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The era of online advertising has also ushered in an obsession with advertising statistics. Businesses now expect ad networks to precisely target specific types of customer and produce a measurable response. With this obsession in mind, BuzzLogic, an advertising company based in San Francisco, has developed a tool that advertisers can use to follow the flow of conversation across different websites in order to target their advertising accordingly.

“It’s an incredibly fragmented media space, and we’re using our technology to try to paint a picture of what’s really going on,” says Rob Crumpler, the company’s president and CEO. “We’re trying to give [our advertisers] some transparency and some ability to identify what the conversation really is.”

Targeted advertising has proved hugely successful for online businesses. Google makes its billions through the AdWords system, which allows advertisers to place their messages alongside search results, blogs entries, or e-mails containing certain keywords. Companies have, however, struggled to find effective ways to use social-media sites like Facebook to serve ads that are targeted to users’ demographics and tastes. BuzzLogic targets ads to particular sites by focusing on social activity that suits a particular ad campaign.

BuzzLogic’s underlying technology combines algorithms that track conversations between sites in the form of blog posts and comments. Crumpler says that this dialogue is relevant to advertisers because people often turn to blogs to help them decide whether to buy a product. In a study done for BuzzLogic by Jupiter Research, users treated referrals from blogs as “on par with a recommendation from a trusted friend,” Crumpler says.

A dashboard developed by BuzzLogic shows advertisers the flow of conversations between blogs by using an analysis of linking patterns. For a given conversation, the dashboard shows blogs represented by dots that vary in size based on the density of discussion on a particular topic taking place there. Color coding also shows which blogs have served the users advertising and which haven’t. And clicking on a blog refocuses the visualization around that particular blog.

Other, more sophisticated functions show, for example, how often users click on an ad mapped against the type of conversation surrounding it. For example, an advertiser can see how well the campaign performs if the surrounding conversation is friendly or hostile. Using the dashboard, advertisers can also identify particular conversations and serve ads against them. Advertisers can see the results of their campaigns in real time and can change which sites serve their ads.

BuzzLogic can place ads with sites directly or through deals with other ad networks such as Google. According to the marketing-research company comScore, BuzzLogic ads reached 33 million unique users in May 2009.

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Credit: BuzzLogic

Tagged: Business, Web, online advertising, social marketing, social graph, metrics

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