In all the mounting media coverage of problems with the Internet, such as invasion of privacy, vulnerability to hacking, political manipulation, and user addiction, there is one constant: online advertising. Online advertising is the lifeblood of Google, Facebook, and many other Internet enterprises that profit by providing personal data to various vendors. Moreover, the move of tens of billions of dollars from conventional print and broadcast media continues, with devastating impacts, especially on print newspapers and magazines.
But does online advertising work for consumers? The Internet was once considered a less commercial medium. But today consumers are inundated with targeted ads, reviews, comments, friends’ reactions, and other digital data. Unfortunately for advertisers, consumers are not intentionally clicking on online ads in big numbers.
Google’s search ads tackle people when they search for a product or service. A controlled study by eBay research labs in 2014 concluded that Google was greatly exaggerating the effectiveness of such ads—at least those bought by eBay. eBay’s researchers concluded that “More frequent users whose purchasing behavior is not influenced by ads account for most of the advertising expenses, resulting in average returns that are negative.” This is the “I-was-gonna-buy-it-anyway problem,” says an article in the Atlantic.
The Atlantic notes:
Whether all advertising—online and off—is losing its persuasive…