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The new dot com bubble is online advertising (2019)

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

#151

Post by ghaff »

midasuni wrote: post #118
csunbird wrote: post #100

Earlier quoted context omitted.

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…

I have no idea. It’s rare I stain wood, I have never compared any other stain, I don’t know if it’s any good or not, or indeed the price. They may charge twice as much as bobs woodstain but it’s not worth me thinking about.

What you're describing is pretty typical though. You buy a product either because of advertising, because it "looked" like a good choice in the store for whatever reason, it was recommended on Wirecutter, the Home Depot worker or a contractor pointed you towards it, etc. And it seems to do the job and, for the amount you spend on that item annually, it's not really worth doing your own comparison which you probably aren't in a position to do scientifically anyway.

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

#152

Post by JacobJans »

__MatrixMan__ wrote: post #126

If I had had a needle that would pop the dot com bubble, I'd hesitate before using it. Maybe there are cool things that were brewing and they just need a bit more time to incubate before we can benefit from them. If I had a needle that would pop this bubble, I'd use it immediately. Advertising is all about making people do things that, when left to their own devices, they don't want to go. Whatever survives this bubb…

That is actually the definition of bad, inneffective advertising. Good advertising comes from a deep understanding of what people want to do, and then presents them with an opportunity to do just that. This is literally why Google is so valuable. Their ad business is largely based on understanding “intent.” As any decent advertiser knows, you can’t create intent, but you can harness it.

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

#153

Post by tflinton »

I used to work for a B2B advertising agency, we did a campaign for the largest teleco in the US targeted at C-level executives to by their enterprise products. Our engagement team said (privately) that they had spent 20k per click. And had no idea if any of those targeted VERY expensive clicks resulted in leads let alone sales.

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

#154

Post by tonmoy »

tflinton wrote: post #153

I used to work for a B2B advertising agency, we did a campaign for the largest teleco in the US targeted at C-level executives to by their enterprise products. Our engagement team said (privately) that they had spent 20k per click. And had no idea if any of those targeted VERY expensive clicks resulted in leads let alone sales.

But wouldn’t a single purchase more than pay for the entire campaign?

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

#155

Post by WhisperingShiba »

paulryanrogers wrote: post #139
jokoon wrote: 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.

Word of mouth is king. I've only seen 2 ads in the last year that were even relevant, and only 1 of 2 of them turned into a sales conversion. For the other product, I went to a competitor.

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

#156

Post by somedude895 »

zbuf wrote: post #67

The article explains why eBay shouldn't advertise against the term "eBay", all very logical. ... Until a competitor starts advertising against the the term "eBay". At which point, online advertising becomes protection money.

This is the strongest antitrust case against Google in my opinion. They are the monopoly search engine. Tons of people google a website name instead of typing in the URL. Tons of people don't know the ads are actually ads and Google is making it harder to tell them apart from the every year[0]. It's basically like the mafia telling you to fork over money or else they put up your competitors' billboards in front of your store. Not a very scary mafia, but still.

[0] https://images.app.goo.gl/WjafWzujgjHT32Y17

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

#157

Post by throwawaylift »

avalys wrote: post #13

I 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…

The first thing one has to face when considering such experiments is that they fundamentally have an inherent cost. Because in order to get that measurement accurate, quite a lot of your ad impressions have to be withheld. This is a cost, a cost of the lost opportunity. (provided that the actual impact of the ad campaign is positive, that is).

So, as an advertiser, you end up coming up with some meta-strategy: when to perform those experiments and when to forgo them and rely on your educated guess.

Google, Facebook and alike developed support for performing such experiments throughout the last decade. But this meta-strategy kind of judgment is firmly in the department of advertisers.

Certainly not a new dot com bubble as the title suggests, and the article even mentions Randall Lewis, so I guess it's just the style of journalism these days...

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

#159

Post by shostack »

otabdeveloper4 wrote: post #113
shostack wrote: post #33

Earlier quoted context omitted.

TY. Incrementality is king. Measuring that as a marketer and advertiser is getting more challenging for a variety of reasons. The future, primarily for large brands, but increasingly accessible for smaller and smaller companies is in statistical analysis with properly controlled experiments. It is the only path I've seen that can account for all the noise in the measurement ecosystem. And even then it is far from eas…

> The future ... is in statistical analysis with properly controlled experiments. The future? No, statistical analysis was always at the core of advertising, from the moment statistics was invented. It's only recently in the last few years that people forgot this, and only because techies and programmers without statistics knowledge successfully "disrupted" the advertising industry. But internet advertising sucks bal…

Fair point about statistical analysis. My comment was more that the tools and data to provide that visibility are starting to trickle down to smaller companies, sort of like how GA did it for web analytics. For better or worse.

Disagree on traditional vs digital though. It is totally circumstantial which performs better.

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

#160

Post by matheusmoreira »

phreeza wrote: post #116
tonyedgecombe wrote: post #61

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.

Even if they end up being blocked by many ad funded sites?

We'll just block their blocking attempts.
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