Behavioral Targeting in Online Advertising

April 18, 2009 by
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In my new job as a data mining consultant at FinScore, I’m currently working on behavioral targeting for online advertising. The client is a telecom company in Switzerland. The main idea behind the project is to show ads on their website that are dependent on the profile of the visitor. In theory, online advertising is much more powerful than radio or TV advertising for example. This is mainly due to the lack of possible “targeting” in such medias.

This targeting is quite trendy these days since it is part of the foundation of the Web 3.0, which means a web based on personalization and recommendations. Google recently started to use behavioral targeting for AdSense. Here are more details about how Google targeting works.

The first part of the project consists in aggregating ad impressions and clicks from web logs. This newly created data base will be mined to build a behavioral model for each distinct user. This model is applied to visitors who didn’t see ads in order to decide which ads to show them. The final objective is to increase the CTR (Click Through Rate).

For the technical part, I use SAS tools. As I had already discussed on Tweeter, SAS tools such as DI Studio, are not easy to use and their GUI is quite old. SAS Base language, although powerful, is not as straightforward as R for example. However, the SAS support is really good and their answer time is usually less than a day. For the web mining part, I have read the book Mining the Web: Transforming Customer Data into Customer Value (I will soon write a small book review about it). For the SAS part, I’m reading the excellent The Little SAS Book (I really recommend it to you, if you’re a SAS user).

For more information about online advertising and behavioral targeting.

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Comments

11 Comments on Behavioral Targeting in Online Advertising

  1. steffen on Wed, 22nd Apr 2009 7:44 am
  2. Hello Sandro

    Thank you for this nice comprehensive article, especially the technical terms, which sometimes are hard to identify. Not its easier to dig deeper. Also thanks for the book link. It looks very interesting. I hope you’ll soon have the time for a review.

    kind regards,

    Steffen

  3. Sandro Saitta on Sun, 26th Apr 2009 1:03 pm
  4. Dear Steffen,

    Thanks for your comment. I will write my review soon.

    Regards.
    Sandro.

  5. Ahmad on Sat, 20th Jun 2009 7:45 am
  6. Hello Sandro:

    With regards to behavioral targeting in online advertising, do you have any idea of how to get online advertising dataset available for research purposes?

    Regards,
    Ahmad

  7. Sandro Saitta on Sat, 20th Jun 2009 3:54 pm
  8. @Ahmad: I think this kind of data (user web profile) are crucial for companies (for ads targeting, personalization, etc.). I think it would be very difficult to have (buy?) them. However, I have read some research papers of people who have worked with a search engine in particular.

  9. Ahmad on Sat, 20th Jun 2009 5:08 pm
  10. Hello Sandro:

    Thanks for your reply. I understand that some people managed to work with the advertising dataset. These people mostly work with search engines, and naturally the advertising dataset is available to them since search engines gain from ad display. However, the dataset is generally not available to the public.

    Ahmad

  11. Nicolas on Wed, 18th Nov 2009 10:27 am
  12. Very good post and very good links, thanks.
    I am working on the same line of research (behavioral targeting), but i´m using Ontologies in my research. Do you know any network that connects user profiles and categories of ads?. Thank you.

    A greeting.

  13. Sandro Saitta on Thu, 19th Nov 2009 8:40 am
  14. @Nicolas: Thanks for the comment Nicolas. I don’t know exactly, but I think United Internet (http://www.united-internet-media.de/tgp.html) has something called Target Group Planning. It may be what you’re looking for. Unfortunately I have only found a german page. Otherwise, you can try Wunderloop for example. They are linking user profile in terms of demographic data to some groups of ads (i.e. kinds of interest groups).

    BTW, if you have more information about your project I would be interested.

  15. Nicolas on Sun, 22nd Nov 2009 8:09 pm
  16. Hello Sandro,
    thanks for your links. I was looking at websites dijists that you gave me, and although I didn´t find the information, them have been interesting. I’m working with the Protege tool among others, and i try to make with ontologies to segmenting users and ads. Know something of ontology?
    greetings

  17. Sandro Saitta on Mon, 23rd Nov 2009 9:45 pm
  18. @Nicolas: I just know the basic concepts of ontologies. What do you mean by segmenting users and ads? We can continue our discussion by e-mail if you want: sandro.saitta@gmail.com

  19. John on Mon, 20th Jun 2011 5:07 pm
  20. Sandro,
    Great article, though I see it is more than 2 years old, I wonder if this topic is still interesting to you? (It is to me!).

    I have a specific question-it seems that behavioral targeting (based purely on web behavior) and demographic targeting (based on known customer attributes) are conceptually very powerful concepts to link together. However, in practice, they are almost ‘oil and water’ and seldom combined. I wonder if your previous project gave you any insights into the power of linking the two?

    Second, I am looking for a practical ‘cookbook’ for how to approach this type of problem with SAS or SPSS (in terms of CTR modeling) and wonder if you have any book/article recomendations.

  21. Sandro Saitta on Tue, 21st Jun 2011 7:57 pm
  22. Dear John,

    Thanks for your comment. Although I don’t work in BT any more, I still find the area very promising.

    Regarding your first question, this is one of the particularities of the tool FinWEB developed at FinScore (I was working on this tool).

    About the cookbook, I don’t know any book about SAS and CTR issues. However, “Mining the web” can be a good start. Feel free to contact me by email to continue the discussion (I can then point you to the right person).

    Regards
    Sandro

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