preface
Wechat search [Java3y] to pay attention to this man with a dream, like attention is the biggest support for me!
The text has been uploaded to my GitHub: github.com/ZhongFuChen… , has over 300 original articles, most recently in the serialized interview and project series!
I, Three crooked, will start a project series recently. I have a title for the series, “Revealed.”
The last article “revealed! The realization principle of the message management platform” has been praised and appreciated by many students, students who have not seen it can go to see, it is the system I maintain for nearly a year, I put the core in the article.
This article focuses on the basics of advertising and does not include anything technical. Advertising systems can be much more interesting and complex than systems such as message management platforms, which can explain in a few dozen words what it does, what it does, and why it is needed.
And the advertising system is different, if you don’t know any basic knowledge about advertising, you go to read advertising related articles, you will find: you know the words, but you just don’t know what it is about.
A very important reason for this problem is that there are too many professional terms in advertising
This article is to introduce the professional terms of advertising. Not really. If you read some of my articles, you will find that I often advocate: before learning a technology, first understand what it does, why you should use it, and then learn its implementation
I think it is very helpful to know the history of advertising for “understanding what it can do and why it should be used”. This article takes the history of advertising as a starting point and popularizes the terms related to advertising.
Through this article, I think you can probably understand what kind of advertisement you may see in the daily surfing 🏄 process, and will have a basic understanding and concept of advertising.
What is advertising?
When we first started programming, we used to search For Java on Baidu
Opened zhihu in the rest time
Take a stroll around Zhihu
Don’t have to go to the blog forum to enrich themselves:
Even open three crooked historical articles:
You’ll find: Fuck! Why are there ads everywhere
Voice-over:
Advertising definition: All paid information, product or service distribution channels, is advertising
Show begins
Three crooked this young man, every day to write code to write articles, technology has become more and more weak. The original company “guangzhou spirit guy limited company” decided to abandon three crooked, but because of three crooked this year’s hard work, also successfully earned his first bucket of gold.
Sanwei took his first bucket of gold and his rich girlfriend’s 2W8, pooled rmb30 million and registered a company named Guangzhou Sanwei Shenzhen-Lin Technology Co., LTD.
Three slanting set up their own site, https://github.com/ZhongFuCheng3y/3y, so far there has been a 11.3 k fan users on the site every day to see three slanting writing articles.
Three crooked looking at their site daily active DAU gradually higher and higher, higher and higher… Although his heart is very happy, but always can not make money. Even if you have a rich girlfriend, you still have to realize your dreams, right?
Voice-over: DAU (Daily Active User) : the number of daily active users
The god of the Net always says: “traffic is king”. So three crooked thinking: my site every day someone visit, I rent a server every month still have to spend thousands of pieces, I have to earn some money 💰.
After three slanting thinking, what is the way of cash? Ask another question: “Where is the money coming from?” . There are two ways: first, to charge users. Two, charge to the enterprise.
- How to charge users? Of course, there are many ways: one, join me
VIPExclusive group, real people answering questions online. Two, open a Taobao shop to sell hair water. Third, selling point programmer 👩💻 favorite peripheral - How to charge enterprises? My site does not provide data services, no enterprise will give me money. But my site has traffic ah, I rely on their own written articles easy to understand, site every day
11.3 k.And now there are a lot of online educational institutions that need traffic, they will come to me to advertise. They pay me to show his ads.
Obviously, three crooked chose the most direct and effective way of realization: advertising
Voice-over:
Online education Agencies: People who need advertising –> Advertiser
Three of the website: Can provide traffic -> Media (Publisher)
The purpose of advertising: advertisers reach low-cost users through media
But in fact, an advertising, participation is not only advertisers and media, and users. The interests of the three parties are always in the process of continuous game in advertising, the interests of the three parties need to be taken seriously, so as to keep the balance and sustainable development of the whole market
User: three crooked this force every day hair advertisement, took off… Three crooked this force every day to write dry goods, love love… Three crooked…
Advertiser: cast 3 crooked this site can return line… Cast three crooked this site blood loss…
Media: Oh, my God, MY price is low. I can’t afford to eat without dad… Oh my God, I got an AD, AND I need to write a great article and give them better content, or they’ll all be gone…
Voice-over:
Core advertising problem: Finding the most appropriate advertising strategy for a range of user and environment combinations to optimize the overall advertising campaign profits
Advertisements can be divided into two broad categories:
- In pursuit of long-term gainsBrand advertising. Let’s say I’m pitching brand ads: I don’t care if you pay attention to me in a short time, you learn
JavaYou need to know there isJava3y. And what I want to do is,Java3yThis word, due to BMW Mercedes Audi in the automotive industry. - The pursuit of purchase or other transformational actions of the effect of advertising. Let’s say I run an effect AD: I run an AD in a certain area and five people come to pay attention to me. I run an AD in a certain area and 100 people come to pay attention to me. The effect in a certain area is really hot.
