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Traffic Fraud Inflates Video Site Popularity

Dotnaught writes "A new study by spyware researcher Ben Edelman finds that spyware-driven traffic inflation is common, particularly at video sites. The study identifies Bolt.com, GrindTV.com, Broadcaster.com, Away.com, RooTV.com, and Diet.com as the beneficiaries of spyware-driven traffic. 'Our measurement systems are inaccurate for the amount of trust we'd like to put into them,' Edelman said. 'So that's the puzzle: How do you build an advertising economy when the number can't be trusted?'"

114 comments

  1. Who?? by Mr2001 · · Score: 4, Insightful

    I've never heard of any of those video sites. Is this an actual problem affecting well-known sites, or just these no-names?

    --
    Visual IRC: Fast. Powerful. Free.
    1. Re:Who?? by slayermet420 · · Score: 1

      Yeah, never heard of any of these either. I seem to care pretty much none about this. Just enough to comment on it.

      --
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    2. Re:Who?? by Anonymous Coward · · Score: 0

      I know someone who had a bolt.com email address, but I never knew the website offered video content. Probably more of a recent offering.

    3. Re:Who?? by psaunders · · Score: 5, Funny

      I care even less...in fact, I only came in here because the footer below the abstract said "7 of 9 comments". Ripped off, she's not even here.

      --
      Karma police, arrest this man. He talks in math. He buzzes like a fridge. He's like a detuned radio.
    4. Re:Who?? by Jah-Wren+Ryel · · Score: 3, Insightful

      I've never heard of any of those video sites. Is this an actual problem affecting well-known sites, or just these no-names? I don't think it matters. With yoogle poised to do "revenue sharing" for videos hosted on their systems, the described abuse seems likely to become more popular. Both directly for profit and indirectly as "clumsy" joe-jobs to deprive the 'competition' from receiving valid income.

      I believe the fundamental question about building an advertising based economy on untrustable numbers is indeed key. This attack is the equivalent of someone figuring out how to plant a remote-controlled tv remote-control in every Nielson living room and using it to fool Nielson's tracking into thinking the families where all watching certain shows - ones for which the producers had paid the remote-control controller a fee. If that were to happen, billions of dollars of tv advertisment revenue would be at risk.

      The internet makes such an otherwise impossible attack relatively easy. I suspect the only long-term solution is to not base the economy on advertising. Find another way, my personal favorite being something along the lines of "global co-op comissioned work with release to the public domain." In other words, pay for actual creative work done, not unreliable statistics about eyeballs and promotion.
      --
      When information is power, privacy is freedom.
    5. Re:Who?? by tinkertim · · Score: 3, Interesting

      I've never heard of any of those video sites. Is this an actual problem affecting well-known sites, or just these no-names?


      Many web sites will gladly sell you a place to put one of your banners. They will charge you a fee that is justified by the amount of visitors who will see your banner, further justified by estimating how many of those visitors would be likely to click on your banner and why.

      For sites that depend on selling advertisement space to monetize, traffic scores calculated by third party sites like Amazon make or break your ability to get prime bucks for prime space on your web sites.

      Comapnies who need to show an instant boom in traffic sometimes employ the use of spyware that can be signaled from a remote connection to begin "surfing" a given site from the visitor's IP address proporting to be the user's default browser type. Instantly, millions of people start surfing the target site completely unaware they're even doing it. Its a booming business, building and renting these networks.

      You may not have heard of any of these sites, but I'm sure you'd pay top dollar to advertise there once you saw their traffic scores. Its a new cottage industry that thrives on Windows / IE users.
    6. Re:Who?? by owlnation · · Score: 3, Interesting

      How do you build an advertising economy when the number can't be trusted?
      Find a way to get someone to post an article on your noname site on Slashdot -> get loads of visits.

      No, I've never heard of the sites either.
    7. Re:Who?? by Bearhouse · · Score: 1

      There's a lot of alternative video sites springing up that don't have the same constraints, (copyright...) as the big guys.
      You'll find (sometimes) full-length, high-quality stuff.

      Equally, a host of specialised search engines such as allug.org have sprung up to search such sites.

      More info here http://tinyurl.com/2fva6c (Wall Street Journal)

      Until I read the WSJ article, I'd never heard of any of them either. Suppose they'll all get sued into oblivion now...

    8. Re:Who?? by Anonymous Coward · · Score: 0

      Is this crontab entry an example of traffic fraud?

      20 5 * * * wget -R http://www.thehungersite.com/ > /dev/null

    9. Re:Who?? by Dogtanian · · Score: 1

      I don't think it matters. With yoogle poised to do "revenue sharing" for videos hosted on their systems, the described abuse seems likely to become more popular. With less well-known companies, perhaps, but not with Gootube. Any short-term gains would be easily outweighed by the damage to the company's reputation. I don't think they can afford to mix-and-match Good Google/Bad Google, even if it were theoretically possible.
      --
      "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
    10. Re:Who?? by QuickFox · · Score: 4, Funny

      I don't think they can afford to mix-and-match Good Google/Bad Google Unfortunately they can. They actively promote and encourage domain squatting.
      --
      Terrorists can't threaten a country's freedom and democracy. Only lawmakers and voters can do that.
    11. Re:Who?? by Jah-Wren+Ryel · · Score: 1

      With less well-known companies, perhaps, but not with Gootube. Any short-term gains would be easily outweighed by the damage to the company's reputation. I think you missed my point. It is not that google would do it, it is that individual users of google would do it in order to defraud google. How can google possibly distinguish between 50,000 virus infected systems downloading a video clip and 50,000 real people downloading a video clip?
      --
      When information is power, privacy is freedom.
    12. Re:Who?? by Anonymous Coward · · Score: 0
      Exactly. Paying somebody for murder != murder; after all, they aren't the ones pulling the trigger. Likewise, people who write the software for spamming are good guys, the folks who write and distribute spyware are just victims of the people who distribute it.

      Its all so clear now. Down is up, good is bad.

    13. Re:Who?? by Anonymous Coward · · Score: 0

      Not according to the law. They now consider being an accessory to a crime to be the same as committing it. Doesn't make sense, I know, but that is what your "tough on crime" politicians do to make the masses happy.

    14. Re:Who?? by LifesABeach · · Score: 1

      Is there a web site that shows how to place a cam-corder in a car? Sometimes when you see a princess applying eye makeup, the lipsticked mouth opens and closes like a Grouper breathing. There is some other stuff that people do in their car; Looking down from an 18 wheeler, one can sometimes see things happening that authors never write about.

  2. Re:Inflating Slashdot's popularity by postmortem · · Score: 0, Redundant

    I go the third (I hope so).

  3. Re:Inflating Slashdot's popularity by Zadaz · · Score: 1

    Damn. I was hoping I'd get bonus points for not knowing anything about these guys. I need to try harder to earn my "living under a rock" badge.

  4. Simple by iminplaya · · Score: 1

    How do you build an advertising economy when the number can't be trusted?'

    Use a different measurement system, and don't install spyware.

    --
    What?
    1. Re:Simple by jambarama · · Score: 2, Interesting

      Use a different measurement system sure, but what measurement system? You can pay by the number of clickthroughs, but if these sites are willing to build up fraudulent page views, fraudulent clickthroughs wouldn't surprise me either. The best system I can think of is to do a revenue sharing plan--tell a site they get X% commission for each sale referred from their site. It is a lot harder, more expensive, and more clearly illegal to fake a credit card purchase--so I can see this being effective, even if sites don't like this model.

      Anyone have any better ideas?

    2. Re:Simple by iminplaya · · Score: 1

      Sorry I forgot the smiley. I meant nothing serious about it. Personally, I think seeing these advertising types squirm like this is hilarious. They will never be able to control the net the way they could with the older media, and that's the way I like it. All the old 19th century business models will fall apart and will be thrown aside once and for all. First it's the publishing, music, movie industries. Now we can toss the advertising industry into the same heap of trash along with them. Good riddance to all the old top down way of doing things. Who needs these people? I don't. It's getting to be time to show the power of the individual. Everything will just have to priced on an entirely individual basis. No more of this "18-49 year old males" marketing demographic bull. Say so-long to the Nielsens and Marketron...The longer the better.

