Uh oh… Is internet advertising just a house of cards?
Late that year he and a half-dozen or so colleagues gathered in a New York conference room for a presentation on the performance of the online ads. They were stunned. Digital’s return on investment was around 2 to 1, a $2 increase in revenue for every $1 of ad spending, compared with at least 6 to 1 for TV. The most startling finding: Only 20 percent of the campaign’s “ad impressions”—ads that appear on a computer or smartphone screen—were even seen by actual people.
“The room basically stopped,” Amram recalls. The team was concerned about their jobs; someone asked, “Can they do that? Is it legal?” But mostly it was disbelief and outrage. “It was like we’d been throwing our money to the mob,” Amram says. “As an advertiser we were paying for eyeballs and thought that we were buying views. But in the digital world, you’re just paying for the ad to be served, and there’s no guarantee who will see it, or whether a human will see it at all.”
READ THE FULL STORY AT BLOOMBERG:
Our friends at AdLand recently posted this story “Nice ad you got. Be a shame if no one saw it.” They detail how social media sites like YouTube and Facebook are becoming more and more aggressive in leveraging their platforms to require payment for engagement.
Bands take note, these platforms are charging you to reach the audience you built for them…
The article is a must read, a small except below.
In 2012, GM stopped advertising on Facebook. It took its 40 million dollars elsewhere. When Facebook started reducing organic reach it became even clearer that social media is not the bargain, or effective juggernaut it was purported to be.
Consider that analog media print for a moment. You spend money to place an ad in GQ, and it goes in GQ’s across the country. There is no guarantee someone will buy the magazine, of course, but if they do, there is a good chance they’d see your ad. If Facebook owned GQ, you’d place an ad in it, and then Facebook would hide 90% of the magazines unless you paid them to put the magazine featuring your ad on the magazine stands.
So we live in the digital age where media channels like Youtube and Facebook seem only effective if you pay for views to inflate your numbers (and likes if you’re even more smarmy). And remember, a vast majority of Youtube videos (ads or otherwise) do not go viral. Then in Facebook’s case you’re dealing with a a quasi-Mafia-style practice of paying them to “boost” your post to an audience you worked hard to cultivate.
PLEASE READ THE FULL STORY AT ADLAND:
The Lack of Ethics of Online Advertisers, YouTube, Google, Others.
Read The Blog Post Here:
Watch the Full Lecture Here:
No surprises here, right?
“The onion is slowly and surely getting peeled back.”
Last year, Google reported that 56.1 percent of all ads served were not measured viewable by humans.
Last December, the Association of National Advertisers and security firm WhiteOps estimated that up to a quarter of video ad views were fraudulent and resulting from software bots. It also said that as much as half of publisher traffic is from bots. This represents a projected $6 billion-plus in wasted ad spend this year.
Spanfeller sees the current system as a big part of the problem.
READ MORE AT VENTURE BEAT: