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Data Science and Analytics |
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ISchool 296A Spring 2012 |
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Digital Advertising and Marketing: A review of three generations Dr. Jimi Shanahan Director, Church & Duncan Group and Adobe
Abstract Internet advertising revenues in the United States totaled $25 billion for 2010. The online advertising market in Europe is about $19 billion dollars. Fueled by double-digit year on year 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 lecture will review the main business models of online advertising including: the pay-per-impression model (CPM); and the pay-per-click model (CPC); 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; and dynamic CPM (dCPM) which optimizes a campaign towards the sites and site sections that perform best for the advertiser. In addition, this lecture will discuss briefly the technologies that have transformed advertising from the low-tech, human intensive, “Mad Men” way of doing work (that were common place for much of the 20th century and the early days of online advertising) to the highly optimized, mathematical, computer-centric processes that form the backbone of many current online advertising systems. These new approaches to advertising have many parallels with, and build on experience from the financial markets of Wall Street. For example, online advertising slots on a publisher can be sold in a futures market (selling publisher real estate in advance with various guarantees) or in the spot market (selling publisher real estate in a real-time manner). Both marketplaces leverage techniques from the fields of machine learning (e.g., logistic regression, online learning), statistics and probability (e.g., binomial maximum likelihood), information science (ranking, vector space model, BM25) and economics (auction mechanisms, game theory). Challenges such as click fraud (the spam of online advertising), deception, privacy and other open issues will also be discussed. Some new developments in online advertising such as social advertising, behavioral targeting will be reviewed also.
Bio-sketch Dr. James G. ShanahanJimi has spent the last 22 years developing and researching cutting-edge information management systems that harness machine learning, information retrieval, and linguistics. During the summer of 2007, he started a boutique consultancy (Church and Duncan Group Inc., in San Francisco) whose major goal is to help companies leverage their vast repositories of data using statistics, machine learning, optimisation theory and data mining for big data applications (billions of examples) in areas such as web search, local and mobile search, and online advertising. Church and Duncan Group’s clients include Adobe, AT&T Interactive, Digg.com, eBay, SearchMe.com, Ancestry.com, MyOfferPal.com, and SkyGrid.com. In addition, Jimi has been affiliated with the University of California at Santa Cruz since 2009 where he teaches a sequence of courses on big data analytics and stochastic optimization (ISM 209, ISM 250 and ISM251). He advises several high-tech startups (e.g., Quixey.com) in the Silicon Valley rea and is executive VP of science and technology at Irish Innovation Center (IIC). He has served as a fact and expert witness.Prior to starting Church and Duncan Group Inc., Jimi was Chief Scientist and executive team member at Turn Inc. (an online ad network that has recently morphed to a demand side platform). Prior to joining Turn, Jimi was Principal Research Scientist at Clairvoyance Corporation where he led the “Knowledge Discovery from Text” Group. In the late 1990s he was a Research Scientist at Xerox Research Center Europe (XRCE) where he co-founded Document Souls, an anticipatory information system, where documents were given personalities of information services that foraged the web to stay informed and informative. In the early 90s, he worked on the AI Team within the Mitsubishi Group in Tokyo.He has published six books, over 50 research publications, and 15 patents in the areas of machine learning and information processing. Jimi chaired CIKM 2008 (Napa Valley), co-chaired International Conference in Weblog and Social Media (ICWSM) 2011 in Barcelona, and will be the PC co-chair of ICWSM 2012 (Dublin). He co-chaired with Yi Zhang the ISSDM Workshop on Knowledge Management: Analytics and Big Data at UC Santa Cruz. He has organized several workshops in digital advertising as part of SIGIR and NIPS. He is regularly invited to give talks at international conferences and universities around the world. Jimi received his Ph.D. in engineering mathematics from the University of Bristol, U. K. and holds a bachelor of science degree from the University of Limerick, Ireland. He is a Marie Curie fellow and member of IEEE and ACM. In 2011 he was selected as a member of the Silicon Valley 50 (Top 50 Irish Americans in Technology).
Dr. James G. Shanahan 541 Duncan Street San Francisco CA 94131 Cell: 415-630-0890 |
