Chapter 6

Case Study

1.      Pay a visit to your favorite portal and count the total ads on the opening page. Count how many of these ads are (a) immediately of interest and relevant to you, (b) sort of interesting or relevant but not now, and (c) not interesting or relevant. Do this 10 times and calculate the percentage of the three kinds of situations. Describe what you find and explain the results using this case.

Amazon.com has many different advertisements if you included their products that they are trying to sell. This includes the banner, items that are present because of past search history, and finally one actual ad that that was unrelated to the website. The advertisements search history was the only thing that interested me since it mostly shows what I already have, but the banner was displaying popular items that anyone would be interested in. The one ad that was on the page was not of any interest to me since I had ordered someone an item that does not apply to me personally. About four times out of ten there were things that I was interested in, however, most items were things that I already have purchased or have decided against the purchase.

2.      Advertisers use different kinds of "profiles" in the decision to display ads to customers. Identify the different kinds of profiles described in this case, and explain why they are relevant to online display advertising.

The three different types of profiles include: traditional auction-based real time bidding (RTB) private marketplace (PMP), and programmatic direct (PD). RTB is an “open exchange” that is a marketplace open to all advertisers and publishers of website pages. This allows any type of advertisers and does not limit any type of audience that will be exposed to the ads. PMP use real time bidding, which means that the publishers invite selected advertisers to bid on their inventory. These PMP’s allow for only a specific sort of advertiser, who believes that their advertisements will be effective, to place their advertisements. Finally, PD will deal directly with well-established publishers who have developed their own supply-side platforms. A supply-side platform is useful since the customer is there to look at specific goods and will allow companies to directly target their customers.

3.      How can display ads achieve search-engine-like results?

When an advertisement is displayed on the website it draws a consumer’s attention and can give them perception into new products. Consumers generally are drawn into buying products that they do not necessary need but were exposed to through the internet advertisements. While search engines are definitely efficient at allowing people to find product that they are aware of, the advertisements are good at drawing people in that had no previous expectation for a product. Due to these reasons the advertisements can achieve results that are similar to a search engine.

4.      Do you think instant display ads based on your immediately prior clickstream will be as effective as search engine marketing techniques? Why or why not?

Personally, I believe that the search engine is one of the most effective ways for the consumer to find and purchase goods. They know what they are looking for and do not ignore the fact that they can find it. While goods are being generated through ads that are being generated to fit personal or geographical needs, it doesn’t mean that they aren’t ignored. Consumers have a tendency to ignore ads and go through their business unless something catches their eyes and exposes them to something that interests them. However, if in the future an advertisement can gain this direct recommendations without driving people away then they will be able to achieve these types of results.

Projects

1.      Is growth of the Internet, in terms of users, expected to continue indefinitely? What, if anything, will cause it to slow?

Everything has a limit and once that limit is reached there is nothing in the horizon. The internet is one such example that limitations will eventually set in whether this will be in the short-term or long-term future is difficult to interpret since the internet is being developed by millions every day. However, the internet has been expanding at a fast rate, new hardware, software, interfaces, and much more. As we expand these devices, the internet continues to grow, but currently the internet is relying on human capability and eventually the technology to improve the internet will hit a wall because of things like a new creation, limitations in technology, human lifespan and much more. 5t

2.      Would you say that the Internet fosters or impedes social activity? Explain your position

        The internet seems to impede social activity by giving access to devices that allow people to distract themselves and gives themselves excuses from interacting. A person is easily distracted by the ease of use that is provided by cellphones and laptops that causes them to ignore the world around them and be satisfied with things that they look up. Some people become self-obsessed with looking good or with other people social media accounts that turn into unhealthy obsessions and jealousy. However, the other side of things is that people have been coming up with ways to ignore people and skip social interactions forever. Some people just function and enjoy different activities than other people. While these facts are true, people have more excuses and distractions than ever before.