Monday, 15 January 2018

Google's bait and switch ad model

Google's youtube ad model is funny. On my account on roku/ amazon firestick I watch some finance and current affairs clips like TYT Network.  

Google then uses that 'profile' to sell ads, but most of the ads are shown when my kids are watching clips like Peppa Pig or Alphablocks and not during the grown-up clips.  Also known as a bait and switch. 

The ads are for things like ETP trading accounts, new Apha Romeo cars and recently bloggers promoting their 'crypto expertise'. 

 There is no way the ad buyers at Alpha Romeo are agreeing to spend money advertising luxury cars to pre-schoolers. The money is 100% wasted. They cant plausibly be aware of what is happening.

Google will know they are showing the grown up ads on kids clips. Usually the same clip is shown in succession until the ad budget is used up. 

You have to wonder what the legal status of this business model is and also when the buyers will figure out their money is being wasted.

Given the ad sales are via algorythm, presumably Google has figured out how to game the buyer algos. Im guessing 80% of the ad money is available for middle class grown ups with disposable incomes in middle class areas, where as 80% of the volume of youtube is kids.

Wolfstreet has covered this a few times. 

https://wolfstreet.com/2017/07/28/procter-gamble-slashed-digital-ad-spending-what-happened-next/

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