At first internet advertising was a no-brainer. Agree to host ads, get revenue to keep your site afloat, make a profit, expand. Fine. But now we’re inundated with ads to the point people are turning off. Hell, there are ads I’d be happy to see, but I never will because I’ve blocked them with a Pihole and Ublock. The vast majority of people aren’t doing that, but are they actually buying the advertised products and services?

Guess I can’t get my head around the logistics. Seems like all the money in the world is available for advertising, but are these companies actually seeing a return on that investment? Reddit’s basically bots advertising to bots, and the stock market rewards them handsomely. Nobody involved is stupid, they know this is happening, yet companies are still throwing money around. (Someone will relate this to the AI bubble, but it’s not really the same thing.)

There was a great article posted here about how 40% (?) of ad views are bots. (If someone can find it, that would be great!) The issue came up to the author because he was tasked with finding out why the advertising spend wasn’t getting expected sales. The number of clicks didn’t jive with sales results. The advertiser was seeing some ludicrous clicks vs. sales that was 1/10th of what it should be.

And companies are paying for these dismal results?! Think of a time where you were responsible for results at a company. If your spent $X on a thing, and didn’t get at least $X dollars back, you would back off that spend or your boss would pull the plug. (Sure, marketing often takes time to get a foothold, I get that.) That’s how capitalism fucking works. And for all the bitching about capitalism, the players don’t seem to be doing that thing. I feel like I’m taking crazy pills.

Is internet advertising a sort of bubble? Doesn’t seem to be as it just keeps going.

  • jela@lemmy.today
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    3 hours ago

    A few things to consider in the world of marketing and advertising…

    When reviewing the number of views that an ad gets, there’s no simple way to separate bot traffic from genuine impressions. This is due to privacy restrictions.

    Generally, the marketing team will post an ad… A few weeks go by and they report the number of impressions (views) the ad got to upper management… upper management is impressed and continues to approve budgets to make more ads.

    Sometimes ads are about driving awareness and not necessarily making sales. If you’re familiar with the new soda in the convenience store you’re more likely to buy it because of the ad you saw about it last week.

    A good (even great) return on investment in sales is between 2-3%, meaning if you show your ad to 100 people and get two clicks on it, those are considered good statistics to continue to market your product.

    Sauce: 13 years in marketing for both small and large companies