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There's an incentive mismatch that's fundamental to advertising. Advertisers bid on platforms for specific cohorts identified by some piece of data, and their b
by ThrustVectoring 8y ago
There's an incentive mismatch that's fundamental to advertising. Advertisers bid on platforms for specific cohorts identified by some piece of data, and their bids are determined by the value of a lead in their business. So from the perspective of an ad platform, advertising to you isn't just about what interests you and what you're likely to buy, but the product of producer surplus times likelihood to buy. Interested in something that makes a company more money? You'll see proportionally more ads for it at the same interest level.
- TeMPOraL 8y agoThis is also a reason why I don't trust ads and sales/customer support recommendations when shopping. As you noted, companies try to push what makes them the most money, not what is best fit for my use case.
- ThrustVectoring 8y agoThis is particularly a good idea with investing. Anyone whose job it is to pitch things to you basically can't be trusted. The size of this sort of financial service industry makes it obvious how big of a deal the fees are in this area.