      --
      What?
    3. Re:Simple by maxwell+demon · · Score: 1

      Classical advertising also has no way to check how many people actually see the ad. Do you add a camera to each poster wall, counting people who actually look at that direction? Do you add microchips into magazines to see how many people open that specific page? What about those advertisements on cars?

      And this obviously hasn't killed the traditional advertising business. So why should it be different with web advertising? You don't need exact, trusted numbers elsewhere, so you should not need them here either. Just stop those "pay per view" and "pay per click" payment methods. You don't get payed for the number of times someone opens magazine page 20 either.

      --
      The Tao of math: The numbers you can count are not the real numbers.
    4. Re:Simple by iminplaya · · Score: 1

      Do you add microchips into magazines to see how many people open that specific page?

      Might be pretty feasible now. You might just have something there. But as far as I'm concerned, I'd just as soon see all the classic business models go away. A good shakeup is what's needed. To those trying to maintain the old ways, I say, "Let them eat cake!" They're in a panic, and it's very fun to watch. They strive so hard for a stable and predictable market, and I think it's great to see it slip through their hands. A little chaos will do 'em some good, and probably the rest of us, also. It'll bring them down to earth a little, in that their are losing control, just like the Soviets lost control of the media in the 80s. I see this as a small restoration of a balance of power. We have to make it clear to those who want control that they won't have it anymore. I found the article to be good news on many fronts.

      --
      What?
  5. This is how... by Duncan3 · · Score: 4, Insightful

    How do you build an advertising economy when the number can't be trusted?

    There's a sucker born every minute. Customers and advertisers both. Google proves it every day. Even the price comparison sites are becoming bogus.

    Widget online: $3
    Shipping & "handling": $25
    Markup for the ad we had to buy to get you here: $47
    On sale at the local mall: $2

    Now that Google is taking over the entire ad space, it's one simple entry in the ad blocking software to eliminate most ads. Get Adblock properly configured and you'll rarely if ever see an ad.

    --
    - Adam L. Beberg - The Cosm Project - http://www.mithral.com/
    1. Re:This is how... by Dogtanian · · Score: 2, Interesting

      Now that Google is taking over the entire ad space, it's one simple entry in the ad blocking software to eliminate most ads. Get Adblock properly configured and you'll rarely if ever see an ad. That's ironic, because Googles ads are generally the ones I feel no need to block; they're not particularly intrusive. By contrast, the reason I switched to Google from Yahoo in the first place was specifically the annoying popup ads (mainly for X10).

      Let's make this clear; Yahoo lost me permanently as a user (rare email use aside) *specifically* because of the annoying popups; and ones mainly aimed at one advertiser at that. Now, I'm probably not enough of an ad-clicker (either at Yahoo or Google) that they'd shed any tears over the loss of people like me. However, I wonder how many profitable users Yahoo lost because of one annoying short-term ad-campaign on their site.

      It's like a TV station showing obnoxious advertising (*) during peak/mealtimes. It makes me wonder about people changing the channel in the face of this and the subsequent loss to other advertisers- and potential loss of the audience altogether if something more interesting was on the other station.

      (* One unpleasant example- skip if you're having your lunch- woman discussing the consistency of their "stools" in a cafeteria. No, not the ones they were sitting on. Yes, this is a real advert in the UK. Can't remember if they showed it at peak or mealtimes, probably because I don't watch the kind of programmes it would appear with very often).
      --
      "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
    2. Re:This is how... by Hoi+Polloi · · Score: 1

      I'm just happy if the price the comparisons show actually matches what is on the store's website. More and more recently I've found that the price shown in the comparison listing has nothing to do with the actual price shown when you follow the link to the store. I don't know if this is fraud, laziness, a crappy system or a little of all 3.

      --
      It is by the juice of the coffee bean that thoughts acquire speed, the teeth acquire stains. The stains become a warning
  6. It's a problem everywhere by Evets · · Score: 4, Insightful

    This problem has been around since the begining of web stats in general. There was a time not long ago when people didn't differentiate between hits and page views or visits. 100,000 hits on a given site could mean anywhere between 1,000 and 50,000 page views.

    Some people intentionally inflate their stats, others end up inflating them unintentionally. Drudge reports an absurd amount of page views in their advertising page, but if you stay on the home page for any length of time you see the page auto-refreshing. Does that count? If you are selling CPM advertising, it probably does. If you are buying it, you hope it doesn't.

    In the end, advertisers either are doing brand advertising or conversion advertising. If they are doing conversion advertising it's simple - identify potentially good advertising locations and figure out the comparitive ROI with a trial run. If you are doing brand advertising, you can base your dollars on alexa or nielsen or some other marketshare stat vendor, or you can simply research the site niches yourself to determine the extent of their advertising power within the community.

    Advertising has been wrought with snake oil vendors since the beginning. Nothing has changed and nothing ever will. Like anything else - if a deal is too good to be true, it probably is. And just because a deal is priced in congruency with the rest of the market doesn't mean that you can accept it at face value. PR firms don't just exist to put out a public image, they exist because they are supposed to understand the advertising marketplace better than most people would ever care to.

    1. Re:It's a problem everywhere by lonecrow · · Score: 1

      As an ad seller I was concerned about getting accurate numbers that I could confidently and ethically quote to clients.

      I have opted to price my ads based on 'unique viewers' in a month regardless of page views etc. Its people my advertisers want to sell to so its people I should count.

      I use Google Analytics (formally Urchin) and because it relies on javascript I avoid having to filter out spiders since they don't run the scripts. I would imagine that it is the same for these traffic inflating malware. I assume they are simply issuing get requests and dumping the response.

      Yes I miss counting people who surf with javascript disabled (like me) but it is a very small price to pay for cleaner numbers.

      The only downside is when a potential client asks why my competitor gets [some big number of hits] while I say I only get [some much much smaller number]. Trying to answer that without sounding like I am calling my competitor a lier isn't so easy :)

  7. purchases are what matter by timmarhy · · Score: 1
    traffic numbers aren't a good way of guaging the effectivness of an add. i see lots of ads every day, 99.9999% of them i ignore.

    purchases are all that matter. if i ever find an easy way to link purchases directly to advertisments i'm selling the idea to google and retiring.

    --
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  8. Advertising is inherently untrustworthy by ddoctor · · Score: 0, Offtopic

    How do you build an advertising economy when the number can't be trusted?

    Nothing to do with advertising can be trusted. That's the whole point - it's bullshit intended to manipulate you into giving your money away - how do you establish trust in that kind of parasitic activity? You just don't. You open your eyes to the reality and filter out the bullshit.

    1. Re:Advertising is inherently untrustworthy by timmarhy · · Score: 2, Insightful

      thats not strictly true. i've encountered advertising thats discrete, gave me the information i was looking for and was very handy. unfortunately thats a rare thing. all those dating and "your our millionth visitor you've won" ads need to fuck off.

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  9. possible idea by dosboot · · Score: 2, Interesting

    Maybe we could create a simple way for people to report forced traffic from their browsers? I'm thinking of having a button on the toolbar and when a pop-up opens you click the button to report it as forced (and have the button simultaneously close the window naturally). If you recieve widespread reports for a certain site then there is a degree of certainty that this site is really getting forced traffic (and not just malicous people playing with the button). With this information you can compile a public list of sties that get forced traffic.

  10. Easy by kjart · · Score: 2, Funny

    How do you build an advertising economy when the number can't be trusted?

    Just do what TV studios do - pretend that the numbers are real.

    1. Re:Easy by laejoh · · Score: 1

      Hey, the same strategy the RIAA and other IAA's are using!

  11. Here's a thought by Anonymous Coward · · Score: 0

    Get the ugly MF ads out of my face and I'll look you up if I need you.

    Slashdot capitalist says: Oh wah wah, then everything will cost more

    I say: Tell the management to take a paycut.

  12. Party over. by ajs318 · · Score: 2, Insightful

    'Our measurement systems are inaccurate for the amount of trust we'd like to put into them,' Edelman said. 'So that's the puzzle: How do you build an advertising economy when the number can't be trusted?'
    Short answer: You don't.

