Thus, there is a monetary cost if the advertiser succeeds. Google is just a middleman, taking a cut of those prospective sales.
The sad part of online ads is that the internet allows an advertiser, with Google's help, to potentially annoy hundreds of millions of people in order to make some small number of sales. The "solution" to this inefficiency is "targeting" and "stickiness", and that is where the whole business becomes far too intrusive and counterproductive.
In the earlier days of the internet people knew ads were not what they wanted to see on the network. I remember the first ad someone posted to Usenet. IIRC it was an immigration lawyer. Brin and Page originally said when they announced Google in 1998 that they wanted to offer an alternative to a black box web search engine that is funded by advertising.
The only thing that has changed since then is that new users are less critical, they have no idea what the internet is like without the advertising. Imagine if every household had to participate in an AC Nielson study just to watch TV. There are generations of users now that have no idea what those times were like, when people expected privacy and there were boundaries. They cannot fully appreciate what has been lost because they never experienced it to begin with. It is not too late to reclaim what is being stolen.
This sentence suddenly made me see all online ads as essentially modern, “intelligent” robocalls at scale.
As much as we like to imagine our minds to be impenetrable bastions of rationality, they are not. We can easily be enticed and manipulated to do things we wouldn't otherwise do, to see things differently than we otherwise would, to consider things we wouldn't consider, and all of that is exactly what the advertisers are paying for.
And maybe abolishing democracy
Political manipulation ads, helping an authoritarian rise to power.
But ads for buying what I just searched for: "buy new running shoes", aren't like that -- they can be helpful instead :-). It's mainly social network ads like on Facebook that are dangerous for society?
From the article:
> I think advertising is positive
It's both? Ads are different from ads, just like different things one can eat are different, like potatoes (running shoe ads) versus poisonous mushrooms (nation states abolishing democracy in the US via political manipulation on Facebook)
I’m pretty sure there are better criteria for those results than the amount of money paid to end up in that list.
But alas, that’s not what modern search engines use, because they are advertisers first and foremost. Not reputable search providers anymore.
I looked at my competitors and saw that most of them were obviously shilling for the company that was paying them the most, which was never the best. I figured by being the most honest I could be the most trusted and win out.
The trouble is, the best companies would rely upon word of mouth. Promoting them wouldn't get me paid a dime. Honesty would benefit them, but not me.
Getting traffic, meanwhile, I realized would cost me money.
That's when I realized that the only way to get a non negative margin in that industry was to sacrifice your objectivity (which is what everyone did).
Theoretically you could charge users for this I guess, like Which? magazine does but I couldn't see a straightforward route to that point that wouldn't involve burning a lot of capital I didn't have. The chicken/egg problem rose its ugly head again.
I gave up soon after.
Besides, how could he prove his honesty either way?
I guess he could arrange commission with all companies, hope that his favourite brand isn't also the one paying the most, and then disclose all the commissions.
I think so too
> hope that his favourite brand isn't also the one paying the most, and then disclose all the commissions.
I'm thinking that if the site visitors have a way to see that usually the site promotes other brands than the highest paying, then that'd be good enough. At the same time, why would they trust the disclosure info :-)
Another thought: if his/her favorite brand didn't pay enough, s/he could just disclose the commissions, but not write any review. (To encourage that brand to pay more)
The competing sites would tend to either pretend that these companies don't exist, or if that wasn't possible coz the brand was strong would subtly try to indicate that they weren't all that hot compared to [site that pays a LOT for new customers].
I don't mean to suggest that the challenge was insurmountable, but I couldn't figure out a way to make honesty pay, particularly given the high cost of acquiring traffic.
Moreover, if you acquired some sort of trust (which many parties did) or a high spot in google through an aged domain or something, the incentive to exploit it for profit would inevitably take over.
It was clearly something users cared about coz they complained about it, but there was something akin to a tragedy of the commons going on.
These market dynamics are fairly common across many industries. I don't think the one I chose was particularly special.
Consulting or something might have been possible but at that point it's basically giving up and joining an entirely different industry - which is what I ultimately did.
