Abstract: On the Internet, the advertising business model is a cornerstone of many service businesses. In this paper, we propose an advertising business model for machine-oriented Web Services and describe the guiding principles for its mechanisms and implementation. It is not straightforward to make the advertising business method feasible for machine-oriented Web Services, since advertising only makes sense if the human users of a service see the ads. In the proposed business model, a non-human service consumer incurs an obligation to the providers of services it uses to display the advertising they have specified. In addition this obligation can be delegated to yet another service consumer if the later consumer is using a service provided by the earlier non-human consumer. Since each service provider-consumer chain must finally reach human consumers, the advertising from the earlier service providers will ultimately reach human service consumers, thus satisfying the conditions of the proposed business model. We also show how we can leverage the existing Web Service infrastructure to implement this business model.

1. Tokyo Research Laboratory
Towards an Advertising Business Model
for Web Services Mashups
Michiaki Tatsubori
IBM Research, Tokyo Research Laboratory
MEM 2009, Madrid, Spain Apr 20, 2009 © 2009 IBM Corporation

2. Tokyo Research Laboratory
The Web Advertising Business Model is Popular
 Definition of the web advertising
business model
– “The web advertising model is an
extension of the traditional media
broadcast model. The broadcaster,
in this case, a web site, provides
content and services (like email,
IM, blogs) mixed with advertising
messages in the form of banner
ads...”, Rappa, 2006
– One out of known business
models:
• Brokerage, Advertising,
Infomediary, Merchant,
Manufacturer, Affiliate,
Community, Subscription, Utility
Can we leverage the business model of web banners
in the context of mashups?
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

3. Tokyo Research Laboratory
Internet Advertising Business Grows and Matters
United States
End of IT
Bubbles
Source: Survey by IAB & PwC
http://www.iab.net/
insights_research/530422/
Internet Ads Year Growth Shares in Citation
Market (from 2005) All Ads
7.0 % http://www.dentsu.co.jp/marketing/koukokudata.html
Japan 5B USD 127.8 %
http://www.iab.net/insights_research/1357
United States 17B USD 134.6 % 5.6 %
(2006）
http://www.adassoc.org.uk/html/statistics.html
United Kingdom 4B USD 147.5 % 10.6 %
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009
3

4. Tokyo Research Laboratory
Overview of the Talk
 Motivation
– A simple mashing-up example
– The Web advertising model
 Proposed solution
– Propagated ads obligation
– PoC implementation with existing Web service standards
 Conclusion and future work
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

5. Tokyo Research Laboratory
Motivation
MEM 2009, Madrid, Spain Apr 20, 2009 © 2009 IBM Corporation

6. Tokyo Research Laboratory
An Example Navigation Service Mashup
 Mashing-up “Spot-to-Spot Transit Guide” Service, by composing:
– Address Search Service
• Input: name (of a geographical spot)
• Output: address (of the spot)
– Nearest Train Station Search Service
• Input: address (of arbitrary place)
• Output: station name
– Transit Guide Service
• Input: two station names
• Output: transit path between the stations “Roppongi Hills” Address
Search Service
“.., Tokyo”
“Roppongi Hills”,
“IBM TRL”
Spot-to-Spot Spot-to-Spot Nearest
“.., Tokyo”
Transit Guide Transit Guide Train Station
“Azabu-juban”
Servlet Service Search Service
“Azabu-juban”,
“AJ –O– AI –Z– CR”
“Chuoh-rinkan”
Transit
“AJ –O– AI –Z– CR”
Mashup a service Guide
Service
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

7. Tokyo Research Laboratory
Mashups, of the Users, by the Users, for the Users
 Web end-users are not only
consumers but also providers of
Web contents and services
– Web-as-the-participation-platform in the
Web 2.0 era
 Efforts of providing
contents/services are not necessary
gratuitous
– Money is not everything in life, though
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

8. Tokyo Research Laboratory
Monetizing Service with Ads is Easy to Start
 No need for modifying content/services
 Virtually for free for content/service consumers
Often best suited to
individual consumers
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

9. Tokyo Research Laboratory
The Problem:
How Advertising Survives in Mash-up of Mash-ups?
 Current advertising makes no sense
without human users
– Even prohibiting machines
to use services
Web Service
Registry
Human User
1. Register
(through Web Browser) 5. Find
4. Register 2. Find
Frontend Intermediate Backend
Web Service Web Service Web Service
7. Use 6. Bind 3. Bind
Consumer Consumer/Provider Provider
(Servlet, etc.)
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

