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But Google’s a huge success in a landscape of failure. Online ads sell for pathetic rates relative to broadcast or print. This is because by all accounts online advertising doesn’t work very well. You can measure whether someone clicks on an ad, and often whether they buy something after that click. But it turns out they rarely do those things. So businesses aren’t willing to pay very much for ad space on websites.

Is it really a coincidence that the advertising medium with the best instrumentation also appears to be the least effective? I suspect it’s not. It may be that ads never worked as well as the industry had told us; or it may be that the eyeballs/clicks/conversions funnel is a naive conceptualization of how the system works. Either way, Google has succeeded by giving advertisers what they think they want, which is analytic tools that seem to reveal that the whole enterprise is horribly ineffective.

I think the push for better tools and more efficient ads is basically a race to the bottom. In fact, less perfect instrumentation might allow the ad industry to capture a bit more revenue from business thanks to decreased efficiency.

Trecho de um puta post do Manifest Density.

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