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MGT Final > Chapter 18 > Flashcards

Chapter 18 Flashcards

1
Q

Affiliate Programs

A

A cost-per-action program, where program sponsors (e.g., Amazon, iTunes) pay referring Web sites a percentage of revenue earned from the referral.

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2
Q

CPM

A

Cost per thousand impressions (the M representing the roman numeral for one thousand).

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3
Q

Contextual Advertising

A

Advertising based on a Web site’s content.

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4
Q

Cost-Per-Action (CPA)

A

A method of charging for advertising whenever a user responds to an ad by performing a specified activity such as signing up for a service, requesting material, or making a purchase.

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5
Q

IP Address

A

A value used to identify a device that is connected to the Internet. IP addresses are usually expressed as four numbers (from 0 to 255), separated by periods.

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6
Q

Internet Advertising Bureau

A

A nonprofit industry trade group for the interactive advertising industry. The IAB evaluates and recommends interactive advertising standards and practices and also conducts research, education, and legislative lobbying.

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7
Q

MVNO

A

MVNO – Mobile Virtual Network Operator. A wireless telecommunications services provider that doesn’t own its own infrastructure. Instead, MVNOs pay a reduced price to license capacity from other providers and repackage the service under their own brand.

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8
Q

NFC

A

Near field communication; a short-range, wireless communication standard. NFC is being used to support contactless payment and transactions over NFC-equipped mobile devices.

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9
Q

PageRank

A

Algorithm developed by Google cofounder Larry Page to rank Web sites.

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10
Q

Turning Test

A

A test of artificial intelligence that, if passed, would mean a computer is indistinguishable from a human being. Originally proposed by renown computer scientist Alan Turing.

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11
Q

Wi-Fi

A

A term used to brand wireless local-area networking devices. Devices typically connect to an antenna-equipped base station or hotspot, which is then connected to the Internet. Wi-Fi devices use standards known as IEEE 802.11, and various versions of this standard (e.g., b, g, n) may operate in different frequency bands and have access ranges.

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12
Q

Ad Network

A

An effort that links advertisers to Web sites and other content providers (e.g., app firms, games) that are willing to host advertisements, typically in exchange for payment.

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13
Q

Botnets Or Zombie Networks

A

Hordes of surreptitiously infiltrated computers, linked and controlled remotely. This technique is used to perpetrate click fraud, as well as a variety of other computer security crimes.

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14
Q

Cache

A

Pronounced “cash,” and refers to a temporary storage space used to speed computing tasks.

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15
Q

Click Farms

A

A network of users and computers engaged in coordinated click fraud. Since the different computers leverage different IP addresses, click farms can be more difficult to detect.

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16
Q

Click Fraud

A

Generating bogus clicks, either for financial gain (enriching fraud), or to attack rivals by draining their online ad budget (depleting fraud).

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17
Q

Click-Through Rate (CTR)

A

The number of users who clicked an ad divided by the number of times the ad was delivered (the impressions). The CTR measures the percentage of people who clicked on an ad to arrive at a destination-site.

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18
Q

Colos (Colocation Facilities)

A

Warehouse-sized facilities where telecommunication firms and other corporations bring their fiber optic cables and networking equipment together so that they can exchange networking traffic. These are the interconnection points that help make the Internet function as a network of networks.

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19
Q

Content Adjacency Problems

A

A situation where ads appear alongside text the advertiser would like to avoid.

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20
Q

Cookies

A

A line of identifying text, assigned and retrieved by a given Web server and stored by your browser.

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21
Q

Dark Web

A

Internet content that can’t be indexed by Google and other search engines.

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22
Q

Deep Linking

A

A link that takes a user to a specific webpage (rather than the home page), or which launches an app and brings up a unique location rather than just launching the app. As an example, a deep link from Pinterest might take a user directly to the Etsy web page or app listing featuring the vendor of that item, rather than generically opening Etsy.com or the Etsy app.

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23
Q

Display (Or Image) Ads

A

Graphical advertising (as opposed to text ads).

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24
Q

Dynamic Search Ads

A

Ads generated automatically based on the content of a Web site. Dynamic ads are particularly useful for firms with rapidly updating inventory or firms struggling to keep up with new search terms that may be relevant to their product line.

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25
Q

Fault-Tolerant

A

Capable of continuing operation even if a component fails.

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26
Q

Geotargeting

A

Identifying a user’s physical location (sometimes called geolocation) for the purpose of delivering tailored ads or other content.

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27
Q

Global Positioning System (GPS)

A

A network of satellites and supporting technologies used to identify a device’s physical location.