    Advertisers are parasites that manage to hook into both ends of the food chain. They suck producers dry under the false pretence of bringing consumers to them; and they suck consumers dry by inflating the prices of goods (to pay for the adverts that they are ignoring).

    We have now reached a saturation point: there is literally nowhere left for the advertising industry to plaster their garish advertisements. Everywhere you look, there's a f***ing advertising hoarding. Then they got clever and used "time-domain multiplexing" -- revolving hoardings that can fit three posters into the space of one! People wander round in clothes made in third-world sweatshops, that boldly display the manufacturer's name; yet they actually paid good money to do that. (Unless they bought the better-quality counterfeits, and the real manufacturer still gets the benefit of advertising either way.) The only watchable TV channels -- unless you've got Sky Plus -- are from the BBC. And don't think you can get away from it in the cinema. First they advertised before the movie. Then they advertised the tie-in merchandise for weeks after the movie. Nowadays the whole movie is one long advert!

    When the advertising industry is dead, there'll be one MOTHER of a queue to dance on its grave.
    --
    Je fume. Tu fumes. Nous fûmes!
    1. Re:Party over. by king-manic · · Score: 4, Insightful

      Advertising does create value for someone. You need to know whats out there and no one has prefect knowledge. Advertising provides a base point to get more info. Suppliers too. Like it or not A great product with little advertising (Linux/stewarts soda) will always be beat by a okay product with good advertising (Windows/coke). With marketing being equal then other factors comes into play (VHS vs Beta). So while the consumer gets nothing out of it the retailer/manufacturer has to play the game.

      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
    2. Re:Party over. by Tony+Hoyle · · Score: 1

      On the internet perfect knowledge is (nearly) attainable - and that scares the advertisers silly.

      Whereas before you had maybe 3 or 4 shops to try, all charging the same basically because they could, I can now go online and select from thousands of retailers.. find the cheapest/best price and buy online.

      That's why often the web stores of major shops charge 25-50% less than the physical shops - because they can't get away with the local price cartels any more.

      If a retailer rips *anyone* off anyone can find out about it. Before it was limited to his immediate friends. If they rip a *lot* of people off then everyone knows this and the store finds its business collapsing - no need for 'watchdog' type TV programmes any more to do this (who could pick off a few of the major ones but never covered the majority of poor businesses). On the flipside if a store has good service everyone finds out about it and they get more customers. This is independent of advertising (many of the online stores I regularly use have never advertised to my knowledge, beyond appearing in a google search).

    3. Re:Party over. by NoMaster · · Score: 2, Interesting

      So, to play devils advocate with a term that was all the rage a few years ago, in order to create a "level playing field" advertising should either be socialised or outlawed?

      (Yeah, I know about real 'level playing fields', opportunity, access, etc. I'm using the term in the same way it was presented to the public back then; the "let us do X because we don't think Y is fair!" sense...)

      Yes, advertising does "create value". In theory, it does it by affording companies the opportunity to inform consumers of their worthy products.

      In reality, it does it by distorting markets almost to breaking point, by convincing people without the time/inclination/wherewithal* to research every purchasing decision that Product A with a huge marketing budget is better than Product B with a slightly less huge marketing budget. Over and over, again, and again, and again, 5 or 6 times an hour even while you sit stationary in front of the television.

      The fact is that modern advertising - since the 50's at least - is a gross and unhealthy economic aberration, which actually has a negative effect on the world as a whole...

      And, frankly, I don't care for the "without advertising you would have wonderful things such as product/service/website Y!" argument. If I didn't know I needed it, I didn't need it; sure, new things are nice, but not at the expense of my time / money / mindscape - unless I so chose. It's the non-stop inescapable ubiquity of advertising, on everything everywhere - and the fact that it's not only becoming accepted as natural, but that attempts to reduce/remove/avoid it are starting to be seen as wrong and verging on the criminal - that is the problem.

      (* And how can even the experienced and dedicated research choices properly anyway? Tried using Google to research any commercial or personal decision lately? Between the spam blogs, fake product "reviews", and out and and out advertising lies, it's impossible.)

      --
      What part of "a well regulated militia" do you not understand?
    4. Re:Party over. by ajs318 · · Score: 1

      I'd be in favour of banning advertising altogether ..... along with other shonky practises such as charging different amounts depending on method of payment and/or charging different amounts for online and in-person purchases.

      Advertising increases the cost of the products that are advertised. It may or may not result in more purchases. If it does not result in more purchases, or the increased revenue from purchases fails to offset the advertising costs (and it's a very fine line between economy of scale and the law of diminishing returns) then consumers suffer.

      --
      Je fume. Tu fumes. Nous fûmes!
    5. Re:Party over. by Bastard+of+Subhumani · · Score: 1

      And don't think you can get away from it in the cinema. First they advertised before the movie. Then they advertised the tie-in merchandise for weeks after the movie. Nowadays the whole movie is one long advert!
      This is true, right after seeing LoTR I felt a huge desire to buy a dwarfish battleaxe & some mithril. And don't get me started about the product placement by Feänmù the bowwright - blatant or what?
      --
      Only three things are certain; death, taxes, and apocryphal quotations - Ben Franklin.
    6. Re:Party over. by spamking · · Score: 1

      We have now reached a saturation point: there is literally nowhere left for the advertising industry to plaster their garish advertisements.
      Very true. About every 10th time I check my voicemail at work I get some freakin' advertisement about the features of our voicemail system.
    7. Re:Party over. by sholden · · Score: 2, Insightful

      How is charging different prices shonky?

      Different payment methods have different costs as does online and in-person transactions.

      Checks and credit cards have the potential to bounce or be charged back. Cash has the potential to be stolen. Surely if something costs the supplier different amounts they can charge the customer different amounts without being branded "shonky"?

      Coca Cola branded soda costs more than unbranded stuff at the supermarket because they cost the supermarket different amounts in to buy themselves. Is that shonky?

    8. Re:Party over. by ajs318 · · Score: 1
      A pound of my money is worth a pound whether it's a pound coin, five twenties, a hundred pennies or any of the other combinations of coins; and it's worth a pound whether it comes by cheque, cash or credit card, and whether I bring it to you in person or down a wire. If your bank is charging you different amounts to deal with it depending how it comes in, they're being shonky.

      Coca Cola branded soda costs more than unbranded stuff at the supermarket because they cost the supermarket different amounts in to buy themselves. Is that shonky?
      As long as they aren't trying to pass off the unbranded stuff as Coke, no: it's not the same stuff.

      What I object to is being charged different prices for the same goods.
      --
      Je fume. Tu fumes. Nous fûmes!
    9. Re:Party over. by maxume · · Score: 1

      Consumers don't suffer all that much from advertising. Take Procter and Gamble:

      http://finance.yahoo.com/q/is?s=PG&annual

      They have operating expenses of $22 billion on revenues of $68 billion. Assuming they only spend money on advertising, it accounts for ~32% of their wholesale. Retail markup is usually bigger than that, and they aren't spending $22 billion on advertising, they spend somewhere less than $10 billion on advertising, which is ~14% of wholesale, but Tide isn't exactly expensive.

      It's a bit of an unfair example, as they are pretty good at advertising, so other companies are probably spending more, but I don't find the level offensive.

      --
      Nerd rage is the funniest rage.
    10. Re:Party over. by sholden · · Score: 2, Insightful

      Yes a pound of your money is worth a pound, however if you pay with cash the store has to spend X cents (where X is a very small number) on security /insurance against theft. If you pay with a credit card then the bank probably charges them a fee plus there's the risk of a charge back which amortizes to Y cents (again a very small number). If you pay with a check then there's the risk of it bouncing which again translates to some amortized cost of Z cents.

      The store doesn't give a stuff how much you actually pay for the item. They care how much money they get for the item. If you want to use a credit card why should the store pay the fee the bank charges - you're the one choosing to use a card for your convenience so you should pay that fee.

      You are being charged the same price for the same goods. You pay extra for the additional costs you inflict on the merchant.

