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The End of Advertising

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Re: The End of Advertising

#3
It's sad that anyone thinks the advertising model will go away. Amazon has proved that people will pay subscription fees AND get served ads.

I wouldn't mind quite so much if the advertising was at least interesting and creative. Most of it is just the same regurgitated crapola.

Re: The End of Advertising

#5
As an ad professional - this is a thoughtful article.

I think paid social ads will be less affected by AI than search ads. After all, AI is unlikely to replace human social interactions. That's a good thing. Paid social ads have a much higher incrementality compared to search.

Search ads in comparison are often just the "Google tax".

In my personal life, I've replaced 80% of my previous searches with quick ChatGPT 4 prompts. It gives better answers, faster.

Re: The End of Advertising

#6

It's sad that anyone thinks the advertising model will go away. Amazon has proved that people will pay subscription fees AND get served ads. I wouldn't mind quite so much if the advertising was at least interesting and creative. Most of it is just the same regurgitated crapola.

What did Amazon prove that newspapers and cable tv haven’t demonstrated for ages?

Re: The End of Advertising

#7
There are a lot of issues with this article, but I think it is indicative that the author, a partner at a VC firm, thinks the business model is something AI companies like Anthropic and OpenAI will just “figure out” later.

I disagree. They’ve already figured out their business model: taking VC money, giving it to Nvidia, and coming back for more money.

The author mentions users have a revealed preference for ads. This is obviously not true otherwise Adblock wouldn’t exist. Users have a revealed preference for free things. Similarly, companies have a revealed preference for free money.

It’s notable that the successful companies the author mentions (Apple, Amazon, Netflix, Google, Meta) all figured out their business models a long time ago.

Re: The End of Advertising

#8

It's sad that anyone thinks the advertising model will go away. Amazon has proved that people will pay subscription fees AND get served ads. I wouldn't mind quite so much if the advertising was at least interesting and creative. Most of it is just the same regurgitated crapola.

I don’t mind the terrible ads. I wish they were all like that because I don’t like being advertised to. Make them all useless and easily dismissed please.

I don’t need any help spending my money and I don’t appreciate all the psychological influence tactics being weaponized against me in every moment of my existence to get some inane brand buried in my subconscious.

Re: The End of Advertising

#9

It's sad that anyone thinks the advertising model will go away. Amazon has proved that people will pay subscription fees AND get served ads. I wouldn't mind quite so much if the advertising was at least interesting and creative. Most of it is just the same regurgitated crapola.

What did Amazon prove that newspapers and cable tv haven’t demonstrated for ages?

I had the same thought. I think that it was slightly different in the age of paper publications and cable though because there was no alternatives. Now, everyone runs their own streaming service, and until all of them decide to also run ads (a la the cable company of yore), theres still some shred of consumer choice. The aggressive nature of exclusive content and licensing puts a lot of leverage on that perceived choice though, and content/service bundling (prime) do as well, which i figure factors in to peoples acceptance of ads on prime video.

Even that aside, it may just be consumers not caring or wvwn liking ads. I have a friend who refuses to even consider ad blocking because he claims to enjoy ads (bizarre to me, but he did major in digital marketing and has expressed his enjoyment of it).

Re: The End of Advertising

#10
Marketing AI has the chance of testing campaigns across a slew of otherwise unrecognizable demos/keywords…

I see AI consistently eliminating rational judgments from middle management seat fillers…MDs and scientists inclusive.

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