Targeted Advertising Technologies in the ICT Space: A Use Case Driven Analysis

356 Pages·2013·5.59 MB·English

by  Christian Schlee (auth.)

Targeted Advertising Technologies
in the ICT Space
Christian Schlee
Targeted Advertising
Technologies in
the ICT Space
A Use Case Driven Analysis
Christian Schlee
Darmstadt, Germany
ISBN 978-3-8348-2395-3 ISBN 978-3-8348-2396-0 (eBook)
DOI 10.1007/978-3-8348-2396-0
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Preface
Targeted advertising is one of the hottest new media buzzwords. Target group
specific advertisments are ubiquitous in the Web and big players like Google owe
their enormous growth to profits realized through advertising services based on
sophisticated targeting technologies. However, the potential of targeted advertis-
ing reaches beyond the Web across the entire ICT space including IPTV, mobile
and convergent environments.
This book provides a broad overview of trends and developments in targeted
advertising covering all relevant ICT channels and gives a comprehensive intro-
duction to underlying technologies. Basic chapters on targeting, ad formats and
technological backgrounds allow the reader to quickly dive into the topic. The
core of the book consists of a use case driven analysis of existing and upcoming
targeted advertising scenarios across all ICT channels followed by technological
deep dives. Supplemental sections covering business and legal aspects complete
the picture. This approach likewise addresses readers with academic background
and those coming from the ICT industry.
The book is based on my diploma thesis written at Darmstadt University of Tech-
nology and in cooperation with Detecon International GmbH. Research and ana-
lyzes I performed in this context allowed me to significantly improve both my
methodogical knowledge as well as my professional expertise, which I am very
grateful for. The reception of my work among my tutors and the feedback of
experts and colleagues at Detecon International GmbH who read the thesis moti-
vated me to share the knowledge I gained with others potentially interested in the
topic. Due to the time that has passed since my graduation the work has been
slightly modified and updated.
I would like to address some words of gratitude to everyone supporting me in
writing this book. I want to thank my tutors at Darmstadt University of Technol-
ogy Dr. Nicolas Repp and Dr. Julian Eckert for guiding me through the creation
of my diploma thesis. I specially wish to thank my colleague at Detecon Interna-
tional GmbH Holger Diekmann for sharing his expertise and excellent methodical
knowledge. I would further like to thank all interview partners, experts and col-
leagues at Detecon International GmbH providing me with their valuable inputs.
Finally, special thanks to my family and friends who put up with me while I was
writing this book, I thank you for your good wishes and your patience.

Christian Schlee
Abstract
In recent years the Information and Communication Technology (ICT) space
started to change dramatically. Web services are significantly gaining importance
creating new business models and revenue opportunities for Internet companies,
while steadily increasing the demand for bandwidth. At the same time they ex-
pand their business towards the telecommunications domain degrading traditional
telecommunication operators to “bit pipes”. Carriers are hence increasingly
threatened by high revenue losses requiring them to open up new business oppor-
tunities beyond their network core business. Targeted advertising is one of these
opportunities basically following the “Telco 2.0” paradigm providing a service
platform for the interaction of 3rd parties, in this case advertisers and consumers.
The concept of targeted advertising includes the compilation of detailed informa-
tion about consumers and their preferences in using the Internet or consuming
other media for the purpose of providing them with individualized advertisements
(ads).
This book deals with targeted advertising technologies in the ICT space as well as
their strategic business implications, and provides a comprehensive overview of
market trends. Since the whole ICT space is transforming to an all-IP world, Web
advertising formats are a strong driver in targeted advertising. Most of today’s
Web portals already use targeting technology to identify the users, track their
usage behavior and finally provide them with personalized Web offerings. The
two-way architecture of IP networks potentially enables very promising targeting
scenarios in Internet Protocol Television (IPTV). However, IPTV is still in early
stages and operators will need to acquire more subscribers before being able to
bring programmers and advertisers on board at a large scale. The most interesting
IPTV use cases include network- and STB-based display advertising, interactive
advertising, ad insertion in linear television (TV) and Video on Demand (VoD)
scenarios, Electronic Program Guide (EPG) portal advertising and advertising in
the context of personal TV channels. In the mobile environment, targeted adver-
tising currently starts gaining traction, driven by recent technology developments
in terms of devices and network infrastructure. The most significant use cases are
mobile Web advertising, message advertising, on-device advertising, and mobile
TV and video advertising. In future, next-generation advertising technologies for
converged scenarios, allowing for targeted advertising campaigns across multiple
ICT channels at the same time, will become more and more important. Certainly,
such complex cross-channel advertising scenarios in triple-play environments
pose particular challenges that have to be tackled.
VIII Abstract