      What you are really arguing is that the costs inflicted on the merchant by credit card users and people who want to come into the store instead of order online should be paid for by charging the people who don't inflict those costs on the merchant as higher price. Which seems the shonky way to me.

      Note: it may well be that people who pay cash inflict more costs than those who pay by credit card - in the form of security costs, insurance costs, staff costs to transport the money, etc, etc - but the argument is the same just flip the credit card/cash parts...

    11. Re:Party over. by Wildclaw · · Score: 1

      Good post, with believable numbers. I just wanted to ad my slightly more pessemistic view of advertising in general.

      Important to remember is that the numbers you are using estimates the business cost for advertising, which is completly different from the society cost.

      First of all, the 14% you estimated is larger than the real cost to society, because a part of it is simple money transfers. This is best seen in TV Ads where the majority of money goes to pay for the construction of tv shows and not to pay for the administration and airing of the ads. The opposite type of ad would be handing out flyers. With that kind of advertising, the business and society cost nearly coincide.

      It is hard to estimate the exact society cost that comes from administrating and distributing ads, but I would guess at somewhere between 5 and 10 percent (which is a bit lower than 14%, but still represents maybe half an hour of your workday)

      That is however only the direct cost of creating advertising. The big part of society cost is still unmentioned, and that is the cost of people having to/being forced to view ads. 2-3 hours of tv per day (average american from what I understand) equals 34-51 minutes of advertising. Some of it may be used for bathroom breaks but that is non-continous time so it has limited utility. Having to spend time separating ads from useful information when searching on the internet is another time spender.

      There is also the big and difficult to measure fact that "disinformation" (or whatever you would like to call it) in advertising decreases the ability for consumers to make informed decisions, and as anyone who has read even the basics about market economy should know, the key to a well functioning market driven society is informed consumers.

      All in all, the society cost of advertising is pretty big. A part of it is probably unavoidable though. Communication is needed to make informed decisions and where there is communication there will be advertising or the likes of it.

    12. Re:Party over. by inviolet · · Score: 1

      Well said. 'tis a shame that Economics 101 and 201 are not required courses in school, and specifically tested in order to graduate. If they were, our laws (particularly our monetary and fiscal policies) would probably be vastly more rational.

      Ditto for the laws of physics: as they are doing with economics, most people are faking their understanding of it.

      --
      FATMOUSE + YOU = FATMOUSE
    13. Re:Party over. by maxume · · Score: 1

      Percent of gross domestic product (GDP) offers some perspective. Ad spending is somewhere south of $1 trillion:

      http://www.brandweek.com/bw/news/financial/article _display.jsp?vnu_content_id=1001615315

      Global GDP is ~$60 trillion:

      http://en.wikipedia.org/wiki/List_of_countries_by_ GDP_(PPP)

      So less than 2% of productive activity is devoted to advertising, worldwide, whereas in the US, something like 3% of GDP(assuming $400 billion advertising and $12 trillion GDP) is devoted to advertising. As you point out, some advertising activity is productive, so your 5 to 10 percent is pretty high, and the actual maximum cost to society is likely closer to 1 or 2 percent.

      --
      Nerd rage is the funniest rage.
    14. Re:Party over. by odigity · · Score: 1

      Advertising is a tragedy.

      Advertising's sole value is supposedly that it provides information to consumers, but in reality, it is the poorest form of information possible. Every advertiser has incentive to deceive as much as possible to promote their own products over those of their competitors. Every advertiser has incentive to use all known knowledge of the human mind to manipulate people into purchasing the product. Humans are not perfectly protected little balls of free will - they will respond to known stimuli.

      You would have to be either retarded or a shill to suggest that a good system is one where the same party that stands to profit is the party that produces the information.

      It gets worse. Advertising is an ARMS RACE. Every year more is spent on advertising. Not because of inflation, not because of GDP growth - more in terms of proportion to other costs. Hollywood is the most obvious and easily confirmable example. As mankind becomes more efficient at producing goods and services, there is more room in the budget for advertising. Attention is one of the two truly scarce resources (the other being land), and whoever commands the most attention wins. Economists are well aware of this, and have included it in their model, along with a rationalization that advertising rewards the most efficient producer since that producer has the most room in their budget for advertising. I would comment on this insanity, but insanity is hardly uncommon in the domain of economists.

      Because advertising is an arms race, every possible medium for advertising will be leveraged. Coffee cup protectors? Check. Standing in line at the grocery store? Check. Pumping gas? Check. (I hate those damn LCD screens.) Writing on the sky? Check. Painted on your car? Check. Additionally, every bit of advertising makes advertising as a whole less effective, which simply drives the need for more advertising.

      The end result is we have an industry that takes in $100B/year in the US alone (and growing), who's output is limited to a) making the world an ugly and annoying place to live b) manipulating people into feeling inadequate and spending money on things they don't need c) NOT providing accurate information about new products and services that might actually add value.

      What little value advertising might provide could and should be provided by third parties and the public at large, utilizing modern information technology (ratings/review sites, consumer reports, wikis, comparison shopping, etc). However, people still respond to advertising, so advertisers are still in business.

      The only way to make it stop is legislation (which, as a limited government proponent, I'm against), or a cultural shift making advertising as a whole extremely distasteful to the point of rude. If everyone refused to buy a product on the basis of the manufacturer supporting advertising, the insanity would quickly diminish.

      This, of course, is unlikely.

      In the meantime, we as a nation spend $100B/year reducing our quality of life (that's $100B that could have been spent creating real wealth). It is a tragedy of the commons - the commons being our collective attention resource.

    15. Re:Party over. by king-manic · · Score: 1

      On the internet perfect knowledge is (nearly) attainable - and that scares the advertisers silly.


      "Reasonable" knowlege was previous obtainable by non-specialist hobbiest before but it's getting harder. Perfect knowledge is not "nearly" attainable. While I know to check tomshardware and arstechnica about info on video cards, Joe Clueless would just type in "video card" into google and get inundated with junk sales sites. If I wanted to buy a good phone I dont' know where to check. I'd have to survey my friends or type "cordless phone" and get slammed byt he number of junk sites about that topic. Advertising liek that doens't help me. But at leats I'd be aware of the brands with a search in google or in the paper. I can get brand names like uniden or panasonic or sanyo by looking inthe paper and then try to google specific model numbers and use my bullshit detector to divine true info from advertising "content". Having a model makes it a bit easier to do research so we can thank advertising for that.

      If a retailer rips *anyone* off anyone can find out about it. Before it was limited to his immediate friends. If they rip a *lot* of people off then everyone knows this and the store finds its business collapsing - no need for 'watchdog' type TV programmes any more to do this (who could pick off a few of the major ones but never covered the majority of poor businesses).

      Problem is you need to seperate "fanboi FUD" from true info. Just look at topics such as consoles.

      The Ps3 is maligned for a lot of things but a lot of it is FUD. For instance the whole "can't convert 790p to 790i". since most sets support 790p at least it a moot point that effects half a dozen obscure models of HDTV, but Sony-antifanboys play it like it's a fatal flaw that effects every HDTV. Or how Sony fanboys will insist that the cell processor is some sort of voodoo that automagically makes all games better. How do you discernt he one vocal guy who had a bad experience from a true problem with the product? Every corp drops the ball. Some more often then not and sometimes they drop it on more vocal people. How do you check if one corp drops it more then another. Is best buy 50% more of a bastard then A-computers. Is the info your reading legit or astroturf or FUD?

      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
    16. Re:Party over. by king-manic · · Score: 1

      I agree that advertising provides nothing to the consumer but cost and junk mail. However it does provide something to the supplier and has a whole bunch of side effects beyond just suckign up money.

      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
  13. The Emperor Has No Clothes by Noxx · · Score: 1

    Please refrain from tugging at the bottom cards, or the entire advertising house might collapse. It's safer to just assume everything is fine. Pay no attention to that marketing exec behind the curtain.

    You can go about your business, move along...move along.

