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Why Do Contextual Ads Fail?

minstrelmike writes If we give up all our privacy on-line for contextual ads, then how come so many of them are so far off the mark? Personal data harvesting for contextual ads and content should be a beautiful thing. They do it privately and securely, and it's all automated so that no human being actually learns anything about you. And then the online world becomes customized, just for you. The real problem with this scenario is that is we're paying for contextual ads and content with our personal data, but we're not getting what we pay for. Facebook advertising is off target and almost completely irrelevant. The question is: Why? Facebook has a database of our explicitly stated interests, which many users fill out voluntarily. Facebook sees what we post about. It knows who we interact with. It counts our likes, monitors our comments and even follows us around the Web. Yet, while the degree of personal data collection is extreme, the advertising seems totally random.

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  1. Duh by i+kan+reed · · Score: 5, Insightful

    Because there's always going to be a disproportionate amount of ads delivered for those willing to spend the most money on them. If there's 30,000 users who actually like fast food, and McDonalds pays for 5 million impressions per day, people who don't like McDonalds are going to have some golden arches shoved in their face.

    1. Re:Duh by Anonymous Coward · · Score: 5, Interesting

      Yep, some other reasons:

      1) Too many ads are annoying
      2) If ads are too well-targeted then they become creepy
      3) They often show you ads for things you've just bought. If I get a new laptop why do I want to see more laptop ads?
      4) The products may well be out of your price range (a lot of Facebookers are young and broke) & this is more likely to depress the shit out of you than anything else. Just because you chat about Tahiti doesn't mean you can afford to go there.
      5) Real-world advertising has increased massively - more TV ads, infomercials, free catalogs, pull-outs in the newspapers, 'sponsored' articles - it all gets a bit too much, so you go online to escape and get blasted with even more of the damn things.
      6) Targeting only works sometimes. Example: I look for something on Ebay when logged on & get an email the day after 'Are you still looking for this?' If the answer is yes then cool. On the other hand if I've bought that particular article somewhere else or was just browsing aimlessly then Ebay is wasting my time and bandwidth.

    2. Re:Duh by i+kan+reed · · Score: 2

      [...]is just wasting my time[...]

      Advertising only makes genuine economic sense in a world in which my time and attention is nearly worthless.

    3. Re:Duh by Anonymous Coward · · Score: 2

      1) Adblock

      2) I have the opposite problem. They're not targeted for me at all. Especially on Hulu...where I can say "Yes, I like this ad" or "No, this is stupid". I get ads for TJ Maxx, feminine products and travel. I'm a man, with a complete indifference towards fashion, and have remained quite stationary over the last few years. Nothing about me screams "Woman, clothing, and travel" yet that's what I get most. I say "Yes" to as many video game ads, technology ads, credit card ads(at least some of them are funny, even if I'm not on the market for a CC).

      3) I would gladly give them my entire Amazon history if it meant they got better at targeting me.

      4) This might actually be more sinister. If the more expensive options reach the lower echelons of the economic strata, the poorer folks will buy the good/service with credit. Then - someone, somewhere - will be making interest on that purchase. It's a bit conspiracy-theory but I really wouldn't be surprised if there was even a little bit of collusion on the vendor's part.

      5) Ad Block. The naked beauty of a web page without ads is going to be nearly pornographic soon.

      6) The only times these kinds of ads have worked on me are on Amazon and Steam, with their suggestions. "You looked at x. People who looked at x are also likely to look at y - go take a look at y!" Perhaps in that sense I'm a good consumer. I'm not about to complain about having too many video games to play.

    4. Re:Duh by Wycliffe · · Score: 2

      Not true. TV commercials have an exact value. You're paying with your time/attention to watch the show.
      So there is an exact value greater than zero for your time/attention. This is even more applicable where there
      is a place you can buy a commercial free version of the same show. Facebook only makes about 50cents
      per user so if they wanted to they could in theory make more money by offering a $1/month buyout for a
      no ad version of their website. Pandora and several other companies do exactly this.

      Also there are places where your time/attention are nearly worthless. Any place you are waiting, whether
      it is a doctor's office or a bus stop and you aren't occupied with something else then your time/attention
      has very little value.

    5. Re:Duh by fahrbot-bot · · Score: 4, Interesting

      2) If ads are too well-targeted then they become creepy

      Creepiest ad I ever saw was ...

