Tuesday, June 10, 2014

Notes from Google Advertising

1. Key to google advertising success -

By demonstrating to advertisers that its algorithm could deliver really really targeted ads in almost any environment and context.

2. 1300 news papers in US generating 38.6 bn in revenue in 2012, Google alone 44 bn in 2013. In 2012, Google's ad revenue overtook revenue of all news papers.






3. firstmonday.org

4. How does Google determine ads rank to display on search results page? It multiplies

a. Maximum cost per click that an advertiser is willing to pay per click
b. Quality score = Relevance of ads determined by past click through rates, relevance of text to search terms, landing page quality etc.

5. An auction mechanism called Vickery auction



6. Example, yellow pages were 15 bn USD was reduced by 1/3rd with advent of web and google.



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