    --
    Study everything, you'll find something you can use - Jason Bourne
  14. How? by kestasjk · · Score: 2, Funny

    How do you build an advertising economy when the number can't be trusted?
    Micropayments right? Everyone wins (except discount viagra merchants and pornography websites).
    --
    // MD_Update(&m,buf,j);
  15. How about a "rate the ad" system? by Opportunist · · Score: 3, Interesting

    When an ad is annoying (like all those in-your-face popups), at best they serve to get the ire of the user, get him to install popup blockers and other means of not having to deal with an ad.

    How about a way to "rate" ads. Was this ad helpful? Did it provide information you actually wanted (I know, I know, but those things DO exist. But then, I also believe in the yeti)? Was it intrusive? Or downright nasty and obnoxious?

    I'm pretty sure the advertising industry (the industry doing advertising, that is, not necessarily the industry that makes the ads) would be very interested in that information.

    And as a nice side effect you get an immediate feedback about popup-abuse. Because they would most certainly be tagged "obnoxious", no matter how good the ad itself may be.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:How about a "rate the ad" system? by asc99c · · Score: 1

      So we could have a popup ad, and when you close it, it can popup a questionnaire to check if it annoyed you!

    2. Re:How about a "rate the ad" system? by Mr.+Shotgun · · Score: 1

      Oh dear god! That is one of the most brilliant ideas I have ever heard of.

      I really wish the was a way to give some feed back on some of the ads I've seen. Like the annoying flyover ads on some pages, or the ones with annoying sounds. One time I was visiting a web comic page and the banner ad had a fish flopping around. Well fish normally don't make much noise but this little bastard wouldn't shut up! He was just flopping around babbling his stupid head off. I got so annoyed with it I dug through the page source and adblocked anything that had to do with the ads domain. I really can't remember what the hell they were advertising but I do know I really did not like that damn fish, at all.

      If I could do as you proposed, I would tell the advertisers that particular ad did not do what they wanted, I never bothered to see what the product was that they were selling, I just wanted that ad out of my face, never to return again.

      --
      Of all tyrannies, a tyranny sincerely exercised for the (supposed) good of its victims may be the most oppressive
    3. Re:How about a "rate the ad" system? by hackstraw · · Score: 1

      How about a way to "rate" ads. Was this ad helpful? Did it provide information you actually wanted?

      Advertising is simply strange. Great ads from the consumers POV often have little to do with the effectiveness of the ad to generate revenue for the company. Back with the Suzuki lying car ads or whatever they were, they were percieved as great ads. Everybody loved them, but they simply didn't sell many cars.

      Take the "greatest ad of all time". The Apple 1984 SuperBowl commercial. We still talk about it almost 20 years later, but does it sell Mac Mini's today?

      Sure, marketing is _part_ of business. But even great businesses with great products fail and so does great marketing. I simply wish they would tone down the hype a bit. Believe it or not, there are many things more important than buying crap.

    4. Re:How about a "rate the ad" system? by Opportunist · · Score: 1

      That's exactly what I'm talking about.

      Sure, annoying ads are a practice by advertisers. An annoying ad simply "sticks". Or so they say. You remember the ad. Some people might even remember the product, because it was SO annoying.

      But the person hosting the page is now in a problem: You will NEVER EVER see an ad on his page again! The ad he ran was SO annoying that you deliberately went out of your way and took the burden of sifting through the source onto you because the ad was so obnoxious and intrusive that you couldn't just stand it anymore. And while you're at it, why only block this ad?

      I see this "rating" less as a tool for promoters, more as one for webpages using promotion to sustain themselves. You will never generate revenue for that comic page again, never ever. You blocked their ads. You would not have done that, probably, if the ads were less invasive. You would watch the ads, and maybe you would click on one if it looks interesting.

      Now, there isn't even a remote chance that you'd ever do that anymore.

      In short, the person running the comic might have made a short term profit from the ads, but they just lost one "ad impression". They now have someone who reads their comic without "paying" for it anymore. If they keep running invasive, full screen popups with annoying sound, more people will do that.

      Ads have to please two sides. Or at the very least, please the company that want them run and not annoy the person who's supposed to watch them TOO much.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  16. Another trick by tmk · · Score: 1

    Have a look at megaupload.com. I had never heard of it, but it is on place 14 of the Alexa top sites, before Ebay and blogger.com.

    The trick: The Megaupload toolbar integrates the Alexa toolbar, which is the source of the traffic data used for the Alexa rankings.

    1. Re:Another trick by David+Off · · Score: 1

      > The trick: The Megaupload toolbar [megaupload.com] integrates the Alexa toolbar, which is the source of the traffic data used for the Alexa rankings.

      they also host p0rn which more mainstream sites won't touch.

  17. fraudsters want this as a service by DragonTHC · · Score: 1

    I've already been approached by someone (previously convicted of fraud) who wanted to start a website business and inflate the traffic numbers with bots so he could sell the company on IPO. He's done it before with non-Internet companies. I refused to help him with the Linux-based bot software. It's an actual product. It's purpose is only to create artificially high visits.

    It's fraud. It's against the computer fraud and abuse act.

    --
    They're using their grammar skills there.
  18. Same problem for the Italian TV, no solution by YA_Python_dev · · Score: 3, Interesting

    FYI we have the same problem in Italy for the number of TV programs viewers.

    There is a corporation, Auditel, which is in teory indipendent but in practice is owned for the 66% by the two biggest TV networks (RAI, the crappy public TV, and Mediaset the crappier Berlusconi's TV).

    Their numbers are used for the prices of the ads and the result is that they always greatly overestimate the number of watchers. An infamous case was when, due to a technical problem, the transmission of a big channel was interrupted for 30 minutes and according to Auditel millions of people (a big percentage of the Italian population) continued to watch it anyway, without any interruption and without changing channel!

    --
    There's a hidden treasure in Python 3.x: __prepare__()
    1. Re:Same problem for the Italian TV, no solution by Hognoxious · · Score: 1

      There is something crappier than RAI? You're joking, right? In truth, while Raiuno is really bad - like UK tv from the 70s, isn't RAI4 OK - sort of like BBC2?

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    2. Re:Same problem for the Italian TV, no solution by YA_Python_dev · · Score: 1

      [this is a bit OT]

      I don't know how familiar you are with the Italian TV, but trust me: the Mediaset channels are even worse than the already really bad RAI's. RAI4 doesn't exist, maybe you mean RAI3? Yes they are the exception that proves the rule: they often have decent programs, sometime even great ones. This last category is also the category that get canceled faster if they dare to disturb the Catholic Church, some politician or the mafia.

      If you want something better you must search outside of the RAI/Mediaset duopoly; e.g. La7 is usally pretty good.

      --
      There's a hidden treasure in Python 3.x: __prepare__()
    3. Re:Same problem for the Italian TV, no solution by Dogtanian · · Score: 3, Interesting

      In truth, while Raiuno is really bad - like UK tv from the 70s I should point out that the 1970s is considered by many to be the "golden age" of UK television; and that UK television is in general far better than many other countries'. So whether your comment was a valid insult depends on the context you meant it from; was it that of a modern viewer from another country?
      --
      "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
    4. Re:Same problem for the Italian TV, no solution by Hognoxious · · Score: 1

      Most of the stuff on Raiuno brings back dim, repressed memories of summertime/seaside special, and if that's the golden age of UK TV then god help us.

      P.S. I don't see where you get the insult from, maybe you're just the type who finds "Eeeeh, my mother-in-law" jokes funny?

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    5. Re:Same problem for the Italian TV, no solution by Dogtanian · · Score: 1

      Hmm... I'm just going by what I've heard and (as I implicitly acknowledged in my original post) going by what people apparently thought at the time; of course people wouldn't want that stuff nowadays. Actually, going by what you were saying, it sounds like you didn't like it back then either :-)

      What I actually remember of 70s TV is negigible (I was only 4 when the 80s started). Having said that, there was a lot of stuff I remember liking in the very early 80s that in retrospect I realise was more commonly associated with the 70s. Specifically ABBA (mainly via records, what I'd seen of them on TV was negligible, so I wasn't prejudiced by the 70s kitsch clothes), The Goodies and It's a Knockout. Oddly, they all disappeared circa 1982....