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28
Q

Impression

A

Each time an advertisement is displayed.

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29
Q

Impressions

A

Each time an add is shown to a user.

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30
Q

Interstitials

A

Ads that run before a user arrives at his or her intended destination in a website or app.

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31
Q

Keyword Advertising

A

Advertisements that are targeted based on a user’s query.

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32
Q

Landing Page

A

The Web page displayed when a user clicks on an advertisement.

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33
Q

Link Fraud

A

Also called “spamdexing” or “link farming.” The process of creating a series of bogus Web sites, all linking back to the pages one is trying to promote.

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34
Q

Low Latency

A

Low delay.

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35
Q

Market Capitalization (Market Cap)

A

The value of a firm calculated by multiplying its share price by the number of shares.

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36
Q

Negative Keywords

A

Keywords that prevent an ad from showing up when specific terms are present.

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37
Q

Opt-In

A

Program (typically a marketing effort) that requires customer consent. This program is contrasted with opt-out programs, which enroll all customers by default.

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38
Q

Opt-Out

A

Programs that enroll all customers by default, but that allow consumers to discontinue participation if they want to.

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39
Q

Organic or Natural Search

A

Search engine results returned and ranked according to relevance.

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40
Q

Pay-Per-Click (PPC)

A

A concept where advertisers don’t pay unless someone clicks on their ad.

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41
Q

Plug-In

A

A small computer program that extends the feature set or capabilities of another application.

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42
Q

Proxy Servers

A

A third-party computer that passes traffic to and from a specific address without revealing the address of the connected user.

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43
Q

Quality Score

A

A measurement of ad performance (CTR) and ad relevance, and landing page experience. Ads that are seen as relevant and that consumers respond to have higher quality scores. The firm uses quality score multiplied by the maximum CPC to determine an ad’s display ranking.

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44
Q

Query

A

Search.

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45
Q

Remarketing

A

Lets a Web site show custom, targeted ads to a user when visiting other sites if that user has already visited a given page on the advertiser’s site. This technique allows firms to “reintroduce” products to users or target them with special messages or promotions.

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46
Q

Retargeting

A

Also known as remarketing, a form of online targeted advertising where ads are personalized for consumers based on previous Internet activity that did not result in a sale or conversion. Surf the Web and see ads for products you’ve looked at on other sties? This is likely a result of retargeting.

47
Q

Rich Media Ads

A

Online ads that include animation, audio, or video.

48
Q

Search Engine Marketing (SEM)

A

The practice of designing, running and optimizing search engine ad campaigns.

49
Q

Search Engine Optimization (SEO)

A

The process of improving a page’s organic search rankings.

50
Q

Semantic Web

A

Sites that wrap data in invisible tags that can be recognized by search engines, analysis tools, and other services to make it easier for computer programs to accurately categorize, compare, and present this information.

51
Q

Server Farms

A

A massive network of computer servers running software to coordinate their collective use. Server farms provide the infrastructure backbone to SaaS and hardware cloud efforts, as well as many large-scale Internet services.

52
Q

Spiders, Web Crawlers, Software Robots

A

Software that traverses available Web sites in an attempt to perform a given task. Search engines use spiders to discover documents for indexing and retrieval.

53
Q

Third-Party Cookies

A

Sometimes called “tracking cookies” and are served by ad networks or other customer profiling firms. Tracking cookies are used to identify users and record behavior across multiple Web sites.

54
Q

Walled Gardens

A

A closed network or single set of services controlled by one dominant firm. Term is often applied to mobile carriers that act as gatekeepers, screening out hardware providers and software services from their networks.

55
Q

Why is online advertising so special?

A

Online advertising represents the only advertising category that, over the last several years, has been consistently trending with positive growth.

56
Q

What market does Google dominate?

A

Google dominates Internet search volume and controls the lion’s share of the Internet search advertising business and online advertising dollars. The firm also earns more total advertising revenue than any other firm, online or off.

57
Q

Describe three ways Google has demonstrated dominance.

A

Google’s market cap makes it the most valuable media company in the world; it has been rated as having one of the world’s strongest brands, and it ranks among the most profitable firms in the United States.

58
Q

What are ranked search results and what is Google’s version called?

A

Ranked search results are often referred to as organic or natural search results. PageRank is Google’s algorithm for ranking search results. PageRank orders organic search results based largely on the number of websites linking to them, and the “weight” of each page as measured by its “influence.”

59
Q

What is SEO?

A

Search engine optimization (SEO) is the process of improving a website’s organic search ranking. The scope and influence of search has made SEO an increasingly vital marketing function.

