3 ms·

But are targeted ads worth more? Yes, if I'm shopping for a BMW then Mercedes definitely wants to advertise to me. However, targeted ads don't seem to work as w

But are targeted ads worth more? Yes, if I'm shopping for a BMW then Mercedes definitely wants to advertise to me. However, targeted ads don't seem to work as well as Google/Facebook would like advertisers to think. Mercedes can just advertise if I'm searching duckduckgo for BMW, rather than pay to advertise to me for 2 months after I bought a BMW. Note that this is how targeted advertising currently works, I see ads for products I have already purchased, which is just wasted money.

manigandham 7y ago
They work great for first-party networks like Facebook and Google. They just don't pay out well for 3rd-party publishers.
godelski 7y ago
While I agree with a lot of what you said (Mercedes can just pay for keyword searches on BMW or similar to still target and be effective with cheaper and "old school" methods). But I don't think a lot of the advertisements for already purchased products is wasteful. See Coke (and what follows is overly simplified). Everyone already knows who they are and their opinions on them. You might ask "Why does Coke advertise?" and it'd be a good question. Sriracha doesn't and they are a household name, surely Coke has more standing than them. Coke advertises not only to influence you from a young age (getting new generation of coke drinkers) but to ensure that you associate a good feeling with your purchase. This is apparent in car commercials too (especially in America). That BMW commercial isn't to convince people to buy a new BMW, kinda ridiculous when you think about it and the money that you have to spend on a car like that (consider how often you see commercials for high end cars that the general public can't afford). Luxury car makers sure do want you to feel superior about your decision to buy their car though (which there's connection with "my next car will be X so I'm superior). Compare this to McDonalds, who knows you'll be hungry soon and wants you to visit them for your next meal. These companies have different goals, and of course their advertising will be performed in just as differing ways. Not all advertising is the same. Though I'm not sure this is the best strategy for Amazon when I buy a deck of cards, I don't need 20 more types. But maybe it is effective and that's why they keep doing it.
- bonoboTP 7y ago
  Yes, such second order effects are important and often overlooked. One thing is to confirm that the recent buyer's decision was right. But also, these ads create a general impression of high quality for a brand, and for this to be effective, everyone needs to know about this. Status symbols can only be status symbols if they are recognized by both the people who can and cannot afford it. Therefore ads of luxury items viewed by people who will never buy it is still valuable to the company because they set the stage for the status associated with the brand. This is a second order effect of crucial importance that people often overlook when only looking at first order effects.
- Falkon1313 7y ago
  >I'm not sure this is the best strategy for Amazon when I buy a deck of cards, I don't need 20 more types. But maybe it is effective and that's why they keep doing it. For standard playing cards, probably not, but for collectible card games, tarot cards, the blank cards used by game designers when building prototypes, card driven board games, etc. it might be significantly more effective. Those are all "cards" things where customers are likely to be repeat buyers or interested in trying other options. They were laughably bad about distinguishing those sorts of different types/audiences in the past, and as in your example still aren't always good, but anecdotally seem to be gradually getting better. Maybe the gradual investment in development of machine learning and accumulation of data over time will result in less ridiculous suggestions in a decade or two.
  - godelski 7y ago
    Oh I fully agree with this. I think they keep suggesting playing cards because I have bought a ton of board games from them. But I just bought a single deck of bicycle cards and I get way more suggestions for cards than games or other categories of stuff I buy. But I think that is just a categorical distinction that they haven't made and might be hard for ML to pick up on because of the nuances involved.
mobjack 7y ago
If you are seeing ads for stuff you already purchased, it could be that the ad network tracked that you have viewed the item but didn't properly track the purchase. The tracking isn't perfect and not every targeted ad you see is intentional.
- dazc 7y ago
  'The tracking isn't perfect and not every targeted ad you see is intentional.' Admittedly based purely on anecdotal evidence; this is something of an understatement.
dazc 7y ago
'But are targeted ads worth more? Yes, if I'm shopping for a BMW then Mercedes definitely wants to advertise to me.' Since you are likely already aware of Mercedes and have opted for BMW instead, I'd question the logic of Mercedes spending good money to continue advertising to you?
- oliwarner 7y ago
  Because they're not BMW customers yet. Until that cash is spent, they are still a potential sale for you. You see a lot of comparison ads at this level, trying to sway purchasers.

