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This is a copy of the PowerPoint presentation for my information systems group project regarding Craiglist and targeted advertising.
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CORNERSTONE INFORMATION
GROUP
FIKERTE BEFEKADU DEVON BURSCH
ALLISON PARKERJONATHAN QUTYLER SMITH
TY WONG
Targeted Advertisingfor Craigslist
• Online marketplace
• Launched in 1995
• Operating in 570 cities in 50 countries
Craigslist
Craigslist
The Craigslist Mission Statement
• Building a community
• Spreading the word
• Keeping things simple
• Providing an alternative to commercial sites
IDENTIFYING OPPORTUNITIES FOR IMPROVEMENT WITHIN CRAIGSLIST
Problem/Solution
So What’s the Problem?
• “In the black”
• Missing out on $45 billion market
• Projected as high as $147 billion by 2012
The Solution: Target Advertising
• Increased profits
• Maintains local community focus
• Extends Craigslist's purpose
• Leading competitors
• Expands focus to local businesses
HOW EXACTLY DOES TARGET AD TECHNOLOGY WORK?
The Technology
The Technology
Methods of tracking users:
o Cookies
o IP address
o Browser type
o Referrer URL
o Flash cookies
Google AdSense
• Why Google AdSense?o Leads advertising globally o Offers targeting capabilitieso Fits Craigslist's interface and cultureo Enables Craigslist search bar o Implemented easily
• AdSense vs. AdWords
Google AdSense
• Contextual targeting and Placement targeting
• Section targeting
Google AdSense
Section Targeting Example:
Emphasize: <html><head><title>Section targeting</title></head><body><!-- google_ad_section_start --> Content on Seattle, furniture, etc.<!-- google_ad_section_end --> Ignore: <!-- google_ad_section_start(weight=ignore) --> Irrelevant content, such as my account, settings, fraud warnings, etc.
Google AdSense
Customizing Google account ad preferences: - Collects user information- Third layer of targeting
HOW CAN CRAIGSLIST USE THIS TECHNOLOGY AND WHAT WOULD
IT LOOK LIKE?
Technology Applied
IP Technology Applied
Facebook is currently, one of the largest IP address trackers
They provide targeted advertisements on a sidebar
IP Technology Applied
IP Technology Applied
IP Technology Applied
Technology Applied to Craigslist
• Implement sectional targeting
• Increases profits significantly
• Installs easily
• View sample page here
• Expands Craigslist's community to local businesses
Cost Benefit Analysis
Cost Benefit Analysis
The Finances
$25 million revenue in 2007(company is still “in the black”)
Commissions from:
• Brokered apartments•Adult services• Jobs
The Finances
Costs:
Activation fee $0.00
Wages of 5 staff (programmers and managers) at $60,000 salaries each year
$300,000
Expected Total Costs $300,000
PROFIT: $11,700,000 – $119,700,000
Revenues:
CPM ranges from $0.05 - $.50
$0.05 CPM
x 20 billion page views per month / 1000 x 12 months per year
Expected Revenues: $12,000,000
$0.50 CPM
x 20 billion page views per month / 1000 x 12 months per year
Expected Revenue $120,000,000
Expected Total Revenue $12,000,000 - $120,000,000
Questions?
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