Online advertising has been the subject of many criticisms and has been analyzed under various prisms that have highlighted its weaknesses. Programmatic advertising is full of lights and shadows , despite the fact that investment has not stopped growing in recent years. At the end of the day, despite all the problems marketers have identified, it is still – or still see it as – a fast and cost-effective way to reach a niche audience to position a specific product.However, there are those who wonder if this really works, if the essence of programmatic advertising is based on a reality or if it is basically an accumulation of smoke. This review is not new either.A year ago a study concluded that behavioral advertising, segmented advertising based on consumer behavior and which is the basis of programmatic advertising, did not obtain better resultsthan traditional advertising.

According to these data, the media only achieve 4% more revenue with these ads than those they achieve with traditional online advertising, being in the end much less profitable considering that in addition, most of the profit remains in the commissions and percentages retained by technology intermediaries. Little by little, this horizon is making it clearer every day that direct and effective campaign management is what is really needed so that online advertising can be truly profitable, eliminating an increasingly long chain of intermediaries that are reducing the benefit of supports and media underestimating the price and real impact of online advertisements.Consumers were not more interested in ads that were targeted in this way than in ads that used the criteria traditionally used by the media.

“Behavioral targeting has been Trinidad and Tobago Email List completely overrated in its value to media publishers from the first day it was invented,” warned an industry executive at the time.This idea is the starting point of the theories of Tim Hwang, who defends the Subprime Attention Crisis essay and advanced by the US media. Hwang, a former Google employee, says behavioral advertising doesn’t work. Microtargeting is less tight and is less persuasive than what is said and, although it is at the basis of the development of online advertising and how the network is economically supported, it has a lot of smoke, it is concluded based on their observations.The prick of the bubble will bring the collapseBut the researcher not only points out that in reality the essence of Internet advertising is a fiasco, but, as they point out in Wired , he warns of the imminence of the collapse of the system.

Digital advertising will one day stop moving money because the bubble will burst and that will mean a chain fall of the big players. 80% of Google’s revenue comes from advertising and 99% of Facebook’s does. To be done, ads are becoming increasingly important on Amazon accounts.All this also occurs in an increasingly opaque and less transparent environment, in which there are more and more intermediaries between those who buy advertising and those who serve it.Are online ads the new subprime?For the researcher, the state of things right now in online advertising is, due to the programmatic, similar to the state of things with subprime before the economic crisis of 2008.

A lot of money is being bet on something that, in reality , he argues, has feet of clay (and this is not only important in terms of what happens in online advertising, but also in economic terms: Alphabet and Facebook are giants on the stock market).When it is clearly seen that everything is smoke, something that the researcher points out that studies in universities and experts are already pointing out, this industry will also collapse, as did the banks of a decade ago.Are The Online Advertising Giants Too Big To Fall For? Or has that really been the problem with advertising since the beginning of time, not really knowing how much things work? Time will tell.

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