`
`A little over a week ago, I wrote posted an off-the-cuff explanation to this list about how Imgis &
`MatchLogic supposedly get around the dilemma ofcached ad images without resorting to "cache busting,"
`to whiCh Glenn Fleishman replied, questioning the technical accuracy of my explanation. I realized
`afterwards he was right, that my explanation was flawed, but I didn't have time to reply till now.
`Meanwhile, I sent several messages to folks at MatchLogic, asking tl1em to address t11e question directly,
`but for whatever reason, tlley didn't. So, I recently interviewed several folks at Imgis, Accipiter and
`NetGravity, and based on those conversations I offer here a detailed explanation for how many sites and
`networks "cache count" and "cache bust." I also add my own reflections on the implications ofthese
`practices. I apologizefor this message's length and geekishness (I tried to keep it in layman's ter1lls), but
`this issue keeps coming up on tlle online advertising list and I believe it is significant for many reasons for
`online marketers, so I hope • you find it interesting. While I thirik I've got it right this time, if anyone can
`correct me on any technical points (politely), please do so. That goes especially for tlle experts at
`MatchLogic, Imgis, NetGravity and Accipiter whom I've copied on this message.
`
`To review briefly, caching is where browsers and prox-y servers save copies of Web page elements (e.g.,
`page source code, images, etc.) to cut down redundant network traffic and to speed browser loading. That
`is. a browser will save, for example, a page logo on tlle end-user's computer in tlle cache directory so that
`when he visits anotller page in tlle site, the browser will use cached logo ratller tllan downloading a
`duplicate. Similarly, large networks, notably America Online (and ISPs, big companies and others), use
`proxy servers to show internal members tlle same Web page out of the network's cache instead of repeating
`downloads across tlle Internet.
`
`The problem for tlle online ad industry, as we've discussed on tlle Online-Advertising list before, is tllat
`banner ads get cached like other page elements, so publishers lose track of those impressions. They can't
`get paid for tllem, they can't target them to individual users. tlley can't control for frequency of exposures,
`etc. To get around this, many large sites employ what are popularly known as "cache busting" techniques.
`The wiser ones use a more sophisticated approach, "cache counting" (I've heard tllis term used, though it's
`not as generic yet as "cache busting"). It was my explanation of this latter technique that was flawed in my
`earlier post. I attempt here to explain tlle distinction between tlle two.
`
`Cache busting is an attempt to force a duplicate version of an ad (or page code) across tlle network for
`every new user who requests tlle page. One crude way to do tllis is to use tlle HTTP server to set tlle
`expiration period for tlle object (e.g., the ad or tlle page) to zero seconds. That way, in tlleory, as soon as tlle
`proxy server caches an element, it appears to be out of date, so the proxy thiriks it needs to get a new object
`next time. My understanding is tllat tlle proxy administrator can over-ride this by setting the proxy server to
`check for new objects not sooner than every 20 minutes, for example. On a high-traffic proxy server like
`AOL's, tllat could mean a lot of additional ad impressions are served out of cache within tllat 20 minutes.
`
`Anotllcr popular way to bust cache is for tllc ad server to create a unique name for tllc ad every time it is
`requested. This may be done with a time-stamp, for example. When a first user requests a page, tlle ad
`server inserts into tlle page source code that tlle browser should download an ad named
`"AutoAd030298080702" (i.e., March 2, 1998, 8:07am and 2 seconds). When tlle server receives the ad
`request, it understands which ad to serve. Most proxy servers, the experts tell me, will look for updated
`page source code more often tllan for updates of other objects (like ads). So, when tlle proxy lets the next
`user download fresh page code, tlle new source code will refer to tlle same ad by a different name (because
`it has been time-stamped five seconds later, for example), forcing tlle browser to download a new copy of
`tlle ad from tlle ad server, tllus letting tlle server count anotller impression. There are variations on tllis
`technique, but I'll spare you more details.
`
`Cache counting, 1Jy contrast, has a few important advantages. First, it is much more ecologically sound, so
`to speak, as it doesn't spam tlle network with duplicate copies of the same ad, but rather it manages the
`targeting ofads out of browser and proxy caches. Second, because it works with caching, instead of against
`it, it provides a faster experience for tlle user. Third, it appears to be a more accurate way to count ad
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`impressions, in line with the lAB's summer 1997 guidelines for ad counting terminology (see
`http://w.vw.iab.net/advertise/metticsource .. html).
`
`Here's how it works (*finally* the answer to your question, Glenn!). Unlike cache busting, where the ad
`server typically inserts an exact name of an ad into the source code as the page passes from the Web server
`to the browser, the page code in the case of cache counting doesn't refer to a particular ad at all. Instead, it
`contains simply an instruction for the browser to ask the ad server which ad to insert. (Glenn, that's the part
`I overlooked in my original description.) As a result, as the browser is constructing the page, it queries the
`ad server asking which ad it should use, and the ad server sends back a small file with targeted instructions
`as to which ad should be inserted. The ad server companies refer to this response as a "ping." The ping does
`a few things. First, per the lAB's ad tracking guidelines, the server counts that request from the browser and
`the server's ping reply as an ad insertion. In a sense, the ping is asking the browser (and the proxy server,
`which is monitoring the browsers/ad server di<llogue) whether it has the ad in cache. If the browser has it
`cached, it inserts the ad directly and doesn't bother to reply again to the ad server. If it doesn't, it will
`request back to the ad server. At that point, the proxy server will either intercept the request and supply the
`ad ifithas it cached or let the•request go back to the ad server if it doesn't have it in cache, in which case
`the ad server supplies the ad. The ping, typically written as a "location .redirect" command, cannot be
`cached, so therefore every ad served using this method can be both counted and targeted to individual
`users, even though the ad itself may be cached. To test the effectiveness of this technique, go to a site
`served by Imgis, such as http://www.drlovelady.com/ or http://www.rollingstone.com/ and load a page,
`then hit the reload/refresh button. Unless they have few ads in rotation, you should get a different ad each
`time you reload. Try the same thing on a site not using the cache counting technique (i.e., most sites) and
`you'll normally get the same ad out of your local browser cache every time you reload. If you view the
`source code of both pages, you'll see how the cache counting technique doesn't refer to a specific ad by
`name, but the standard page code does.
