The "experiment" you mentioned here is observational. The reality is, major digital ad platforms today (google, facebook, etc.) all provide rigorous RCT experiments. That will reveal the true effectiveness of ads.
What do we really know about the effectiveness of digital advertising?
291–300 of 372 posts
Re: What do we really know about the effectiveness of digital advertising?
#292Earlier quoted context omitted.
>This is more complex than financials - displaying an advert leads to a bi-directional association in the consumers mind between the entity being advertised and the entity advertising it. It is beneficial to advertise products that have Brand values similar to yours (or ones you want to appropriate). I agree, and I think that's part of why I disagree so hard with you on the primacy of images. I mean, i'm not saying t…
i.e. you want to see the facets you'd be looking for when choosing a product to purchase. For many products and people that will just be the visual appeal, and advertisers target their widest audience. This is a case where tracking can actually be seen in a positive light - I too think I would be more likely to convert if I saw a datasheet as an ad, but that's definitely not majority. At the same time, obviously fash…
>For many products and people that will just be the visual appeal, and advertisers target their widest audience.
I... think this is usually unwise. If you attempt to appeal to everyone, you appeal to no one. I personally think one of my advantages when I ran prgmr.com was a consistent brand? At the very least, it was very recognizable. (I don't run it anymore, and I'm not claiming to have done a great job when I did. But I can point out several mistakes I made where I would have gotten... big at least by my standards if I had zigged rather than zagged. I think I did a memorable, if not a good job at branding, and "just get my name right" is... well, it's halfway there.)
Personally, I think that if you want to appeal to different markets, you should use a different brand with a different customer-facing layer, even if in the bowels, the product is produced on the same equipment.
>This is a case where tracking can actually be seen in a positive light
I'm not sure? I mean, I think that the connection between the advertiser/brand values is important, and you destroy some of that if you tailor your advertising to the consumer... if different people get different views of the same brand, well, it's really different brands.
(Also, the decision to track/not track is a brand value decision in and of itself- a rather big one, if you can credibly communicate that to your customers.)
Re: What do we really know about the effectiveness of digital advertising?
#293Earlier quoted context omitted.
>This is more complex than financials - displaying an advert leads to a bi-directional association in the consumers mind between the entity being advertised and the entity advertising it. It is beneficial to advertise products that have Brand values similar to yours (or ones you want to appropriate). I agree, and I think that's part of why I disagree so hard with you on the primacy of images. I mean, i'm not saying t…
i.e. you want to see the facets you'd be looking for when choosing a product to purchase. For many products and people that will just be the visual appeal, and advertisers target their widest audience. This is a case where tracking can actually be seen in a positive light - I too think I would be more likely to convert if I saw a datasheet as an ad, but that's definitely not majority. At the same time, obviously fash…
[deleted]
Re: What do we really know about the effectiveness of digital advertising?
#294Earlier quoted context omitted.
i m talking about total advertising as a share of GDP[1]. The shift to digital is naturally following the eyeballs of users. Google's profits rocket while others' fall. The question is, did this shift drive increased consumer spending ? https://www.researchgate.net/profile/Rachel_Soloveichik/publ...
But isn't digital advertising substantially cheaper than traditional ad buys (e.g. print, TV)? If clients can spend much less to reach the same number of potential customers, why is it necessary for them to spend equal to or more than a traditional ad budget?
Cheaper than TV per eyeball, typically no, minimum spend on TV is higher because of the minimum purchase (i.e. number of impacts for your demographic for a spot is typically high).
TV typically caters for the big brands who want the mass public to know about their brand/product.
Targeted advertising is starting to emerge on TV, where you basically have the digital model of targeting and ad at an individual, the cost per individual is then higher than broadcast ads.
Re: What do we really know about the effectiveness of digital advertising?
#295Earlier quoted context omitted.
the article isnt making the point that there is no value in advertising, but that it's highly overstated. One really needs ads - the 're a very effective way to reach users. But after that initial push, does spending more really return more?
