Category Archives: digital media

Why Does Anyone Buy Digital Ads?

Billions of dollars are spent marketing via programmatic advertising. Many billions more are spent paying for app installs – money that changes hands when an ad convinces a consumer to install an app on their smartphone. Ask yourself this: in what other business do you as a customer have a pretty decent chance of being defrauded? Off the top of my head, I can think of used cars and the investment world as places where customers should tread exceptionally carefully. Each of them has a certain subculture of ripping people off and there is a small percentage of bad actors who cause the bulk of the problems.

Try to wrap your head around these numbers. Somewhere between 3% and 37% of ad impressions were found to be from robots and not actually delivered to human eyes. That doesn’t seem bad until you do the math and see that over $6 Billion is spent on fraudulent ad impressions.

Do I have your attention yet? How about this from eMarketer:

eMarketer estimates that $7.1 billion will be spent on mobile app install ads in 2018, up from $6.5 billion last year…Several companies have conducted research that indicates how expensive install fraud is for marketers. Mobile marketing analytics firm Adjust estimated that between July and September 2018, 13.7% of app installs were rejected as fraudulent. According to Tune, app-install fraud cost marketers nearly $2 billion in 2017. DataVisor stated that for some ad networks, half of their app installs are fraudulent.

Is the industry trying to solve this? Of course it is, but it’s almost a Sisyphean task. One problem is solved and another method to defraud marketers and publishers pops up, and it’s been going on this way for as long as I can remember. Even among the legitimate ad service providers, there is an industry-wide reluctance to share the “black box” of how these systems actually do what they do. Do you think it’s only the little guys? It’s not. Facebook has been sued for overreporting how much time users spent watching videos. The suit says that Facebook knows that the majority of video ads on its platform are viewed for very short periods of time—users scroll right past. They claim that if advertisers were more widely aware of this fact, and in particular, if they knew that their advertisements were among those that were not drawing viewers’ attention, they would be less likely to continue buying video advertising from Facebook.

I tell clients that they need to be extremely careful if they go beyond search engine ads into other forms of programmatic. While I am well aware of how effective digital marketing can be, I constantly wonder if the bad actors are making that effectiveness almost impossible to achieve. I don’t know why anyone would enter the sewer that the digital ad world has become, at least not without full protective gear. Am I being too critical here?

Leave a comment

Filed under Consulting, digital media, Huh?

You’re The Customer Too, Dummy

We haven’t had a screed in a while in which I point out the on-going silliness of many of us in marketing, so let’s start the week with one! There was an article in the eMarketer newsletter about a recent study. I’m just going to quote it directly:

In an August 2018 survey of 103 ad agencies, publishers and marketers in North America conducted by Pressboard, 27.2% of respondents said they use an ad blocker to block ads on the websites they visit. These figures are similar to those found in the general population. According to eMarketer forecasts, 25.2% of US internet users will use an ad blocker in 2018.

Pressboard’s research showed that advertising professionals are more likely to rely on their friends than on ads when they decide whether or not to purchase a product. Nearly eight in 10 respondents (78.6%) said that word-of-mouth from friends influenced their recent purchase decision. Just fewer than 16% of those surveyed reported making a purchase after being influenced by banner ads.

I hope you can see immediately why this precipitated my response. It’s might be easy to shrug this off. I mean, what does it really say? Marketing and advertising professionals are humans too? How is that a surprise? Well, it’s not, but it does point out a fundamental problem. Apparently, when they put on their business hats and get to work they forget how they feel as consumers. After all, if they react badly to banner ads and rely more on word of mouth, why do they persist in figuring out how to invade the consumer’s website use in as many ways as possible? They use ad blockers because, to paraphrase Barry Goldwater’s campaign slogan, in their hearts, they know it’s right. The state of web marketing is akin to that of an Arabian bazaar or a NASCAR driver. Ad blockers at least make the web tolerable.

The message to any of us is that we’re customers too. We need to think like customers and not as marketers when we’re figuring out the best ways to interact with our audiences. How can we solve their problems? How can we deliver information that’s useful to them and not just scream at them? Keep that in mind and not only will your customers be better off, but you will be as well. Make sense?

Leave a comment

Filed under Consulting, digital media

Me And Mr. Jones

You might have read the news this morning that Apple has banned Alex Jones and Infowars from their podcasting platform. They join Facebook, Spotify, and YouTube in tossing this material off their distribution channels. Some of you will see this as a political move, stifling free speech. I don’t want to look at it that way today. Instead, I’d like us to focus on some business issues.

If you’re not familiar with Mr. Jones, he’s a conspiracy theorist who has claimed, among other things, that the murders at Sandy Hook Elementary School were staged by paid actors and that the government is poisoning children to make them gay. Do you remember a guy walking into a pizzeria with a gun to free the children being held there as part of a sex ring? An Alex Jones listener, who heard that the Clintons were running the ring on Alex Jones’ program.

Following the ban, some folks are yelling about freedom of speech and the First Amendment. Sorry folks. Some speech is not protected. I can’t make things up about a product and knowingly advertise false information. I can’t yell “fire” in a crowded theater. The most relevant type of speech that’s not protected is this:

Government may prohibit the use of “fighting words,” which is speech that is used to inflame another and that will likely incite physical retaliation. Likewise, language that is meant to incite the masses toward lawless action is not protected. This can include speech that is intended to incite violence or to encourage the audience to commit illegal acts. The test for fighting words is whether an average citizen would view the language as being inherently likely to provoke a violent response.

That’s exactly why this material was banned. It violates the platforms’ terms of service. Frankly, it disappoints me that it’s taken so long and it raises a business point we all need to consider.

Section 230 of the Communications Decency Act protects platforms from liability when people publish on their platform. This prevents me from suing a platform when a third-party writes something completely false about me, and it’s a great idea. The problem is that too many platforms hide behind this, feeling as if they begin moderating the obviously false or hateful content that they might, in fact, become liable. In doing so, they open the platform up to become a megaphone for hate and disinformation. Most importantly, it damages their reputation and turns off users. Look at what has happened with Twitter. The word I hear most often when people describe it is “cesspool.” To their credit, Twitter management is acting to clean it up (finally) but a lot of damage has already been done.

Any of us in business need to do more to protect our brands and businesses than the minimum legally required amount. Being corporately responsible is proactive. Remember that there are other channels through which Mr. Jones or any other content provider can distribute their information. That doesn’t mean I have to allow him or anyone else into mine, just as you don’t need to permit anyone into your retail store who you find potentially troublesome – a suspected shoplifter, for example –  as long as it is not based on bias against a federally protected class of people. I need to be clear about that to my users (we don’t welcome hate speech or knowingly false information here in your terms of service, perhaps).  Most importantly, I need to be responsible and do the best I can to do the ethically correct thing. Not because I dislike what it is you have to say, but because it’s a hate-filled lie.

Your thoughts?

Leave a comment

Filed under digital media, Reality checks, What's Going On