      You might be interested in this (9 page) NYT Magazine article from 2012, How Companies Learn Your Secrets, about Target's targeted advertising algorithms. One case in point were pregnancy-related ads Target sent to a teenage girl, still living at home with her parents, based on some obscure buying habits. The father was outraged and complained to the store manager. Turns out she was actually pregnant.

      --
      It must have been something you assimilated. . . .
  2. Hardly surprising by brantondaveperson · · Score: 5, Insightful

    I don't think that there's any such thing as an advert that I actually want to see.

    1. Re:Hardly surprising by itzly · · Score: 2

      Precisely my thought. And even in the few cases that I'm actually looking for a product that I wouldn't mind getting some ads for, it's only for a short time (until I buy it, or lose interest), and usually not something that is related to my on-line behaviour.

    2. Re:Hardly surprising by dcollins117 · · Score: 2

      I don't think that there's any such thing as an advert that I actually want to see.

      Ads are helpful when it comes time to make a purchasing decision. You aren't going to buy something if you don't know it exists.

      When deciding what to buy I seek ads out. What I do not condone is unsolicited ads. Those add nothing of value.

    3. Re:Hardly surprising by gstoddart · · Score: 5, Insightful

      When deciding what to buy I seek ads out.

      Funny, I use search engines and read review sites.

      Ads have never added any benefit to me on the internet, and I simply don't care to provide them with the information they'd need to do a targeted ad.

      Because I'm not interested in either the ad, or having these companies know anything about who I am and what I like.

      In fact, ads want me to let arbitrary web sites run scripts and other crap which makes things less secure. Think I'd trust the people at DoubleClick to run scripts or Flash? Hell no, the entire domain is blocked at my firewall.

      --
      Lost at C:>. Found at C.
    4. Re:Hardly surprising by bhcompy · · Score: 2

      This is where targeted ads fail. If I'm being targeted based off my activities, I've already accomplished what I wanted. My activities are in the past, not what I'm going to do.

    5. Re:Hardly surprising by swv3752 · · Score: 5, Insightful

      A year ago I bought a Volt. In the month prior I did a bunch of research on electric cars. Six months later I was still getting ads on Leafs and Volts. Those ads seemed fairly pointless as I already owned a Volt. I find it happens a lot that I look for a certain product, then after I buy it, I will get ads for that product. Except for items that I buy regularly, then I never see an ad.

      Google, when I buy a bathroom scale, I am no longer interested in hearing about bathrooms scales two weeks later. I buy tea regularly, why do I never see an ad for tea.

      --
      Just a Tuna in the Sea of Life
    6. Re:Hardly surprising by Dr.+Evil · · Score: 3, Interesting

      IMHO, this should be part of your profile. When it comes time for you to purchase something, instead of getting some flashy ad in your face, you would get a pile of specs veted by a third party.

      If the product doesn't stand up to comparison in the specs, then they shouldn't bother advertising to you. If the product does stand up, it's an easy sell and well worth the effort for them to send you the ad.

      Instead... sadly, they send you crap and you fight to tell them that you're not interested in their jingle, bluster or shiny copy.

    7. Re:Hardly surprising by Firethorn · · Score: 2

      why do I never see an ad for tea.

      The tea companies aren't paying google/etc al... for ads, but the bathroom scale people are?

      --
      I don't read AC A human right
    8. Re:Hardly surprising by craighansen · · Score: 3, Interesting

      Truthfully, the actual purpose of the advertising for cars involves makin recent purchasers feel good about their recent purchase. Purchasers who feel good about their recent purchase are more likely to talk their friends and acquaintances about their car and have a greater influence on them than the direct advertising can do. Listen to someone talk about their newly purchased car and you can hear the tag lines of the advertising coming out of their mouths - people use the advertising to focus their own conversations - whether its the rally tires, or MacPherson strut suspension, lock-up transmission, or a zillion other features that most people even know what they really are. These person's status upgrade depends on their being able to make the case to their friends that they made a good purchase, and didn't buy the kind of cars that social losers buy.

      Toyota had a huge problem marketing to young first-time car buyers - they kept coming out with low-cost cars that they'd like to market to that group, but found that older buyers were buying them, and when young people saw old people driving the same car, their interest in them plummeted. They were more successful marketing the Scion than previous attempts because they went out of their way to make the car unattractive to older people, as well as other initiatives, including opening up the specifications early to third-party customizers, to encourage buyers to make the cars even funkier.

  3. they fundamentally don't get it. by Roachgod · · Score: 5, Insightful

    yeah. I know that when I look for something - like motorcycle boots, I see tons of ads for motorcycle boots. The problem - they are the SAME boots I already looked at. If I wanted THOSE I would have bought them. Give me other boots. Stupid.

