The new dot com bubble is here: it’s called online advertising

https://thecorrespondent.com/100/the-new-dot-com-bubble-is-here-its-called-online-advertising/13238920200-5fcd64b8?pk_campaign=sneak-peek&pk_kwd=jesse

by raleighm • 7 years ago

29 5 7 years ago

thecorrespondent.com

DuskStar• 7 years ago

Posted a few days ago with 350 comments: https://news.ycombinator.com/item?id=21465873

ivanjaros• 7 years ago

https://www.youtube.com/watch?v=Z_VxHvwgMVE

anovikov• 7 years ago

If it's really only $280B worldwide and world has circa 80T of nominal GDP or probably about 55T of consumer spending, it makes only 0.5%. It's seriously VERY hard to believe it's not an efficient spend of money. For many people, online ads (or at least if you include SMM, for sure), even if you never click on them, is a serious driver of consumer behavior.

I don't have any social media accounts, too old for most consumer target groups, and i am as underrepresented online as possible, and yet i am sure i am making way more than 0.5% of my consumer choices that way.

Can't see it as a bubble.

rolltiide• 7 years ago

What exactly are you extrapolating here? You just described yourself as the least qualified person to make that conclusion all while seeming to use your behavior as reference that other people behave as an amplified version of consumer you.

And that all seems to be a distraction: a “bubble” bursting doesn’t mean the behavior stops, it means less money is poured into the industry of supporting the bubble. It means the current size and market behavior is an inefficient consolidation of capital and productivity.

cryptica• 7 years ago

The part about cause and effect was very interesting.

So possibly Facebook knows if a user is likely to buy something from a specific company and it will show an ad to them in order to boost their conversion numbers to fool the advertiser about the effectiveness of the ads. But the ad has no effect other than to artificially boost conversions. It doesn't achieve what it was paid to do; to convince users.

It reminds me of the old saying that merely finding a way to measure a trend has the side effect that it allows people to game that trend.

The new dot com bubble is here: it’s called online advertising

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