10. Tokyo Research Laboratory
Solution (or Towards Solution)
MEM 2009, Madrid, Spain Apr 20, 2009 © 2009 IBM Corporation

11. Tokyo Research Laboratory
Solution: Advertising Business Model Infrastructure
for Composable Web Services
 Advertising Obligation Delegated
to Service Consumers
Web Service
Registry
Human User
2. Register
(through Web Browser) 5. Find
4. Register 3. Find
Frontend Intermediate Backend
Web Service Web Service Web Service
7. Show Ad Consumer Consumer/Provider Provider
6. Agreement 6. Agreement
1. Bind
8. See Ad & Notify
(automatically through browser) Ad Agency
Show these for us
Show this for me
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

12. Tokyo Research Laboratory
WS-Agreement (WSAG) Standard is Available to Use
Spot-to-Spot Address
Transit Guide Search
Service Service
Request WSAG Template
Request WSAG Template
before
WSAG Template
Composed WSAG Template
processing
Request Agreement
Request Sub-Agreement
service
Sub-Agreement
Agreement
during
Request Service
Request Sub-Service
processing
service
Sub-Service Response
Service Response
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

13. Tokyo Research Laboratory
Example Guarantee Terms
<wsp:Policy xmlns:wsp=“…” xmlns:ads=“uri:ads”>
<wsp:ExactlyOne>
<ads:display>
<ads:size>
WSAG template: <wsp:ExactlyOne>
<ads:occupation type=“ratio”>
<ads:percent>10</ads:percent>
<Template> </ads:occupation>
… <wsp:All>
<ads:width type=“pixel”>
<Terms> </ads:width>
</wsp:All>
<GuaranteeTerm> </wsp:ExactlyOne>
…. </ads:size>
<ads:appearance></ads:size>
</GuaranteeTerm> <ads:layout type=“ads:flow-left-to-right”>
<ads:layout>
… <ads:contents>
<ads:content type=“ads:link”>
</Terms> http://www.company.com/ads1
</Template> </ads:content>
</ads:contents>
</ads:layout>
…
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

14. Tokyo Research Laboratory
An Example Code for User-Interfaced Service
<html>
<head>…</head>
Pass restriction
<body>
parameters
<?php
include_once(“/var/www/lib/ads.phpquot;);
list($key, $ads) = select_ads(quot;uri:s2sTransitGSquot;, quot;468x120quot;);
?>
Web Service
<h1>Spot-to-Spot Transit Guide</h1> Registry
Human User
<P>Enter two geographical spots for your navigation guide.</P> 2. Register
(through Web Browser) 5. Find
4. Register 3. Find
<form type=quot;GETquot; action=quot;frontend2.phpquot;> Frontend Intermediate Backend
Web Service Web Service Web Service
<input type=quot;hiddenquot; name= quot;key quot; value= quot;<?php echo $key;?>quot; /> 7. Show Ad Consumer Consumer/Provider Provider
6. Agreement 6. Agreement
<label>To:</label><input type=quot;fieldquot; name=quot;to_spotquot; />
1. Bind
8. See Ad & Notify
<label>From:</label><input type=quot;fieldquot; name=quot;from_spotquot; /> (automatically through browser) Ad Agency
Optional one-time
<button type=quot;submitquot;>Search</button>
</form>
key for service use
<?php echo $ads;?>quot;;/>
</body>
Ads to show
</html>
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

15. Tokyo Research Laboratory
Addressing Massively Composed Ads
 Simple operational solution
may work for massively
composed ads problem
 Lottery based ads
displaying agreements
– e.g. 1/5 chances of ads
“Roppongi Hills” Address
Search Service
“.., Tokyo”
“Roppongi Hills”,
“IBM TRL”
Spot-to-Spot Spot-to-Spot Nearest
“.., Tokyo”
Transit Guide Transit Guide Train Station
“Azabu-juban”
Servlet Service Search Service
“Azabu-juban”,
“AJ –O– AI –Z– CR”
“Chuoh-rinkan”
Transit
“AJ –O– AI –Z– CR”
Guide
Service
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

16. Tokyo Research Laboratory
Another Simple, but Inspiring Scenario
 It allows service providers without paying for
others’ content while it gives other channels for
content providers to get money from ads
Legacy content holders
Web 2.0 service providers
w/ advertising business models
monetarily insolvent for providing contents
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

17. Tokyo Research Laboratory
Concluding Remarks
 An advertising business model for mashed-up services –
propagated ads obligation
– Potentially motivating more end-user created mash-up sources
– Examined only with proof of concept implementation based on
existing web service standards such as WS-Agreement
 Open issues:
– Standardize of ads contracts
– Allow more targeted ads
– Police contract violations
… and more
 Future work:
– Beyond toy examples – to consider realistic service and
advertisements
© 2009 IBM Corporation
An Advertising Business Model for Mashups by Michiaki Tatsubori MEM2009, Madrid, Spain, Apr 20, 2009

18. Tokyo Research Laboratory
Q&A
MEM 2009, Madrid, Spain Apr 20, 2009 © 2009 IBM Corporation