60
Q

Do users search the web? Why or why not?

A

Users don’t really search the Web; they search an archived copy stored on a search firm’s computers. A firm creates these copies by crawling and indexing discoverable documents.

61
Q

Where does Google operate from and how does it make it difficult for competitors?

A

Google operates from a massive network of server farms containing hundreds of thousands of servers built from standard, off-the-shelf parts. The cost of the operation is a significant barrier to entry for competitors. Google’s share of search suggests the firm realizes economies of scale over rivals required to make similar investments while delivering fewer results (and hence ads).

62
Q

How can website owners hide their information from Google?

A

Website owners can hide pages from popular search engine Web crawlers using a number of methods, including HTML tags, a no-index file, or ensuring that websites aren’t linked to other pages and haven’t been submitted to websites for indexing.

63
Q

What are 3 key reasons for the increase in online ad growth?

A

Three key reasons for the increase in online ad growth are: (1) increasing user time online, (2) improved measurement and accountability, and (3) targeting.

64
Q

How is digital media changing the way we consume media?

A

Digital media is decreasing time spent through traditional media consumption channels (e.g., radio, TV, newspapers), potentially lowering the audience reach of these old channels and making them less attractive for advertisers.

65
Q

How do measurement techniques help advertisers?

A

Measurement techniques allow advertisers to track the performance of their ads—indicating things such as how often an ad is displayed, how often an ad is clicked, where an ad was displayed when it was clicked, and more. Measurement metrics can be linked to payment schemes, improving return on investment (ROI) and accountability compared to many types of conventional advertising.

66
Q

How can advertising ROI be improved?

A

Advertising ROI can be improved through targeting. Targeting allows a firm to serve ads to specific categories of users, so firms can send ads to groups it is most interested in reaching, and those that are most likely to respond to an effort.

67
Q

Where do most of Google’s ad revenues come from?

A

More than two-thirds of Google’s revenues come from ads served on its own sites, and the vast majority of this revenue comes from search engine ads.

68
Q

Why are Google adds more effective and sought after?

A

Search ads on Google are both more effective (in terms of click-through rate) and more sought after by advertisers, because they are often associated with a user’s purchasing intent.

69
Q

In general, how do advertisements on Google work?

A

Advertisers choose and bid on the keywords and phrases that they’d like to use to trigger the display of their ad.

70
Q

Desribe CPC advertising and how Google gets paid for it.

A

Advertisers pay for cost-per-click advertising only if an ad is clicked on. Google makes no money on CPC ads that are displayed but not clicked.

71
Q

How does Google determine ad rank?

A

Google determines ad rank by multiplying CPC by Quality Score. Ads with low ranks might not display at all.

72
Q

Do advertisers pay the max CPC?

A

Advertisers usually don’t pay their maximum CPC. Instead, Google discounts ads to just one cent more than the minimum necessary to maintain an ad’s position on the page—a practice that encourages higher bids.

73
Q

When does geotargeting occur?

A

Geotargeting occurs when computer systems identify a user’s physical location (sometimes called geolocation) for the purpose of delivering tailored ads or other content.

74
Q

What does Google use to target ads?

A

Google uses IP addresses to target ads.

75
Q

What are two ways geotargeting can be enabled?

A

Geotargeting can also be enabled by the satellite-based global positioning system (GPS) or based on estimating location from cell phone towers or Wi-Fi hotspots.

76
Q

How has the rise of apps impacted Google?

A

The rise of apps as an alternative to search is a threat to Google and has shrunk the firm’s percentage of mobile search. Deep linking allows websites and apps to link directly with content in other sites and apps, bypassing Google altogether. However, its revenues continue to rise as more users conduct more searches online.

77
Q

How is Google using apps? What are some concerns related to this?

A

Google offers web and app deep-linking, and new ad formats give the ability to do more in search and maps (e.g. compare and book hotel rooms, car shop). However, offering these services may alienate advertisers, some which spend $1 billion or more with Google. It also adds to concerns that Google uses its dominance in search and other categories to favor its products and services over those of rivals.

78
Q

Does Google serve ads outside of their website?

A

Google also serves ads through non-Google partner sites that join its ad network. These partners distribute ads for Google in exchange for a percentage of the take.

79
Q

How are AdSense ads targeted?

A

AdSense ads are targeted based on keywords that Google detects inside the content of a website.

80
Q

What does AdSense provide advertisers access to?

A

AdSense and similar online ad networks provide advertisers with access to the long tail of niche websites.

81
Q

What do Ad networks handle?