One thing I've always thought about ads is the subconscious impact that they have of building brand recognition and awareness. Especially for something which would typically be purchased infrequently or irregularly. I might be at a grocery store and I need to purchase something like dishwashing liquid. If I'm staring at two brands on the shelf priced identically (or near enough) I'm more likely to purchase the brand…
This is exactly why TV advertising is still important to those brands!
Re: What do we really know about the effectiveness of digital advertising?
#296Maybe 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…
When people say that advertising doesn't work on them they are generally only focused on being immediately motivated to action by the ad. However advertising serves a wide range of functions beyond that. No one sees one Mercedes ad and goes out to purchase a $75k car. That doesn't mean that Mercedes is stupid for still buying TV ads. The ad is instead meant to do things like keep consumers updated on the latest produ…
Aspiration is a large part of advertising.
It's not just that you won't go out but that Mercades, most of us never will be able to afford one, but we all know its a luxurious product, a sign of wealth and 'doing well'. That's in large part because of the brand image, if you bought the same car with a Ford badge would they be able to charge as much?
Re: What do we really know about the effectiveness of digital advertising?
#297Great to see an article like this. This subject is almost suspiciously under-researched by journalists. There 's definitely something rotten in the promises that internet advertising has become somehow more effective. If that were true, wouldn't businesses notice? Wouldn't they spend a bigger part of their revenue on ads ? Wouldn't that return even bigger ROIs? Yet businesses spend roughly the same for over a century…
> because advertising is a huge deal for the health of the internet, despite its vilification
[citation needed]
I am of the opinion that internet would be a much saner place if advertisement was purely and simply banned.
Re: What do we really know about the effectiveness of digital advertising?
#298Just as Google won the search engine wars by helping people find what they are looking for, the e-commerce winners will be the companies that help people find what they want to buy (reliably and with confidence). Retail companies are blind to just what a shit-show their websites are (a lot of them even have ads in their online store). Any company that solves this problem for their sector will win it, and this is good…
Amazon more or less won didn't it? It doesn't have total domination of ecommerce but frankly it'd run into anti-trust issues if it did. No company is going to do ecommerce bigger than amazon without getting broken up so yeah... amazon.
Amazon won the US market, it hasn't won the world yet.
Re: What do we really know about the effectiveness of digital advertising?
#299Earlier quoted context omitted.
Amazon more or less won didn't it? It doesn't have total domination of ecommerce but frankly it'd run into anti-trust issues if it did. No company is going to do ecommerce bigger than amazon without getting broken up so yeah... amazon.
Amazon has made lots of products more discoverable. But that's only one component of "help me find what I'm looking for." Case in point: I'm in the market for a new TV. Based on my experience with prior TVs, I believe I want something with high contrast, low reflections (glare), low response time, and high color gamut coverage. Well, some balance of those criteria weighed against price. I'm new to the TV market: how…
Did you mean OLED? Anyway, yes there are places, and these aren't terrible:
https://www.techhive.com/article/3316544/best-tvs.html
https://thewirecutter.com/electronics/tvs/
https://thewirecutter.com/guides/buying-a-tv/
For a mail order / online retailer, visit this page at Crutchfield:
https://www.crutchfield.com/g_146350/All-TVs.html
Then click the red text "Explore Articles & Videos", just above the listings on the right side. Their TV Buying Guide has good visual explanation of LED-LCD vs. OLED, for instance.
Depending what you look for, calling them and chatting can work too.
// Keep in mind with any review site or retailer, paid review placement can be a thing.
Re: What do we really know about the effectiveness of digital advertising?
#300I disagree with the author. Although all points outlined in the article might be independently true, making a general rule out of it is not ok. Especially modern, agile marketing teams that understand the importance of testing and learning are able to produce campaigns that generate positive ROI/ROAS.
Sidenote: Co-founder of Admetrics here. We provide an experimentation solution that enables businesses to run marketing experiments on their data at pace, so we see a lot of test results on a day to day basis.