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A lot of the advertising industry (Twitch is an ad publisher which uses tech, not a tech company) is moving away from high-volume low-intent advertising to low-

A lot of the advertising industry (Twitch is an ad publisher which uses tech, not a tech company) is moving away from high-volume low-intent advertising to low-volume high-intent. It's becoming harder to squeeze pennies out of banner and video ads on platforms like twitch, facebook, youtube, and google ads. Some retailers like Amazon and Walmart make a significant chunk (if not the majority) of their revenue from retail advertising (basically: promoted search results)

Enginerrrd 3y ago
>Some retailers like Amazon and Walmart make a significant chunk (if not the majority) of their revenue from retail advertising That explains why amazon search results keep getting worse. I just thought they were having a problem with people gaming the system. That's a pretty anti-consumer use of their large market share and lack of competition in my opinion.
- novagameco 3y ago
  All ecommerce sites do this if they can; it's just difficult for the smaller sites to normalize product information and share user browsing data across DSPs. Grocery stores have been doing it for decades: when you see a display on the endcap at the end of an aisle, that's a product which has paid Target or Kroger for the prime real estate. The company I work for is working on a retail media system so that smaller ecommerce sites can get paid to promote results by advertisers in the same way that they can get paid to show banner ads: the advertiser knows nothing about the retailer and vice-versa. The advertiser offers their products on our DSP and the ecommerce site makes their inventory available to us on our SSP and we connect the two
  - nradov 3y ago
    So in other words you are contributing to the enshittification of e-commerce, giving the smaller sites the same hostile customer experience as Amazon. I don't blame you, might as well make some money off the trend while you can. But I doubt that this will end well for the sites themselves. If they can't deliver a better experience than Amazon then customers will just stick with Amazon.
    - novagameco 3y ago
      The way I see it (and the way I see all OpenRTB advertising) is that we are helping to give a competitive edge to smaller, more independent sites so that they can survive against huge corporations like Amazon. Without higher yield advertising, independent publishers and new organizations can't survive and ecommerce sites can't compete. Unless people start paying for subscriptions to certain services or choosing to utilize smaller businesses at a higher cost and slower delivery times (which they will do neither of willingly), the open advertising system is the financial engine which keeps the internet from consolidating into a walled garden of just a handful of sites.
PurpleRamen 3y ago
> Twitch is an ad publisher which uses tech, not a tech company That's highly disputable. In the first place do they offer a service for communities, making it a social platform. Then do they seem to work intensively with AWS and for AWS, making them indeed a tech-company too. I mean, AWS seems to resell Twitch-Technology since some years. And finally did they had no significant ad-volume for many years, and in most countries did they not even serve any actual ads, outside of Amazon Prime Video-Ads. Yes, they do work on transforming into an ad-company since 2, 3 years. But they are still on a pretty low level. Viewers are already complaining hard just because of 1,2 minutes of ads per hour. Getting to the level where they find their sweet-spot and making them a primary ad-company will still take some time, I think. > is moving away from high-volume low-intent advertising to low-volume high-intent. Yet, this seems to be where twitch is aiming for, because nothing else actually works with the type of content their customers serve. I mean, they only added banners last year or so.
- novagameco 3y ago
  > the first place do they offer a service for communities, making it a social platform. All social platforms are advertising publishers. Facebook is an advertising company (though they refuse to say so; calling themself a publisher is a legal liability for them), they make almost all of their revenue from selling ads. YouTube is an advertising company as well. Working with technology (and even developing your own technology) doesn't make you a technology company. insurance companies employ software engineers, but they're still insurance companies. Even if twitch fails to make any money at advertising, they're still an Advertising company.
  - lennixm 3y ago
    Your definition of "tech company" is so restrictive that it's effectively meaningless.
    - novagameco 3y ago
      Tech companies sell tech. Advertising companies sell attention. Most big tech companies are just high tech advertising companies. They don't like to say this because it doesn't carry nearly as much prestige to admit that the culmination of their life's work is to get people to buy more crap rather than making the world better in any measurable way. I say this as someone who works for an advertising company

Enginerrrd 3y ago

>Some retailers like Amazon and Walmart make a significant chunk (if not the majority) of their revenue from retail advertising That explains why amazon search results keep getting worse. I just thought they were having a problem with people gaming the system. That's a pretty anti-consumer use of their large market share and lack of competition in my opinion.

novagameco 3y ago
All ecommerce sites do this if they can; it's just difficult for the smaller sites to normalize product information and share user browsing data across DSPs. Grocery stores have been doing it for decades: when you see a display on the endcap at the end of an aisle, that's a product which has paid Target or Kroger for the prime real estate. The company I work for is working on a retail media system so that smaller ecommerce sites can get paid to promote results by advertisers in the same way that they can get paid to show banner ads: the advertiser knows nothing about the retailer and vice-versa. The advertiser offers their products on our DSP and the ecommerce site makes their inventory available to us on our SSP and we connect the two
- nradov 3y ago
  So in other words you are contributing to the enshittification of e-commerce, giving the smaller sites the same hostile customer experience as Amazon. I don't blame you, might as well make some money off the trend while you can. But I doubt that this will end well for the sites themselves. If they can't deliver a better experience than Amazon then customers will just stick with Amazon.
  - novagameco 3y ago
    The way I see it (and the way I see all OpenRTB advertising) is that we are helping to give a competitive edge to smaller, more independent sites so that they can survive against huge corporations like Amazon. Without higher yield advertising, independent publishers and new organizations can't survive and ecommerce sites can't compete. Unless people start paying for subscriptions to certain services or choosing to utilize smaller businesses at a higher cost and slower delivery times (which they will do neither of willingly), the open advertising system is the financial engine which keeps the internet from consolidating into a walled garden of just a handful of sites.

PurpleRamen 3y ago

> Twitch is an ad publisher which uses tech, not a tech company That's highly disputable. In the first place do they offer a service for communities, making it a social platform. Then do they seem to work intensively with AWS and for AWS, making them indeed a tech-company too. I mean, AWS seems to resell Twitch-Technology since some years. And finally did they had no significant ad-volume for many years, and in most countries did they not even serve any actual ads, outside of Amazon Prime Video-Ads. Yes, they do work on transforming into an ad-company since 2, 3 years. But they are still on a pretty low level. Viewers are already complaining hard just because of 1,2 minutes of ads per hour. Getting to the level where they find their sweet-spot and making them a primary ad-company will still take some time, I think. > is moving away from high-volume low-intent advertising to low-volume high-intent. Yet, this seems to be where twitch is aiming for, because nothing else actually works with the type of content their customers serve. I mean, they only added banners last year or so.

novagameco 3y ago
> the first place do they offer a service for communities, making it a social platform. All social platforms are advertising publishers. Facebook is an advertising company (though they refuse to say so; calling themself a publisher is a legal liability for them), they make almost all of their revenue from selling ads. YouTube is an advertising company as well. Working with technology (and even developing your own technology) doesn't make you a technology company. insurance companies employ software engineers, but they're still insurance companies. Even if twitch fails to make any money at advertising, they're still an Advertising company.
- lennixm 3y ago
  Your definition of "tech company" is so restrictive that it's effectively meaningless.
  - novagameco 3y ago
    Tech companies sell tech. Advertising companies sell attention. Most big tech companies are just high tech advertising companies. They don't like to say this because it doesn't carry nearly as much prestige to admit that the culmination of their life's work is to get people to buy more crap rather than making the world better in any measurable way. I say this as someone who works for an advertising company