Slashdot Mirror
Google's Smart Advertising Leads to More Clicks
The New York Times has a story discussing the sophisticated technique that allows for the spot-on advertisements Google serves up on pages across the internet. From the article: "Hidden behind its simple white pages, Google has already created what it says is one of the most sophisticated artificial intelligence systems ever built. In a fraction of a second, it can evaluate millions of variables about its users and advertisers, correlate them with its potential database of billions of ads and deliver the message to which each user is most likely to respond. Because of this technology, users click ads 50 percent to 100 percent more often on Google than they do on Yahoo, Mr. Noto estimates, and that is a powerful driver of Google's growth and profits. 'Because the ads are more relevant," he said, "they create a better return for advertisers, which causes them to spend more money, which gives Google better margins.' (Yahoo is working on its own technology to narrow that gap.)"
I remember, a day or two after Katrina, trying to track down a few friends who had fled New Orleans, and when reading my email thread in gmail I was offered a great deal on a travel package to the historic French quarter. :)
It figures that one of the most sophisticated AIs ever developed would find its use in advertising.
Don't forget about all the fraudulent clicks ey... It seems like they're having a lot of problems with those...
- Leon Mergen
http://www.solatis.com
Google has already created what it says is one of the most sophisticated artificial intelligence systems ever built - yeah, and all it does is figuring out how to sell more stuff. Well, congrats Google, you've built a supreme sales agent. Of-course when this system becomes self aware, it will undoubtadly understand that IQ level in humans is reversly proportionate to their willingness to buy junk and then it will start a war - war against the smarter people, while at the same time promoting genetic engineering and new breeding programs aimed at one thing, and one thing only: designing the best buyer. And then this Google thing will rule the world with an iron fist of text ads and a sweet discount program.
You can't handle the truth.
Great, now Slashdot's advertising advertisments.
Kayamon
It's funny that even 2 years ago, people were complaining about intrusive and resource wasting flash/pop-up adverts all over a page. People said "I wouldn't mind the ads so much if they were at least relevant and more discreet, can't some company do this? How come nobody can figure out that more relevant/less intrusive ads are more likely to get clicked on?".
So now Google comes along and meets you halfway, with relevant (for the most part) ads, that are tucked away in corners with text only.
And now, the same people are screaming about privacy rights, google's "monopoly" and evil public shareholder interests, and now you guys are using google's resources, infrastructure and all their hard work by ignoring cookies and blockings ads.
Way to take and not even give back something that would not have taken more than a second of your time anyway!
Yahoo costs about a third, but generates significantly less than a third the number of clicks.
In our 'where did you hear of our product' feedback from our customers, the split between google and yahoo is about 90% google, 10% yahoo. even if some percentage of people dont know the difference between yahoo and google, and even if some people just click on google because it's easy to do (the feedback switches between a type-in-your-answer and a drop down enable us to do quality of data checks, and the order of items in the drop-down, when presented, is constantly randomized).
Yahoo's miminum cost per click is an unreasonably high $10, while google's, if i understand it, has just come down in price.
All that said, the yahoo ads are still profitable for us. However, should that margin begin to thin, you can guess who is on the chopping block first. All the moreso if microsoft finally unveils a credible online ad program.
Incidentally: if you ever wanted to see an example of ABSOLUTELY HORRIBLE UI design on the web, try google's overture service (or whatever the heck it's called now - i have the terms mixed up). it's not just "baseline bad", it's "textbook example of bad, bad". I use yahoo's web interface about every 3-4 weeks, and have to constantly read the instructions for basic operations, since it is never really quite clear what is going on. That's right - i have to re-read instructions that i read 3 weeks ago because the interface is really that lousy. I've never looked at a single instuction with Google.
Tell me again what value yahoo provides? For the life of me, I can't figure it out. They are what--a link index of out of date links? Free email? While I like that they send me clicks, I can not understand why they can generate such traffic to be a major internet site.
And now, the same people are screaming about privacy rights, google's "monopoly" and evil public shareholder interests, and now you guys are using google's resources, infrastructure and all their hard work by ignoring cookies and blockings ads.
IT ISN'T THE SAME PEOPLE. If you can demonstrate that it actually is largely (or even moderately) the same set of people, then I'll eat some humble pie, but I really, really doubt it.
Important comment. My gal is a massage therapist, and I've been tweaking her site for 3 years. (On our first date I was like, ok you can give me your ftp address, username and password and I will take it from here.) I also set her up with a Google Adword campaign. Over the last year several of her competitors in the area have joined in the Adword frey since it is so effective to generate business. We have also been paying more and more for Adwords lately ...
Seems that her competitors are clicking on her AdWord links to up her cost. Then I started clicking on HER competitors links to show THEM who they are messing with. (I got in trouble from my gal - she said it was bad Karma). And then the war begins, clicks flying everywhere...
One night, I met one of her main competitors at a party who admitted to this evil click practice - he was drunk off his arce ad told me at great length in great detail how he tuned his site to be at the top of google for our search category. 2 months later my gal was on top (and the evil clicks have only increased)....
It really is a war out there - and to the winner goes the spoils! The massage therapist with the smartest geek boyfriend wins!
Horns are really just a broken halo.