A Professional Manufacturer of Smart Interactive Screens For More Than 10 Years
The digital advertising industry is in crisis: advertising fraud is prevalent, and many online ads have never even been seen before, and ad blocking software has the potential to disrupt the basic business model of the Internet.
So how does it get into this mess and what is it doing?
Digital advertising has lost credibility, many observers say, and unless the industry can solve the problem on its own, we may end up paying for content.
Even Facebook's Mark Zuckerberg, who struggled with the data privacy scandal at Cambridge Analytics, hinted that paying for social media platforms could be the only way to ensure completely private advertisingFree experience.
Scott Noel, chief executive of Integral Ad Science, one of the world's largest digital advertising measurement companies, explained that in the digital advertising era more than 20 years ago, "We made several fundamental mistakes, these mistakes are bothering us again ".
One assumption is that whether or not someone clicks or even sees an advertisement, the advertisement provided to the website is considered as an "impression ".
Noel admits that this indicator is "meaningless" but is an indicator of how publishers and third-party ad servers are paid.
The second assumption is that clicking on an ad is the same as the person who actually buys the product being sold.
"This creates a lot of false hope and a lot of false data," he said . ".
Sven Hughes, chief executive of Verbalisation, a "psychometric" marketing company, believes that these inaccurate data provide information for many advertising campaigns and their effectiveness cannot be determined.
"We have been working in a garbage sales industry for 20 years.
It's really in trouble . . . . . . It's crashing.
"These initial assumptions open the door for fraudsters who falsify the system, claiming that ads are seen by more people and prove to be more effective than them.
"So the content of the ad is quantity, not quality," said Noel . "
"People are bombarded with cookies and advertising, which brings a bad experience to consumers and a wrong measure to advertisers.
"If ads don't even have to be seen making money for companies that provide or host ads, it means that automated programs or robots can deliver thousands of tiny ads in pixels on web pages, can still make money.
"With the emergence of programming [automated]buying -
To free man from the equation.
This creates an opportunity for bad actors to create robots to play the system, "said John Nault, chief executive of advertising effect measurement company flashtalk.
Mr. Nardone is believed to have launched the first paid ad for Wired magazine in 1994.
He also created programmatic advertising.
These robots are becoming more and more complex, even imitating human behavior.
Fill in the online form or scroll down the page-
Pretend you're watching all these ads on thousands of sites you 've never visited.
Advertisers will pay the highest dollar to buy space on reputable websites, only to transfer ads to cheaper, possibly criminal or inappropriate sites, fraudulent ad servers will make the difference in revenue
Another serious problem is that due to poor website design or the fact that the user did not scroll down the page, many ads could not even be seen on the site.
Members of the World Federation of Advertisers spend about $ a year, and the federation says less than half of the display ads can be seen correctly.
As the industry knows, "visibility" is defined as 50% of the surface area of the ad, which lasts for one or two seconds if it is a video.
That means a lot of spending on digital advertising is running out.
As John Wanamaker, a 19th-century retailer and marketing pioneer in the United States, once said: "Half of the money I spend on advertising is a waste;
The trouble is, I don't know which half.
"Numbers are the answer to this problem because they are measurable.
One of the problems is the verification company-
Companies that measure and verify the performance of digital advertising
There are different ways to do this, says WFA.
Another problem is that many of the ads we see are not ads at all --
They pretend to be legal, but they really lead us to malware.
Full of phishing sites looking to get our personal information and infect our computer.
Google deleted 3 at 2017.
2 billion "bad ads" are almost double the number deleted in 2016.
Violators include marketing sites that pretend to be news, fake or copy websites, and ads that direct people to websites with malware.
Advertisers have also been working hard to solve the problem that ads for "programmed" services that they appear on inappropriate websites may harm their brand reputation.
One answer to this is a language analysis of the target Web page to assess whether the content is inappropriate.
There are companies that provide this service, such as Oracle-
But it costs so many brands don't bother.
But Jochen Schlosser, chief strategy officer of ad technology platform AdForm, believes the industry is now moving.
"The industry is growing very fast against botnets and advertising fraud," he said . "
"The problem that is currently being addressed is the lack of transparency.
"Publishers can now digitally sign their inventory or site ad slots, for example, so they don't get forged. "Industry-
Trusted third parties, such as the trusted accountability team and the Internet advertising agency, have produced a wide range of standards, certifications and regulations (IAB)
In order to enable marketers and publishers to make informed decisions about who they work with, "said Gavin Stirrat of the programming advertising platform OpenX.
Advertising verification companies like IAS say they are using the power of big data analytics to discover unreliable patterns of behavior that address fraud
For example, thousands of computers that follow the same instructions.
"Now, security companies can judge whether this is fraud, whether advertising is in the right context, and whether it can be seen," Mr Nardone said . ".
Despite all of these challenges, digital advertising "will continue to grow as funds flow to where the eyeballs are," Schlosser concluded ".
IAB, representing more than 650 media and technology companies around the world, said that in the first half of 2017, US digital advertising revenue exceeded $40, up 23% from the same period last year.
As smartphone usage continues to grow, more than half of current digital advertising revenue comes from mobile devices.
It accounted for 7% five years ago.
Video is driving growth in mobile advertising spending and revenue, IAB said.
"If customers don't get measurable benefits, they won't spend billions of dollars on it, so things are going well," Mr. Noel concluded . ".
But a lot of things are going wrong, so unless the industry is able to create less intrusive, more interesting digital ads, more people may turn to ads and cookie-blocking software.
Ironically, this may mean that we all end up paying for content.