      And the "variety" type shows I think you're getting at I think were still going well into the next decade, and you're right. That sort of stuff *was* cheesy crap. Actually, looking back on it, vast swathes of early-80s shows were crap; even stuff I thought I liked.

      So no offense taken :-)

      --
      "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
    6. Re:Same problem for the Italian TV, no solution by CastrTroy · · Score: 1

      How much you want to bet that a good number of people did leave the channel on. If there's something on that I really want to see, maybe I would leave in on, in hopes that I would still be watching when it came back on. So, I leave it on the channel, pick up a book and start reading, or I leave the room and do something else. When the channel comes back on, I hear it, and can watch what I wanted to watch when the channel went off the air.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    7. Re:Same problem for the Italian TV, no solution by lowrydr310 · · Score: 1

      I always wondered how "Nielsen Media Research" gets their TV viewership numbers in the USA. I can't seem to understand how telephone polls work - I can't speak for everyone, but I have too many other things I'd rather be doing than taking telephone surveys.

    8. Re:Same problem for the Italian TV, no solution by mrmeval · · Score: 1

      That has happened before. I think there was some sort of psychological experiment of some sort, people just left the tv on channel hoping the show would resume.

      I assume in their case the numbers didn't change.

      --
      I'd go on a Vegan diet but the delivery time from Vega is too long. --brownkitty
    9. Re:Same problem for the Italian TV, no solution by Raenex · · Score: 1

      Too lazy to even Google, but last I heard (years ago), they give you a device that monitors your viewing habits. I once received $4 in the mail (cash!) with an offer to participate in the program. I didn't do it, but the cash in the mail was surprising.

  19. A video bubble ? by mbone · · Score: 2, Informative

    After the sale of YouTube, video oriented sites are popping up everywhere, and many of them seem to be oriented around a similar exit strategy, so this doesn't surprise me. (Disclosure - I am with AmericaFree.TV and I look at a lot of video sites, but the 6 mentioned were all new to me.)

    It is my feeling that this is a weakness of the entire statistically based advertising and ranking model, which looks at the actions of computers and tries to infer the intent of their owners. Using spyware to bring people to your site will piss them off, and they likely won't stick around, but if all you want to do is to artifically inflate your traffic statistics so that you can do a quick sale, what do you care ? This is beginning to remind me of the dot-com days...

  20. Money by skinfitz · · Score: 2, Insightful

    Seems to me the simple solution is to track the money made from ads rather than the hits. If this happens there will be no incentive to fake hits.

    1. Re:Money by Anonymous Coward · · Score: 0

      Yes, Yes, Yes!

      Dollar bills in the advertiser's pocket is the only thing that should value an ad.

      Nielsen ratings are only used b/c we don't have the technology to track Joe Six-Pack rolling off his couch, going down to the store and choosing Rice Krispies over Raisin Bran.

      The technology exists to determine exactly how many web comics a guy has to read before he shells out for a sweatshirt.

      Penny Arcade, Red vs. Blue, Homestar Runner, xkcd

      These conflate content with advertising and supply fulltime jobs to artists. They cut out (or reduce the required number)the middlemen.

      Ad guys are becoming obsolete and are desperately fighting for relevance, much like entertainment lawyers and news anchors. (Who are much the same thing anyway.)

    2. Re:Money by zippthorne · · Score: 1

      The problem is, very few people are going to buy Downy, or a pizza through a link from Homestar Runner even if they happen to be hungry or have clothes sticking to them while visiting the site and are presented with an ad for a company selling them at a good price.

      If they even purchase these items online, it will likely be a completely separate transaction from their visit to HR, yet they may have decided to go with that company as a result of the ad at homestar runner.

      So how would you determine the value of the HR ad, then?

      --
      Can you be Even More Awesome?!
  21. You can't by mike_sucks · · Score: 1

    "So that's the puzzle: How do you build an advertising economy when the number can't be trusted?"

    You can't. So give up, stop bombarding us with ads for useless things we don't need, go outside and get some sunshine. Do something useful for humanity instead of dragging us all down. /Mike

    --
    -- "So, what's the deal with Auntie Gerschwitz et all?"
  22. Dear Advertizing Customers, by mwa · · Score: 1

    It sucks when your vendors lie to you and cheat you.

    Welcome to being a consumer. It's kind of like being one of your customers.

  23. Not everything has a solution - for a reason by djupedal · · Score: 1

    "How do you build an advertising economy when the number can't be trusted?"

    You don't - You don't even try. You clear your pointy little head, take the hint and work on another model...simple.

  24. Don't pay for traffic, pay for time by Allicorn · · Score: 1

    How do you build an advertising economy when the number can't be trusted?

    One organization attempting to answer this question is the advertising service Project Wonderful. In their model, you buy slots of time when your ad will be displayed on a given site via a continuous, rolling auction. Traffic, cost per click, cost per impression - all those traditional metrics are pretty much removed from the equation. The value of an hours-worth of impressions on a given site is decided dynamically and re-evaluated continuously by the folks buying the ads.

    Whether it'll be truly successful or not, who knows. Their mechanism does seem to address some of the significant failings of the traditional online advertising model though.

    --
    OMG!!! Ponies!!!
  25. Dont under estimate the abusers by DrYak · · Score: 1

    when a pop-up opens you click the button to report it as forced


    And they after, script kiddies all over the world install on their zombie-nets a new function that send bogus report against concurrent companies.

    Ever heard of the word "joe-job" ?
    --
    "Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
  26. Ads, the false counts and the impact by pcause · · Score: 1

    First, we all hate ads, but they pay the bills. Just about every web site being introduced builds their business plan on generating ad revenue. Of course, few can actually get enough ad revenue to build a real sustainable business without VC money, but hey, its the 90's again!

    All of the new start up video sites are doing this. Bolt, Heavy and the sites from Purevideo are or were all in the top 10 in terms of streams"viewers". They use this to try to get advertising and better rates. They use this to raise venture capital and increase their valuation. If these numbers are fraudulent and if we can't trust ANY of the ad reporting numbers things will get tough for a wide range of small web companies and startups.

    Advertisers may not be technically savvy or very quick, but they will and are catching on to this kind of traffic inflation, click fraud and other abuses. What they will do is simply reduce the rates that they will pay EVERYONE because they'll assume that there is fraud everywhere. This is less likely to impact Google, becuase of the auction system, but for the banners and many other ads, including direct sales, this could seriously impact companies.

  27. the REALLY annoying ones by v1 · · Score: 1

    The ads that bother me the most are those irritating long or tall shockwave flash animated ads. "punch the monkey and win a prize" or some other such nonsense. Nothing like a crosshairs bouncing around on your screen to distract you from the article you came to read. Those get blocked in my hosts file. In my case, the advertisers are losing out... if they had not made such an obnoxious annoying animated ad, I would not have bothered to host it out and they would have gotten their "impressions". But now I will never see that ad again. I wonder if they realize how their methods are actually lowering the number of impressions they get?

    What's truly annoying is when I have to use someone else's box for something on the web and get innundated with animated ads that I have not seen for months. Makes sites like /. look like crap until I am safe back at home. I don't know how anyone puts up with that.

    I can only assume the advertisers realize some of their targets are like me and they are losing out with the ads, but yet they persist, so as the law of marketing goes, there must be enough suckers out there that put up with the ads to make it worth their while.

    --
    I work for the Department of Redundancy Department.
  28. little truth ... by tomstdenis · · Score: 1

    Not everything is paid for by ads. Why people just assume everything on the net should be free is beyond me.

    Suppose slashdot was running into cash problems. If the service was actually of any value people would pay to support it. If subscribers don't meet the budget they'd have to scale back or fold.

    Point is. You don't need advertising revenue to run a website. you need to provide a service people want to spend money on. Just LIKE ANY OTHER BUSINESS.

    Tom

    --
    Someday, I'll have a real sig.
    1. Re:little truth ... by 0123456 · · Score: 1

      "If the service was actually of any value people would pay to support it. If subscribers don't meet the budget they'd have to scale back or fold."

      But few people will pay $20 a month (or whatever) for every web site they visit. It would have to be more like $0.001 per page, which is far more difficult to collect.

