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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?

#51

Earlier quoted context omitted.

Advertisements are fundamentally not what search service users want regardless of searching for a specific brand or not. (Its what advertisers want others to want)

If I’m searching for “Williams Sonoma 12 inch skillet”, advertisements for places selling it are a pretty large subset of what I want.

Sure, but what about an ad from a competitor for a similar pan at a lower cost? Isn't that what advertising is all about?

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

#52

Earlier quoted context omitted.

Defensive spending to protect otherwise organic traffic could also be called extortion.

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.

Right, but you may also be interested in an ad from a competitor for a similar product, especially if they were differentiated by price, no?

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

#53
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…

I purposely click the non-ad link when searching in Google (because I'm too lazy to type the full url). Does that help at all, i.e., prevents unnecessary ad spend from bidding?

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

#54

Earlier quoted context omitted.

Yeah, I think the only on-brand search ads that should be allowed are ones for totally unrelated products OR those ads are placed below what on-brand search results would provide. Google has no incentive to fix this though because it's an extra tax they charge the entire online advertising space (+ all the other search providers do it). Carefully crafted legislation could put an end to this tax.

> Yeah, I think the only on-brand search ads that should be allowed are ones for totally unrelated products... The problem is that this is subjective and would need to be automated somehow. I think Google's original sin here is making the ads look so much like organic search results. Someone placing an ad against a competitors brand name would not be a huge issue if organic results were still front and centre like in…

> and would need to be automated somehow

Or Google, one of the wealthiest companies on the face of the planet, could hire some staff to handle this.

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

#55
post #15

> 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…

> 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 And if they were not above organically they would simply buy the advertising space that William Sonoma purchased. It's one of the slimiest things Google does - allows competitors to purchase advertising space on a query specifically crafted to fin…

Why is that a shakedown? Shouldn't competitors be able to advertise their products? Any users who are actually looking for Williams Sonoma will find it. Any who are open to having their minds changed, or are interested in competing products, will be interested in competitors ads.

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

#56

Earlier quoted context omitted.

If I’m searching for “Williams Sonoma 12 inch skillet”, advertisements for places selling it are a pretty large subset of what I want.

Sure, but what about an ad from a competitor for a similar pan at a lower cost? Isn't that what advertising is all about?

Yes, i was thinking similarly. The GP wants links, not ads (specifically), but if the trustworthy domains are saying this particular skillet is low quality then you want that first, rather than an ad.

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

#57
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…

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.

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

#58

I take issue with the conflation of Performance Advertising with Awareness Advertising. The whole point of _performance_ advertising is that it's effect is _measurable_. If AirBnB spent $500m+ on performance advertising, they should be able to trace that back to an exact amount of revenue. If you are a brand in this scenario, you can conduct split tests by sampling the conversion rate of users from advertising vs non…

Reminder that Uber turned off $100M of their ad spend and saw basically no change in conversions: https://twitter.com/nandoodles/status/1345774768746852353. I’m pretty sure they thought they were working initially (through conversion tracking).

As you mentioned: The most important test (that you should be doing every now and then) is to actually pause the ad and see if revenue falls. Anything else is just an approximation and should be treated as such.

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

#59

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.

My "by definition" detector has fired. It says: that's not true by definition. Ads could instead also be things that users want. I do actually think you have a good point.

I like this pedanticism, but I still think you can even argue the "by definition" piece of it. I suppose it ends up being somewhat tautological in the end.

If you really like Skillet X, and I ask you which skillet I should buy, and you tell me, "Skillet X," then it is not an ad.

If you really like Skillet X, then somebody gives you $5 to recommend it if anybody asks you what skillet to buy, and then when I ask, you tell me, "Skillet X...I mean you should know that somebody gave me $5 to say that to you but honestly I was going to say that anyway" then is it an ad?

It kinda intuitively feels to me like if it doesn't alter the result, it's not an ad, it's just somebody taking advantage of another person's willingness to hand them money and doing nothing in return.

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

#60
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…

I purposely click the non-ad link when searching in Google (because I'm too lazy to type the full url). Does that help at all, i.e., prevents unnecessary ad spend from bidding?

I do the same, but 99% of people do not, so it's really a drop in the bucket.

I do wish there were some regulation such that if a user is searching for a trademarked or copyrighted term, that the best organic search result for that term should be required to show up first. I'm fine with showing competitor ads, but I don't think they should be able to show up above the trademark owner's ads.

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