FacebookTwitterGoogle+RedditEmail

The Root of the Internet’s Disrepute: Online Advertising!

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 punch…Think about how much you can learn about products today before seeing an ad. Comments, user reviews, friends’ opinions, price-comparison tools…they’re much more powerful than advertising because we consider them information rather than marketing. The difference is enormous: We seek information, so we’re more likely to trust it; marketing seeks us, so we’re more likely to distrust it.”

Some companies like Coca-Cola have cooled on using online advertising. But advertising revenues keep growing for Google, Facebook, and the other giants of the Internet. These companies are racing to innovate, connecting ads to more tailored audiences, which tantalize and keeps hope springing eternal for the advertisers. The Internet ad sellers also provide detailed data to advertise themselves to the advertisers staying one step ahead of growing skepticism. This is especially a problem when there is inadequate government regulation of deceptive advertising. It is the Wild West! Online advertising revenues are the Achilles’ heel of these big Internet companies. Any decline will deflate them immensely; more than public and Congressional criticism of their intrusiveness, their massive allowed fakeries, their broken promises to reform, and their openings to unsavory political and commercial users. If they lose advertising revenue, a major revenue bubble will burst and there goes their business model, along with their funding for ventures from video hosting to global mapping.

After reviewing the many major negatives attributed to the Internet, the New York Times’ Farhad Manjoo writes, “So who is the central villain in this story, the driving force behind much of the chaos and disrepute online?… It’s the advertising business, stupid.” He adds, perhaps optimistically, “If you want to fix much of what ails the internet right now, the ad business would be the perfect perp to handcuff and restrain.”

Randall Rothenberg, who heads a trade association of companies in the digital ad business, urges advertisers “to take civic responsibility for our effect on the world.” Then he shows his frustration by saying that, “Technology has largely been outpacing the ability of individual companies to understand what is actually going on.” All of this even before artificial intelligence (AI) takes root. Meanwhile, Facebook, Google, and Twitter keep announcing new tools to make their ads “safe and civil” (Facebook), open and protective of privacy. At the same time matters keep getting worse for consumers. The backers and abusers keep getting more skilled too (see Youtube Kids ).

In a recent report titled “Digital Deceit,” authors Dipayan Ghosh and Ben Scott wrote:

“The Central problem of disinformation corrupting American political culture is not Russian spies or a particular media platform. The central problem is that the entire industry is built to leverage sophisticated technology to aggregate user attention and sell advertising.”

If so, why isn’t more public attention being paid to this root cause? Not by the mass media which is obviously too compromised by the Congress, by academia, or by more of US before “We the People” become the conditioned responders that Ivan Pavlov warned about so many years ago.

More articles by:

Ralph Nader is a consumer advocate, lawyer and author of Only the Super-Rich Can Save Us! 

Weekend Edition
December 14, 2018
Friday - Sunday
Andrew Levine
A Tale of Two Cities
Peter Linebaugh
The Significance of The Common Wind
Bruce E. Levine
The Ketamine Chorus: NYT Trumpets New Anti-Suicide Drug
Jeffrey St. Clair
Roaming Charges: Fathers and Sons, Bushes and Bin Ladens
Kathy Deacon
Coffee, Social Stratification and the Retail Sector in a Small Maritime Village
Nick Pemberton
Praise For America’s Second Leading Intellectual
Robert Hunziker
The Yellow Vest Insurgency – What’s Next?
Patrick Cockburn
The Yemeni Dead: Six Times Higher Than Previously Reported
Nick Alexandrov
George H. W. Bush: Another Eulogy
Brian Cloughley
Principles and Morality Versus Cash and Profit? No Contest
Michael F. Duggan
Climate Change and the Limits of Reason
Victor Grossman
Sighs of Relief in Germany
Ron Jacobs
A Propagandist of Privatization
Robert Fantina
What Does Beto Have Against the Palestinians?
Richard Falk – Daniel Falcone
Sartre, Said, Chomsky and the Meaning of the Public Intellectual
Andrew Glikson
Crimes Against the Earth
Robert Fisk
The Parasitic Relationship Between Power and the American Media
Stephen Cooper
When Will Journalism Grapple With the Ethics of Interviewing Mentally Ill Arrestees?
Jill Richardson
A War on Science, Morals and Law
Ron Jacobs
A Propagandist of Privatization
Evaggelos Vallianatos
It’s Not Easy Being Greek
Nomi Prins 
The Inequality Gap on a Planet Growing More Extreme
John W. Whitehead
Know Your Rights or You Will Lose Them
David Swanson
The Abolition of War Requires New Thoughts, Words, and Actions
J.P. Linstroth
Primates Are Us
Bill Willers
The War Against Cash
Jonah Raskin
Doris Lessing: What’s There to Celebrate?
Ralph Nader
Are the New Congressional Progressives Real? Use These Yardsticks to Find Out
Binoy Kampmark
William Blum: Anti-Imperial Advocate
Medea Benjamin – Alice Slater
Green New Deal Advocates Should Address Militarism
John Feffer
Review: Season 2 of Trump Presidency
Rich Whitney
General Motors’ Factories Should Not Be Closed. They Should Be Turned Over to the Workers
Christopher Brauchli
Deported for Christmas
Kerri Kennedy
This Holiday Season, I’m Standing With Migrants
Mel Gurtov
Weaponizing Humanitarian Aid
Thomas Knapp
Lame Duck Shutdown Theater Time: Pride Goeth Before a Wall?
George Wuerthner
The Thrill Bike Threat to the Elkhorn Mountains
Nyla Ali Khan
A Woman’s Selfhood and Her Ability to Act in the Public Domain: Resilience of Nadia Murad
Kollibri terre Sonnenblume
On the Killing of an Ash Tree
Graham Peebles
Britain’s Homeless Crisis
Louis Proyect
America: a Breeding Ground for Maladjustment
Steve Carlson
A Hell of a Time
Dan Corjescu
America and The Last Ship
Jeffrey St. Clair
Booked Up: the 25 Best Books of 2018
David Yearsley
Bikini by Rita, Voice by Anita
FacebookTwitterGoogle+RedditEmail