If it is a bubble, whom is it going to affect? Dotcom bubble was the investor's money. What is even ad bubble supposed to do when it pops?
Also investor‘s money. If ad revenue suddenly tanked, so would the stocks of Google, Facebook, etc.
The new dot com bubble is online advertising (2019)
101–110 of 176 posts
Re: The new dot com bubble is online advertising (2019)
#102Earlier quoted context omitted.
Whenever I buy woodstain I buy ronseals quick drying woodstain because it does exactly what it says on the tin. This is because I watched tv in the 90s as a teenager and it was ingrained. The benefits of brainwashing can pay dividend over a lifetime.
Your point actually proves that, advertising gets the customer through the door, but, your product needs to be actually decent to keep the customer.You saw the advertisement, you bought the product and it worked as described, and continued to work in that way in the future. The product is successful not because of advertising, because it is actually good. I find it weird that, most people spend huge on advertising, b…
A lot of products are good though...So your point isn't very convincing that products aren't successful because of advertising given the zero sum game of hooking a customer for life that OP describes.
Re: The new dot com bubble is online advertising (2019)
#103Annoyingly I feel like it's true. Personally I never had anything strongly against online advertising - there are tons of website and blogs where you can see that people have poured their hearts and souls into their work and the only thing they get in return are a few peanuts from ads. There's the case for trackers and cookies and whatnot but let's be realistic-the analysis and processing is done by a server in the d…
I pay for google music, or whatever the name is today, and I see no ads. Bandwidth, servers, the employees, etc. have a cost, so it is only natural that companies make money somehow, either through ads or by subscription. EDIT: it is YouTube Premium.
that deal is (was?) only available in few parts of the world, sadly
Re: The new dot com bubble is online advertising (2019)
#104Oof!
Think about it, when was the last time you saw an ad, and went on to buy that product or service?
Who are these people who see an advertisement on the side of the road and then go out and buy that very thing?
Re: The new dot com bubble is online advertising (2019)
#105Earlier quoted context omitted.
I pay for google music, or whatever the name is today, and I see no ads. Bandwidth, servers, the employees, etc. have a cost, so it is only natural that companies make money somehow, either through ads or by subscription. EDIT: it is YouTube Premium.
Music is a different thing(I'm also a subscriber), I'm talking videos specifically. I'm sorry but the fact that I have to go through a minute of ads for every 4 minutes of videos watched is absurd. The worst thing I've had to endure was Antena 3 in Spain in terms of content-to-ads ratio. At this point if we include sponsored messages in videos, I'm willing to bet the ratio is worse on youtube.
I am talking about videos. You pay YouTube Premium and you don´t see ads.
Re: The new dot com bubble is online advertising (2019)
#106Past discussions: https://news.ycombinator.com/item?id=21465873 https://news.ycombinator.com/item?id=23101883
Thanks! Expanded a bit:
The new dot com bubble is here: it’s called online advertising (2019) - https://news.ycombinator.com/item?id=23101883 - May 2020 (152 comments)
The new dot com bubble is here: it’s called online advertising - https://news.ycombinator.com/item?id=21585364 - Nov 2019 (24 comments)
What do we really know about the effectiveness of digital advertising? - https://news.ycombinator.com/item?id=21465873 - Nov 2019 (358 comments)
Re: The new dot com bubble is online advertising (2019)
#107If it is a bubble, whom is it going to affect? Dotcom bubble was the investor's money. What is even ad bubble supposed to do when it pops?
Also investor‘s money. If ad revenue suddenly tanked, so would the stocks of Google, Facebook, etc.
and it would tank anything financed by ad-revenue
A lot of things are financed by ads: entertainment... music.. sports...
Re: The new dot com bubble is online advertising (2019)
#108I remember reading this article back in 2019 when it was originally written. Unclear why it is being dusted off now when it is still just as wrong as it was then. Yes, it is probably hard for a large, well-known brand like eBay or Procter & Gamble or Coca-Cola to measure their return from online advertising. If Coca-Cola stopped all advertising for 1 week, would anything really change? Probably not. And it’s not as i…
To be fair, the point of the article is that ROAS is not a very good metric, and while most of the article is wrong in that it effectively calls all advertising worthless as a result, it's not wrong about that one methodological point. What matters is incremental ROAS - not the conversions following exposure, but rather the conversions that would not have happened but for the exposure. For small companies that have n…
>What matters is incremental ROAS - not the conversions following exposure, but rather the conversions that would not have happened but for the exposure. [...] there's no untouched part of the market that's never seen a Coke ad against which you can do an A/B test.
Sophisticated advertisers like Coca-Cola are aware of the concept about incremental ROAS. They can't do the exact A/B test scenario of isolated consumers you're talking about but decades ago, they did do A/B tests in different tv markets where one city had more ads than another and the city with more ads had higher sales. (What the industry jargon calls "lift" from advertising exposure.)
So even brands that are already very well-known by most of the public still constantly do A/B tests to measure incremental conversions in all media including digital, magazines, sports sponsorships, etc. Back in the late 1990s, many advertisers noticed that running banner ads on Yahoo didn't work which contributed to their stock price crashing. Recently, a lot of advertisers (e.g. Proctor & Gamble) quit spending ad dollars on 2nd and 3rd-tier ad exchanges because their A/B measurements showed they were a waste of money. (The "1st-tier" ad exchange examples would be Google & Facebook.)
Re: The new dot com bubble is online advertising (2019)
#109One thing I don't get: if in the entire industry $273bn were spent on ads in a year, how come that one company which derives most of its revenue from ads, such as Alphabet has a market cap several times larger?
Because market cap isn't based on how much a company makes in one year.
Re: The new dot com bubble is online advertising (2019)
#110Oof! Think about it, when was the last time you saw an ad, and went on to buy that product or service? Who are these people who see an advertisement on the side of the road and then go out and buy that very thing?
I can make at least three people IRL that do this regularly.
My business has had huge success with promoted listings on eBay. People will gladly pay 20% more for a sponsored item rather than scroll down literally one inch to get better organic results.
Even if these people are a tiny minority population-wise, they make up a disproportionate percentage of people that waste money on frivolous or overpriced goods.