A

Ad networks handle advertiser recruitment, ad serving, and revenue collection, opening up revenue earning possibilities to even the smallest publishers.

82
Q

Name 3 web ad formats?

A

Web ad formats include, but are not limited to, the following: display (or image) ads (such as horizontally oriented banners, smaller rectangular buttons, and vertically oriented skyscraper ads), rich media ads (which can include animation or video), and interstitials (ads that run before a user arrives at a website’s contents).

83
Q

What is an additional way ads can be sold besides CPC?

A

In addition to cost-per-click, ads can be sold based on the number of times the ad appears (impressions); whenever a user performs a specified action such as signing up for a service, requesting material, or making a purchase (cost-per-action); or on an exclusive basis which may be billed at a flat rate.

84
Q

What are CPM ads best suited for?

A

CPM (cost per thousand impressions) ads are often best suited for brand or awareness campaigns that aren’t looking to solicit a click-through or other action but rather are more focused on conveying a message to an audience.

85
Q

What can the web browser and web server communication identify?

A

The communication between Web browser and Web server can identify IP address, the type of browser used, the computer type, its operating system, time and date of access, and duration of Web page visit, and can read and assign unique identifiers, called cookies—all of which can be used in customer profiling and ad targeting.

86
Q

How can an IP address help outside of geolocation?

A

An IP address not only helps with geolocation; it can also be matched against other databases to identify the organization providing the user with Internet access (such as a firm or university), that organization’s industry, size, and related statistics.

87
Q

What is a cookie?

A

A cookie is a unique line of identifying text, assigned and retrieved by a given Web server and stored on a computer by the browser, that can be used to build a profile associated with your Web activities.

88
Q

How do web browsers allow you to modify the way cookies are collected?

A

The most popular Web browsers allow you to block all cookies, block just third-party cookies, purge your cookie file, or even ask for your approval before accepting a cookie.

89
Q

What is retargeting (remarketing)?

A

Retargeting, or remarketing, allows advertisers to serve targeted ads to consumers who may have viewed a product page but did not buy that product. Google and other ad networks support retargeting.

90
Q

How are apps different in terms of tracking?

A

Cookies are a web-based technology, so they don’t work in apps. Firms like Google and Apple have app-based tracking technology to help monetize ads (tracking click and impressions), but these technologies differ across platforms.

91
Q

How are Apple and Microsoft limiting the collection of cookies?

A

Apple and Microsoft have also limited the use of cookies in their browser and mobile products. Apple has also shut off the ability of third parties to reach the MAC address, a unique number that many used to track mobile users. All these developments suggest that the future of profiling and ad technology is in flux, and managers who have a stake in this game will need to pay attention to future developments.

92
Q

What are possible consequences from misuse of customer tracking and profiling tech?

A

Possible consequences resulting from the misuse of customer tracking and profiling technologies include user resistance and legislation. Mishandled user privacy could curtail targeting opportunities and limit growth in online advertising. With less ad support, many of the Internet’s free services could suffer.

93
Q

What steps has Google taken to proect user privacy?

A

Google has taken several steps to protect user privacy. The firm offers several tools that enable users not only to see information that Google collects but also to delete, pause, or modify data collection and profiling terms.

94
Q

Describe Google’s “Ads Preferences Manager” & Privacy Dashboard.

A

Google’s “Ads Preferences Manager” allows surfers to see, remove, and add to any of the categorizations that Google has assigned to that browser’s tracking cookie. The technology also avoids targeting certain sensitive topics. The firm’s Privacy Dashboard provides additional access to and user control over Google’s profiling and data collection.

95
Q

How does Google allow users to opt out of interest-based tracking?

A

Google allows users to install a cookie or plug-in that opts them out of interest-based tracking.

96
Q

How is Google working with third-party firms to improve it’s data?

A

Google has begun to partner with third-party firms to tie together its data on consumer ad viewership to in-store visits. While not perfect, the data has shown that many users who view online ads go on to make in store purchases. Google’s data is reported in aggregate, and not on any individual user.

97
Q

Why are privacy advocates concerned over Google and firms like it?

A

Some privacy advocates have voiced concern over what they see as the increasing amount of information that Google and other firms collect. Apple is among the firms that have contrasted their approach to products, privacy, and business models with Google’s ad-driven, profiling methods.

98
Q

Is Google perfect?

A

Even the best-intentioned and most competent firms can have a security breach that compromises stored information. Google has suffered privacy breaches from product flaws and poorly planned feature rollouts, as well as deliberate hacks and attacks. The firm has also changed policies regarding data collection and privacy as its services have evolved. Such issues may lead to further investigation, legislation, and regulation.

