model: ad network
Advertising networks (ad Net-work, ADN)
ADN concept: the earliest form of advertising trade agency, responsible for the operation of bulk advertising resource, is also responsible for the sale of advertising space and advertising precise delivery
ADN causes:
1) The traditional advertisers - the transaction in the form of media spend a lot of time and energy, information and communication problems facing poor
2) With the advent of user oriented technology, Focus delivery possible (formerly rough public delivery method, does not require those fine-grained Focus flow) but many have a small flow of media, not their own cash (because too few traffic can not be sold, just like you take two corn, agricultural products wholesale market to sell the same thing), which requires a platform traffic "retail" are aggregated
[Contract of sale can not consume all the advertising inventory, many companies large enough to flow, it is difficult to contract by way of sale, this part of the traffic is called residual flow (remnant inventory), ADN remaining flow through bulk polymerization, user-oriented flow cut way to sell to advertisers, for small sites, you can not even sell the contract by the traffic, directly to the ad networks realized]
ADN advantages:
1) advertising transactions more convenient and rapid
2) the medium and small media have the cash flow method of
ADN drawback: the nature of ADN is a broker, not an independent, transparent, real-time trading platform, which aims polymerization remaining traffic, sell and earn share, and therefore has the following drawbacks
1) can not be reached independent transaction: it is not the same as Taobao "platform", but the listing agent / broker, auction logic, auction results, delivery method is determined by its buyers and sellers can not be seen, nor can not choose their object of trade, can only be hosted everything, in fact, at the expense of the interests of both the autonomy of the transaction is also subject to bondage
2) unable to provide customized label: ADN positioning is not to be high-quality service platform, it is only a traffic aggregation platform and trading agents. Therefore, there arises a question: If XX Bank wants to vote for their advertising potential customers / loyal customers, who make this user tags? - This is the "custom tag", ADN only provide explicit labels (such as gender interests) according to the second party data it can not and will not try to meet the precise advertisers 'custom label' delivery needs.
ADN Case: Google Display Network; Taobao off
Auction ads in addition to ADN, the demand side as well as a variety of products, and before the difference is, this is the demand side, the main aspects of advertising products, designed to safeguard its interests and to provide services for advertisers need to address two fundamental issues : its First, how to select the right target population, and the second, if given the appropriate pricing for different groups of people. Specifically the following two ways:
A. Search Engine Marketing SEM (Search Engine Marketing) : Search advertising corresponding demand-side products that do promotion through search engine keyword bidding procurement, this is the SEM. Mainly the selection of keywords, and bid issues, resulting in many SEM companies responsible for handling this type of orientation, bidding issues.
B media buying platform : the transaction terminal (Trading Desk, TD) is a similar product, is mainly responsible for ROI optimization, to ensure the effectiveness of orientation, as well as the reasonableness of the bids, in order to achieve maximum benefits advertisers
Related Case: EfficientFrontier specializing in SEM optimization technology company, put on by assigning each keyword within the limits of a certain budget in order to achieve the best overall ROI, similar to the portfolio of problem
Phase IV: real-time bidding mode (Real Time Bidding, RTB)
Reason: As mentioned above, the traditional competitive bidding is done depends on the ADN, ADN is actually profitable "black box", and generate real-time bidding, so the transaction process open and transparent, but also to meet the needs of advertisers for customized labels
Trading modes: real-time bidding (RTB)
On the one hand , real-time bidding will be open transaction process, to judge by the demand side need to bid more when your ad to show.
On the other hand , with customized labels to guide real-time auction advertising is a key target product, simply based on DSP for advertisers to buy data processing and custom labels, you can complete more precise touch up
RTB generation, so that the development of the advertising market direction transparent platform parity, this kind of trading platform that is ADX (ad Exchange / ad exchange), you can be understood as ADN advanced form: it uses RTB way to get real-time advertising candidates, and follow the simple bid to complete delivery decisions. On this platform, buyers and sellers are open and transparent, both sides can own decisions, and this transparency also makes the flow of data, with data demand side and the supply side, ADX easily machined custom labels advertisers want (such as " Potential customers")
And adopt corresponding buyer ADX, that demand-side platform DSP. As a result, the demand side of the ability to control the flow to the extreme, its technical difficulty and algorithms are also great, and the supply side becomes a simple comparison platform.
