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Google: End of the Online Advertising Bubble

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Re: Google: End of the Online Advertising Bubble

#161

Post by manigandham »

Udik wrote: post #141
nostrademons wrote: post #135

Earlier quoted context omitted.

When a random person searches for a company, it's probably > 100:1 odds that they're interested in the company's product, not in a job at the company. That's why companies put their products on the landing page and not their job openings. You have to understand that whenever you do anything as a consumer in modern corporatism, you are part of a numbers game. The company does not care about you , they care about the a…

> When a random person searches for a company, it's probably > 100:1 odds that they're interested in the company's product, not in a job at the company Really? There are companies that have very few customers that pay lots of money for very specific machinery or services. Customers which might be banks, large businesses or large manufacturing companies. How many among the visitors of their websites are the decision m…

And that 1 out of a 1000 person might buy a product/service worth millions which makes the marketing and acquisition costs worth it.

You're looking at this through personal assumptions and ignoring all the data when this entire industry is completely data-driven and calculated in decisions.

Re: Google: End of the Online Advertising Bubble

#162

Post by Udik »

manigandham wrote: post #161
Udik wrote: post #141

Earlier quoted context omitted.

> When a random person searches for a company, it's probably > 100:1 odds that they're interested in the company's product, not in a job at the company Really? There are companies that have very few customers that pay lots of money for very specific machinery or services. Customers which might be banks, large businesses or large manufacturing companies. How many among the visitors of their websites are the decision m…

And that 1 out of a 1000 person might buy a product/service worth millions which makes the marketing and acquisition costs worth it. You're looking at this through personal assumptions and ignoring all the data when this entire industry is completely data-driven and calculated in decisions.

Of course. I'm not saying that the advertisers are wasting their money. I'm saying that it seems that both the advertisers and the ads network could have made more money with a better targeting. At least in my case, they've wasted the cost of the impression and the potential gain from showing a more relevant ad in that space. And this is probably happening millions of times a day.

Re: Google: End of the Online Advertising Bubble

#163

Post by sixtypoundhound »

novaleaf wrote: post #125
red_admiral wrote: post #15

"Facebook on the other hand, has a better control of who is actually seeing its ads, and will benefit from the turmoil by gaining market share." Did they pay you to write this? Google ads in search will always be valuable because you can advertise nail varnish to people who have just searched for "buy nail varnish". This is also about the millionth post I've read which assumes that companies simply throw money at adv…

This article may be hype, but the Google Adwords monopoly is very real and I wish it died. I run a SaaS startup (PhantomJsCloud) and tried adwords. No advertising competition, and targeted very specific actionable search queries. Google charges upward of $5.00/click. I can understand they want to cut spammers saturating every random search query, but how am I going to get a positive RoI on that kind of cost?

Honestly, if the competition for those keywords is that weak, I'd go for an SEO blitz. I pulled a SEMRUSH profile on your site (other tools exist, I just like that one)

https://www.semrush.com/info/phantomjscloud.com

- Identify keywords you want to target, with decent search volume and not too many strong competitors. Use those words in your headlines and article text - Start a blog and bulk up your articles; knock out 4 - 5 1500+ word articles on the problems you are solving and which audiences would benefit from them - Share those articles on social media - Your site could benefit from additional back-links (you've only got 14); look at your major competitors and see if they are getting links from highly reputable sources. Reach out to those sources and offer them a reason to link to you. Avoid links from spammy sites and low-end blogs (do NOT do the $5 link building package on elance or wherever)...

[There's a ton more, but that will give you a running start on respectable SEO]

Re: Google: End of the Online Advertising Bubble

#164

Post by manigandham »

This is one of the worst articles I've ever read about adtech and is clearly written by someone who has never worked in it and knows nothing about it.

It's all summed up by this at the end of the article:

> Q: It’s all baseless speculation. > We base our research on subjects that are gaining traction in the overall news flow. We have found 94 articles about "ad fraud" over the last 5 years, only looking at influential, qualified sources (http://11wall.st/?to=2016-05-04&from=2011-05-04&query=%22ad+...). So, no, we’ve not dreamt this up, this is something real that the media is talking about. This is the whole point: as coverage of online advertising’s shortcomings grows, people will start to grow aware of it, and will start to question the system.

The "news" coverage is similar to this article in that it's about 20% accurate and 80% sensationalist stories. Also 94 articles is like a week of normal trade press output so it's not even a big number over 5 years.

Advertising and marketing technology is one of the most data-driven and results-oriented industries around. That's just fact. It's been like that for decades. The reason there are hundreds of billions being spent is because there's so much control, flexibility, efficiency, scale and accountability available today that can drive sales and massively improve a company's revenues.

Adtech today is bigger and better than ever because even when things change (like mediums, platforms, audiences, technology), the industry always adapts just fine.

Anyone thinking advertising doesn't work should look at how exactly the successes of the favored Silicon Valley companies have come to be, because outside of making a decent product, it's all marketing. In fact, two of the biggest companies in the world today have been built around advertising and it's clear it's going to stay because it's an integral part of the economy.

Re: Google: End of the Online Advertising Bubble

#165

Post by dpweb »

Rzah wrote: post #50
onion2k wrote: post #41

Earlier quoted context omitted.

Google ads in search will always be valuable because you can advertise nail varnish to people who have just searched for "buy nail varnish". Google and Facebook both have the problem that their business model is predicated on having thousands of small advertisers bidding on ads. That's what they leverage to generate profit. In any market that's dominated by a single entity that smaller companies won't compete with fo…

Of all the things that might happen, users going directly to websites rather than through google/facebook is by far the least likely. Whats more likely to happen is that someone will come along with better search with less advertising (just like Google did), or someone might build a better social network with less advertising (just like facebook did). There's as much precidence for these things reoccurring as there i…

>> Whats more likely to happen is that someone will come along with better search with less advertising

and no one will ever find out about it, cause GOOG owns the OS on billions of devices.

Re: Google: End of the Online Advertising Bubble

#168

Post by dmarti »

Advertisers don't bear the costs of fraud. Intermediaries don't bear the cost of fraud.

Fraud is priced in. It drives down the value of all ad inventory in the market.

The costs of fraud end up being borne by legit publishers (who have to compete with fraud for the same ad budgets) and with copyright holders (whose work gets copied onto bottom-feeding sites.)

http://blog.aloodo.org/posts/thank-you-for-supporting-fraud/

Re: Google: End of the Online Advertising Bubble

#169

Post by slantaclaus »

red_admiral wrote: post #15

"Facebook on the other hand, has a better control of who is actually seeing its ads, and will benefit from the turmoil by gaining market share." Did they pay you to write this? Google ads in search will always be valuable because you can advertise nail varnish to people who have just searched for "buy nail varnish". This is also about the millionth post I've read which assumes that companies simply throw money at adv…

The writer probably (ok, definitely) has never managed an adwords campaign

Re: Google: End of the Online Advertising Bubble

#170

Post by tyingq »

Disappointed. There is a bubble, but it's not the one portrayed in the article.

The bubble I see is that Google's been riding a YoY double-digit increase in clicks for many years...exceeding the growth of impressions. They've done this by yielding more and more real estate (for searches that they can monetize) to ads versus organic results.

I say there's a bubble, because for the most part, there's no real estate left to yield. Which means the YoY growth will now slow down to match impression growth.

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