    1. Re:they fundamentally don't get it. by Anonymous Coward · · Score: 2, Funny

      But... but... but...

      Just imagine how many people would be out of work if they weren't tracking everything you do and collecting data about you and going 'woo... woo.... wooooo' as they wave their hands over it and exert the Magic 'Fluence that determines the kind of ads you want to see on Slashdot.

      THINK OF THE ADVERTISING EXECUTIVES, PEOPLE!

  4. Huh by Ultra64 · · Score: 5, Insightful

    Do people really still browse the web without an ad blocker plugin?

    1. Re:Huh by Deep+Esophagus · · Score: 2

      I use flashblock and noscript to protect against aggressive ads that take over my browsing experience, but I accept that TANSTAAFL and my payment for free content is the presentation of ads within that free content -- just as it was with radio and TV (don't get me started how the main selling point for cable TV in the early days was that paying for it meant you were no longer going to suffer through all those ads).

      So... no, I don't use ad blocker per se, and won't until I am paying for that content.

  5. Customization? by smooth+wombat · · Score: 3, Insightful

    And then the online world becomes customized, just for you.

    Fuck that, just give me the information. I don't need no customization. There's a reason AdBlock exists.

    It's bad enough we have to put up with shitty web sites 'designed' by people trying to show off how shiny, but unusable, things can be, we don't need ads trying to predict what we want adding to the damage.

    --
    We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
  6. They fail because they're contextual. by trudyscousin · · Score: 2

    If an ad exists in the same context as that which I'm attempting to read, it's like a gnat buzzing in front of my eyes. It's a distraction, and an annoyance. Annoying those you want to reach isn't the way to communicate your message,

    --
    Those who can, do. Those who can't, write technology blogs.
  7. Whaa?? by JohnFen · · Score: 5, Insightful

    Personal data harvesting for contextual ads and content should be a beautiful thing. They do it privately and securely, and it's all automated so that no human being actually learns anything about you. And then the online world becomes customized, just for you. The real problem with this scenario is that is we're paying for contextual ads and content with our personal data, but we're not getting what we pay for.

    I could not disagree with this more. There is nothing "beautiful" about harvesting personal data to serve contextual ads. I doesn't matter how well-targeted the ads are -- ads are not a benefit to me at all. The real problem with this scenario is that my personal data gets harvested in the first place.

  8. Why? by jandersen · · Score: 2

    Because the advertisers overreach and try to push stuff that their audience is unlikely to want. Advertising is full of wishful thinking about how powerful adverts are etc - many advertisers seem to believe that it is simply a matter of "targeting" their adverts and then people will invariably buy, no matter whether they like, need or can afford the product. The reality, meanwhile, is probably that by far the largest part of adverts are unwelcome, simply because people were not looking to buy and they feel affronted, when they are being slapped in the face with some irrelevant distraction. If you want to sell a product, you have to persuade your customer to like you, but nobody likes SPAM, whether it comes in emails, inserted into your favourite tv-program or through your letter box, and all that kind of advertising achieves is to alienate huge numbers of potential customers.

  9. Marketting by Charliemopps · · Score: 5, Insightful

    I know and deal with a lot of marketing people every day. People get very confused about what marketing really is... to the point that most don't really know. Marketing primary product is: Marketing

    They spend about 95% of their time proving they are worth keeping around. They do things like send free gifts to 100 targets considered to be "Leads" Then, later, when a salesman makes a sale to that person they claim "See? We made that happen!" But if you ask the salesman about the deal he says "I call everyone... every month. They launched a marketing campaign for winter coats in October. Of course they bought one. The free pen had nothing to do with it."

    So what did the free pen really do? Allowed marketing to run a report showing a correlation between the pen and the sale, then suggest to management that is was a CAUSE not a correlation.

    So now we're going down the same rabbit hole with the internet. Want to fix it? Disprove their nonsense data. Show that this garbage doesn't work. It shouldn't be that hard given the amount of data captured. Pop-up adds generate clicks... but do they generate sales? No... and it took a while for the industry to realize that, but they did.

    1. Re:Marketting by Anonymous Coward · · Score: 3, Funny

      You had me at "free pen". You should lead with that next time.

  10. Hmmm ... by gstoddart · · Score: 3

    Personal data harvesting for contextual ads and content should be a beautiful thing. They do it privately and securely, and it's all automated so that no human being actually learns anything about you.

    So, are you shilling for the ad industry, or do you really believe this is supposed to be a good thing?