ADX transaction process: initiated by advertisers to DSP cookie mapping, DSP ADX complete with cookie mapping, media sites and an ad request to ADX transfer address, DSP according to the two sides mapped meets to decide whether to participate in the auction, and then complete the transaction
ADX drawbacks:
(1) data ADX, DSP analysis, bandwidth costs high requirements
Risk (2) DSP can use low-cost auction, the auction although not successful, but you can get a low cost to the user behavior data, there is information leakage
ADX案例: RightMedia; DoubleClick ADX
Stage 5: program trading:
Real-time bidding and purchase or make an inquiry by artificial, efficiency remains to be improved. In program trading, the machine replaces the manual online consultation, buyers and sellers no longer need to personally deal. In a narrow sense, after buying the machine appears, program trading was officially formed
Broadly, the real-time bidding is a division of online advertising milestone, after the emergence of real-time bidding, RTB, ADX, DSP, SSP , DMP and other platforms, together constitute a complete "programmatic buying / trading", RTB is the core content
According to IAB summary, program trading is divided into four categories:
(1) automation guarantee (automated guaranteed)
(2) non-reserved pricing transaction (unreserved fixed rate)
(3) invitation-only auction (invitation-only auction)
(4) public auction (open auction)
Summary: The history of the development of online advertising, there are actually two main lines
A main line: the directional changes in technology and transaction forms. From contracts fixed position, and orientation to the audience by showing the amount of the settlement of the contracts, to the traditional auction, trading patterns of development to the final real-time bidding and programmatic buying
Two main lines: the combination of advertising and media content. In the past, advertising and content are two separate units, advertisers were only the former operations and decision-making, and search and social advertising, make people aware of the content and advertising is not antagonistic relationship, resulting in a new advertising product that is native Advertising (Native Advertising)
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The current online advertising market, mainly RTB as the core programmatic buying, requiring detailed with several concepts related to: DSP, SSP, DMP
Fourth, demand-side platforms (demand side platform, DSP)
The concept: to ADX correspondence, using the product form of RTB way to buy advertising demand-side platform DSP
feature:
1) for traffic with RTB buy
2) responsible for the demand side of customized user division
Now is the demand-side / advertisers to design their own user tags, and then to the DSP to ADX production, processing, significantly different from the previous era of real-time bidding previously described. Now advertisers only say: to put my old customers, heavy users, then target these users by the DSP tagged, and select the ADX platform in line with the flow of their own label
In Network ADN, the mainstream is a second directional manner party data generated label, orienting; and the DSP, the data to the first party as the core, two three-way data binding, custom tags according to the needs of advertisers.
DSP implementation process: retrieval, sorting, pricing, bid
DSP product strategy:
1) redirection:
Online advertising is first produced, customized label the most widely used, advertisers will soon have a product or service been very impressed by the user to re-dig, and its advertising for brand advertising, advertising effect.
Redirect Category: Website Redirection (oriented according to the user over a period of time to visit the site), personalized redirect (to redirect users to improve purchase rate according to the different stages of the purchase; or to redirect users to purchase existing record, promote secondary purchase), search redirect (for users searched keyword on the advertiser's redirect) example: after you online shopping a steady stream of product recommendation
2) new customer recommendation: Redirection is deep plowing of the old users, but new users tend to adopt an open look-alike way to expand among people with similar characteristics
DSP Case: Criteo, InviteMedia, poly effect
Five, donor platform (Supply Side Platform, SSP)
The concept: a supply-side comparison of benefits based on different, dynamic allocation (dynamic allocation) of product form, namely the supply side platform (Supply Side Platform, SSP) SSP main task is to accurately estimate the eCPM different ads to optimize revenue
SSP implementation process:
(1) from its own ad library according to the current label appropriate advertising audience candidate, and the candidate of the estimated advertising without eCPM; sorting get the highest eCPM ads candidate
(2) identify the highest eCPM ads from ad networks, to get the highest eCPM ads candidate
Comparing the two (3), select the most highest reserve price
(4) at the opening as a reference, real-time inquiry to the access by the respective DSP interfaces RTB
Note: the CPM is for advertisers to say a word, cost per thousand; eCPM is the language of the media, thousands of income (effective cost per mille)
SSP Case: Admeld, Rubicon
Until now, there are three ways realization: guarantee delivery type of contract of sale, advertising network ADN, RTB
It also gave birth to another important market: data processing and trading market, trading platform that is data (data exchange) and DMP, dependent on the data provided by third-party platform and channel for better positioning effect. Detailed below:
Sixth, data processing and trading
1. Source: DSP, ADX and other platforms, is the only advertising production "processing areas", how targeted advertising quality, but also on the quality of "raw material", namely data. How good processing of raw materials, so that they become quality products? Here we focus on the following issues:
(1) User ID: namely, how to identify and record the user identity for browsing behavior, user identification most commonly used cookie, but it faces problems of user actively cleared, if we get the user's email or SNS, you can be back remove the cookie; directional movement end, IOS, and Andrews different specific identifier Apple former uses the IDFA, cookie-like; the latter no special user ID, is generally used as identification IMEI number
(2) user behavior: a large number of user behavior may be acquired, and the orientation for the audience, the following categories
. A decision behavior: including transformation (conversion), the pre-conversion (pre-conversion), corresponding to this very specific user interests, such as the electricity supplier website, the conversion is the final order, and the pre-transformation is to search for pre-orders, browse and parity
b proactive behavior: behavior after including clicks on ads (ad click), click search, and search (search click) and so on, the user is also a clear intention, ad clicks too difficult as a directional basis, which is widely used search behavior
. C semi-active behavior include: sharing, web browsing (share and page view)
d passive behavior: namely ad views (ad view)
(3) demographic attributes: demographic attributes related variables, such as age, geography, gender
(4) Location: obtaining user position by the GPS positioning or IP mapping
(5) social relationships: mining affinity, is also can be determined by its properties Community Friend
These are the author's classification, I have mentioned just finished paper, the relationship is actually directed an important indicator of the strength of delivery, which is different to (5) social relationships, for most advertising companies to similar interests, similar properties as the delivery an important indicator that my interest is similar to yours, then you will also become the advertiser's target population. But in the social network, delivery and directional manner can be corrected, such as QQ, micro letters and other platforms, even though I was interested in the XX things with you, but because you and I friendship shallow, the two sides unfamiliar or no intersection, then I the information you post will not necessarily generate attention; relative, even though I posted the information you have no interest or no understanding of, but because of our close friend relationships, parent-child relationship and the teacher-student relationship, then I will see or point Like this information, "the strength of the relationship" should become a very important basis for a strong connection relation to advertising is feasible.
