Digital Advertising and Attribution Flashcards

Question

CPC

Answer 1

CPC (“Cost-per-Click”) • Publisher only gets paid if user clicks on an ad • Performance based pricing, Good for Marketers but difficult to negotiate with premium publishers • Lower Quality Inventory

Answer 2

CPA (“Cost-per-Action”) • Payout on conversion (Affiliate Marketers operate on this model) • Effective CPA (eCPA): Cost/Conversions (cost per conversion… > profit on the conversion?)

Answer 3

Effective CPA, eCPA takes into account cost vs. profit of conversion. VERY RARE

Answer 4

Performance (CPC, CPA) is now 65%.

Answer 5

Process for determining how you bid as an advertiser  Who is this person?  Demos, interests, affluence, retargeting (have they visited my website)  Build a predictive model that predicts customers that are likely to act on an ad (click or purchase)

Answer 6

What is the advertiser goal? Get people to act  * What is targeter goal (firm I hire to target)? Find people most likely to act after being shown the ad. Targeter must find those who when shown the ad have a higher chance of buying the sweater. Conversion rate is the performance they must show you. But, you need to measure causal conversions (causal effect of showing the ad).  If I know someone has a 100% chance of acting, do we want to advertise to them? NO  Great way to tell between correlation and causation: A/B testing

Answer 7

``` Targeting Models (from targeting agencies):  Take into account behavior, demos, social network and location variables  Precision and recall (coverage of target high likelihood customers) used to score ```

Answer 8

 .05% |  So you MUST get good at targeting

Answer 9

Retargeting:  When an advertiser follows you after visiting their site  One item in the cookie is what site did you visit?  2% of visitors purchase on the first visit, retargeting visits the other 98% for them to purchase  What should your retargeting window be? Specific to clients.  Much more effective than display ads; 10x (0.7% vs. .7%)  But, “lift” is difficult to prove because they already have brand affinity, intent, and other activities are happening. So test it!

Answer 10

 Why does Kayak point you to their competitors? • It gets ad revenue  Promo codes • Retailmenot 71% when you type coupon in Google • You go there, you press the coupon, it opens the Amazon tab and it drops a cookie on the browser and tells Amazon we sent this customer, send me 4% commission. • But did they send the customer to AMZN when someone is shopping and just goes to find a coupon

Answer 11

* Lift is the causal effect of an ad on a sale. Conversion rate is the percent of people who are shown an ad who purchase. * It’s not the same thing!

Answer 12

``` I'm teaching a class • Conversion rate: 100% class students given a flyer as they walk into class • Lift: 0% - They all would’ve been there already. ```

Answer 13

``` LTA, First Touch, Linear (equal across), Time Decay (increasing to last touch), Position based (first and last most, rest linear), Algorithmic (MTA) ```

Answer 14

30% FTA, LTA; 11% Algo; looks like it's changed.

Answer 15

High dimensional propensity score matching

Answer 16

Viewable Ad Problem: >50% of area of the ad was viewable • Premium sites: 53%, networks and exchanges: 31% • FB is only priced on viewable ads

Answer 17

Search and display are compliments; more on display, the better performing your ad dollars in search and vice versa • Its suboptimal to do one without the other. Problem • How does Display affect Search and vis versa? How to manage the interaction… Evidence • Nearly 1/5th of all Search Conversions have seen a Display Ad • Experiments Show: • Users exposed to a display ad conduct 5-25% more campaignrelevant searches. (Papadimitriou et al) • Display Ads increase search conversion and search clicks (increasing search ad costs) • $1 investing in Search and Display returns $1.24 for Display and $1.75 for Search (Kireyev et al 2013)

Answer 18

Ad Blockers and the Internet of Tomorrow 5Oct15

Digital Advertising and Attribution Flashcards

(42 cards)