The article that I chose is about online advertising and how advertisers can almost instantly change their ads based on the number of clicks that one ad received compared to another. According to Darren Herman, the president Varick Media Management, online advertising company, this can completely change the way advertising companies operate. Until the Internet advertising required heavy research and investment, and it was difficult to evaluate the effectiveness of those ads. Also, advertisers had to book TV spots months before the season began, and if the show wasn't successful, it was too late. So advertisers would spend months doing research, and then wait for months to find out whther the ad worked or not. With online advertising it is possible to get instant measurements of the ad's effectiveness and revise the ad quickly.
Thanks to various computer and Internet technologies it is possible to compare the number of clicks among different ads and figure out which one is more effective. Of course, a click doesn't necessarily result in a transaction, but it is obvious that the more clicks an ad generates, the more transactions will probably result. It is also possible for advertising companies, such as Varick, to look at the sites where the ads ran, when they ran and what kind of people responded to them. Varick can exploit massive amounts of data and adjust the ads almost instantly. Moreover, advertisers can try out their ideas online first before investing massive amounts of capital into traditional advertising campaigns on TV.
Varick's strategy is centered around systems called exchanges that help online publishers like Yahoo.com sell advertising space. And since ad agencies can now use different sources to gather specific demographic info on visitors, online publishers can sell random ad space that ad agencies weren't willing to buy before. Advertisers extensively use the cookie technology to gather information about vistors of different sites. These cookies are sold on the exchange, and companies like Varick, make bids on them. The combination of real-time data and ad exchanges has made previously throwaway online space profitable.
I think this article can be related to the topic of knowledge management discussed in chapter 11. This article shows how an advertising company use the data and knowledge it collects to customize their campaings almost instantly to the target audience.
References:
1. Put Ad on Web. Count Clicks. Revise. By Stephanie Clifford May 30, 2009.
http://www.nytimes.com/2009/05/31/business/media/31ad.html?
pagewanted=1&th&emc=th
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I have noticed this happens a lot of social websites. When you update a profile it tracks what new information you put and then tries to give ads related to that new information. I found this amazing. I'm not really into the whole tech thing in terms of stuff like this so where others might not think its cool that the website can update ads instantly based on info you change I still do. It does make sense though that technology would come this far who knows maybe in the future the ads will be even more personalized.
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