Live data from Hacker News

What do we really know about the effectiveness of digital advertising?

thecorrespondent.com

151–160 of 372 posts

Re: What do we really know about the effectiveness of digital advertising?

#151

I wonder how much (in %) the 'Google tax' is these days, which is paid by businesses that advertise for their brand as keyword on Google despite being the top search result, just because Google sells the almost indistinguishable ad spot above the first result to their competitors.

It shouldnt be too hard for websites to teach their users about this: "When searching for us on google, look for our domain name in the results".

Re: What do we really know about the effectiveness of digital advertising?

#152
post #54

Maybe this is just a generational thing, but I still have never clicked on an ad. I hate ads. I don't know anyone who likes them. I don't know anyone who has intentionally clicked on them. I have literally never met anyone who places any value in advertising at all. Everyone hates it with 100% of their being. It is the garbage we all just sort of accept exposure to as some sort of fee for existing online. Who are all…

I'm not sure what generation you're a part of but I appreciate ads when they actually tell me something I didn't know about that I do want to buy. For example I've been shopping for beds and dont mind ads for brands I hadn't heard of. Some of them I would have bought had they been in my budget but this to me isn't so much a problem with ada in general as it is about as targeting.

> I appreciate ads when they actually tell me something I didn't know about that I do want to buy.

I can't remember the last time I even saw an ad that did this (at all, not just online).

Oh wait, I lie, I do remember -- ads for electronics and computers in the technical journals of old used to do this, because they included actual information about the products they were selling. I haven't seen a useful ad in decades, though.

Re: What do we really know about the effectiveness of digital advertising?

#153
post #99

This is a rather unimpressive article. Yes, brand advertising is a disaster, just like it has always been. But to say that all digital advertising has unknown ROI is ridiculous. Digital direct response advertising allows very accurate ROI calculations. (Admittedly, a lot of advertisers are not applying the tools to their advantage. They call that the "Google stupid tax". Ditto these days on Facebook.) And direct resp…

Hi this is the author of the article. You're just making the exact mistake this article is about: you assume people who click on your ad and then buy something, bought something BECAUSE of your ad. From the article: "Suppose Luigi’s Pizzeria hires three teenagers to hand out coupons to passersby. After a few weeks of flyering, one of the three turns out to be a marketing genius. Customers keep showing up with coupons…

Hi Jesse,

I do growth and run experiments for a living for DTC brands. I liked this article but the research on ebay brand advertising is missing the point about competitors. If you have competitors bidding on your brand, I've seen multiple times really strong degradation on performance.

Re: What do we really know about the effectiveness of digital advertising?

#155
post #16

Maybe this is just a generational thing, but I still have never clicked on an ad. I hate ads. I don't know anyone who likes them. I don't know anyone who has intentionally clicked on them. I have literally never met anyone who places any value in advertising at all. Everyone hates it with 100% of their being. It is the garbage we all just sort of accept exposure to as some sort of fee for existing online. Who are all…

But, you like accessing content for free, correct? That content doesn't exist and then ads are layered on, the context exists BECAUSE of ads. Like, no one would produce the content without the plan to make their money back via ads. This is how mass media has worked from the get-go. Radio stations were built by advertisers for the purpose of advertising. Entire genres of popular music wouldn't have happened otherwise.…

> Online advertising did not create the notion of advertising being the predominant media funding model.

True, but online ads did create the notion that spying on everyone should be part of the business model. That's what I object to. If the price to make that stop is that there is no more "free" content (scare quotes because it's not really free), I'm fine with that. I don't think that's the price, though.

Re: What do we really know about the effectiveness of digital advertising?

#156
post #99

This is a rather unimpressive article. Yes, brand advertising is a disaster, just like it has always been. But to say that all digital advertising has unknown ROI is ridiculous. Digital direct response advertising allows very accurate ROI calculations. (Admittedly, a lot of advertisers are not applying the tools to their advantage. They call that the "Google stupid tax". Ditto these days on Facebook.) And direct resp…

Hi this is the author of the article. You're just making the exact mistake this article is about: you assume people who click on your ad and then buy something, bought something BECAUSE of your ad. From the article: "Suppose Luigi’s Pizzeria hires three teenagers to hand out coupons to passersby. After a few weeks of flyering, one of the three turns out to be a marketing genius. Customers keep showing up with coupons…

Hi Jesse,

I saw a lot of youtube channels and reddit posts discussing how to optimize their ad spend (for example, https://www.youtube.com/watch?v=1O6feWOsbLs)

In the video the person starts a new online store and shows how he measures his return on advertising investment. It seems to be a pretty direct correlation between his ad spend and his increased sales.

How do you match up your thoughts on advertising with the prevalence of these kind of "advertising success stories"?

Re: What do we really know about the effectiveness of digital advertising?

#157
The example given: Ebay spending $20M in ads for the word EBay is a very special case.

People were clearly searching for EBay and click the first thing that comes up: ad or no ad.

For a major well known brand, probably not a very good spend.

There's a ton of 'dumb money' in advertising because strategic budgets of entities like banks and auto dealers are massive.

But there's a ton of mid to smaller entities for whom the ads have to work or they go home.

Ads are not fraudulent or fake - there's just a lot of grey in it, in addition to a lot of unsophisticated buyers with big budgets.

Re: What do we really know about the effectiveness of digital advertising?

#158
post #7

I've always wondered about those adverts for the website I'm searching for. If I type its name into Google, I'm already 100% committed to going there. Sometimes I click the advert (it generally depends how much I like the company). The other aspect of online ads that strikes me as ingenious but probably not sustainable is the way Google inflates the auction system with fake money. Anyone who's run a website will have…

It costs the ad creator money every click and rewards google for mixing ads into the search results in a confusing way. This is a sketchy practice when the ad is for the exact product or site you typed into the search bar - as another commentator mentioned, the dynamic forces you to buy the ad to keep competitors from stealing the spot. Toxic

It's more than competitors. When looking for a specific site like ebay, paypal or name of popular software, the first paid results are regularly untrustworthy, if not plain scam or distributing malware.

Either the legitimate site pays to be first, or it can watch customers go to hell, literally.

Re: What do we really know about the effectiveness of digital advertising?

#159
post #7

I've always wondered about those adverts for the website I'm searching for. If I type its name into Google, I'm already 100% committed to going there. Sometimes I click the advert (it generally depends how much I like the company). The other aspect of online ads that strikes me as ingenious but probably not sustainable is the way Google inflates the auction system with fake money. Anyone who's run a website will have…

It's a defense strategy. And it's necessary.

"Nice organic customer flow you've got there. It'd be a shame if it all went away because you didn't pay us." --Google

Re: What do we really know about the effectiveness of digital advertising?

#160

Maybe this is just a generational thing, but I still have never clicked on an ad. I hate ads. I don't know anyone who likes them. I don't know anyone who has intentionally clicked on them. I have literally never met anyone who places any value in advertising at all. Everyone hates it with 100% of their being. It is the garbage we all just sort of accept exposure to as some sort of fee for existing online. Who are all…

> that subverted technology and turned it into advertising-tech

What actually happened is that technology replaced the publishing industry. Publishing always had ads.

Post reply on HN