The goal of this work is to perform a comprehensive but also practice-oriented
analysis of targeted advertising technologies in the ICT space, therefore following
a use-case driven approach. Based on information derived from expert interviews
and literature research, the most interesting use cases in the Web, IPTV, in the
mobile environment, and in converged scenarios are identified and described
from a user perspective. Crucial points emerging from these descriptions are
further deepened in a technological analysis resulting in elaborate models depict-
ing underlying technology units and their interworking. This allows identifying
technological opportunities and challenges of the respective scenarios. Resulting
from these analyses important technological key building blocks are identified
and examined more closely. This includes the generic description of a targeted
advertising framework with functional components like profiling, targeting and
recommendation units as well as technological deep dives into the subjects of
Identity Management (IdM) and recommendation technologies. In order to
achieve a comprehensive overview, business and legal aspects of targeted adver-
tising are covered supplemental.
Table of Contents
Preface....................................................................................................................V(cid:1)
Abstract...............................................................................................................VII(cid:1)
Table of Contents.................................................................................................IX(cid:1)
List of Figures.....................................................................................................XV(cid:1)
List of Tables.....................................................................................................XIX(cid:1)
List of Abbreviations.........................................................................................XXI(cid:1)
1(cid:1) Introduction......................................................................................................1(cid:1)
1.1(cid:1) Motivation and Problem Definition..........................................................1(cid:1)
1.2(cid:1) Methodology.............................................................................................2(cid:1)
1.2.1(cid:1) Structure of the Book..........................................................................3(cid:1)
1.2.2(cid:1) Interview Proceeding..........................................................................4(cid:1)
2(cid:1) Definitions and Related Work..........................................................................9(cid:1)
2.1(cid:1) Foundations of Targeted Advertising........................................................9(cid:1)
2.1.1(cid:1) Targeted Advertising as Part of the Personalization Process...........10(cid:1)
2.1.2(cid:1) Definition and Types of Targeting...................................................11(cid:1)
2.1.3(cid:1) The Business Environment of Targeted Advertising.......................16(cid:1)
2.1.3.1(cid:1) Classification of the Targeted Advertising Business Model.....16(cid:1)
2.1.3.2(cid:1) The TV Advertising Environment.............................................17(cid:1)
2.1.3.3(cid:1) The Mobile Advertising Environment.......................................20(cid:1)
2.2(cid:1) Use Case Basics.......................................................................................22(cid:1)
2.3(cid:1) Basic Technology....................................................................................24(cid:1)
2.3.1(cid:1) IPTV Basics......................................................................................24(cid:1)
2.3.2(cid:1) Mobile Communication Basics........................................................28(cid:1)
2.3.3(cid:1) Implications for the Use Case Development....................................37(cid:1)
2.4(cid:1) Standardization Efforts in the Environment of Targeted Advertising....38(cid:1)
2.5(cid:1) Definition of Ad Formats........................................................................42(cid:1)
2.5.1(cid:1) Web Advertising Formats.................................................................42(cid:1)
X Table of Contents
2.5.1.1(cid:1) Interactive Advertising Bureau.................................................43(cid:1)
2.5.1.2(cid:1) Online-Vermarkterkreis (Circle of Online Marketers).............45(cid:1)
2.5.1.3(cid:1) Vendor Specific Advertising Formats.......................................47(cid:1)
2.5.2(cid:1) IPTV Advertising Formats...............................................................47(cid:1)
2.5.2.1(cid:1) Classic TV Ad Formats.............................................................47(cid:1)
2.5.2.2(cid:1) Web TV/IAB In-Stream Video Advertising Formats...............49(cid:1)
2.5.2.3(cid:1) Interactive Advertising Formats................................................52(cid:1)
2.5.2.4(cid:1) Summary of IPTV Relevant Ad Formats..................................54(cid:1)
2.5.3(cid:1) Mobile Advertising Formats............................................................55(cid:1)
2.5.3.1(cid:1) Mobile Web...............................................................................55(cid:1)
2.5.3.2(cid:1) Text Messaging (SMS).............................................................56(cid:1)
2.5.3.3(cid:1) Multimedia Messaging (MMS).................................................57(cid:1)
2.5.3.4(cid:1) Mobile Video and TV...............................................................58(cid:1)
2.5.3.5(cid:1) Mobile Applications..................................................................58(cid:1)
3(cid:1) Use Case Identification and Description........................................................61(cid:1)
3.1(cid:1) Targeted Web Advertising......................................................................61(cid:1)
3.2(cid:1) Targeted Advertising in the IPTV Environment.....................................63(cid:1)
3.2.1(cid:1) IPTV Display Advertising................................................................68(cid:1)
3.2.1.1(cid:1) Network-Based Banner Ad Insertion........................................68(cid:1)
3.2.1.2(cid:1) Set-Top-Box-Based Overlay Ad Insertion................................69(cid:1)
3.2.1.3(cid:1) Interactive Advertising..............................................................70(cid:1)
3.2.2(cid:1) IPTV Ad Insertion............................................................................71(cid:1)
3.2.2.1(cid:1) Linear TV Ad Insertion.............................................................72(cid:1)
3.2.2.2(cid:1) Dynamic VoD Ad Insertion......................................................73(cid:1)
3.2.3(cid:1) EPG Advertising..............................................................................74(cid:1)
3.2.4(cid:1) Personal TV Channel Advertising...................................................75(cid:1)
3.2.4.1(cid:1) Personal TV Channels...............................................................75(cid:1)
3.2.4.2(cid:1) Personalized Barker Channel....................................................76(cid:1)
3.3(cid:1) Targeted Advertising in the Mobile Environment..................................77(cid:1)
3.3.1(cid:1) Mobile Web Advertising..................................................................82(cid:1)
Table of Contents XI

