FacebookTwitterRedditEmail

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! 

March 18, 2019
Scott Poynting
Terrorism Has No Religion
Ipek S. Burnett
Black Lives on Trial
John Feffer
The World’s Most Dangerous Divide
Paul Cochrane
On the Ground in Venezuela vs. the Media Spectacle
Dean Baker
The Fed and the 3.8 Percent Unemployment Rate
Thomas Knapp
Social Media Companies “Struggle” to Help Censors Keep us in the Dark
Binoy Kampmark
Death in New Zealand: The Christchurch Shootings
Mark Weisbrot
The Reality Behind Trump’s Venezuela Regime Change Coalition
Weekend Edition
March 15, 2019
Friday - Sunday
Andrew Levine
Is Ilhan Omar Wrong…About Anything?
Kenn Orphan
Grieving in the Anthropocene
Jeffrey Kaye
On the Death of Guantanamo Detainee 10028
Stan Cox – Paul Cox
In Salinas, Puerto Rico, Vulnerable Americans Are Still Trapped in the Ruins Left by Hurricane Maria
Ben Debney
Christchurch, the White Victim Complex and Savage Capitalism
Eric Draitser
Did Dallas Police and Local Media Collude to Cover Up Terrorist Threats against Journalist Barrett Brown?
Jeffrey St. Clair
Roaming Charges: Straighten Up and Fly Right
Jack Rasmus
Trump’s $34 Trillion Deficit and Debt Bomb
David Rosen
America’s Puppet: Meet Juan Guaidó
Jason Hirthler
Annexing the Stars: Walcott, Rhodes, and Venezuela
Samantha M. - Angelica Perkins
Our Green New Deal
Mel Gurtov
Trump’s Nightmare Budget
Steven Colatrella
The 18th Brumaire of Just About Everybody: the Rise of Authoritarian Strongmen and How to Prevent and Reverse It
Evaggelos Vallianatos
Riding the Wild Bull of Nuclear Power
Michael K. Smith
Thirty Years Gone: Remembering “Cactus Ed”
Dean Baker
In Praise of Budget Deficits
Howard Lisnoff
Want Your Kids to Make it Big in the World of Elite Education in the U.S.?
Brian Cloughley
Trump’s Foreign Policy is Based on Confrontation and Malevolence
John W. Whitehead
Pity the Nation: War Spending is Bankrupting America
Priti Gulati Cox
“Maria! Maria! It Was Maria That Destroyed Us!” The Human Story
Missy Comley Beattie
On Our Knees
Mike Garrity – Carole King
A Landscape Lewis and Clark Would Recognize is Under Threat
Robert Fantina
The Media-Created Front Runners
Tom Clifford
Bloody Sunday and the Charging of Soldier F
Ron Jacobs
All the Livelong Day      
Christopher Brauchli
Banking, Wells Fargo-Style
Jeff Mackler
After Week-Long Strike, Oakland Teachers’ Contract Falls Short
Chuck Collins
Bring Back Eisenhower Socialism!
Binoy Kampmark
Grounding Boeing
James Munson
Why Are We Still Sycophants?
Jill Richardson
Politicians Are Finally Catching Up on Marijuana
Warren Alan Tidwell
Disasters Don’t Discriminate, But Disaster Recovery Does
Robert Koehler
Artifial Morality
Matthew Stevenson
Pacific Odyssey: Goodenough Island in MacArthur’s Wake
Alex McDonald
U.S. Iran Policy: What is Great?
Tracey L. Rogers
Stop Making Women Apologize
John Sarbanes – Michael Brune
To Clean Up the Planet, Clean Up DC First
FacebookTwitterRedditEmail