99
Q

How does fraud impact search engines, ad networks, and ad-based internet?

A

Fraud can undermine the revenue model behind search engines, ad networks, and the ad-based Internet. It also threatens honest competition among rivals that advertise online.

100
Q

Name a couple forms of online fraud.

A

There are many forms of online fraud, including enriching fraud (meant to line the pockets of the perpetrators), depleting fraud (meant to waste the ad budgets of rivals), disbarring fraud (meant to frame the innocent as fraudsters), and methods to lower rival ad rank performance, or gain search engine ranking algorithms.

101
Q

What are two things that have helped reveal bogus activity?

A

While fraudsters have devised ingenious ways to exploit the system (including click farms and botnets), IP addresses and detailed usage pattern monitoring increasingly reveal bogus activity.

102
Q

What impact would widespread fraud happen? Are fraud rates agreed upon?

A

Fraud rates are widely disputed. However, it is clear that if widespread fraud were allowed to occur, advertisers would see lower ROI from online ad efforts, and Internet business models would suffer. The continued strength of the online advertising market suggests that while fraud may be impossible to stop completely, most fraud is under control.

103
Q

How is growth changing for Google?

A

For over a decade, Google’s search business has been growing rapidly, but that business is maturing.

104
Q

How does Google need to combat slower growth?

A

Slower growth will put pressure on the firm’s stock price, so a firm Google’s size will need to pursue very large, risky, new markets—markets that are also attractive to well-financed rivals, smaller partners, and entrepreneurs.

105
Q

How can rivals compete with Google and why is it difficult?

A

Rivals continue to innovate in search. However, those who choose to compete with Google using technology should recognize that it is often easy for a firm to mimic the innovations of a pioneer with a substitute offering, and Google has additional strategic resources, such as brand, scale, and network effects, that will make it a challenge to displace.

106
Q

How has antitrust investigations impacted Google?

A

European and U.S. regulators have investigated Google for antitrust violations and, at least initially, have reached different results, demonstrating the challenges dominant firms face as they grow globally.

107
Q

How is Google promoting Internet access?

A

Google is investing heavily in methods that promote wider Internet access. These include offering free software to device manufacturers and several telecommunications and lobbying initiatives meant to lower the cost of getting online. The firm hopes that more users spending more time online will allow it to generate more revenue through ads and perhaps other services.

108
Q

Has Google Glass been successful?

A

Google Glass has struggled to achieve consumer acceptance, but several applications have demonstrated broad impact across various industries, improving productivity, lowering costs, speeding delivery time, and potentially even saving lives.

109
Q

Describe how Android Pay works, benefits, and how it can receive broad adoption.

A

Android Pay uses NFC communications to allow mobile phones to make credit and debit card payments, manage loyalty programs, redeem coupons, and more. The service leverages tokenization to mask actual credit card numbers, potentially making it more secure to use than conventional credit cards. In order to receive broad adoption, Android Pay will need a critical mas of users with compatible handsets and retailers with hardware capable of taking these kinds of payments.

110
Q

Describe Google’s social networking efforts?

A

Google continues to struggle in social networking and Google+ significantly lags behind Facebook and Twitter in user engagement and overall users, despite Google’s attempts to integrate the service into its core offerings. Some efforts that have been part of Google+, such as Hangouts and Photos have been allowed to operate as stand-alone products.

111
Q

What is YouTube a demonstration of?

A

YouTube demonstrates how a firm can create a large and vastly influential business in a short period of time but also that businesses that host and serve large files of end-user content can be costly. Like AdSense, YouTube channels have become a launching pad for content entrepreneurs.

112
Q

How are Google, Microsoft, and smaller rivals changing the way they deliver apps?

A

Google, Microsoft, and smaller rivals are also migrating applications to the Web, allowing Office-style software to execute within a browser, with portions of this computing experience and storage happening off a user’s computer, “in the cloud” of the Internet. Revenue models for this business are uncertain.

113
Q

Describe Googles troubles with governmental scrutiny.

A

With scale and influence comes increased governmental scrutiny. Google has increasingly become a target of antitrust regulators. The extent of this threat is unclear. Google’s extreme influence is clear. However, the firm’s software is based on open standards; competitors have a choice in ad networks, search engines, and other services; switching costs are relatively low; users and advertisers aren’t locked into exclusive contracts for the firm’s key products and services; and there is little evidence of deliberate, predatory pricing or other “red-flag” activity that usually brings government regulation.

MGT Final (6 decks)

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