2. The data is divided: user data used in advertising, can be divided into first-party data, the second party data and third-party data
First-party data that is advertiser data; data that is the second party advertising platform data; third-party data that is not directly involved in the other transaction data provider advertisement
In real-time auction before (Network), the main use of the second-party data, which is why buyers are unable to complete the requirements of "customized label"; after the real-time bidding to first-party data, based on the integrated use of three-way data
3. The data management platform: i.e. DMP (data management platform)
DMP functions are as follows:
(1) provides audience targeting functionality to the site (including the media and the advertiser's site), can also help processing customized user tags
(2) authorized to provide the user interface tag realizable
(3) the advertiser's site can be convenient docking by DMP data channels with ad buy
4. Data Trading Platform:
That is the Data the Exchange , almost similar to the DMP feature, but it needs more data processed in accordance with its own logic rather than the media, it is believed, is standing DMP angle of the first party data to provide products, trading platform and data is standing the angle of third-party data providers of products
Related Stories: BlueKai, Audience Science
Seven, mobile Internet and native ad
As the front text, convergence of content and media, advertising is one of the main line of development, and this process is mainly in the mobile terminal is completed. Therefore, the following were introduced native ads, mobile ads
1. native ad: (Native advertising)
Native advertising concept: Overall, advertising and media information content highly consistent form of advertising can be called native ads, "advertising that is content, content that is advertising." Native advertising, as opposed to the past in terms of non-native ads, such as pop-up ads, or a sense of violation and a high page ads, which will be on your page views cause great interference. Typical ie microblogging native advertising, micro-channel circle of friends to promote advertising, their font size, page size, color and layout, all other micro letter you received, tweets highly consistent, even to the point of real ones, just people access to the Internet is likely to treat it as a friend dynamic.
Native ad Origin: The concept is exotic, as early as 2011 it was proposed, the real attention is after the mobile Internet age, because of the smaller screen mobile terminal, is difficult to independently and completely original display ad content (if it continues press the pop on the computer, banner proportion to traffic, it is almost invisible small, and if the ratio is increased, hampering the user's browser) therefore, began to explore native ads partial replacement of traditional display advertising, improve liquidity ability
Native categories: performance native, original intent
表现原生：即展示风格和样式与内容保持一致，从而做到产品形式上的原生，比如微信朋友圈广告
意图原生：即广告内容生产与用户意图保持一致，比如游戏页面中的游戏广告，搜索引擎中出现的相关搜索内容的广告
原生广告相关产品：信息流广告、搜索广告、软文广告、联盟
案例：InMobi、OutBrain
2.移动广告：移动端已经成为广告植入的热点入口，故对此进行讨论
移动广告的创意形式：
（1）横屏与插屏
（2）开屏与锁屏
（3）推荐墙与积分墙（类似APP推荐等）
移动广告面临的挑战：
（1）应用生态造成的行为数据割裂：即很难获取用户信息，进行用户定向。移动网络并未形成PC端那样以Web为核心的生态，而是以应用为主的生态体系，每个APP之间相对割裂独立，使用户数据获取十分困难。PC端的Web生态常用数据交换接口，如JavaScript等代码，即可解决数据获取问题，但在移动端更为复杂，可行性大打折扣
（2）广告主移动化程度不够，难以充分消化广告带来的流量：移动端的落地页展示和交互模式，与PC端存在巨大差别，移动端的用户习惯、用户体验，版面格式都大有不同，因此，PC端广告如果要移植到移动端，几乎都面临重新设计、包装，或采取更新颖的表现形式（H5等），需要让广告主后续的转化流程更符合移动环境用户的使用习惯。
（3）移动广告的产品形态需要新革命：原生广告即新的产品革命，但是目前运营原生广告的多为媒体本身（多是一些大企业如腾讯等），如何以独立平台/第三方的身份进行原生广告经营，仍是一个问题
移动广告获得的新机遇：
（1）情境广告的可能性：移动设备容易进行全天候的检测和分析，可以根据用户的行为轨迹判断其是在上班还是在休息，并投放不同的广告（上班就不会投游戏广告）
（2）大量潜在的本地化广告主：即为小广告主的推广提供了机会，在主流媒体盛行的时代，广告权几乎被资本和大广告主垄断，但是现在，本地的小区理发店也可以在微信上投放原生广告。（微信上你应该经常看到同城的面包店、茶点餐厅的推广，许多并不是什么大品牌）