The problem is targeted ads allow for really good data reporting. It’s really easy to show your ad dollars went to x million views with 98% of the audience in at least one of your demographics, and you had a Y% click through rate and a Z% conversion rate. This can make it look like it’s really effective, but it’s hard to say that it wasn’t some other advertising that got them there and the targeted spend was wasted.
Advertisers know a lot of their spending is wasted, but knowing which parts are actually a waste is pretty difficult.
Ads in general, sure. They work wonders, even on people who consider themselves immune to advertisement.
The post is about targeted ads, however. Do they really offer any substantial advantage? Let alone one worth all the data harvesting? Probably not.
The problem is targeted ads allow for really good data reporting. It’s really easy to show your ad dollars went to x million views with 98% of the audience in at least one of your demographics, and you had a Y% click through rate and a Z% conversion rate. This can make it look like it’s really effective, but it’s hard to say that it wasn’t some other advertising that got them there and the targeted spend was wasted.
Advertisers know a lot of their spending is wasted, but knowing which parts are actually a waste is pretty difficult.