manigandham 7y ago

They work great for first-party networks like Facebook and Google. They just don't pay out well for 3rd-party publishers.

godelski 7y ago

While I agree with a lot of what you said (Mercedes can just pay for keyword searches on BMW or similar to still target and be effective with cheaper and "old school" methods). But I don't think a lot of the advertisements for already purchased products is wasteful. See Coke (and what follows is overly simplified). Everyone already knows who they are and their opinions on them. You might ask "Why does Coke advertise?" and it'd be a good question. Sriracha doesn't and they are a household name, surely Coke has more standing than them. Coke advertises not only to influence you from a young age (getting new generation of coke drinkers) but to ensure that you associate a good feeling with your purchase. This is apparent in car commercials too (especially in America). That BMW commercial isn't to convince people to buy a new BMW, kinda ridiculous when you think about it and the money that you have to spend on a car like that (consider how often you see commercials for high end cars that the general public can't afford). Luxury car makers sure do want you to feel superior about your decision to buy their car though (which there's connection with "my next car will be X so I'm superior). Compare this to McDonalds, who knows you'll be hungry soon and wants you to visit them for your next meal. These companies have different goals, and of course their advertising will be performed in just as differing ways. Not all advertising is the same. Though I'm not sure this is the best strategy for Amazon when I buy a deck of cards, I don't need 20 more types. But maybe it is effective and that's why they keep doing it.

bonoboTP 7y ago
Yes, such second order effects are important and often overlooked. One thing is to confirm that the recent buyer's decision was right. But also, these ads create a general impression of high quality for a brand, and for this to be effective, everyone needs to know about this. Status symbols can only be status symbols if they are recognized by both the people who can and cannot afford it. Therefore ads of luxury items viewed by people who will never buy it is still valuable to the company because they set the stage for the status associated with the brand. This is a second order effect of crucial importance that people often overlook when only looking at first order effects.
Falkon1313 7y ago
>I'm not sure this is the best strategy for Amazon when I buy a deck of cards, I don't need 20 more types. But maybe it is effective and that's why they keep doing it. For standard playing cards, probably not, but for collectible card games, tarot cards, the blank cards used by game designers when building prototypes, card driven board games, etc. it might be significantly more effective. Those are all "cards" things where customers are likely to be repeat buyers or interested in trying other options. They were laughably bad about distinguishing those sorts of different types/audiences in the past, and as in your example still aren't always good, but anecdotally seem to be gradually getting better. Maybe the gradual investment in development of machine learning and accumulation of data over time will result in less ridiculous suggestions in a decade or two.
- godelski 7y ago
  Oh I fully agree with this. I think they keep suggesting playing cards because I have bought a ton of board games from them. But I just bought a single deck of bicycle cards and I get way more suggestions for cards than games or other categories of stuff I buy. But I think that is just a categorical distinction that they haven't made and might be hard for ML to pick up on because of the nuances involved.

mobjack 7y ago

If you are seeing ads for stuff you already purchased, it could be that the ad network tracked that you have viewed the item but didn't properly track the purchase. The tracking isn't perfect and not every targeted ad you see is intentional.

dazc 7y ago
'The tracking isn't perfect and not every targeted ad you see is intentional.' Admittedly based purely on anecdotal evidence; this is something of an understatement.

dazc 7y ago

'But are targeted ads worth more? Yes, if I'm shopping for a BMW then Mercedes definitely wants to advertise to me.' Since you are likely already aware of Mercedes and have opted for BMW instead, I'd question the logic of Mercedes spending good money to continue advertising to you?

oliwarner 7y ago
Because they're not BMW customers yet. Until that cash is spent, they are still a potential sale for you. You see a lot of comparison ads at this level, trying to sway purchasers.