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> And that's in a nutshell both the solution and the problem because users have only so much to spend on product. I don't see the problem? It's probably much m
by mseebach 11y ago
> And that's in a nutshell both the solution and the problem because users have only so much to spend on product.
I don't see the problem? It's probably much more expensive per impression than traditional advertising, but probably much less expensive per sale (which is the metric that matters). This arms race means that if I'm a plumbing supply company, I can now spend my money on displaying ads for specific plumbing goods to people searching for specific plumbing goods, even when that means I'm going to hit some people no longer in the market for these goods -- but even hitting people who are no longer in the market is vastly better then hitting people who were never in the market. This lowers the barrier to entry (less cash required to advertise your products) which means more and better competition which means prices go down.
- vitd 11y agoBut that's not at all what happens. First, the plumbing company buys ad space from that morass of companies in the article's diagram. Then the add distribution network decides who sees the ads. And in the specific case we're talking about, users didn't see the relevant ads until after they made a plumbing purchase. So it failed at every level. They don't appear to be targeting people who are in the market for plumbing supplies and hitting a few who already have them, from what we can tell. They appear to not be targeting people who are in the market at all until after they're out of the market.