After BB finished, advertiser father wants to cast advertisement. At the very beginning, my father, the advertiser, said he would buy a display space for me: 30 yuan a month and sign a contract.
Three crooked express no problem, a month 30 pieces, eat a dinner at ordinary times can add a chicken leg 🍗
In this case, the media doesn’t need any tech support (at best, a scheduling system is set up to schedule the dad’s time each month), and the advertisers don’t need any tech either. I’ll pay you, show you my AD, and that’s it.
Voice-over:
The technical term for this transaction is CPT: Cost Per Time
In addition to time-based transactions, the following are common:
Different transaction methods are applicable to different specific scenarios (hence the coexistence)
As more and more people pay attention to the site, three crooked found that see their article not only only man, but also sister.
Three crooked thinking: “advertising space with a fixed price to sell out, all people can see that advertising, like a little small deficit ah. Although I only have one AD space, I can tell the donor father to come in with different attributes and see different ads (those who see their home ads will be more accurate), so I can take over multiple donor father at the same time?”
Three crooked scenes have already been thought of: “18, 20 years old boy come in, I will recommend to him league of Legends hand, 18, 20 years old sister come in, I will recommend her facial mask, 30 years old man come in, I will recommend to him hair water… Originally a advertising space a month 30 yuan, I receive 3 advertisers, an advertiser 20 yuan, that I a month is 60 yuan income.”
Told this to the advertiser, the advertiser said yes, but every month to give me a guarantee that my advertising exposure (display) in N times, if not up to this amount, you have to refund the money, sign a contract.
Based on this situation, the media will need to have the audience orientation technology, give the user a different label on (such as the increase of age, different age paragraph the user sees not the same as advertising, and media advertising technology, advertising is no longer a fixed on a page, but show different advertising according to different characteristics of the user. And advertisers still don’t need any technology, just money.
Three crooked still is in happy when earning a bit of small money, the old king that next door does search, already played the mode that bid advertisement.
Voice-over:
Bidding advertising: media own advertising space (keyword tags) out of the public auction, who can get the highest price of advertising space
What’s so cool about this? The kind of model based on the above, I have to go to advertisers to protect show: for example, if the current user shows the advertisement, the next ads also don’t show the user (the user belongs to the two ads crowd), if you don’t show the next ads, that shows the quantity is not enough to do…
So how did Lao Wang do it? Lao Wang tells advertiser: I this have an advertisement, I choose good keyword to you, you cast, who bid high, I show whose advertisement.
Three crooked: this wonderful, anyway what the media want to do is give advertisement place open go out, who come to play, bid bai. Whoever the funder’s father has more money gets the booth. There is no need to worry about not being able to meet the advertiser’s requirements for display (this model does not guarantee display)
And there’s an added benefit: search ads have a higher conversion rate than normal ads. After all, it is the user who wants to have “intention” to search 🔍 according to the keyword. You recommend the advertisement to the user according to the content that the user is interested in, and the conversion is generally relatively high.
Three crooked after all is not to do search, so it is not to eat search advertising this bowl of rice.
As the development, Three crooked found that in fact their site there are a lot of places to sell advertising, but in the way of contract is difficult to sell (because they are some of the corners of the position). And there’s already AD Network (ADN) on the market.
In plain English, the media gives the surplus traffic to the AD Network (ADN), which takes my AD space and sells it for me, taking a cut of the commission.
So how is ADN packaged? It aggregates the remaining traffic of a lot of media, and then marks these spots with different crowd tags. It also sells these crowd tags in a bidding way.
It can be found that the AD Network (ADN) and search advertising mentioned above are all bidding to sell advertising space.
However, this kind of bidding is not real-time, it is first through the keyword/crowd way to put out the advertising space, and then let the advertiser bidding, after the bidding is finished, and then decide whether to display the AD, the bidding and display decision is not synchronous.
In the development of Bidding advertising, advertisers are not satisfied with the fact that they can only buy according to the labels provided by the media. Advertisers want to select users more accurately according to their own needs to achieve more accurate advertising effects. This demand gives rise to Real Time Bidding (RTB).
