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Machine Learning: The Next Revolution in Online Advertising

In an age where advertising is “just part of our surroundings, a kind of cultural backdrop”, [13] is machine learning the key to standing out and creating lasting impressions? Originally for FILM 240 - Media & Culture at Queen's University

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Machine Learning: The Next Revolution in Online Advertising

  1. 1. Machine Learning The Next Revolution in Online Advertising Cameron Hudson | FILM240: Media & Culture Image from Pixabay via Pexels
  2. 2. With paid media, advertisers are paying per click or per view [1], so every ad needs to be carefully chosen to lead to an impression Image from Rayi Christian Wicaksono via Unsplash
  3. 3. It’s about targeting: Showing the right people the right product at the right time Icons designed by Freepik, Image from Pixabay via Pexels
  4. 4. “Marketers are putting a premium on the ability to unearth data about consumers to improve ad targeting.” [2] -Wall Street Journal Image from Pixabay via Pexels
  5. 5. “This requires an ability to capture data and turn that data into value for the customer by combining big and little data” [3] -Harvard Business Review Image from Carlos Muza via Unsplash
  6. 6. “More data has been created in the past two years than in the entire previous history of the human race” [4] but… That data is growing fast: -Forbes Image from Klimkin via Pixabay
  7. 7. We’re not doing anything with it, “only about 0.5 percent of that data is ever analyzed”[5] -MIT Business Review Image from Klimkin via Pixabay
  8. 8. USEthat much data? So how do we Graphic designed by Freepik
  9. 9. Machine Learning (ML) is about writing algorithms that let computers learn to interpret data and perform tasks and to automatically improve their accuracy [6] Graphics designed by Freepik
  10. 10. The ML algorithm looks for correlations in data and adjusts behavior of a service, such as ad insertion, based on what it’s been given It also improves performance as new data is processed Image from Lorenzo Cafaro via Pexels
  11. 11. And Machine Learning is already all around us: Apple’s Siri uses machine learning to better understand user requests based on past experience[7] Image from JeShoots via Pexels
  12. 12. A machine learning algorithm can identify which market segments are reacting to an ad and target future campaigns based on what it learns[8] In advertising, Image from Jose Martin via Pexels
  13. 13. Media6Degrees, a machine learning company, partnered with researchers at NYU Stern School of Business to apply machine learning to targeted display advertising[9] Graphic designed by Freepik
  14. 14. Working for a shoe brand, the researchers consistently exceeded the client’s target return on investment by 220%, at times by up to 1000%[9] The results impressed: Image from Greyerbaby via Pexels
  15. 15. In a head to head test against traditional ad networks for car brand Infiniti, the machine learning algorithm delivered 3x more clicks on ads[9] 8x more actions towards a sale[9] Image from Spanish Coches via Flickr
  16. 16. To Infiniti, Increasing actions is more valuable since “digital interactions influenced 36 cents of every U.S. dollar spent in a retail store […] in 2013”[10] -Gian Fulgoni Image from Brett Levin via Flickr
  17. 17. Marketing firms are starting to notice, collaborating with computer science researchers to get more value from their data[11] Image from StartupStockPhotos via Pexels
  18. 18. -VentureBeat [12] Image from Pixelsuite via Flickr
  19. 19. In an age where advertising is “just part of our surroundings, […] a kind of cultural backdrop”,[13] machine learning may be the key to standing out and creating lasting impressions Image from Negative Space via Pexels
  20. 20. Sources 1 [1] Matrix, S. (2017, January 31). The New Media Landscape: Integrated Marketing Mix & Communications. FILM240 Media & Culture. Kingston, Ontario, Canada: Queen's University. [2] Marshall, J., & Vranica, S. (2015, June 27). Business News: In Cannes, Advertisers Try On Digital. Wall Street Journal. [3] Bonchek, M. (2014, October 10). Making Sense of Owned Media. Harvard Business Review. [4] Marr, B. (2015, September 30). Big Data: 20 Mind-Boggling Facts Everyone Must Read. Retrieved from Forbes: https://www.forbes.com/sites/bernardmarr/2015/09/30/big- data-20-mind-boggling-facts-everyone-must-read/#5503a04917b1 [5] Regalado, A. (2013, May 3). The Data Made Me Do It. MIT Technology Review. [6] Hern, A. (2016, June 28). Google says machine learning is the future. So I tried it myself. The Guardian. [7] Weinberger, M. (2016, September 3). Apple is facing a crisis of salesmanship. Business Insider. Graphic Designed by Freepik
  21. 21. Sources 2 [8] Shortland, R., & Scarfe, R. (1995). Digging for Gold. IEEE Review, 5(41), 213-217. [9] Perlich, C., Dalessandro, B., Raeder, T., Stitelman, O., & Provost, F. (2014, April). Machine learning for targeted display advertising: transfer learning in action. Machine Learning, 95(1), 103-127. [10] Fulgoni, G. (2014, December). “Omni-Channel” Retail Insights and The Consumer’s Path-to- Purchase . Journal of Advertising Research, 54(4), 1-4. [11] VerticalNews. (2014, May 3). Addictive Mobility Collaborates With University of Toronto to Strengthen Their Data Scientist Team. Marketing Weekly News, p. 75. [12] VB Staff. (2016, December 5). How machine learning and AI will impact your marketing forever. Retrieved from VentureBeat: http://venturebeat.com/2016/12/05/how- machine-learning-and-ai-will-impact-your-marketing-forever-vb-live/ [13] Matrix, S. (2017, January 24). Promotional Media & Analyzing Adverts: Consumer Culture. FILM240 Media & Culture. Kingston, Ontario, Canada: Queen's University. All images & vectors licensed for reuse and modification, attribution given on the slide Font: Tofino by Alanna Munro via Lost Type Co-Op Graphic Designed by Freepik