Online advertising: underlying technologies and business models


Internet advertising revenues in the United States totaled $16.9
billion for 2006, up 35 percent versus 2005 revenues of $12.5 billion
(according to the Interactive Advertising Bureau). Fueled by these
growth rates and the desire to provide added incentives and
opportunities for both advertisers and publishers, alternative
business models to online advertising are been developed.
This tutorial will review the main business models of online
advertising including: the pay-per-impression model (CPM); and the
pay-per-click model (CPC); and a relative new comer, the
pay-per-action model (CPA), where an action could be a product
purchase, a site visit, a customer lead, or an email signup. The
tutorial will also discuss in detail the technology being leveraged to
automatically target ads within these business models that largely
derives from the fields of machine learning, statistical, information
retrieval and economics. Challenges and open issues will also be

Topics that will receive significant treatment include the following:

Short Bio

Dr. James G. Shanahan.
Independent Consultant, San Francisco

Jimi has spent the last 20 years developing and researching
cutting-edge information management systems to harness information
retrieval, linguistics and machine learning. Prior to being an
independent consultant, Jimi was Chief Scientist (and member of
executive team) at Turn Inc. where he focused on the development and
deployment of an online ad targeting system (CPA/CPC/CPM-based) in a
principled and measured way that leveraged advanced statistical and
machine learning techniques;These responsibilities included leveraging
the entire reservoir of data assets in order to develop methods for
identifying key optimizations, deploying relevant analytical tools and
improving the user experience. Prior to joining Turn, Jimi was
Principal Research Scientist at Clairvoyance Corporation where he led
the Knowledge Discovery from Text Group. Before that he was a Research
Scientist at Xerox Research Center Europe (XRCE),
where, as a member of the Co-ordination Technologies Group, he
developed Document Souls, a patented document-centric approach to
information access. In the early 90s, he worked on the AI Team within
the Mitsubishi Group in Tokyo.

He has published six books and over 50 research publications in the
area of machine learning and information processing. Jimi is General Chair for
CIKM 2008. Jimi received his Ph.D. in engineering mathematics from the
University of Bristol, U. K. and holds a bachelor of science degree in
computer science from the University of Limerick, Ireland. He is a
Marie Curie fellow and member
of IEEE and ACM.