`
`Representatives ofimgis, Accipiter and NetGravity were eager to point out that MatchLogic did not invent
`this cache counting methodology with its TrueCount service, it was simply the first to gain a lot of publicity
`about it by issuing a press release. (And good for MatchLogic! I, like other journalists, wrote a sizable
`story about the announcement in Advertising Age.) Imgis, with its network approach to ad serving, delivers
`all of its ads using this cache counting approach, while Accipiter and Net Gravity enable it with their
`technology, but it is up to their client sites to implement it on an individual basis.
`
`Although I realize this posting is already long, I would like to conclude with some observations about the
`significance of these methods. I first joined this discussion when K2 Design's Tom Hespos speculated what
`would be the impact if cache busting became widespread in the industry. I believe it is inevitable that it will
`become widespread, and I am hopeful that cache counting will become the preferred method. While the
`majority of Web sites do not yet partake in either cache busting or cache counting, my impression from
`various interviews is that most of the top trafficked sites already do engage in one >or the other technique.
`While cache counting as described above appears to province a more accurate count than cache busting, the
`more significant difference is between sites that engage in whatever form of cache busting/counting versus
`those who rely only on their server logs to count impressions. MatchLogic claimed in its TrueCount press
`release (http://www.matchlogic.com/news/preLOI.htm) that on average 76% more viewers are seeing ads
`served out of cache than sites can count based on their own \Veb servers. While many suggest that number
`is exaggerated, 1 can believe it's easily 50%, after a VP at Warner Bros told me that their ad impressions
`went up by 30% after AOL alone started sharing their proxy log stats showing AOL member traffic to the
`Warner Bros Web site.
`
`Ofcourse, from an average publisher's point of view, more accurate counting ofcached impressions isn't all
`good news. First, except for the top handful of publishers, most sites are not selling out anywhere near
`their existing ad inventory, even according to just what they can count .on their server logs. For the sake of
`argument, assume that on average 50% more ads are viewed than server logs >count. That would mean a site
`that is selling only 60% of its ad inventory by its own Web server's count is actually selling only 40% of
`ilwentory when cached impressions are factored in. The standard laws of economics, given a greater supply
`and a consistent, underwhelming demand, would seem to entail a negative impact on CPM rates. I don't
`think, however, if's as bad news as some have suggested, namely that advertisers aren't going to be willing
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`to pay any more for the impressions they had been receiving for free via cached views. That argument says
`that if an advertiser was paying $20 CPM and now learns that in fact he was getting 1,500 impressions for
`that price, he'll want to pay only the equivalent $13.33 CPM if publishers start tracking those ads. In fact,
`the newly revealed cached impressions should have a value closer to the original CPM, as the previous
`freebie 50% was totally untargeted, whereas using sophisticated cache counting and cache busting
`techniques, publishers can target those newly identified cached impressions as accurately as normal ads
`(controlling for frequency of exposures, etc.).
`
`More disturbing is what happens to click-through rates. While ad impression counts may vary greatly due
`to caching, absolute numbers ofclick-throughs remain constant, as by definition they don't get cached
`(most publishers route the click back through their own site then on to the advertiser so that the publisher
`can track the click-through). So, assume a site .relies only on its se.rver logs to count ad imp.ressions and
`measures 20 click-throughs per 1,000 impressions, or a 2% dick-through rate. Yet, if the advertiser se.rves
`his own ads with MatchLogic's True Count, he can count more accurately than the publisher to include the
`extra 50% of cached impressions, so the same 20 clicks are now divided by 1,500 impressions, or a.1.3%
`CTR From the advertisers' point of view, all of that argues in favor of negotiating CPM rates based on the
`cost per click he's willing to pay, where direct response is the goal of the ad. I would urge all publishers to
`move towards the cache counting technique described above. Not only is it better for network bandwidth in
`the long fllh, it provides users with a faster loading page and sites with a more accurate measure of
`impressions. Until the industry at large standardizes on one reliable method of counting, CPM rates are
`unlikely to stabilize at their natural value with such radical disparities remaining between different counting
`approaches.
`
`What promises to complicate the valuation of CPM rates even more is the recent introduction of Millward
`Brown's brand measurement methodologies bundled into Accipiter's ad se.rving software. For the first time
`sites will be able to offer advertisers a realistic alternative to quantifying the success of ad campaigns
`beyond click-through by effectively measuring brand impact (see Accipiter's press release at
`http://www.accipiter.com/press/releases/pr_milwardb.htm ). But that's another story ...
`
`Rick E. Brllrter
`rick@brllrter.net
`Brllrter Communications
`tel: 1+(415) 351-2489
`http:/1209.197.70.109/
`Strategic Web mk:tg consultancy
`(Site under construction to be relauched early April)
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