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  • feedwordpress 17:36:20 on 2018/11/05 Permalink
    Tags: , , , , , Of Note in Search Biz   

    Lazy Ad Buying Is Killing The Open Web. 

    But…I just *bought* a robe. I don’t want another one.

    If you’re read my rants for long enough, you know I’m fond of programmatic advertising. I’ve called it the most important artifact in human history, replacing  the Macintosh as the most significant tool ever created.

    So yes, I think programmatic advertising is a big deal. As I wrote in the aforementioned post:

    “I believe the very same technologies we’ve built to serve real time, data-driven advertising will soon be re-purposed across nearly every segment of our society. Programmatic adtech is the heir to the database of intentions – it’s that database turned real time and distributed far outside of search. And that’s a very, very big deal. (I just wish I had a cooler name for it than “adtech.”)” 

    But lately, I’m starting to wonder if perhaps adtech is failing, not for any technical reason, but because the people leveraging are complicit in what might best be called a massive failure of imagination.

    I’m about to go on a rant here, so please forgive me in advance.

    But honestly, who else out there is sick of being followed by ads so stupid a fourth grader could do a better job of targeting them?

    Case in point is the ad above. I took this screen shot from my phone this past weekend while I was reading a New York Times article. The image – of a robe Amazon wanted me to buy – was instantly annoying, because I had in fact purchased a robe on Amazon several days before. Why on earth was Amazon retargeting me for a product I just bought?!

    But wait, it gets worse! As I perused the next Times article, this ad shows up:

    That would have made sense *after I bought a robe, but…” I bought slippers two weeks ago. So WTF?

    You might think this ad makes more sense. If the dude buys a robe, makes sense to try to sell him a new pair of slippers, no? Well, sure, but only if that same dude didn’t buy a new pair of slippers two weeks ago. Which, in fact, I did just do.

    So, yeah, this ad sucks as well. Not only is it not useful or relevant, it’s downright annoying. The vast machinery of adtech has correctly identified me as a robe-and-slippers-buying customer. But it’s failed to realize *I’ve already bought the damn things.*

    Is it possible that adtech is this stupid? This poorly instrumented? I mean, are programmatic buyers simply tagging visitors who land on ecommerce pages (male robe intender?) without caring about whether those visitors actually bought anything?

    Are the human beings responsible for setting the dials of programmatic just this lazy?

    Yes.

    I’ve been a critical observer of adtech over the past ten or so years, and one consistent takeaway is this: If there’s a way for a buyer to cut corners, declare an easy win, and keep doing things they way the’ve always been done, well, they most certainly will.

    But why does it have to be this way? Digging into the examples above yields an extremely frustrating set of facts. Consider the data the adtech infrastructure either got *right* about me as a customer, or could have gotten right:

    • I am a frequent ecommerce customer, usually buying on Amazon
    • I recently purchased both a robe and some slippers
    • I am reading on the New York Times site as a logged on (IE data rich) customer of the Times‘ offerings

    These are just the obvious data points. My mobile ID and cookies, all of which are available to programmatic buyers, certainly indicate a high household income, a propensity to click on certain kinds of ads, a rich web browsing history reflecting a thickly veined lodestar of interest data, among countless other possible inputs.

    Imagine if a programmatic campaign actually paid attention to all this rich data? Start with the fact I just purchased a robe and slippers. What are products related to those two that Amazon might show me? Well, according to its own “people who bought this item also bought” algorithms, folks who bought men’s robes also bought robes for the women in their life. Now there’s a cool recommendation! I might have clicked on an ad that showed a cool robe for my wife. But no, I’m shown an ad for a product I already have.

    Why?

    I’ve got a few calls in to verify my hunch, but I suspect the ugly truth is pure laziness on the part of the folks responsible for buying ads. Consider: The average cost for a thousand views (CPM) of a targeted programmatic advertisement hovers between ten cents (yes, ten pennies) to $2.  With costs that low, the advertising community can afford to waste ad inventory.

    Let’s apply that reality to our robe example. Let’s say the robe costs $60, and yields a $20 profit for our e-commerce advertiser, not including marketing costs. That means that same advertiser is can spend upwards of $19.99 per unit on advertising (more, if a robe purchaser turns out to be a “big basket” e-commerce spender).  So what does our advertiser do? Well, they set a retargeting campaign aimed anyone who ever visited our erstwhile robe’s page.  With CPMs averaging around a buck, that robe’s going to follow nearly 20,000 folks around the internet, hoping that just one  of them converts.

    Put another way, programmatic advertising is a pure numbers game, and as long as the numbers show one penny of profit, no one is motivated to make the system any better. I’ve encountered many similar examples of ad buyers ignoring high-quality data signals, preferring instead to “waste reach” because, well, it’s just easier to set up campaigns on one or two factors. Inventory is cheap. Why not?

    This is problematic. What’s the point of having all that rich (and hard won) targeting data if buyers won’t use it, and consumers don’t benefit from it? An ecosystem that fails to encourage innovation will stagnate and lose share to walled gardens like Facebook, Google, and others. If the ads suck on the open web (and they do), then consumers will either install ad blockers (and they are), or abandon the open web altogether (and they are).

