<story><title>Google: End of the Online Advertising Bubble</title><url>https://kalkis-research.com/google-end-of-the-online-advertising-bubble</url></story><parent_chain><item><author>red_admiral</author><text>&amp;quot;Facebook on the other hand, has a better control of who is actually seeing its ads, and will benefit from the turmoil by gaining market share.&amp;quot;&lt;p&gt;Did they pay you to write this?&lt;p&gt;Google ads in search will always be valuable because you can advertise nail varnish to people who have just searched for &amp;quot;buy nail varnish&amp;quot;.&lt;p&gt;This is also about the millionth post I&amp;#x27;ve read which assumes that companies simply throw money at advertising and don&amp;#x27;t run any statistics of their own. Simply, if you spend a lot on an ad campaign for a product and your sales don&amp;#x27;t go up, you notice that and rethink your next campaign. CPM and all that are at best proxy metrics for the thing you really care about, &amp;quot;are our profits&amp;#x2F;sales up&amp;quot;.</text></item></parent_chain><comment><author>onion2k</author><text>&lt;i&gt;Google ads in search will always be valuable because you can advertise nail varnish to people who have just searched for &amp;quot;buy nail varnish&amp;quot;.&lt;/i&gt;&lt;p&gt;Google &lt;i&gt;and&lt;/i&gt; Facebook both have the problem that their business model is predicated on having thousands of small advertisers bidding on ads. That&amp;#x27;s what they leverage to generate profit. In any market that&amp;#x27;s dominated by a single entity that smaller companies won&amp;#x27;t compete with for ad space, both Google and Facebook lose the ability to make money.&lt;p&gt;When the majority of people who want to buy nail varnish bypass search entirely and go straight to Amazon, Google and Facebook have a &lt;i&gt;huge&lt;/i&gt; problem. The same is true if developers go straight to Stack Overflow, people looking for rooms go straight to AirBNB, people moving around cities go straight to Uber, etc, then Google and Facebook will have no one to sell ad space to any more.&lt;p&gt;I&amp;#x27;m not about to suggest Google and Facebook are doomed; they both have talent enough to think of ways to meet these challenges. I would however suggest that they are &lt;i&gt;not&lt;/i&gt; too big to fail.</text></comment>
<story><title>Google: End of the Online Advertising Bubble</title><url>https://kalkis-research.com/google-end-of-the-online-advertising-bubble</url></story><parent_chain><item><author>red_admiral</author><text>&amp;quot;Facebook on the other hand, has a better control of who is actually seeing its ads, and will benefit from the turmoil by gaining market share.&amp;quot;&lt;p&gt;Did they pay you to write this?&lt;p&gt;Google ads in search will always be valuable because you can advertise nail varnish to people who have just searched for &amp;quot;buy nail varnish&amp;quot;.&lt;p&gt;This is also about the millionth post I&amp;#x27;ve read which assumes that companies simply throw money at advertising and don&amp;#x27;t run any statistics of their own. Simply, if you spend a lot on an ad campaign for a product and your sales don&amp;#x27;t go up, you notice that and rethink your next campaign. CPM and all that are at best proxy metrics for the thing you really care about, &amp;quot;are our profits&amp;#x2F;sales up&amp;quot;.</text></item></parent_chain><comment><author>Udik</author><text>&amp;gt; Google ads in search will always be valuable because you can advertise nail varnish to people who have just searched for &amp;quot;buy nail varnish&amp;quot;&lt;p&gt;Yes, how dumb is that? A few weeks ago I googled for a company I was going to interview with. Since then the ad spaces in my web pages have been filled with ads of this company, which sells IT services for logistics.&lt;p&gt;I&amp;#x27;m a sort of atypical consumer - not very willing to spend money on gadgets, for example; but I&amp;#x27;m surprised nonetheless that with all this talk of &amp;quot;big data&amp;quot;, they can&amp;#x27;t do a better job at figuring out the things I&amp;#x27;m really interested in and instead keep bombarding me with ads related to any random search I&amp;#x27;ve made. That&amp;#x27;s silly and a big waste of money.</text></comment>