On October 8th the University Paris X had the pleasure to host Dr. Bernd Skiera from the Goethe University in Frankfurt who gave a seminar about Online Advertising and Real-Time Advertising.
Since 1999, Prof. Dr. Bernd Skiera has been a professor of electronic commerce at the Goethe University. He also is a visiting professor and scholar at universities and business schools such as Stanford University, the University of California, the University of Technology at Sydney and the Vienna University of Economics and Business.
He is an expert in Real-Time Advertising. He is in charge of the Real-Time Advertising Competence Center (http://www.rta-competence-center.de/). He is also a member of the managing board of the Finance Lab (http://www.thefinancelab.org/). In addition, he is the co-founder of two companies, Bonpago (www.bonpago.de) and Marini-Media (www.marini-media.de).
His research focus is on real-time advertising, electronic commerce, online marketing, social media management, customer management and pricing. He has written and edited ten books in marketing with interactive media, retail banking electronic commerce and financial supply chain management. His publications appeared in well-known international journals such as Management Science, Marketing Science, Journal of Marketing and national journals in Germany.
Moreover, he received numerous awards such as the best paper award of the German Association of Business Research and the Best Paper Award of the International Journal of Research in Marketing. On top of that, he was ranked the fourth most productive researcher within the past five years among all researchers in Germany, Austria and Switzerland by the German business journal “Handelsblatt”.
During the seminar given at the University Paris X, Dr. Bernd Skiera made an introduction about advertising, making comparisons between different countries (the Unites States, China and Europe). Then he explained how the Real-Time Advertising works. The creation of Google AdWords in 2004 had revolutionised online advertising introducing a new system with interactive pricing mechanisms. Before, advertisers paid a fixed price for 1,000 impressions, also known as the cost per mille (CPM). On the contrary, in search engine advertising, advertisers participate in an auction, choosing pre-specified keywords. When one enters a search query on Google, a real-time auction starts and determines the rankings and prices paid per click (PPC) for advertisements. There are three kinds of online advertising pricing. Advertisers either can pay per view (PPV), per click (PPC) or per action (PPA), but nowadays there is a tendency to pay per click. The largest publishers of these days are Google (Google Adsense) and Facebook. The fact worth mentioning is that they don’t provide advertisers with a pricelist. The more a person is going to pay the more likely his/her ad is to be published.
One can wonder what makes online advertising more efficient. It is the fact that it is possible to target individual users looking at his/her previous browser behavior, to tract reactions of each user to online advertisement (conversion rate) and to assign different values to each user thanks to data provided by cookies. It is what the French company 1000mercis successfully does since its creation in 2000.
Bibliography and Webography
– Dr Bernd Skiera’s conference, University Paris Ouest Nanterre La Défense, October 8th 2014
– « Real-time Advertising Competence Center » Website www.rta-competence-center.de
– Goethe University Website www.marketing.uni-frankfurt.de/en/professoren/skiera/prof-dr-bernd-skiera.html