      With micropayments you also run into the problem of having to continually ask the user whether or not they want to pay for a page. If your page that I want to visit includes a frame pointing to www.givemeyourmoneyiwanttogetrich.com demanding $1 per view, I don't want to have to continually click 'no I don't want to give money to those idiots'. Nor do I want to accidentally leave my web browser sitting at a page that continually refreshes and discover in the morning that it's cost me $1000 overnight.

    2. Re:little truth ... by tomstdenis · · Score: 1

      I think that's part of the problem though. there are hundreds of relatively shotty websites. You have to use a dozen sites just to get what you want. Like I read slashdot and fark to get the wacky tech/other news. If there was one good site that did both I wouldn't need to pay $20/mo for two sites now would I?

      And you don't need to CHARGE micropayments, you just account for them. E.g. I give you $20 and it's good for [say] 2000 page views. Sure each page only costs me a cent, but you're not actually doing a transaction for it. But the point is, we've grown accustomed to things just being free which is not really how the world works.

      Tom

      --
      Someday, I'll have a real sig.
    3. Re:little truth ... by Zelos · · Score: 1

      If most sites were pay-to-view on a subscription basis, how would sites like Fark or Slashdot exist? How many people are going to follow a link to a story if it requires a subscription?

    4. Re:little truth ... by tomstdenis · · Score: 1

      You offer some links as free and the rest as paying users only. Fark does that already in case you didn't notice.

      Tom

      --
      Someday, I'll have a real sig.
    5. Re:little truth ... by 0123456 · · Score: 1

      "And you don't need to CHARGE micropayments, you just account for them. E.g. I give you $20 and it's good for [say] 2000 page views"

      So every time I go to www.halfassedlittlesite.com I have to give them $20 up front to pay for viewing 2000 pages when all I really want to read is one page that was linked from some other site?

      "Sure each page only costs me a cent"

      'Only a cent'? How many people are going to pay one cent for every page they view? Including reloads and stepping back and forwards I probably view thousands of pages a day, I'm sure not paying hundreds of dollars a month just for reading web pages.

    6. Re:little truth ... by 0123456 · · Score: 1

      Oh, and don't forget the other big problem: you have to pay before you view the page, but you can't tell whether it's worth paying for until after you've viewed it.

      Nor, of course, can you prevent people from saving the page and sending it to other people who don't pay. The whole idea of paying for sites in this way is just broken.

    7. Re:little truth ... by tomstdenis · · Score: 1

      Hello captain extremism! I'm Tom. please to meet you!

      First off, if the site can't make it's case for getting you to pay them, why would you pay them? So no, you wouldn't give $20 to every random site you hit.

      Do you, buy everything you see in a store? No? Didn't think so.

      As for the price, well how about this, it's one cent [or whatever] to buy a page of content [e.g. a news article]. Reloads/etc being free since most users wouldn't reload the page 1000s of times anyways.

      Whatever, point is not every site is the same and not all pricing models apply universally. For highly interactive sites where the concept of static pages doesn't exist, it could be a flat fee or whatever, who knows.

      Point is, there are ways to generate subscriber income.

      --
      Someday, I'll have a real sig.
    8. Re:little truth ... by Bastard+of+Subhumani · · Score: 1

      I think that's part of the problem though. there are hundreds of relatively shotty websites.
      I call bullet. Anyway, this isn't the place to discus them.
      --
      Only three things are certain; death, taxes, and apocryphal quotations - Ben Franklin.
    9. Re:little truth ... by 0123456 · · Score: 1

      "First off, if the site can't make it's case for getting you to pay them, why would you pay them?"

      So if someone links to a site from Slashdot, no-one's going to read it because the site will expect you to pay them $20 up front for 2000 page views that you're never going to use?

      "Do you, buy everything you see in a store? No? Didn't think so."

      Stores don't expect me to give them $2000 and then take my purchases out of that downpayment. And in a store, I don't have to buy things before I see them. Nor are there three billion stores in town all trying to get my business.

      I just don't understand why you're so adamant that this can be made to work when there are so many obvious problems with the whole idea?

    10. Re:little truth ... by Anonymous Coward · · Score: 0

      STFU, you arrogant fucktard. Seriously. Anybody would think you inevented the internet. You're nothing.

    11. Re:little truth ... by tomstdenis · · Score: 1

      So if someone links to a site from Slashdot, no-one's going to read it because the site will expect you to pay them $20 up front for 2000 page views that you're never going to use?

      I suggest you read up how AP and Reuters works. Do you pay $20 for each article in a printed newspaper?

      Christ almighty you can't be this stupid. Honestly.

      Tom

      --
      Someday, I'll have a real sig.
  29. Who cares? by KlausBreuer · · Score: 1

    Oooh, I want to advertise on the net, and have trouble finding really popular websites!

    Yes, I know. Many sites live off adverts, and yes, we can block most advertisements.
    But I have a deep hatred of adverts. I really loathe being treated like an idiot, which is exactly what these ads are doing. They're the primary reason that I do not own a TV, don't listen to radio, always keep 'AdBlock Plus' up to date.

    Ads can die for all I care.

    --
    Free PC version of ChipWits at http://www.breueronline.de/klaus/chipwits/
  30. Sales by bigattichouse · · Score: 1

    It has to be measured in terms of clicks that become sales.

    --
    meh
  31. What ads on the web? by Panther+Silverelf · · Score: 1

    I see ads so seldom anymore. Adblock is my friend. I have even blocked the Google text ads. If I want to get information on some product I will never use an advertisement to find out about it, I'll research it myself. And if/when intrusive ads appear in computer or console games, that will be the day I stop playing that game. Advertising and Marketing are a pox on humanity that needs to be completely removed from any medium that consumers have to pay for, i.e. games, payed internet access, etc.

  32. But you DO care! by crovira · · Score: 1

    The real problem with ads is that, unless you're in the market for some specific kind of product at some specific time, the ads are noise that's "in your face" and preventing you from seeing something you ARE interested in.

    Google and podcast ads are slightly better in that respect than attention-hogging, scarce-commodity-(my time)-hogging ads which detract from content.

    They're easily SKIPPABLE but being persistent, they can be be individually replayed WHEN YOU WANT THEM and stay segregated and "out of your face" UNTIL YOU WANT THEM.

    And you DO want them. But on YOUR terms.

    Otherwise how would you find out about anything that's new, in any domain?

    Not everybody cares that 'so-and-so' got a new 'schmijick' out.

    Heck YOU don't care that 'so-and-so' got a new 'schmijick' out unless you're shopping around for that 'schmijick', or its functional equivalent, at that very moment.

    Advertising is the only way that the 'schmijick' makers of the world have a way of reaching out to tell you about it.

    And if they don't advertise, you will never know about their 'schmijick' and they'll go broke.

    The problem is that they're used to competing for a "scarce resource": access to your attention.

    The Google and podcast media model broke that and that why Google is Google.

    --
    MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
  33. RE: Effect of traffic fraud in advertising economy by bedelman · · Score: 1

    I'm Ben, the author of the article referenced in the original post.

    Jah-Wren, your second paragraph exactly captures my view of the significance of this problem. If money flows with ads, and if ads follow measured traffic, then there's a striking incentive to inflate measured traffic. So advertisers, ad networks, and legit publishers have to be on the lookout -- lest cheaters reduce payments to legit web sites.

    As to your third paragraph, proposing paying for "actual creative work done" rather than for ads: That's a lofty principle. But I think it's hard to implement in practice. Who would do the paying? Who would decide how much creative work had been done? One possibility is to ask a government (or many governments) to contribute, but that clearly raises problems of its own. Sticking to private sector solutions, payment for creative work is essentially bound to follow monetization of that creative work -- and with high transaction costs for readers/viewers paying for material, ads seem like the most plausible approach in the short run.

  34. How is that different from anything else? by argent · · Score: 4, Informative

    How do you jusdge the value of advertising anywhere? You look at how it effects sales.

  35. Awaiting the big sneeze by Anonymous Coward · · Score: 0

    How do you build an advertising economy when the number can't be trusted?

