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What if performance advertising is just an analytics scam?

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Re: What if performance advertising is just an analytics scam?

#161

Earlier quoted context omitted.

I guess that's more a customer satisfaction problem for Google, than it is a problem for advertisers.

Advertisers are the customers, or am I missing something? To be fair, I don't consume any adblockable ads or TV ads (maybe once a quarter for TV) so I don't know if people click them, how much does purchasing ads affect the normal search score?

Sorry, I should have written "users".

Re: What if performance advertising is just an analytics scam?

#162

Earlier quoted context omitted.

- Brian's comments about Airbnb's approach to performance marketing are used to imply that Airbnb's lessons apply to other businesses. Very few businesses - especially those that start from small numbers and need to grow them - have 90% of their traffic mix come from repeat customers. Using Brian's comments helps fuel the narrative that brand marketing is a better investment than performance marketing, which is corre…

> Rand implies that you have to do your own studies [...] which is 100% wrong - Facebook will do them for you So FB, who earns on my spending, offers me to measure for me whether my spending makes sense for me. Why would FB ever tell me to spend less? Don't they like money?

The causal incrementality of ad spend is rarely negative. You expect to see decreasing returns with additional ad spend. For each dollar in ad spend, one advertiser might want to see $3 in revenue, another $5. Incrementality studies then allow advertisers to tune spend to their operating points.

Facebook does like money. Do you think lying to the biggest advertisers in the world is the best long-term strategy, or do you think instead it might be better to report out the most accurate results possible?

Re: What if performance advertising is just an analytics scam?

#163

I've been beating this drum for a decade. I once even had a marketing department shut down with analytical proof. I got tired of the marketing department with probably 50x the IT department budget constantly jumping down our throats about how "IF ONLY IT HAD DELIVERED X BY X we could have had 100,000,000,000x /s sales this month" I made a dynamic report dashboard in my first react project to analyze market spending a…

And that React project's name? Albert Einstein.

Re: What if performance advertising is just an analytics scam?

#164
I forgot to do something and basically ended my Google Advertising spend. I haven't missed it in the least. I don't know if I would have done better without it, but an increasing number of people still find my website and phone number even though they are no longer clicking on the ad that Google provided when they searched my exact company name, costing me the majority of my ad spend.

Re: What if performance advertising is just an analytics scam?

#166
post #18

> Technically, when someone does a Google search for “Williams Sonoma Cast Iron Skillet,” they probably would have clicked on one of the first 10 organic results, EVERY ONE OF WHICH leads to their website. But, y’know what ol’ Billy Ma’s performance marketers couldn’t then do: prove their value to their bosses. > [picture of that search term and williams sonoma ads with shopping links] The main problem here is that i…

> The main problem here is that if Williams Sonoma was not advertising on that search term, Lodge and Food52 etc etc would, and then those companies would be above the Williams Sonoma organic placements. This is what is known as "on brand" Search ads. I like to call these effectively the "Google Tax" because publishers/retailers are forced to pay Google for the traffic they would have already received had the ad not…

It's not a tax, it's a protection racket. You wouldn't like it if someone looking for Williams Sonoma saw results for Sur La Table, would you? Pay up.

Re: What if performance advertising is just an analytics scam?

#167
post #125
post #18

Earlier quoted context omitted.

> The main problem here is that if Williams Sonoma was not advertising on that search term, Lodge and Food52 etc etc would, and then those companies would be above the Williams Sonoma organic placements. This is what is known as "on brand" Search ads. I like to call these effectively the "Google Tax" because publishers/retailers are forced to pay Google for the traffic they would have already received had the ad not…

It’s less the Google tax than the “advertising is now efficient” tax. Any other medium would theoretically have the same problem: if Ovaltine doesn’t sponsor kids’ radio shows in the 1950s and someone thinks they can deploy capital to grow a competitor, that someone will buy that slot. People couldn’t do this because there were human processes and relationships slowing this marketplace down. The thing that Google did…

They weren't bidding on keywords, though, just airtime.

That's an entirely different advertising model and market.

Re: What if performance advertising is just an analytics scam?

#168
post #57

Earlier quoted context omitted.

Sometimes I click on Google ads just because I don't like a brand and feel a little bit of joy knowing I just cost them a dollar.

Way more than a dollar. If you really want to cost a company a pretty penny, click on the ad after searching for an "intent" to do something rather than the exact brand. Some of those Adwords cost many tens of dollars.

You’re kidding! A single click costs more than a dollar?

Re: What if performance advertising is just an analytics scam?

#169

I forgot to do something and basically ended my Google Advertising spend. I haven't missed it in the least. I don't know if I would have done better without it, but an increasing number of people still find my website and phone number even though they are no longer clicking on the ad that Google provided when they searched my exact company name, costing me the majority of my ad spend.

As I understand it ad spend is good if you want attention right now. In the long term organic traffic is cheaper and more desirable. In addition ads can be good for exploration.

So it's only natural that after some time organic traffic exceeds paid traffic.

Re: What if performance advertising is just an analytics scam?

#170
post #133

Earlier quoted context omitted.

Maybe your situation or industry is an exception, but my view is that affiliate marketing is one of the most corrosive influences on today's internet. It drives a truly mind boggling amount of spam of all types, from affiliates who add literally no value other than inserting their affiliate code into the transaction. The proportion of content on the web that provides no true new information, but exists solely to driv…

A lot of things can fall under the "affiliate" umbrella but what we did was doing 1-on-1 deals with content providers who were acquiring a lot of relevant traffic. It was not promo code spamming.

Wait, so what was the monetization channel for the influencer?
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