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> 3) It turns out most non-targeted ads aren't actually that effective, and aggregate ad spend is falling. While this is a commonly held believe in many corner

by mgreg 6y ago

> 3) It turns out most non-targeted ads aren't actually that effective, and aggregate ad spend is falling. While this is a commonly held believe in many corners it doesn't appear to be well backed by data & research. Freakonomics also covered this topic in some detail recently. Some examples where it's proven untrue: Nytimes drops targeted advertising in Europe: https://digiday.com/media/gumgumtest-new-york-times-gdpr-cut-off-ad-exchanges-europe-ad-revenue/ https://digiday.com/media/gumgumtest-new-york-times-gdpr-cut... >“The fact that we are no longer offering behavioral targeting options in Europe does not seem to be in the way of what advertisers want to do with us,” he said. “The desirability of a brand may be stronger than the targeting capabilities. We have not been impacted from a revenue standpoint, and, on the contrary, our digital advertising business continues to grow nicely.” Danish broadcaster grew revenue after dropping targeted ads: https://techcrunch.com/2020/07/24/data-from-dutch-public-broadcaster-shows-the-value-of-ditching-creepy-ads/ https://techcrunch.com/2020/07/24/data-from-dutch-public-bro... >The data shows the NPO grew ad revenue after ditching trackers to target ads in the first half of this year

lumost 6y ago
Typically, platforms with smaller reach ( read < 10 million DAU) will only have a few big advertisers who are willing to purchase most ad positions. Behavioral targeting on such platforms with large advertisers will probably only limit spend by cutting out bad impressions, and the in-house or external behavioral targeting isn't anything close to what FB offers. FB/Goog dominate ad-spend as they are able to effectively match small advertisers with the appropriate audience, and these advertisers typically have specific customer goals in mind. If the goal of the ad buyers on the NYT is simply to associate their brand with the trustworthiness of the NYT, then there won't be much benefit from behavioral targets.

by mgreg 6y ago

lumost 6y ago

Typically, platforms with smaller reach ( read < 10 million DAU) will only have a few big advertisers who are willing to purchase most ad positions. Behavioral targeting on such platforms with large advertisers will probably only limit spend by cutting out bad impressions, and the in-house or external behavioral targeting isn't anything close to what FB offers. FB/Goog dominate ad-spend as they are able to effectively match small advertisers with the appropriate audience, and these advertisers typically have specific customer goals in mind. If the goal of the ad buyers on the NYT is simply to associate their brand with the trustworthiness of the NYT, then there won't be much benefit from behavioral targets.