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Great post by @Sherman1890 got me thinking about the future of targeted ads.
More and more tools (privacy labels, ad blockers, GDPR) enable consumers to opt-out from targeted ads - can limit the data platforms receive or block ads altogether.
The end of targeted ads?
https://twitter.com/Sherman1890/status/1359091971755810816
More and more tools (privacy labels, ad blockers, GDPR) enable consumers to opt-out from targeted ads - can limit the data platforms receive or block ads altogether.
The end of targeted ads?
https://twitter.com/Sherman1890/status/1359091971755810816
One option is for companies to exit the targeted ad business. If consumers are going to opt-out, why invest in these ads?
Some even think we should accelerate this trend by banning targeted ads
BUT there is an alternative. https://techcrunch.com/2021/02/10/eus-top-privacy-regulator-urges-ban-on-surveillance-based-ad-targeting/
Some even think we should accelerate this trend by banning targeted ads
BUT there is an alternative. https://techcrunch.com/2021/02/10/eus-top-privacy-regulator-urges-ban-on-surveillance-based-ad-targeting/
Many assume that data extraction and targeted ads are a cost to consumers (note that all ads are to some extent targeted
) .
It isn't, and doesn't have to be, this way.
For instance, there is significant room for targeted ads to improve. This might already be happening
) . It isn't, and doesn't have to be, this way.
For instance, there is significant room for targeted ads to improve. This might already be happening
1) Targeted ads can be the butler you always wanted but could never afford. Literally what is happening with Alexa and Marriott hotels.
=> The firm willing to pay most for placement is often the one which consumers value most => incentives often aligned. https://www.reuters.com/article/us-amazon-com-marriott-intnl-idUSKBN1JF16P
=> The firm willing to pay most for placement is often the one which consumers value most => incentives often aligned. https://www.reuters.com/article/us-amazon-com-marriott-intnl-idUSKBN1JF16P
Another example: Google Maps is already a powerful trip planner, but you do the planning.
Imagine if Google could plan trips for you. It could suggest best hotel, book cheapest flights, and create itineraries where some stops pay for placement... https://roamingtheamericas.com/guide-google-my-maps-trip-planning/
Imagine if Google could plan trips for you. It could suggest best hotel, book cheapest flights, and create itineraries where some stops pay for placement... https://roamingtheamericas.com/guide-google-my-maps-trip-planning/
2) Ads can also be a form of entertainment - think of trailers before a movie.
This seems to be what Instagram Influencers are all about.
You go to Insta for entertainment, and brands get new consumers. Could be even better with more precise targeting. https://locowise.com/blog/how-influencers-are-switching-up-the-travel-industry
This seems to be what Instagram Influencers are all about.
You go to Insta for entertainment, and brands get new consumers. Could be even better with more precise targeting. https://locowise.com/blog/how-influencers-are-switching-up-the-travel-industry
3) My Google feed is my own personalized newspaper. Made to fit my preferences.
More data could lead to better targeting =>better matches, and higher chance that I really enjoy the promoted pieces (which is good for me AND for advertisers). https://www.blog.google/products/search/feed-your-need-know/
More data could lead to better targeting =>better matches, and higher chance that I really enjoy the promoted pieces (which is good for me AND for advertisers). https://www.blog.google/products/search/feed-your-need-know/
4) @MarkAntonyCasey of @Deloitte has an excellent report on "the future of advertising" that is well worth a read
TL;DR: Consumers will receive better ads, especially if firms can improve targeting with better data. https://www2.deloitte.com/global/en/blog/global-trends-in-tmt/2019/the-future-of-advertising.html#
TL;DR: Consumers will receive better ads, especially if firms can improve targeting with better data. https://www2.deloitte.com/global/en/blog/global-trends-in-tmt/2019/the-future-of-advertising.html#
5) Some normative points:
- Data extraction â consumer harm: Better ads can benefit all parties (and data extraction has many other benefits).
- Combining data from different sources/products is valuable =>Policymakers should not ban this.
- Let people vote with their feet.
- Data extraction â consumer harm: Better ads can benefit all parties (and data extraction has many other benefits).
- Combining data from different sources/products is valuable =>Policymakers should not ban this.
- Let people vote with their feet.
In short, regulators would be wrong to strangle the targeted ad industry, or to systematically minimize data extraction.
Consumers should be able to choose targeted products/services if they prefer them!
Consumers should be able to choose targeted products/services if they prefer them!
