The new dot com bubble is here: it’s called online advertising - The Correspondent


84 bookmarks. First posted by lorenzlm 7 days ago.


Sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walked into the Google offices in Mountain View, California. Google was a hip, young tech company that made money – actual money! – off the internet.
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7 hours ago by rwhe
Online advertising is basically ineffective.
from twitter
8 hours ago by macloo
Disrupticus Idiocratus. Must-read: “The new dot com bubble is here: it’s called online advertising,” by Jesse Frederik & Maurits Martijn. Hat tip: @EephusLeague
ifttt  facebook 
10 hours ago by zeldman
Advertising rationally, the way it’s described in economic textbooks, is unattainable. Then how do advertisers know what they ought to pay for ads?

"Yeah, basically they don’t know," Lewis said in one of those throw-away clauses that kept running through my head for days after.
advertising  ad-tech 
15 hours ago by perich
Mountain View, California, sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walks into the…
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15 hours ago by kerim
Mountain View, California, sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walks into the…
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23 hours ago by mikerugnetta
Sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walked into the Google offices in Mountain…
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23 hours ago by mccutchen
So it turns out online advertising doesn't really work. What a waste of money, privacy, and human dignity: https://t.co/Bf0XIAASZf
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yesterday by nsfmc
RT : So it turns out online advertising doesn't really work. What a waste of money, privacy, and human dignity:
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yesterday by stinie
Facebook advertising doesn't work

Facebook advertising does work
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yesterday by girma
Sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walked into the Google offices in Mountain…
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yesterday by mauty
@rushkoff: So it turns out online advertising doesn't really work. What a waste of money, privacy, and human dignity:
advertising  economics  statistics  hahaonlyserious  2019 
yesterday by mechazoidal
Advertising often doesn't work.
advertising  economics  online 
yesterday by traggett
Mountain View, California, sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walks into the…
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2 days ago by liebo7
Mountain View, California, sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walks into the…
2 days ago by MitchWagner
Jesse Frederik and Maurits Martijn:
<p>Two weeks later, [professor of economics at the UCal Berkeley, Steve] Tadelis met the marketing consultants in the flesh. The advisers had put together a slick presentation demonstrating how eBay was raking in piles of cash with its brilliant ad campaigns. Tadelis recalled: "I looked around the room, and all I saw were people nodding their heads."

Brand keyword advertising, the presentation informed him, was eBay’s most successful advertising method. Somebody googles "eBay" and for a fee, Google places a link to eBay at the top of the search results. Lots of people, apparently, click on this paid link. So many people, according to the consultants, that the auction website earns at least $12.28 for every dollar it spends on brand keyword advertising – a hefty profit!

Tadelis didn’t buy it. "I thought it was fantastic, and I don’t mean extraordinarily good or attractive. I mean imaginative, fanciful, remote from reality." His rationale? People really do click on the paid-link to eBay.com an awful lot. But if that link weren’t there, presumably they would click on the link just below it: the free link to eBay.com. The data consultants were basing their profit calculations on clicks they would be getting anyway.

Tadelis suggested an experiment: stop advertising for a while, and let’s see whether brand keyword advertising really works. The consultants grumbled.

When, a few weeks later, Tadelis contacted the consultants about a follow-up meeting, he was told the follow-up had come and gone. He hadn’t been invited.</p>


This is a deep look at what's fairly evident: a lot of ad spend is to make people (advertiser, publisher, middlemen-aplenty) feel good.
advertising  economics 
2 days ago by charlesarthur
It is crucial for advertisers to distinguish such a selection effect (people see your ad, but were already going to click, buy, register, or download) from the advertising effect (people see your ad, and that’s why they start clicking, buying, registering, downloading).
advertising  economics  marketing  sem 
2 days ago by peterb
--Having gotten a few of this industry's $s working for them, I totally believe this story. I spent my entire stay trying to study and understand why the company's campaigns were effective, but could not get any team to tell me how it all worked. R&D teams in such companies are for vanity, and for producing ggplots that go on *.ppt before meeting with their venture capital gods.
computaional_advertising  causal_inference  marketing  online_experiments 
2 days ago by rvenkat
Is online advertising working? We simply don’t know
Perhaps what’s driving this phenomenon is something much more profound. Something that applies not just to advertising. "There is a fear that saying ‘I don’t know’ amounts to an admission of incompetence," Tadelis observed. "But ignorance is not incompetence, curiosity is not incompetence."

We want certainty. We used to find it in the Don Drapers of the world, the ones with the best one-liners up their sleeves. Today we look for certainty from data analysts who are supposed to just show us the numbers.
Advertising  Media  Digital  measurement 
3 days ago by mikon_nikon
The new dot com bubble is here: it’s called online advertising
from twitter
3 days ago by amspatel
Excellent piece on the challenges of digital advertising:
from twitter_favs
4 days ago by michaelkozak
Excellent piece on the challenges of digital advertising:
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4 days ago by oismail91
Sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walked into the Google offices in Mountain…
from instapaper
5 days ago by mrtoto
Sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walked into the Google offices in Mountain View, California. Google was a hip, young tech company that made money – actual money! – off the internet. via Pocket
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5 days ago by jerrythepunkrat
Mountain View, California, sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walks into the…
from instapaper
5 days ago by mathewi
Sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walked into the Google offices in Mountain View, California. Google was a hip, young tech company that made money – actual money! – off the internet. via Pocket
pocket  advertising 
5 days ago by jburkunk
Mountain View, California, sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walks into the…
from instapaper
6 days ago by hiroprot
"Bad methodology makes everyone happy,” said David Reiley, who used to head Yahoo’s economics team and is now working for streaming service Pandora. "It will make the publisher happy. It will make the person who bought the media happy. It will make the boss of the person who bought the media happy. It will make the ad agency happy. Everybody can brag that they had a very successful campaign."

Marketers are often most successful at marketing their own marketing.
ad-roi 
6 days ago by hearvox
Sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walked into the Google offices in Mountain View, California. Google was a hip, young tech company that made money – actual money! – off the internet. via Pocket
Pocket  from pocket
6 days ago by driptray
ometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walked into the Google offices in Mountain View, California. Google was a hip, young tech company that made money – actual money! – off the internet. Karmazin was there to find out how.

Larry Page and Eric Schmidt, Google’s founder and its CEO respectively, were already seated in the conference room when co-founder Sergey Brin came in, out of breath. He was wearing shorts. And roller skates.
culture_of_online_life  adtech  Journalism 
6 days ago by seatrout
Mountain View, California, sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walks into the…
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6 days ago by dkiesow
> Halfway through his impenetrable answer, another audience member interruption. This time it came from Steve Tadelis. "What Randall is trying to say," the former eBay economist interjected, "is that marketeers actually believe that their marketing works, even if it doesn’t. Just like we believe our research is important, even if it isn’t."
writing 
6 days ago by iago
The new dot com bubble is here: it’s called online advertising via Instapaper https://ift.tt/2WOz3Co
IFTTT  Instapaper  longreads 
7 days ago by chetan
Favorite tweet:

The new dot com bubble is here: it’s called online advertising - The Correspondent - https://t.co/EarKhmCEJD #Adsters #rr

— jotbe (@jotbe) November 6, 2019
7 days ago by nicobruenjes
Mountain View, California, sometime in June 2003, Mel Karmazin, the president of Viacom, one of the largest media conglomerates in the world, walks into the…
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7 days ago by marcinignac