Targeted: How Technology Is Revolutionizing Advertising and the Way Companies Reach Consumers

233 Pages·2014·1.58 MB·English

by  Mike Smith

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
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Targeted
How Technology Is Revolutionizing Advertising
and the Way Companies Reach Consumers
Mike Smith
American Management Association
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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.
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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
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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