While the original bid would have people/keywords (tags) for the advertiser to pick from, there would always be scenarios that couldn’t be completed. For example, advertisers want to find their lost users for an advertising promotion
For the media, usually without loss of user data, advertisers so the inevitable demand for the above media is helpless but if these people/keyword (tags) to realize the open management, then every time the media to display ads, advertisers can live according to the condition and decide whether to bid, that is not very perfect? Yes, this is real-time bidding.
The advantage of real-time bidding is that advertisers can target more targeted users to their needs.
In real-time bidding, we need real-time bidding advertising, where is the advertising coming from? From the press. Do advertisers need direct media docking? Don’t have to. There will be Ad Exchange, or ADX, as we call it. Advertisers generally have a Platform connected with ADX, called DEMANd-Side Platform (DSP). When advertising mainly selects its own suitable data, it usually has a data management Platform (DMP). Media may not directly connect with ADX. There will be a dedicated supplier Platform called THE SSP (Suply-Site Platform).
Their relationship is as follows:
The interaction process is as follows:
Suddenly look back
From the perspective of media, it needs to guarantee user experience and take into account the effect of advertisers and its own interests. Only by striking a balance between these three can media develop sustainably.
Advertising business has gone through continuous development: from the sale of single resource space by time, to the guarantee of display quantity in the form of contract, to the sale of resource space by bidding, and now the real-time bidding. This development can be seen that driven by data, it has become more and more refined.
Where there is a demand there will be a market: in the course of this development various platforms will emerge to serve the media/advertisers
- For advertising
- Media Platform: Paid Advertising Network (ADN)
- Advertiser Platform: Exchange Terminal (TD)
- Real-time bidding
- Media platform: Supplier platform SSP
- Advertiser platform: DSP platform and DATA management platform DMP
Like our company, both as a media, and as advertisers. We not only provide a variety of advertising transactions to the station’s businesses advertising, at the same time need to buy traffic.
For those of you who have seen this, will you be wondering: As a medium, with so many major access to advertising, when and where is the appropriate time to display an AD?
As the media side, the ads are ranked according to the index of advertising revenue per 1,000 displays (eCPM).
What to make of ecPMs? It looks like the CPM mentioned earlier, but with an extra e in front of it
In fact, ECPMs have little to do with CPM: CPM is a pricing metric, while ECPMs are a measure of advertising effectiveness
ECPM is the media’s measure of advertising effectiveness: if it’s CPM, then eCPM=CPM, but if it’s CPC? ECPM = estimated CTR * bid, what if CPS is charged? ECPM = Estimated conversion rate * Estimated CTR * Bid price
What we can see from the eCPM formula is that, in addition to bidding, the estimated CTR and conversion rate are likely to affect the ranking of ads. An AD with an estimated high click-through rate or conversion rate, which indicates that the quality of the AD is in line with the needs of the media’s own users, which can earn advertisers more money and improve the user experience. Isn’t that flattering?
Click through rate (CTR)
We may see the term OCPX again in the near future
OCPX is a tool to optimize the conversion cost and adjust the intelligent dynamic bid according to the click-through rate and conversion rate of a single flow, to help merchants effectively control the conversion cost, improve the efficiency of advertising, and finally achieve the goal
eCPM=CPA*pCVR*pCTR*1000
Copy the code
Generally speaking, if advertisers use OCPX to advertise, they generally need to send back “activation” and “order” data to the media to further optimize the data model, and finally achieve better advertising effect.
The last
If the students have not contacted the advertisement, they may still feel that they know all the words, but they still seem not to understand them. No way, advertising is a little too much terminology, business is really more complicated.
If you can get a basic understanding of advertising after reading this article, I think it will be worth it.
Advertising water is still very deep, I am only in the entry stage, write this article hope to just enter advertising or want to understand this aspect of the students help.
I don’t know what kind of experience you have after reading this article, please share it in the comments section.
I’m going to talk a little bit more about the specific advertising systems business, how advertising systems are built and what the business is like in a production environment. Thank you for your attention and likes.
References:
- Computing Advertising 📚
- Computational advertising popular science series
Sanwei has sorted out all the [factory interview knowledge points], [resume template] and [original article] into an e-book, with a total of 1263 pages! Click on the belowlinkI’ll just take it
- GitHub
- Gitee access is faster
The content of PDF document is typed by hand, you can ask me directly if you don’t understand
