In the pile of comments under the post on Facebook I wrote about here yesterday, Christopher Brock writes a long and thoughtful response that pretty much represents the thinking of the adtech business today. Since it’s hard to respond point-by-point in Facebook’s commenting UI, I’ll do it here:
It is not really fair to say Facebook identifies you as x,y and z.
Yes it is, because Facebook is in the business of delivering personalized ads. True, they also deliver non-personalized ads (ones targeted, say, to a demographic). But since there is no flag on an ad that says it’s one or the other, and because Facebook can get more personal, with more people, than any other advertising platform in the world, it is legit to at least suspect that their ad-placing machine thinks you are x, y or z.
What the ads reflect are the audience demographics approved by businesses willing to purchase impressions against a profile to which you fit in hopes of turning a ROI.
Or because you’re being targeted personally. For example…
Retargeting ads are based on your browsing habits, which can be telling of your historical intent based searches.
Yes, that and a lot of other data, some gleaned by surveillance, some bought from Acxiom and other brokers, all crunched in a thing that IBM calls The Big Datastillery. Here’s the graphic:
How is it possible for a company as smart as IBM to insult human beings so obviously? The short and simple answer is, because consumers aren’t human. The term “consumer” presumes that’s all we do: consume. (Jerry Michalski calls consumers “gullets with wallets and eyeballs.”) In the same way that “when all you have is a hammer, everything looks like a nail,” “when all you have is plumbing, every consumer looks like a beaker.”
As for all the plumbing above the beakers, does anybody outside the adtech world know the difference between programmatic (including direct and forwards), predictive, real time bidding (RTB), AB and MV testing, supply side platforms, demand side platforms, marketing and interaction optimization, and all the other valves in the piping that blurps placements of ads through Facebook, other commercial websites and mobile apps? I suppose from the plumbing side it doesn’t matter. But it does to the humans being treated like empty vessels on a conveyor belt. We don’t know what the hell is going on, but we do know that it’s big, creepy and trying to be personal in a robotic way.
By contrast, the provenance of ads in the old advertising world was obvious to everybody. (And if they needed reminding, they got it with Mad Men.) Every ad you read in a newspaper or magazine, heard on the radio, saw on TV or a billboard was placed there either directly by the advertiser or through an agency. And here the key thing: it was never personal. It was aimed at a population. Everybody knew that.
Direct marketing, better known as junk mail, was a very different animal. It was addressed to you personally, and wanted a direct response. Adtech is what we got after direct marketing body-snatched advertising. An ad you see on Facebook might be addressed to populations the old fashioned way, or it might be personal. You can’t tell the difference — unless an ad is obviously personal, in which case it risks falling into the uncanny valley where might creeped out. (Or not.) At the extreme, perfectly personalized advertising (based on knowing everything about you) is perfectly creepy.
Eith a new market we are served non-relevant ad content, however over time more businesses will move to paid digital ad marketing and the ads we see will become more contextually and intentionally relevant.
I know the best adtech people go out of their way to avoid the uncanny valley. There are also special cases, which also happen to be the two biggest: Facebook and Google.
Facebook is in a position to know people to a high degree of detail. The company is careful not to show that fact (and fall into the uncanny valley), but knowing how personal Facebook can get does make a difference. That’s why I said “If I were actually the person Facebook advertised to…”
Google is less privileged in that respect, but the nature of the help it provides (in search results, in guessing at locations we search for in Maps, and so on) makes their search results and ad placements less of a valley when they get uncanny.
But in general the body-snatched nature of digital advertising leaves us in the dark, nearly all the time, about what’s personal and what’s not.
There is a lot of profit potential for marketers who can accurately design marketing funnels for products/services based on demographic profiling and intentional modeling using a demand side platform like Facebook.
Is that what it is? Man, that is so damn confusing to us beakers. I was in the advertising business (the old Mad Men kind) one way or another, for much of my adult life, and for me — as well as for the rest of the world — the demand side of the marketplace is the whole human population. The supply side is the one selling goods and services to that population.
A few weeks ago I spent an afternoon with an RTB company talking about all this stuff, and my spinal cord kinked as my brain spun around, trying to grok how demand in that business is on the side that produces the ads, rather than the side that consumes them. (Which we mostly don’t, by the way. We ignore 99.x% of them. But we’re still consumers to the ad producers.) As Wikipedia currently puts it,
A demand-side platform (DSP) is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. Real-time bidding for displaying online ads takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids for the banners and the pricing for the data that they are layering on to target their audiences. Much like Paid Search, using DSPs allows users to optimize based on set Key Performance Indicators such as effective Cost per Click (eCPC), and effective Cost per Action (eCPA).
Whatever. (And saying that I speak for all people not laboring in the adtech bubble.)
Since marketing data science is relatively new as is social, local and mobile tech, not all businesses buy digital ads.
True. In fact the Internet we know today is only about 20 years old. It showed up when commercial activity could operate there (technically, when NSFnet shut down), in 1995. The cookie was invented around that time as well. (But not for tracking. It was meant originally just to help websites recall and assist prior visitors.)
The Net we made then, and still have, is Eden. We arrived naked there, and we still are. The adtech business loves that, but the rest of us don’t. That’s why privacy is a huge issue online (sources: TRUSTe, Pew, Customer Commons) and a non-issue offline.
In the physical world we’ve had clothing, shelter and other privacy technologies for many thousands of years — and manners for how we treat each others’ private spaces. In the online world, rudeness rules. A merchant who would be appalled at the thought of placing a tracking beacon on a visiting customer, just so that customer can later be “delivered” a better “advertising experience,” doesn’t think twice about doing the same online.
This will change. It’s already happening through regulation, and through ad and tracking blocking rates that steadily increase. But those are stone tools. Eventually we’ll get real clothing and shelter. When that happens, the adtech business will be in trouble, unless it changes, which I’m sure it will.
@docsearle maybe you should be a web marketer
you obviously have identified an area of opportunity.
The area I’ve identified is the one where customers will signal their intentions far better than any marketer can guess at the same.
If you want more and better thinking about all this, I highly recommend what Don Marti has been writing. He, Bob Hoffman and I are voices in the wilderness today. But that will change. The wilderness is already burning.