3.3.1.1(cid:1) On-Portal Advertising...............................................................82(cid:1)
3.3.1.2(cid:1) Off-Portal Advertising...............................................................83(cid:1)
3.3.2(cid:1) Message Advertising........................................................................84(cid:1)
3.3.2.1(cid:1) In-Message Advertising.............................................................84(cid:1)
3.3.2.2(cid:1) Direct Message Marketing........................................................86(cid:1)
3.3.3(cid:1) On-Device Advertising.....................................................................87(cid:1)
3.3.4(cid:1) Mobile TV and Video Advertising...................................................89(cid:1)
3.4(cid:1) Targeted Advertising in Converged Scenarios........................................90(cid:1)
3.4.1(cid:1) Targeted Advertising in a Triple-Play Environment........................91(cid:1)
3.4.2(cid:1) Dynamic Ad Replacement in Pre-Recorded Content.......................92(cid:1)
4(cid:1) Technological Use Case Analysis..................................................................95(cid:1)
4.1(cid:1) Targeted Web Advertising......................................................................95(cid:1)
4.1.1(cid:1) Players in the Web Advertising Environment..................................96(cid:1)
4.1.2(cid:1) Use Case Actors in the Targeted Web Advertising Platform...........97(cid:1)
4.1.3(cid:1) Targeted Advertising on an Operator Web Portal............................98(cid:1)
4.2(cid:1) Targeted Advertising in the IPTV Environment...................................104(cid:1)
4.2.1(cid:1) Players in the IPTV Advertising Environment...............................104(cid:1)
4.2.2(cid:1) Use Case Actors in the IPTV Targeted Advertising Process.........105(cid:1)
4.2.3(cid:1) IPTV Display Advertising..............................................................107(cid:1)
4.2.3.1(cid:1) Network-Based Banner Ad Insertion......................................107(cid:1)
4.2.3.2(cid:1) Set-Top Box Based Overlay Ad Insertion...............................112(cid:1)
4.2.3.3(cid:1) Interactive Advertising............................................................119(cid:1)
4.2.4(cid:1) IPTV Ad Insertion..........................................................................126(cid:1)
4.2.4.1(cid:1) Linear TV Ad Insertion...........................................................126(cid:1)
4.2.4.2(cid:1) Dynamic VoD Ad Insertion.....................................................136(cid:1)
4.2.5(cid:1) EPG Advertising.............................................................................142(cid:1)
4.2.6(cid:1) Personal TV Channel Advertising..................................................149(cid:1)
4.2.6.1(cid:1) Personal TV Channels.............................................................149(cid:1)
4.2.6.2(cid:1) Personalized Barker Channel..................................................156(cid:1)
4.3(cid:1) Targeted Advertising in the Mobile Environment................................157(cid:1)