Live data from Hacker News

What if performance advertising is just an analytics scam?

sparktoro.com

191–200 of 369 posts

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

#191
post #57
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…

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.

Marvelous! I'll do the same. Watch out, Exxon!

I mostly click on ads as chaff (mostly I block them but sometimes unblock them just do do some random clicking in the hope of confounding some profiles being compiled on me)

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

#192

Earlier quoted context omitted.

Forget about the corporate POV for a second, as a user, if I'm searching for X, I probably want X in my results, no? It's the fundamental contradiction in Google's search ads model. If Google delivers users the thing they want, ads by definition have to be things users don't want.

>>> If Google delivers users the thing they want, ads by definition have to be things users don't want. Ben Evans has a tweet something like "half of facebook devs are working out how to code the algorithm to serve you just what you want to see, the other half are working out how to get the algorithm to serve you what advertisers want you to see. " We are doing something wrong

Natural outcome of all internet advertising based models imho.

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

#193
post #181

Earlier quoted context omitted.

I'd rather ignore some ads which are less intrusive than places like Amazon than pay a subscription fee to use search, gmail and docs which are funded by ads.

There are other options. For example, funding a publicly-owned search engine with $1 billion a year in infrastructure and development costs would be 50x cheaper than what the US spends on foodstamps. It'd be 1/10th the NSF's annual budget. Not that that's the best option, but we could consider some new ideas.

A publicly owned search engine, that will absolutely not be used for propaganda purposes by, say, the Department of State, or by a megalomaniac elected representative.

Need to build consent for a war with ? Give me access to the search index, and a few weeks, and it'll be done.

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

#194
post #193
post #181

Earlier quoted context omitted.

There are other options. For example, funding a publicly-owned search engine with $1 billion a year in infrastructure and development costs would be 50x cheaper than what the US spends on foodstamps. It'd be 1/10th the NSF's annual budget. Not that that's the best option, but we could consider some new ideas.

A publicly owned search engine, that will absolutely not be used for propaganda purposes by, say, the Department of State, or by a megalomaniac elected representative. Need to build consent for a war with ? Give me access to the search index, and a few weeks, and it'll be done.

I didn't say it was the best option. But wow, you just trust a billion lines of closed source written to satisfy ad optimization criteria with zero transparency? I mean, we can subject things to public oversight.

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

#195
post #128

Earlier quoted context omitted.

If you take as a foundational assumption that the brand name in the search string means the traffic is in some sense owned by the brand, then you're absolutely right. It's essentially racketeering. Certainly brands often view traffic that way. Personally I resist the idea that a brand owns my attention because I used a keyword, but that's one of my many personal quirks.

It's a little dicer in the cases where we can pretty much infer that they're trying to get to a specific thing and would have happily used a direct URL to the page if they had the wherewithal to do so. In this case the ad placement is basically a brand trying to hijack my attention while I'm in the process of seeking a thing out. I struggle to think of a meat world analogy. It would be something like if I dialed my g…

I think it's an excellent metaphor!

I think it also exposes the core problem. The metaphor rests on knowing intent with certainty. It's perhaps possible that certain clarity and pretty much inferring might not always be the same, especially with how search and URL bars have merged.

But I understand completely. If you genuinely feel like you know that person's intent with certainty, someone else having a crack at their attention along the way feels like a violation of your relationship.

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

#196

> 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…

I always skip the ad links and click the organic one, even if it's for the correct company/product. Because when I click on the ad link 9/10 is some weird ad funnel page radther than the actual product page I wanted to go to.

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

#197
post #194
post #193

Earlier quoted context omitted.

A publicly owned search engine, that will absolutely not be used for propaganda purposes by, say, the Department of State, or by a megalomaniac elected representative. Need to build consent for a war with ? Give me access to the search index, and a few weeks, and it'll be done.

I didn't say it was the best option. But wow, you just trust a billion lines of closed source written to satisfy ad optimization criteria with zero transparency? I mean, we can subject things to public oversight.

Google is pretty big with open sourcing. Open sourcing search would ruin it though. Spammers would game the system.

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

#198

Earlier quoted context omitted.

Can I politely suggest that you share with us the holes you see in the arguments and how you see them? Whether or not Rand is any good at what he does or says will be clear by your expert disassembly of his arguments.

- 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…

"Also, as another member pointed out, Airbnb's performance marketing budget is still well over $200M/year, which no responsible/public company would spend if it wasn't returning a great ROAS. Finally, Airbnb is known for all sorts of marketing shenanigans in their early days, and they certainly can't take the credit for a pure brand play."

My experience is exactly the opposite. The larger the budget, the less real hard analysis is done. This is especially true with the rise of attribution modeling which allows marketers to essentially motion blur the data.

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

#199

Earlier quoted context omitted.

Incrementality studies: https://www.adroll.com/blog/marketing-analytics/beginners-gu... Interesting article 1. "industry" is moving away from last touch attribution (pretty much what Rand complains about) 2. "Incrementality strives to identify the causal event of a conversion," The way to identify the causal action seems to be : errr ... that's difficult

You linked to an article that offers no guidance on how to actually do it, which is more indicative of the article itself than of the methodology. One of the vendors in this space has a good amount of content on this topic, which you can find at the bottom of this page: https://www.measured.com/ . Dislaimer: I have nothing to do with this vendor or the industry in general (apart from successfully spending money on pe…

My apologies I should have prefaced it with "for others confused as to what incrementality is all I could find was ..."

It's a surprise to see a vendor have a clear explanation on their site however - and it's worth quoting i think

>>> Incrementality testing creates an experiment that systematically withholds media channel exposure to a representative subset of users (the control group) while maintaining normal media channel exposure to the broader user set (the test group). If the control group is both sizable enough to be statistically significant and selected at random such that they are broadly representative of the user base, then the media channel’s incremental contribution can be determined by the difference in business outcome (conversion, revenue, profitability, etc.) between the test and control groups.

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

#200

So much of what we rely on today for Internet applications and infrastructure has at its core a fallacious advertising revenue model. As companies who spend money on advertising realize the low returns they are getting, they will turn off that ad spend, which will turn those platforms into increasingly needy and demanding in your face advertisers, being more intrusive with your data. Since the average "user" is the p…

> What is truly sad is that some of the smartest computing minds of our day are spending their efforts at these FAANGs not advancing society but rather helping keep people more addicted to social networks, optimize for clicks on video and web streams, pushing products in all your channels, and optimizing for the wrong things. How have we gone so astray? I think this sounds deeper than it actually is. What you're desc…

Considering technology, capitalism, are causing a mass extinction on our planet and pushing us to collapse I'm not sure that I can't deny our technological advances have been beneficial.

When something is killing you and all life on the planet, it doesn't matter if it's killing you softly.

Post reply on HN