    We can do so much better. Shouldn’t we try?

     

     

     
  • feedwordpress 21:22:45 on 2016/10/22 Permalink
    Tags: , Of Note in Search Biz   

    Google Capitulates to Facebook’s Identity Machine: Is This Good News For The Open Web? 

    The post Google Capitulates to Facebook’s Identity Machine: Is This Good News For The Open Web? appeared first on John Battelle's Search Blog.

    Screen Shot 2016-10-22 at 2.21.23 PM

    Long time readers of this site know that once a year I make predictions, and revisit those I made the year before. But it’s not often I look back farther than one year to see if perhaps I was just a tad too early. It appears in the case of Google and personal data, I was.

    In my predictions for 2015 I wagered that Google would “face existential competition from Facebook” forcing it to “connect its search and personal data to its Doubleclick asset.” This was a debatable prediction – Google had long prided itself on its privacy policies, and when it acquired DoubleClick, it canonized its stance with this line in its online policy“We will not combine DoubleClick cookie information with personally identifiable information unless we have your opt-in consent.”

    That line is now gone. In its place is this: “Depending on your account settings, your activity on other sites and apps may be associated with your personal information in order to improve Google’s services and the ads delivered by Google.”

    Put another way, Google has capitulated to the power of Facebook’s online identity tsunami, and has connected all the information it has about us – our search history, usage of Google apps like Gmail, Docs, or YouTube, and our history of interaction with Google’s advertising business – so as to better target us on behalf of advertisers. Of course, this move also allows Google to  better compete with Facebook, which can target Facebook users – and now even non users – across the web.

    Given I predicted this would happen, I’m not that surprised it finally did – in fact, I’m surprised it took this long. To its credit, Google has made the shift by asking its customers to opt in – but the process, as described in this ProPublica piece, was pretty opaque.

    Pulling back, I actually believe this represents good news for the web, and for the evolving adtech industry. For years we’ve built an open web advertising infrastructure based on anonymity, even as Facebook leveraged its native advantages based on real identity. If we can get to the point where advertisers can actually know who they are communicating with, perhaps our advertising ecosystem will evolve to a place where it adds value to consumers’ lives on a regular basis, as opposed to interrupting and annoying us all day long. When that happens, Facebook’s implicit advantage – that it knows who we are – will become commodified, and perhaps – just perhaps – the open web will once again thrive.

    The post Google Capitulates to Facebook’s Identity Machine: Is This Good News For The Open Web? appeared first on John Battelle's Search Blog.

     
  • feedwordpress 23:22:48 on 2014/02/24 Permalink
    Tags: , Chrome, chromebook, , , google play, , , Of Note in Search Biz, sundar pichai   

    What Would You Ask Sundar Pichai, SVP Android & Chrome at Google? 

    The post What Would You Ask Sundar Pichai, SVP Android & Chrome at Google? appeared first on John Battelle's Search Blog.

    sundar_pichaiA week from this coming Sunday at SXSW, I’ll be interviewing Sundar Pichai, Google’s Senior Vice President, Android, Chrome & Apps. Pichai has a huge job at Google, overseeing the company’s mobile ecosystem, from hardware (the Nexus platform) to the burgeoning Play store (oh, and that little browser/OS called Chrome, to boot). Last year, he took over Android from its founder Andy Rubin, who has moved his focus to new (and currently undisclosed) Google moonshots. Android is a huge business for Google – more than a billion devices have been activated since its inception. And that’s well before markets for autos, wearables, and enterprise heat up.

    The interview is in classic SXSW keynote form – just us on stage, with a room of 1,000 or so attendees from the festival’s interactive track. On a prep call last week, Sundar mentioned he’d be up for hearing from readers here and on various social networks, so I’m issuing a call: What questions do you have for the man in charge of Google’s mobile future? A few that come to mind:

    - What is Android’s role beyond phones & tablets? Pichai has said Android is moving into areas such as the enterprise, wearables, and automobiles. How might that play out? Will Nest become an Android device? Will you have to join Google+ to manage your thermostat?!

    - I’ve called Google Now “The tip of a very long spear.” Is that a fair characterization?

    - Much has been written about fragmentation in the Android ecosystem-is this a problem? Is Android truly “open”?

    - The relationship between Google and Samsung seems strained – how is it going?

    - What is the future of the Nexus effort – is Google committed to being a hardware player, or is the Nexus line mainly a way to show off how best to create devices? Related – what happened with Motorola? Was that a mistake, or part of a master plan?

    - How do Chromebooks and the Chrome OS fit into Google’s future? How do we think about Chrome as separate from Android?

    -  Chromecast, Google Fiber, Play, YouTube: All seem positioned to combat the Comcasts of the world. What’s Google’s POV on cord cutting and the cablecos?
    Might Google up and buy sports rights?

    What questions do you have for Pichai? Leave a comment here, or tweet them to me @johnbattelle. Hope to see you at SXSW!

    The post What Would You Ask Sundar Pichai, SVP Android & Chrome at Google? appeared first on John Battelle's Search Blog.

     
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