    Magazine and newspaper advertising was always easy to guage; how big was the circulation? Of course, someone could inflate the numbers by buying up large blocks of the periodicals in question, but the cost of actually printing them was prohibitive.

    Then came radio and later TV. How did they get their numbers and could they be trusted? They surveyed people in the respective markets. Only some research has shown that these numbers, too, were fairly bogus.

    The fact is that there is a lot more to making sales than how many people saw your ad. If your ad makes your product look like crap or annoys your target customers, you're not going to sell many. An example is a local bar advertising in the Illinois Times. They advertised their Friday "all you can eat walleye" for $7.50. Problem is, everybody else sells the same meal for $5.00. I only saw their ad for a few weeks. Clearly, putting the price of their expensive meal in the ad was a mistake.

    You choose a medium to advertise in that suits your business - local business, local newspaper, radio, TV. Sell sporting goods? It won't do you much good to advertise in the Ladies Home Journal.

    But the fact that you can't accurately guage the number of eyeballs a web page gets is no different from radio or TV. Nielson or no, there's no way to tell how many people are listening to the radio show you're advertising on. Sales go up? Must be working. Flat? Maybe nobody's listening or your ad sucks. Sales go down? Your ad sucks!

    This isn't rocket science, folks. It's not science at all, it's an art.

    That said, WTF do they mean by an "advertising economy?" A whole economy based on nothing but advertising? Huh?

    Are the Golgafrinchans in charge of our economy? And here I thought it was the Vogons...

    -mcgrew

  36. the fact about online marketing... by Anonymous Coward · · Score: 0

    Is that it just works.

    Want a good one? There are people who do exactly know what are the "Google sponsored links" and that click first on these. Why? It usually means business, which is sometimes exactly what people are after. There are lots of small business who use online ads as their only way of advertising and that's the only way they bring in people to their website... And they manage to survive (and, no, I'm not talking about v14gr4 spammers) for they do actually sell things some people want. I've got nothing against that. On the contrary, I find this kind of advertizing way less dumb than the one shown on TV.

    Here the issue is that bots may be doing fraudulent page views / video views... But there's a way to measure it: if the "conversion rate" is obviously way lower than that of another site, you may have a first hint that there may be an army of bots bending the rules.

    If on some campains you've got a very low return while on others you've got better returns, for two sites supposedly targetting the same audience, you know something fishy is going on.

    In the end online marketing is about money... So just follow the money.

    I block lots of adds but I don't block Google AdWords for I find them unintrusive and sometimes they may propose something I might be interested in.

    Regarding bots there are ways to screw them and to screw them very bad. Google, when doing a regular search is sometimes displaying special pages stating something like "We're sorry but we think you may be a bot, please solve the captcha below to prove you're an human"... This is very hard to solve for a bot (and it appears randomly). Sure, a motivated frauder may try to work around that random captcha but in the end computers aren't passing the Turing test and this gives a huge advantage to the good guys, not to the frauders.

    The fact is that most fraudsters are, today, royally screwed by such anti-bots measure and will be even more screwed tomorrow. The tide ain't turning in favor of the fraudsters.

    In the end advertisment leads to real transactions and this is something no amount of bots can fake (and fake sales, using stolen money, doesn't count, as these fake sales are invalidated at one point or another).

    Follow the money.

  37. end of the world in 3... 2... 1.... by stevemulligan · · Score: 1

    Anyone with a windows box and a firewall log knows that spyware has been around clicking on advertising links since before Google was around. But nobody said boo. Now the cat is out of the bag and we're in big big trouble.

  38. Its not a bad thing for the advertising industry.. by fiendy · · Score: 1

    Unless you're looking to merge or acquire those businesses. Its a good thing for those looking to tout numbers and market share, and those looking to be bought out. Just look at youtube, photobucket etc.

    Reality is not as important as hype in this arena, I'm sure keeping accurate statistics aren't either in terms of potentially hitting it big with a stock-heavy (only) buyout.

  39. How did anyone ever? by Anonymous Coward · · Score: 0

    How do you build an advertising economy when the number can't be trusted?
    No, the real puzzle is how they thought that anyone anywhere at any time has built an advertising economy where the number could be trusted. The answer is that it has never happened. Anywhere. At any time. Ever.

    The realization is only dawning now (or at least should be, but apparently still hasn't) in the specific case of the internet, because the statistical tracking that is enabled by the technology (and subsequently exposed as inaccurate) is that much more immediately visible to would-be advertisers. Let's not leave them thinking that it is a technology-specific problem, though. These people need it made clear to them that advertising economies have never been trustworthy.

    It's all a soft game of give and take. The advertiser decides using whatever heuristics how much they are willing to pay to place their advertisement. No matter how much they work to justify their chosen number, at the end of the day it is just that, an arbitrarily chosen number that they expect will provide an appropriate return. The consumer decides using whatever heuristics how much they are willing to spend to pay for a product or service, and how much they are willing to put up with advertising in their face during their daily activities. They too can work to justify their chosen amounts, but at the end of the day they are just that, arbitrarily chosen numbers that they expect will provide an appropriate return. For anyone to convince themselves that anything more is going on here, or that anything other than final sales data can be "trusted" (eg advertising audience stats), is seriously kidding themselves.
  40. All ratings are cooked - so what? by SL+Baur · · Score: 1

    I never heard of these either, but why are they only now questioning web stats? The Nielsen ratings are cooked too. I got a diary in sweeps once and I didn't watch half of what I wrote into it, mostly put in shows that I thought deserved good ratings. Raise your hand if you've ever filled out a Nielsen diary honestly.

  41. CPL/CPA by VariableGHz · · Score: 1

    This is why advertisers have stopped relying so heavily on CPM advertising over the last few years. CPL (Cost Per Lead) and CPA (Cost Per Acquisition) advertising offer more "value" to the advertiser because they only per per performance. Networks like Commission Junction, ClickBooth, Performics and now even Google do this type of advertising because the advertisers line up at the door for it. Popular sites like gambling sites pay huge amounts of money to hook new customers (think ~$350). So, if the advertisers have a problem with it -- they can just sign up with a CPL/CPA network and say good riddance to CPM and PPC advertising for good.

  42. Re: Effect of traffic fraud in advertising economy by Jah-Wren+Ryel · · Score: 1

    But I think it's hard to implement in practice. Who would do the paying? Who would decide how much creative work had been done? I don't think its terribly hard. In a nutshell, it would be a modern form of patronage. A creator offers a description of the work he would like to produce along with an asking price. People who are interested in seeing that work completed pay into an escrow fund as they see fit. When the balance in the fund reaches the asking price, the creator gets to work and and collects the escrowed funds on release of his work. If the balance never reaches the asking price, he can lower his asking price or the money is returned to the original patrons.

    Works are released to the public domain or a license extremely close to it and act as advertisements for the creator's next project. Thus enabling him to collect significant amounts of money if his work is exceptionally popular. The subscription model - automatically pay $10/month for regularly scheduled productions would probably work well, just as it does now for premium channels like HBO where people subscribe specifically for a series like The Sopranos.

    You are correct that overhead for financial transactions is a problem - paypal takes way too large of a cut to make one million $5 deposits feasible. But, as far as I can tell, there is nothing about the financial system that requires that sort of overhead - it is primarily a result of paypal mimicing the credit card model which wasn't designed for small transactions. It ought to be possible for paypal, or some other service provider to escrow a couple of million single digit deposits with very little overhead.

    I think the only reason that the advertising model will continue to be popular is inertia, the infrastructure is already in place and the flaws have not been exploited enough to force people to seek alternatives.
    --
    When information is power, privacy is freedom.
  43. In other news... by Anonymous Coward · · Score: 0

    In other news fraudsters scam people out of money.

  44. Follow the money - by bizitch · · Score: 1

    Isn't this easily solved?

    The beneficiaries of the fraud are most likely the cause of the fraud

    Stop rewarding them / cut them off - i.e. add a section to the contract that stops payment to companies who engage in this kind of scam

    --
    ---- "Logoff! That cookie shit makes me nervous!" - A. Soprano