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3 factors diminishing the value of digital advertising

Advertisers are significantly concerned about the value of digital advertising and that concern is leading them to question whether and the extent to which digital advertising will remain in the marketing and advertising mix of their companies. 3 factors are central to the discontent: suspicions about the effectiveness of digital advertising, large amounts of fake traffic, and concerns about the returns on advertising investments. Media companies, platforms, and others providing digital advertising must address these issues if digital advertising is to remain viable. Much of the concern about poor effectiveness of digital advertising is due to poor ad formats, lack of audience attention to ads, and high rates of ad blocking—currently about 40% in U.S. on computers and tablets. Such concerns have forced digital advertising prices downward for the past decade because those factors have reduced demand and because there has been a dramatic increase in advertising inventory that is making...

The libertine days are over: How the material world is reining in Internet companies

Early in the rollout of the Internet, leaders of the emerging online companies described it as an immaterial world of virtual objects and virtual activity that was not subject to the economics, financing, laws, or business arrangements of the material world. They portrayed it is as world without structure in which informality and collaboration among users would guide its operation. They described it as global phenomenon beyond the reach of governments. Many expressed highly utopian visions of the internet. Most embraced a highly libertarian philosophy; some an anarchistic one. These leaders primary interacted with each other and deluded themselves into believing what they were doing was unique, hallowed, and beyond worldly oversight. Internet service providers saw themselves as facilitators without responsibility for who used them or for what purposes. Companies such as Google, Yahoo, and Huffington Post created value extracting models in which they expropriated the work of others as p...