So where is the ad spend going instead?
Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
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Re: Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
#32[dead]
Re: Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
#33Good, hope me installing ad blockers on my parents, partners, friends laptops contributed to that drop.
Re: Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
#34It couldn't possibly be because the google search engine produces pretty bad results these days, could it?
Is there a better alternative? I keep putting !g into ddg.
Maybe the old internet is dying and everyone is moving to the winners. Facebook, Amazon, Tiktok, snap, etc.
Who needs the internet anymore? Will all the cool people leave so we can have it back?
Re: Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
#35Earlier quoted context omitted.
Yes, but CTR and conversion metrics still matter to ad buyers. It's much more difficult to measure the influence on my subconscious and attribute that.
I think that there is some weird effect in the ad business where this isn't the case. Look at sponsorships or untargeted ads; Red Bull may sponsor someone jumping out of a balloon at the edge of space, but it's probably hard to convert that investment to a number of extra cans of energy drink sold. I see a lot of video ads like that in the same way. Everyone watching Overwatch League is just there idling for in-game…
What you're missing is the effect of brand visibility on people's internal thought processes. When you see something regularly, you internally gain a sense of permanence about the item as if it's a naturally-occurring part of the environment. This creates a floor for the brand's perception. It may not be a "I'll go out and buy it now" floor or even an "I'll choose that brand when a purchase decision is made" floor, but it will certainly be "I've heard of that brand" and possibly even "that brand is probably the market leader." For products which are undifferentiated, or for which buyers lack deep insight, that can be a strong advantage.
It's also not an entirely logic-free assumption to make. If a brand can afford prominent and consistent advertising over a multi-year period then you can reasonably assume that it's making enough money to sustain its existence. That makes a costly, long-running ad campaign a decent proxy signal for market strength and/or social proof. Is it 100% accurate? Definitely not, but none of this behavior by the consumer or the advertiser is logic-free.
Re: Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
#36So where is the ad spend going instead?
At a lot of companies, it isn't going anywhere. Many ads offer no ROI.
Re: Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
#37So where is the ad spend going instead?
Possibly nowhere. Advertisers reduce ad-spend when recessions are in the air.
Re: Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
#38The fact that the ad model has worked so well is always a nice reminder of how much of a bubble I live in. Personally I have never intentionally clicked on a Google/YouTube/etc ad. Never. I wonder if the general population has been getting more tech-savvy and skeptical of ads over time, but this change takes a very long time to play out. I sometimes see my dad clicking on ads because he doesn't understand the mechani…
If I don’t like a company but have to visit their site, I’ll click on their Google ad that often appears and cost them the $1. Particularly if I’m using my work machine
Re: Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
#39The fact that the ad model has worked so well is always a nice reminder of how much of a bubble I live in. Personally I have never intentionally clicked on a Google/YouTube/etc ad. Never. I wonder if the general population has been getting more tech-savvy and skeptical of ads over time, but this change takes a very long time to play out. I sometimes see my dad clicking on ads because he doesn't understand the mechani…
I can recommend the book “Attention Merchants” by Tim Wu.
People get used to Ads in any format over time like you noticed. But the fight for our attention will never stop.
So in Google’s case, maybe their model won’t work in the future. The ad money will go somewhere else.
Re: Alphabet’s Profit Falls 34% (fourth consecutive drop) Amid Ads Slowdown
#40The fact that the ad model has worked so well is always a nice reminder of how much of a bubble I live in. Personally I have never intentionally clicked on a Google/YouTube/etc ad. Never. I wonder if the general population has been getting more tech-savvy and skeptical of ads over time, but this change takes a very long time to play out. I sometimes see my dad clicking on ads because he doesn't understand the mechani…
You don't have to have clicked on an ad to have been influenced by one.
You do have to be exposed to one. Hence, ad blockers.
Yes, I know I get other ads in content, but reducing the exposure is still reducing the exposure.