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Advertisers scramble as ‘non-human traffic’ eats up online budgets

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21–30 of 98 posts

Re: Advertisers scramble as ‘non-human traffic’ eats up online budgets

#21
post #3

I envision a future where a significant share of the advertising market is comprised of automated ad-bots pitching services and wares to automated web-crawlers. There's something obtusely philosophical about that and what it says about us, though I am not sure what that is.

William Gibson could probably give you some ideas on what that says about us. He started writing about this fictionally decades ago.

Or Frederick Pohl and Cyril Kornbluth

https://en.wikipedia.org/wiki/The_Space_Merchants

(Or Alvin Lucier: https://en.wikipedia.org/wiki/I_Am_Sitting_in_a_Room)

Re: Advertisers scramble as ‘non-human traffic’ eats up online budgets

#22
post #20

I've been in the online advertising world for 10 years and it still befuddles me to see that most ad dollars still haven't switched to cost-per-action (CPA), i.e. only paying for actual conversions. One big benefit of advertising online after all is that tracking conversions and their referrers is much easier than with offline.

I've been in the space for the same amount of time and I'm not at all surprised by this.

It all comes down to risk tolerance for both parties involved. On one end of the spectrum, CPM models put ALL of the risk onto the advertiser, and CPA is at the other, putting ALL of the risk onto the publisher. CPC falls in the middle.

Depending on who has more leverage in the negotiation, what is possible for one advertiser may not be possible for another. But given the low-quality traffic I've seen on some publishers, and specific instances where I know publishers were arbitraging $.01 CPC clicks into their inventory counts, I'm not at ALL surprised they are clinging to CPM as long as they can. Their very existence depends on it.

High-quality publishers have little problem going with CPA in cases where they can control more of the funnel (which is often the weak link), and they can command a much higher spread as a result.

Re: Advertisers scramble as ‘non-human traffic’ eats up online budgets

#23
Back in July, hundreds (thousands?) of sites noticed a surge in traffic in their analytics. Hundreds to thousands of additional visits per day above their normal traffic rates. Curiously, all this traffic identified as Internet Explorer 7 on various version of Windows, but each visit came from a different residential IP, and viewed only one page per session.

Eventually the common thread between all these sites was identified -- they had retargeting tags from sites like AdRoll: http://www.thesempost.com/adroll-retargeting-bot-attack-behi...

For months now, huge botnets have been producing huge amounts of fake web traffic, picking up retargeting cookies in order to later be served ads and have whoever's behind the network paid for those views. That surge has never ended. It's only grown (including becoming less easy to spot), yet nobody seems to be talking about it anymore, including the retargeting companies.

I'd love to know who's behind it and how they control so many computers.

Re: Advertisers scramble as ‘non-human traffic’ eats up online budgets

#24
post #17

Besides the non-human traffic, most online ads are created to not be seen. I was even thinking about creating a blog post to call out the marketers out there to change this, but I am too lazy... specially to make them make more money. I am so used to how ads that cover the entire page work that I manage to pass by them without even knowing which brand was advertising there. Ads that force you to watch a video for X s…

> Another example, ads that follow me. Oh god how I hate these. I visit a website, usually for a product that I already own, and the freaking ad from that company follows me wherever I go. This is money wasted.

Wasted on you, probably not on the majority.

Re: Advertisers scramble as ‘non-human traffic’ eats up online budgets

#25
post #17

Besides the non-human traffic, most online ads are created to not be seen. I was even thinking about creating a blog post to call out the marketers out there to change this, but I am too lazy... specially to make them make more money. I am so used to how ads that cover the entire page work that I manage to pass by them without even knowing which brand was advertising there. Ads that force you to watch a video for X s…

If you can get a business plan from those observations, yes, you can fix it. The advertising industry seems to be much talentless, despite the image they advertise.

