The new dot com bubble is here: it’s called online advertising

26 comments

  1. BuzzBadpants

    |Author

    This makes me think that if it catches on that the ad buys are worthless, the search engines will transform ads into a racket.

    i.e. “eBay, if you don’t buy ad space for ‘eBay’ searches, we will promote swap.com ads for those searches instead.”

  2. soulifrost

    |Author

    That’s a bubble I’d like to see burst and just wither and die by now.

    “BuT uR nOt SuPpOrTiNg Us!”

    I’ll take surfing your site ad-free than having my privacy confiscated and not to be nagged about things I won’t and never have cared about by overreaching tactics, thanks. Learn to not rely on advertisements.

  3. The dot com bubble was an actual, well, bubble created by the surge of dot com companies in the late 90s to early 2000s. Saying “the new dot com bubble” sounds as if another rush of internet companies is causing problems.

    But in terms of online advertising being a bubble, nah, it’s been growing for decades. That’s not a bubble, that’s a stable industry.

  4. nowake

    |Author

    I once searched out & purchased an urn for a family member’s ashes. For the next couple weeks, nothing but urn ads and pictures of urns.

    Just what I wanted — a constant reminder that a family member is sitting on a shelf, instead of there with me on the couch or the other end of a phone call.

    Stupidest **** in the world. Do ya think I’m gonna buy another urn or something?!

  5. SgtRockyWalrus

    |Author

    This article is crap. They point to an example of how eBay stopped bidding on their branded search keywords and didn’t see a drop in sales… then somehow equates that to all digital ads being worthless. It seems like it’s written with an agenda, but I admittedly know nothing about their motivations.

    Bidding on branded search traffic is definitely something to be debated, but it’s not as simple as the author lays out. If a company doesn’t bid on their brand searches and no ads are served for the search, then yes, they can probably still get those customers organically. If another company is instead advertising on those searches, then the brand in question absolutely has a lot to lose by not bidding on branded searches. There’s plenty of nuance ignored in this article.

  6. selectyour

    |Author

    If anyone is interested, this awesome video details how advertising has changed in just the last 5-10 years. Super revelatory. Really great stuff

    https://youtu.be/06yy88tLWlg

    TL;DW- you don’t know you’re receiving an ad. Video “ads” or statements made by companies can often be intentionally controversial, and this usually leads to increased sales despite the outrage (Nike, Gillette, etc)

  7. eydryan

    |Author

    TLDR: Shitty ads (like advertising the ebay website to people searching for “ebay”) are a waste of money, probably.

    The title is, as expected, just clickbait.

  8. cgoewert

    |Author

    i honestly love internet ads, and have bought into countless targeted ads, primarily off instagram. the way i see it if someone is creating something i would be interested in (and this is getting increasingly accurate) , then by all means i want to know about it

  9. xitax

    |Author

    It’s not a fair comparison. People lost money in the dot-com bubble because people could invest/buy stocks etc. in these companies. Almost anyone who has a retirement account is invested in stocks. I’m not aware that we can invest in online advertising businesses, or if so, they’re not as large a sector.

  10. Sassberto

    |Author

    Having sold millions of dollars in FB and Google, Linkedin Ads, I can tell you that everyone (including the client) knows that 50% of the traffic is fake at a minimum and 90% of the leads are junk. There are categories where digital advertising actually does work and works well (i.e. ecommerce) but for the most part, it’s no better than TV, probably worse due to such narrow reach. Give it a few more years, then “Building a Brand” is going to be the “next big thing”

  11. txstoploss

    |Author

    > $273bn was spent on digital ads globally.

    …and most of it was fraud by ‘thought-shaping monopolies’ who’ve been proven to wildly overstate the ‘effectiveness’ of their brainwashing attempts.

  12. The_Barnabarian

    |Author

    It’s an interesting analysis on a very narrow aspect of online advertising – but brings up more questions than it answers. It doesn’t mean online advertising doesn’t work, or is going to die. The author’s argument falls apart as soon as you bring more relevant targeted online marketing techniques – like re-targeting, into the equation.

  13. Realsan

    |Author

    Online advertising is no more a bubble than television advertising was a bubble. TV ad $$$ is moving to online, more and more every year. It’s just moving, becoming more competitive, and more analytical.

    I know reddit loves to beat this drum, but the majority of online ads are not intrusive, and whether you believe it or not, ads *have* influenced your purchasing decisions, probably much more frequently than you think.

    With online ads, we now have the ability to let a skate shop advertise directly to people who would be interested in purchasing skate gear. Skate shop wastes less money, skater guy gains knowledge of a shop he may not have known about. Wouldn’t you call that a win/win? As opposed to TV, where they essentially just blast it to everyone?

  14. anwarkadirov

    |Author

    I didn’t think anyone fell for any of the online advertising that is thrown in your face until my friend showed me an ad for a jacket he bought from one of those fugaze Chinese websites that advertise on Instagram/Facebook.

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