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The new dot com bubble is online advertising (2019)

thecorrespondent.com

131–140 of 176 posts

Re: The new dot com bubble is online advertising (2019)

#132

This sounds great and I want to believe it, but it feels like another case of someone saying the sky is falling when it clearly hasn't. What will it take for this advertising bubble to pop? Is it even a bubble?

> What will it take for this advertising bubble to pop? Browsers shipping with uBlock Origin included.

Browsers want to be popular with users, but they also want websites to make money: if sites can't make money, there is no web to browse.

Re: The new dot com bubble is online advertising (2019)

#133
I feel like advertising was always a scam.

I don't think it really helps the small entities reach an audience, and it only allows the largest companies to remind everyone they are the biggest.

I'm not sure there are thorough studies that show advertising increase sales.

Re: The new dot com bubble is online advertising (2019)

#134

I have had the thought that there is something wrong, that I can access nearly any song of my choice on YouTube, with the small penalty of skipping an advert after 5 seconds. Many of the adverts aren't even for products I'm interested in. They're either get-rich-quick schemes, or repeat-ad-nauseum ads for software like Grammerly, which I will never use. If Google has some sort of complex picture about me, by invading…

I get an even better deal, I see no ads on YouTube because I use uBlock Origin.

and sponsorblock for blocking in-video ads

Re: The new dot com bubble is online advertising (2019)

#135
post #11

What do we really know about the effectiveness of digital advertising? The effectiveness of online ads is easily measurable: Return on ad spend (ROAS) = (revenue from ad referrals) - (money spent on ads)

Exactly what the marketers thought. The point I took from the article is that you have to factor in what you would have gotten for free.

You can stop advertising for a while and compare the outcome. Or take 2 similar markets and only advertise in one of them. Online tracking enables fine-grained analytics, there's little left to guessing - especially for small or medium businesses who do not (yet) have high brand familiarity.

Re: The new dot com bubble is online advertising (2019)

#136

Earlier quoted context omitted.

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…

I assume there must be some effect in getting new drinkers. I’ve tried lots of colas. I’m never buying a Pepsi if there is Coke. I will always buy soft drinks in this order: Cherry Coke, Cherry Dr Pepper, Dr Pepper, Coke, maybe I’ll just have water. At this point no amount of advertising will change my mind.

The advertising doesn't simply need to affect your personal preferences to affect your buying habits. If you were buying a few different packs of soda for a group of people (e.g. for a party), how much cheaper would the case of Pepsi need to be than a case of Coke for you to buy it instead? Could that be affected by advertising that made you feel like, regardless of your personal affinity for Coke, Pepsi is the acceptable default choice?

Imagine further that this isn't a product category that you feel quite so strongly about (most people don't have a 4-deep ordered list of brand preferences for common product categories). If you were making a quick choice between Sprite and 7-up (again, for a party), are you sure that advertising couldn't possibly influence which of the brands is most accessible to your brain?

Re: The new dot com bubble is online advertising (2019)

#138

Oof! 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?

Advertising on the side of the road was Burma Shave's schtick - and it was highly effective.

Re: The new dot com bubble is online advertising (2019)

#139
post #133

I feel like advertising was always a scam. I don't think it really helps the small entities reach an audience, and it only allows the largest companies to remind everyone they are the biggest. I'm not sure there are thorough studies that show advertising increase sales.

Word of mouth is usually the most trustworthy. Yet people need to learn of alternatives from somewhere. Perhaps if those serving ads were more liable, much like friends risking their reputation to recommend something, the negatives of ads could be better mitigated.

Re: The new dot com bubble is online advertising (2019)

#140

Earlier quoted context omitted.

I'm sure 99% of Apple users would be happy with a popup on first use of Safari that asked "would you like to block adverts?". It would be no skin off Apple's nose.

Their app ecosystem would implode as nobody would develop or maintain their ad supported apps anymore.

Does Apple care?

They already essentially killed off "ad supported apps" with App Tracking Transparency, and Apple doesn't earn anything from ads anyway (as opposed to paid apps where they take a cut).

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