I really really tried to make honesty pay but I couldn't.
Those sneaker ads probably aren't destroying our democracy[1], they're just costing the society things that are hard to quantify. They induce me to buy what's most profitable to the sellers, not what's best for me. They take away business from actually helpful resources, and from those who don't advertise on Google.
[1] They are enabling the existence of a search monopoly (along with other factors), so you know, "probably" is the strongest word I'd go with here.
The whole system incentivises ads that match the intent of the user, any deviation from this is extremely difficult and not profitable for the advertiser in most cases.
But if the user buys from the ad, that doesn't say anything about whether the ad was useful (or counter-productive) to the user, it only means that this transaction was profitable to Google and the advertiser.
Ads not matching the search query are not the issue. They are neither profitable nor helpful, so you can't use that criterion to distinguish the two goals.
I don't think advertising does work well on everybody nor does it have to. Maybe not even half of us need to be susceptible for it to be as profitable as it is.
I have noticed some people are much more susceptible to suggestion than others. These people are probably responsible for a disproportionate amount of commercial profits and probably more likely to be taken in by paid political campaigning.
Furthermore, I reckon if we could hold a mirror up to many of these people they might reconsider their behavior (it probably would work better than shouting at them at thanksgiving or over Facebook).
A product you pay for with your attention has a voracious appetite for your attention. The more you use it, the more valuable it is to the company that made it. It would be best if you were using it All The Time. It would be best if it was incredibly addictive so you would never get tired of it and move on to something else. It would be best if the maker of this product could measure how much of your time they were capturing so they could make sure to capture even more in the future.
And in fact, if you look at time use studies, we pretty much spend all of our waking lives using a phone, tv or computer. There is literally no time left, so an advertising company is trying to invent a self driving car so you can keep using your phone during your commute, the last sliver of waking life left unconquered. Our dreams will surely be next.
The sweet spot is likely a little different for everyone, and is whatever amount of attention keeps them subscribed, but no more.
Additionally, I have a customer-vendor relationship with Netflix. With a random ad-supported website or something like Facebook, I'm the product, not the customer. I would much much much rather be a customer than a product.
Does Netflix license content on a per play basis? All the info over the years I’ve read, although not official, indicate they were paying the content owners a flat amount for a certain time period.
For example
https://www.nytimes.com/2018/12/04/business/media/netflix-fr...
I used to believe that. Nope, they want all your attention all the time. If they lose it, another streaming service might gain some market share, and the stock price will lose billions.
All else being equal, given a choice between a change that makes people watch more minutes per month or less, Netflix will always choose more.
So while Netflix wants all your TV time, they derive no extra benefits if all your time us TV time. This is absolutely not true of advertising supported services that make more from you the more time you spend.
"Most" means "not all".
For example, Slack is a growth focused company that uses a subscription model for revenue and has no incentive to maximize time spent in their App.
You are correct that advertising, microtransactions and gambling lead to very similar business model incentives.
There's the aesthetic cost. If I see an ad on or near a nicely designed or produced website or video, it immediately detracts from the visual appeal.
There's the annoyance cost. I'm personally immediately irritated and annoyed when I see or hear an ad. It affects my mood and my impression of whatever I'm trying to look at or listen to. (I despise it when I'm away from my computer and have a podcast on which ends and instantly transitions to some loud peppy ad for a fast food restaurant and I have to interrupt whatever I'm doing to walk over and shut the thing off.)
For some, there's the cost of paying for a product or service that an ad misled them about. They may pay more than they should have or get something which is portrayed a certain way in an ad which doesn't hold up in reality.
There's the psychological and sociological cost. Ads (especially in video or audio form) present a certain clinical and biased world frame. People usually talk and act in unnatural or "perfect" ways. A young person exposed to, say, hundreds of ads per week and thousands of ads per year may eventually start to subconsciously find that frame normal and expected. Even though they know they're ads rather than non-fiction, I think those things can potentially seep in in some cases.