Re: Advertisers scramble as ‘non-human traffic’ eats up online budgets

#26
post #17

Besides the non-human traffic, most online ads are created to not be seen. I was even thinking about creating a blog post to call out the marketers out there to change this, but I am too lazy... specially to make them make more money. I am so used to how ads that cover the entire page work that I manage to pass by them without even knowing which brand was advertising there. Ads that force you to watch a video for X s…

> Another example, ads that follow me. Oh god how I hate these. I visit a website, usually for a product that I already own, and the freaking ad from that company follows me wherever I go. This is money wasted. Wasted on you, probably not on the majority.

Does the average person like to purchase an item they already own if they see an advertisement for it? Of course not.

Re: Advertisers scramble as ‘non-human traffic’ eats up online budgets

#27
post #17

Besides the non-human traffic, most online ads are created to not be seen. I was even thinking about creating a blog post to call out the marketers out there to change this, but I am too lazy... specially to make them make more money. I am so used to how ads that cover the entire page work that I manage to pass by them without even knowing which brand was advertising there. Ads that force you to watch a video for X s…

The ads that follow you are called retargeting and the reason why they are used is... because they work! They get dramatically more clicks and conversions than other ads. There are also less obvious retargeting ads where websites trade their audiences with advertisers.

But yes, the ad system is completely broken. It's a complete security nightmare - they track you, in plain text, without telling you, they sell data about you without your consent, they are a great way to deliver exploits to millions of people (and their security policies are a complete joke). There are click-farms everywhere, pricing is not transparent, there are less-than-honest practices against advertisers all over the place, inventory gets sent to networks where they don't belong, then there are the intrusive ads, the dark pattern ads...

It would be nice to have an online ads industry that is safe and secure and honest to fund Internet content, but so much about (mass) advertising is so inherently anti-customer that I don't think that will ever happen. I hope we'll figure out ways to directly pay for content instead.

Re: Advertisers scramble as ‘non-human traffic’ eats up online budgets

#28
post #20

I've been in the online advertising world for 10 years and it still befuddles me to see that most ad dollars still haven't switched to cost-per-action (CPA), i.e. only paying for actual conversions. One big benefit of advertising online after all is that tracking conversions and their referrers is much easier than with offline.

I am a pure CPA buyer, so, I agree, that I don't worry much about fraud.

The big money is in brands. P&G goes on a 6-month blitz making sure every man knows about the fusion razor, and the person that cleans the house knows what a swiffer is. They use an ad blitz to secure shelf space and consumer interest, then print money hand over fist for the next decade.

As a CPA buyer, I personally welcome rampant ad fraud because it keeps the people with real money like P&G from bidding up ad prices. Ad fraud screws brands and publishers. It helps CPA advertisers, because it keeps the brand money out of the system.

Re: Advertisers scramble as ‘non-human traffic’ eats up online budgets

#29
post #17

Besides the non-human traffic, most online ads are created to not be seen. I was even thinking about creating a blog post to call out the marketers out there to change this, but I am too lazy... specially to make them make more money. I am so used to how ads that cover the entire page work that I manage to pass by them without even knowing which brand was advertising there. Ads that force you to watch a video for X s…

Yes. You can. Google has made some acquisitions lately in this anti-fraud space.

Most of the Valley does not care, and seems to be invested in maintaining and expanding the scale of the fraud. The market will eventually punish this when conditions change to be less frothy. It will be 2000 redux, for similar reasons as to why SV lost so much credibility the last time around (pervasive traffic fraud).

>Another example, ads that follow me. Oh god how I hate these. I visit a website, usually for a product that I already own, and the freaking ad from that company follows me wherever I go. This is money wasted.

Well, they do work for some people. They just have to be managed in a way that doesn't create this annoyance. You cap the frequency or make it so that the offer is actually attractive and useful to the user. Or you limit what it triggers on to only go off when the user does something that signals their intent to become a customer (like adding certain items to their cart and then abandoning without buying).

Many things that people hate about online advertising as a whole is more caused by people mismanaging the ads than is caused by platform problems.

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