26 Jul 2012 dmarti   » (Master)

The online advertising problem: bullet points

Here's a quick outline of the online advertising problem.

  • Advertising gains signaling value when it's attached to something that the user sees as difficult or expensive to produce.

  • Advertising gains signaling value as its apparent cost increases.

  • Advertising loses signaling value as it's attached to less valuable resources.

  • Advertising loses signaling value as it becomes more targetable, since the user can't tell how much of the resource was funded by the ad impression that he or she saw.

  • Advertisers tend to pay less for ad media with lower signaling value.

  • Internet advertising has a problem: it's targeted increasingly finely, and is therefore less valuable to advertisers.

  • Solution: Design infrastructure and applications to make tracking more difficult.

Syndicated 2012-07-26 14:38:11 from Don Marti

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