There are the conflicts of interest and the effects caused by suspicion of conflicts of interest. If I see a "sponsored search result" or "sponsored article", I expect that the source will be less likely to show things which might propose a competing narrative or say anything negative about the sponsor. "Okay, I can't trust this source for anything related to [X], now."
As a corollary to the annoyance cost, there's the fakeness/sincerity dissonance cost. If I'm reading an article or listening to a podcast that's presented as, or may very well be, sincere and truthful, it's a little bit jarring for it to be interrupted with some fake, artificial, marketer-crafted bullshit with superlatives about how [X] will change your life and is the best thing ever. A little hard to take the rest seriously at that point.
I feel like I could list at least ten more. From a purely subjective and personal perspective, I don't even mind the egregious privacy implications as much as all these other things. I just fucking hate seeing and hearing ads.
This is a big one. Something being free with advertisements doesn't mean that we're not paying for it, just that the way we're paying for it is hidden. Companies don't pay Google money for altruistic reasons, they're paying because they can earn more.
If you think about it, we're actually likely to pay more when we pay through ads. Google wants X dollars. In a subscription model, we pay X. In an ad model, a company gives Google X, because they think they can make X + P (profits). So they get us to buy a product we don't need, and in order to recoup their loss we need to be paying the manufacturing cost M (we'll pretend other costs like transportation and retail markups are included in here as well), plus X, plus P. Otherwise the advertising isn't worth it. Instead of us paying X to Google to us their products, now we're paying X+P+M for their products in a very roundabout way, and then calling it free.
Banner blindness. It's been proven that people have become used to ignoring banner ads. Their eyes jump over them as soon as they're recognized. Since there may be false positives, this habit has implications for user interface design: an actual user interface element that looks like a banner ad will be ignored by most people. On the other hand, sites have also begun to style their ads exactly like their main content in order to make it harder for users to distinguish them.
For example: “we’re rolling out a new tool. It takes only fifteen minutes to learn!” when 100,000 people have to learn it.
Developers working in advertising aren’t just exhibiting this disorder; they are consumed by it.
Time is the most valuable commodity anyone possesses. Stealing it is diabolical.
That is, you are incentivized to significantly reduce the pleasure obtained from your product, as the attention demanded by ads competes with the attention of your readers/viewers.
But if you are selling a good for money, while you are also incentivized to keep raising prices until the marginal cost of the product is equal to the marginal benefit, the money you charge doesn't reduce the quality of the product. A beautiful car may be painful to buy, but it's still a beautiful car. There is no such thing as a beautiful website with ads, the product is intentionally made awful.
And that situation of destroying value creates really weird long and short-run equilibria. For example, ads incentivize the kind of products for which attention is more easily shared: you wont find a lot of deep-think pieces that are ad-supported because the ads are too distracting. Instead, you find a lot of short-attention span pieces as these work better with ads. Thus the staccatto assaults of 9 weird tricks to do X, where you read a weird trick and then look at a couple of ads and go to the next weird trick. You can feel the presence of the ads in the work itself. In the Old TV era, episodes would encounter these cliff-hangers when the detective walks into a room, points a gun, you hear the sound of a woman screaming, and then it cuts to a commercial. They needed to create this peak of interest so you'd stick around to see what was in the room. But that peak also artificially disrupted the story. Online, all that is compressed into a few seconds of recognition, it is constant disruption.
In terms of long-run equilibria, there is this ratchet effect: As people flee the ad-sponsored world the ones who remain are more insentitive to ads and so the number of ads increases. In other words, the quality of the writing gets worse over time, in an ad-supported eco-system.
So no, ads are not just an alternate way of paying for content, they are a way of shaping content, and for the worse.
I don't like these things at all, but they're something. With an ad, you're solely siphoning off a portion of my infinitesimally fleeting existence. It's like getting stuck in traffic, except deliberate and with malice aforethought.
For that and several other reasons, I strongly prefer independent solo journalists (or very small independent self-operating teams) rather than ones that work for publications. I think Substack and Patreon are far better solutions here than advertising is, for example.