UA68/13/5 AdVenture

Newsletter created by members of the WKU Advertising Club regarding their members and activities

UA68/13/5 AdVenture, Vol. 1, No. 1

Newsletter created by members of the WKU Advertising Club regarding their members and activities

Contextual advertising

Contextual advertising entails the display of relevant ads based on the content that consumers view, exploiting the potential that consumers' content preferences are indicative of their product preferences. This paper studies the strategic aspects of such advertising, considering an intermediary who has access to a content base, sells advertising space to advertisers who compete in the product market, and provides the targeting technology. The results show that contextual targeting impacts advertiser profit in two ways: First, advertising through relevant content topics helps advertisers reach consumers with a strong preference for their product. Second, heterogeneity in consumers' content preferences can be leveraged to reduce product market competition, especially when competition is intense. The intermediary has incentives to strategically design its targeting technology, sometimes at the cost of the advertisers. When product market competition is moderate, the intermediary offers accurate targeting such that the consumers see the most relevant ads. When competition is high, the intermediary lowers the targeting accuracy such that the consumers see less relevant ads. Doing so intensifies competition and encourages advertisers to bid for multiple content topics in order to prevent their competitors from reaching consumers. In some cases, this may lead to an asymmetric equilibrium where one advertiser bids high even for the content topic that is more relevant to its competitor. © 2012 INFORMS

#advertising #werk

Project: Ask Us. This project that has been in the works for quite some time is finally coming to fruition and I’m very excited about it. At the start of the semester it was very unclear what my project would be in this wide-world of librarianship and how to relate it back to the Reference Desk. Luckily for me the Reference department has been undergoing a sort of marketing revival and I get to help. Admittedly, I knew nothing about how to market the skills of reference librarians but after reading many articles, I think we have a winning strategy. [excerpt