TP4 - Online advertising: business models, technologies and issues
Time: Monday, April 21 (half-day, afternoon, 1:30pm to 5:00pm)
Location: Room 305B (Level 3)
Internet advertising revenues in the United States totaled $16.9 billion for 2006, up 35 percent versus 2005 revenues of $12.5 billion (according to the Interactive Advertising Bureau). Fueled by these growth rates and the desire to provide added incentives and opportunities for both advertisers and publishers, alternative business models to online advertising are been developed. This tutorial will review the main business models of online advertising including: the pay-per-impression model (CPM); and the pay-per-click model (CPC); and a relative new comer, the pay-per-action model (CPA), where an action could be a product purchase, a site visit, a customer lead, or an email signup.
The tutorial will also discuss in detail the technology being leveraged to automatically target ads within these business models; this largely derives from the fields of machine learning, statistical, information retrieval and economics. Challenges such as click fraud (the spam of online advertising), deception, privacy and other open issues will also be discussed. Web 2.0 applications such as social networks, and video/photo-sharing pose new challenges for online advertising. These will also be discussed.
James Shanahan, Independent Consultant, San Francisco (USA)
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