In fact, today's Internet advertising field of many trading models and important mechanisms, in a sense, Google's first large-scale use and definition.
Before Google, even mainstream online advertising, mostly focused on display- and pricing ads, which simply moved offline advertising online, and although Google was not the inventor of the "bid ranking" model (the inventor was Overture), Google was the first to use it on a large scale and set off a revolution in advertising. As a starting point, technology has become an important competitiveness of advertising,Advertising crosses from Big idea era to Big data。
Many people think that with the development of Internet technology, the precision of advertising is constantly improving - search is more advanced than portal, social network is more advanced than search....
But that's not the case, and for Facebook, Weibo, WeChat, it's more about the long-term interests and characteristics of users from the personal dimension, but social media is very weak in terms of the current user's intentions.Real-time intent is critical to ad performanceYour search for a watch means that you have a great probability of buying a watch, it is very appropriate to push your watch ad, and social media is difficult to calculate how likely you have to buy a watch based on your gender, age, interests and so on...
So Google was at the top of the internet ad accuracy from the start, which is an inherent logic that Google now does not have a better user rating than Facebook.There is no better way to express a person's true intentions more accurately than a search.
As a top technology company, Google has gone to great lengths to bring in the top talent in the field in designing its business model, and in 2002, Google Chairman Eric Schmidt invited Mr. Van Ryan, dean of the School of Information at the University of California, Berkeley, to join Google as chief economist. Was Google, a startup with fewer than 200 people, single-person with an economist?
Google Chief Economist Van Ryan Viran
In factOne of the most important jobs of this prominent economist was to design the auction mechanism for Google ads.Before joining Google, the legendary economics professor, who published "Information Rules: Strategic Guidance for the Internet Economy", devoted himself to the impact of online economic behavior, and since joining Google, he has pushed Google's overall transition to competitive advertising and, on the second, pioneering Google's use of GSP as a bidding mechanism.
GSP is a bidding mechanism that intuitively understands non-conformityThe highest bidder wins the auction, but it only needs to pay the second bidder, such as Aldi out of 10, Nike five, then Aldi wins the ad show, but it only pays 5 bucks, which seems counterintuitive, but it is an extremely rational design from a game theory point of view.
Today, many advertising platforms, including Baidu, use this mechanism, to learn more about my other article -From CCTV to Google: Talkabout the Mechanism Design of Auction Advertising。
Google has also pioneered the promotion of CPC as a master-streaming bid, with advertisers simply bidding for clicks, and google has relied on its own technological advantages to introduce"Advertising Quality Score"This concept,The statistical dimensions of quality scores include the click-through rate of the advertisement, the advertising of the keywords, the quality of the landing page, the historical performance of the advertiser and many other dimensions for comprehensive evaluation.
Whether an ad can win depends on two factors, namely, if the quality of the ad is poor, even if the higher price, the ranking may be ranked last, of course, there are a lot of technical factors involved, such as to calculate the quality score of which you need to know the click-through rate, then before the delivery, click-through rate is not known, It is necessary to predict click-through rate, light click-through forecast this module, there will be a very large technical team to support, understand the common sense of ad click-through rate prediction, see my other article"The Machine Knows You're Going to Click on Ads - Talk About Ad CTR Estimates"。
Designing and perfecting the advertising system is an extremely complex project, in a sense Google is indeed a gathering of "the smartest minds of this era to study how to make people click on advertising more", the founder of the single-minded Huang Qi, Xiao Hongshu CTO Xiaohu before are members of Google's advertising department, It is the continuous optimization of these top talent that makes the system so efficient.
According to Xiaohu, Google's comprehensive clicks are as high as 3%-4%, whileThe first click rate on the home page is usually as high as 30%-40%That's a particularly scary number.