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

The benchmarks that advertising companies use — intended to measure the number of clicks, sales and downloads that occur after an ad is viewed — are fundamentally misleading. None of these benchmarks distinguish between the selection effect (clicks, purchases and downloads that are happening anyway) and the advertising effect (clicks, purchases and downloads that would not have happened without ads).

It gets worse: the brightest minds of this generation are creating algorithms which only increase the effects of selection.

A terrificly well-written piece on the emperor’s new clothes worn by online advertising. Equal parts economic rigour and Gladwellian anecdata, it’s a joy to read! Kudos to Alana Gillespie for the great translation work (the original article was written in Dutch).

We currently assume that advertising companies always benefit from more data. … But the majority of advertising companies feed their complex algorithms silos full of data even though the practice never delivers the desired result. In the worst case, all that invasion of privacy can even lead to targeting the wrong group of people.

This insight is conspicuously absent from the debate about online privacy. At the moment, we don’t even know whether all this privacy violation works as advertised.

The interaction design of this article is great too—annotations, charts, and more!

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

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Ban Online Behavioral Advertising | Electronic Frontier Foundation

Targeted advertising based on online behavior doesn’t just hurt privacy. It also contributes to a range of other harms.

I very much agree with this call to action from the EFF.

Maybe we can finally get away from the ludicrious idea that behavioural advertising is the only possible form of effective advertising. It’s simply not true.

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Is Momentum Shifting Toward a Ban on Behavioral Advertising? – The Markup

I really hope that Betteridge’s Law doesn’t apply to this headline.

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Google, Facebook hiding behind skirts of small business

While the dream of “personalized” ads has turned out to be mostly a nightmare, adtech has built some of the wealthiest companies in the world based on tracking us. It’s no surprise to me that as Members of the European Parliament contemplate tackling these many harms, Big Tech is throwing millions of Euros behind a “necessary evil” PR defense for its business model.

But tracking is an unnecessary evil.

Yes! This!

Even in today’s tracking-obsessed digital ecosystem it’s perfectly possible to target ads successfully without placing people under surveillance. In fact right now, some of the most effective and highly valued online advertising is contextual — based on search terms, other non-tracking based data, and the context of websites rather than intrusive, dangerous surveillance.

Let’s be clear. Advertising is essential for small and medium size businesses, but tracking is not.

Rather than creating advertising that is more relevant, more timely and more likable we are creating advertising that is more annoying, more disliked, and more avoided.

I promise you, the minute tracking is outlawed, Facebook, Google and the rest of the adtech giants will claim that their new targeting mechanisms (whatever they turn out to be) are superior to tracking.

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UK ICO: surveillance advertising is dead

Behavioral ads are only more profitable than context ads if all the costs of surveillance – the emotional burden of being watched; the risk of breach, identity-theft and fraud; the potential for government seizure of surveillance data – is pushed onto internet users. If companies have to bear those costs, behavioral ads are a total failure, because no one in the history of the human race would actually grant consent to all the things that gets done with our data.

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