Targeted: How Technology Is Revolutionizing Advertising and the Way Companies Reach Consumers PDF
Preview Targeted: How Technology Is Revolutionizing Advertising and the Way Companies Reach Consumers
More Advance Praise for Targeted “Part history and part handbook, Targeted is an inside look at the way digital advertising impacts both businesses and consumers. Mike Smith offers a thoughtful, in- depth study of how online advertising is delivered now, and how it will be in the future.” −paul sciarra, Cofounder, Pinterest “Targeted is a must- read for anyone interested in the digital business today. Learn how to target your customers by reading one of the most detailed and informative books on the topic. Smith knows the “ins and outs” of this complicated medium and draws on his decades of experience from HBO to Forbes to Hearst. This book is a good read for industry veterans as well as the general consumer who wants to know more about why particular ads appear every time they log in to their computer or mobile device.” − dave moore, Chairman, Xaxis, and President, WPP Digital “Technology has been the driv ing force of Mike Smith’s career. Now he has chosen to share his knowledge of digital advertising to edu- cate and enlighten those in the industry, as well as entrepreneurs, business executives, educators, and even consumers. The internet and digital advertising are here to stay. It’s time to learn what is happening behind computer screens and mobile devices and dis- cover how to take advantage of the knowledge Smith shares.” − dr. joel bloom, President of New Jersey Institute of Technology American Management Association • www.amanet.org “The world of digital advertising offers many, many advances for mar- keters of all shapes and sizes . . . but it also has some very big nega- tives. It can seem incredibly complex and that complexity can help foster unethical and at times illegal activities on unsuspecting adver- tisers. Mr. Smith understands this digital ecosystem and gives an inside look at not only the realities of today’s marketplace but how we got here as well. He offers insight into how to make the most of the staggering marketing opportunities that are available today while staying clear of the most destructive black-hat activities. This book is a must- read for newcomers and established online marketers alike.” −jim spanfeller, Founder and CEO, TheDailyMeal.com and TheActiveTimes.com “Mike Smith takes you on an informative journey through the his- tory of online advertising−covering the technology, data and players responsible for the incredible innovation that has taken place in the past two decades−and provides a view into the future of addressable advertising. Ad execs, business owners, online information seekers and savvy shoppers must read Targeted.” −denise colella, CEO, Maxifier “I am a product- driven CEO running a technology company. I know that engineering a solution that intersects with the needs of the cus- tomer and a rapidly evolving marketplace can be a difficult task. I rely on the digital media executives as a reference point to achieve this. Within that community, Mike Smith is among the most progres- sive and innovative thought leaders on the sell side of the market. Not content to sit on the sidelines and wait for the popular choice, he is leading the industry forward and defining the standard along the way. Targeted is a must- read for all media professionals, entry- level to C- suite. It is an end- to- end look at the fascinating and dynamic dig- ital media market, written by one of the most relevant digital media executives in the space.” − michael connelly, CEO, Sonobi American Management Association • www.amanet.org Targeted American Management Association • www.amanet.org This page intentionally left blank Targeted How Technology Is Revolutionizing Advertising and the Way Companies Reach Consumers Mike Smith American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C. American Management Association • www.amanet.org Bulk discounts available. For details visit: www.amacombooks.org/go/specialsales Or contact special sales: Phone: 800–250–5308 Email: [email protected] View all the AMACOM titles at: www.amacombooks.org American Management Association: www.amanet.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging-in-Publication Data Smith, Mike, 1966– Targeted : how technology is revolutionizing advertising and the way companies reach consumers / Mike Smith. pages cm Includes index. ISBN 978-0-8144-3499-4 (hardcover) − ISBN 0-8144-3499-1 (hardcover) − ISBN 978-0-8144-4901-1 (ebook) 1. Internet advertising. 2. Internet marketing. 3. Target marketing. I. Title. HF6146.I58S65 2015 659.1'11−dc23 2014021250 © 2015 Mike Smith All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. The scanning, uploading, or distribution of this book via the Internet or any other means without the express permission of the publisher is illegal and punishable by law. Please purchase only authorized electronic editions of this work and do not participate in or encourage piracy of copyrighted materials, electronically or otherwise. Your support of the author’s rights is appreciated. About AMA American Management Association (www.amanet.org) is a world leader in talent development, advancing the skills of individuals to drive business success. Our mission is to support the goals of individuals and organizations through a complete range of products and services, including classroom and virtual seminars, webcasts, webinars, podcasts, conferences, corporate and government solutions, business books, and research. AMA’s approach to improving performance combines experiential learning−learning through doing−with opportunities for ongoing professional growth at every step of one’s career journey. Printing number 10 9 8 7 6 5 4 3 2 1 American Management Association • www.amanet.org I dedicate this book to my supportive and loving wife, Denise, and to our wonderful children, Jessica and Michael. My family’s belief in me enables me to feel I can do anything. To my late parents, Edward and Patricia Smith, who continue to inspire me. And to my amazing mother-in-law, Darlene Manfra, with deep fondness and appreciation. American Management Association • www.amanet.org This page intentionally left blank Contents Acknowledgments xi Introduction 3 Chapter 1: The Congested Online Ecosystem 13 Chapter 2: Search Engine Marketing 25 Chapter 3: A uctions and the Development of Paid-Search Advertising 33 Chapter 4: The Google Eclipse 43 Chapter 5: D isplay Advertising and the Advent of Ad Networks 49 Chapter 6: R eal-Time Bidding and the Transformation of Online Advertising 59 American Management Association • www.amanet.org
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