    Sorry, but I'm not interested in your ads of any form, I'm not interested in targeted ads at all, and I don't trust the entities gathering this information with any of it, or that they won't abuse it.

    So, screw your contextual advertising. I will continue to block every ad tracking site I can identify, block your ads, your web bugs, and everything else I can.

    If you think letting unknown third parties collect information about you, put cookies on your machine so they can know everywhere else you go, run scripts, run Flash ... or pretty much anything else ... is a good idea, then you're either clueless, or getting paid from this.

    I think your entire premise is flawed, or dishonest.

    --
    Lost at C:>. Found at C.
  11. Bad Timing? by Irate+Engineer · · Score: 2

    How many contextual ads are for things the user just bought? These people are probably the *least* likely future customers.

    I recently reinstalled my OS and started Chrome without AdBlock for the first time in a while. God, the internet is like walking through Times Square on an acid trip without AdBlock. It would be sadly funny if it didn't bring my browser to a crawl.

    Online advertising is a waste of money as it often irritates the very people it is intended to draw in as customers. Actually searching online for something is terrible as the results you get are invariably based on page rank, not on the suitability of the product for the customer.

    --

    Left MS Windows for Linux Mint and never looked back!

    Vote for Bernie in 2016!

  12. Except NewEgg by cirby · · Score: 2

    Lots and lots of NewEgg.

    All of the time.

    Forever.

    You can never get away...

  13. Hasn't happened to you yet by Overzeetop · · Score: 2

    Let's just get this out of the way: I, for one, am happy that I never get tampon ads online.

    Ads are chosen by advertisers, not some personal shopping assistant. The ads I've seen on FB and Youtube (which is where I actually see most of the online ads) tend to be at least tangentially related to my life. Tech stuff that I might actually be interested in. Concerts for genres I like. I know that they're trying to sell me stuff that I don't have* so there will be misses. YT ads normally allow a bypass after 5 seconds. There have been two cases in the last month that I've watched the whole ad, because it happened to be something I was interested in or wanted more information about (but not badly enough to go look it up). That's an advertising win right there.

    Except LG. I've seen more ads for the G3 that I already own on FB than for possibly any other single product. Note to LG marketing: I'm not going to buy a second one just for fun; you can stop.

    --
    Is it just my observation, or are there way too many stupid people in the world?
  14. Re:yep, timing and related products by Archangel+Michael · · Score: 4, Insightful

    The difference between Facebook and Amazon, with Facebook, you are the product, not the customer; with Amazon, you are the customer, not the product being sold.

    --
    Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
  15. Is everyone really that confused? by sirwired · · Score: 4, Insightful

    I don't understand all the comments expressing bafflement as to why you get ads for something you already purchased. The contextual advertising company has no access to your purchase history... if they are going to serve an ad, guessing that you might have already not made a purchase is not a bad start. Is it usually wrong? Sure! Most ads are ineffective. But it's way better than showing the same ad to some random schmuck.

    And why do you see Amazon ads after you've already purchased something from Amazon? Well, if you did ANY web browsing at all about it prior to the purchase, it likely got picked up by a contextual advertising company, which, again, has no access to your purchase history, and therefore has no idea they are serving an Amazon ad for something you already bought. The ad may not even be paid for by Amazon; it could just as easily be an affiliate marketer.

  16. Re:Speak for yourself by WaffleMonster · · Score: 3, Insightful

    Facebook sees what we post about. It knows who we interact with. It counts our likes, monitors our comments and even follows us around the Web.

    Facebook is banned here, precisely for trying that shit. Facebook domains don't resolve.

    Same here

  17. They fail for a very simple reason. by queazocotal · · Score: 2

    Facebook is not trying to accurately place adverts only to the people who would want to buy the advertised good.

    Facebook is trying to sell adverts.

    If they can say 'targeted ads have a 30% higher click-rate' - then that may be enough to get people to buy them.
    Even if it's off-topic for 95% of the people it's shown to.

  18. Re:yep, timing and related products by Jason+Levine · · Score: 3, Interesting

    Amazon gets it right on their product pages - people who bought this also bought these things.

    They even make it easy to order groups of items. "Order Drive Enclosure and this hard drive right now." My only gripe is that they present it as if it's a great deal (Buy X and Y for $50). When you look at the individual items, though, there's no discount. It's just the cost of the items added up (e.g. X costs $30 & Y costs $20).

    --
    My sci-fi novel, Ghost Thief, is now available from Amazon.com.