"...the world's oldest profession - advertising: 'See this nice apple? You need this apple. Try it, you'll like it! Just one soul.'
By the way, the profession that is usually called 'the world's oldest profession' depends on this older one for its success. All sin does. If sin didn't seem like fun, we'd all be saints.
The origin of sin is advertising. That is, the substitution of image for substance. Appearance for reality. It's no accident that the New Testament calls Satan the 'prince of the power of the air': ABC, NBC, CBS, MTV..."
- From "Ten Unusual Insights into evil from The Lord of the Rings" by Peter Kreeft
I came across a great blog post today on CNET (thanks to Google Desktop I think), that was pointing out a study that had given objective evidence of a huge flaw in the "New Economy" (also known as "making money without making products").
That guy clicking on your ad? You don't want him | by Matt Asay - CNET Blogs: "The study illustrates that heavy clickers represent just 6% of the online population yet account for 50% of all display ad clicks. While many online media companies use click-through rate as an ad negotiation currency, the study shows that heavy clickers are not representative of the general public. In fact, heavy clickers skew towards Internet users between the ages of 25-44 and households with an income under $40,000."
All of this is ironic, of course, because this information would have been much more pertinent in 1998 than in 2008, but we've been led to believe that after the economy dispensed with the crowd of dotcom pretenders who thought that you could make a fortune by throwing up "the next big idea" that would attract a million clicks and provide millions in ad revenue for nothing, there are still some players who have "made it work". Google certainly has made it work. By and large selling nothing but advertising, having a massive install base (I'll freely admit to being a heavy user of many Google products), and now becoming the most significant threat to Microsoft's dominance, they are a picture of new economy success.
But... How deep does the success go? Three random - and not very carefully proven - thoughts about why I think success based on advertising is flimsy.
First, ad revenues are a moving target. I - and thousands of others, I'm sure - use AdBlock Plus with the filterset list which effectively removes all graphical ads from the web. It's quite refreshing, really. No more animated ads, ugly flashing banners, obtrusive flash popups, or borderline pornographic ads for dating services (or who knows what). What you still get are inobtrusive Google adWords, Facebook "announcements" and various other kinds of ads that typically aren't annoying or distracting at all.
The reason that AdBlock Plus and the filterset were invented was because advertisers had gone too far. Greedy to get as many clicks as possible and make bank, the advertisers overstepped what people would put up with, and the result was that an entire category of ads got completely shut down, and will continue to be shut down by increasing numbers of users.
Second, how much of what is feeding the success of Google and other "new economy success stories" is legitimate business? I see some utterly outlandish things on Gmail sponsored links. Somebody apparently paid money to get an atheist site targeted at keywords like "Church" and "God" and "Jesus". But the site wasn't selling anything - just spouting the same endless if-God-is-so-good-why-is-there-evil arguments. Huh? This is healthy economic activity?
But even the advertisers that are selling something legitimate - how much is actually going to turn into profit? It seems to me that it is possible that Google could be at the top of a kind of "new economy pyramid scheme" in which a hundred thousand venture-funded "the next facebook" startups feed all their advertising money into Google and their ilk and then die out without ever coming close to making a profit for their investors.
Third, it seems to me there are fundamental problems with the way advertising is tracked. On a semi-regular basis, when I see an outrageous ad on Gmail (e.g. "The Law of Attraction really works" - New Age occult nonsense associated to The Secret), I click on it. Why? Because I know that every time I click on an ad like that, the advertisers have to pay Google a certain amount of money. I am obviously never, ever going to pay any money to a site like that - but I can actually express my disgust with them simply by clicking on their ad. Then they have to pay for my click, while I never have to even look at their content.
The distortion comes when they start reporting their numbers. They successfully attracted clicks by "targeted marketing" of New Age trash to a fire-breathing charismatic fundamentalist (or whatever I am :) ), but the click they attracted was actually an indication of how poorly the ad was targeted, rather than any kind of success.
I really do appreciate Google, honestly. They make good products, and their ads don't bother me. But I suspect that we haven't quite seen the full negative fruit of the story we've bought into about the "New Economy." If we want to make money, we need to deliver something that actually has substance.
Proverbs 28:22
A man with an evil eye hastens after riches,
And does not consider that poverty will come upon him.
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