1 00:00:04,240 --> 00:00:07,240 Speaker 1: Welcome to tech Stuff, a production of I Heart Radios 2 00:00:07,320 --> 00:00:13,960 Speaker 1: How Stuff Works. Hey there, and welcome to tech Stuff. 3 00:00:14,000 --> 00:00:17,080 Speaker 1: I'm your host, Jonathan Strickland, and I'm an executive producer 4 00:00:17,120 --> 00:00:19,119 Speaker 1: with How Stuff Works and I heart Radio and I 5 00:00:19,160 --> 00:00:23,120 Speaker 1: love all things tech and it's time for a classic 6 00:00:23,440 --> 00:00:29,080 Speaker 1: episode of text Stuff. This episode, originally published on June twenty, 7 00:00:29,800 --> 00:00:34,320 Speaker 1: two thousand twelve, awful close to my birthday, is called 8 00:00:34,479 --> 00:00:38,640 Speaker 1: tech Stuff Clicks on Web Ads, And as the name suggests, 9 00:00:38,920 --> 00:00:42,479 Speaker 1: Chris Pallette and I sit down to talk about web 10 00:00:42,560 --> 00:00:46,800 Speaker 1: advertising and how web advertising works and the whole revenue 11 00:00:46,840 --> 00:00:50,840 Speaker 1: model behind it. So I hope you enjoy this episode. 12 00:00:51,320 --> 00:00:54,160 Speaker 1: You like stuff on the web, right? Yeah? I mean, 13 00:00:54,200 --> 00:00:57,560 Speaker 1: you know, both of our careers depend heavily, uh. In fact, 14 00:00:57,640 --> 00:01:01,440 Speaker 1: I would say entirely upon upon putting stuff up on 15 00:01:01,480 --> 00:01:04,440 Speaker 1: the web. And the reason why we're able to do 16 00:01:04,480 --> 00:01:07,160 Speaker 1: that is because we can make money by putting stuff 17 00:01:07,240 --> 00:01:10,200 Speaker 1: up on the web. Yes. And the reason why we 18 00:01:10,200 --> 00:01:12,360 Speaker 1: were able to make money putting stuff up on the 19 00:01:12,360 --> 00:01:18,039 Speaker 1: web stems mainly from advertising, yes, And so we wanted 20 00:01:18,040 --> 00:01:20,800 Speaker 1: to talk today a little bit about web advertising. We've 21 00:01:20,840 --> 00:01:23,039 Speaker 1: covered the subject a little bit in previous episodes, but 22 00:01:23,080 --> 00:01:25,520 Speaker 1: we really wanted to kind of dive into it. And 23 00:01:25,600 --> 00:01:29,400 Speaker 1: advertising has a bad rap, and part of that is 24 00:01:29,480 --> 00:01:36,240 Speaker 1: because advertisers have sometimes used very invasive, intrusive or manipulative 25 00:01:36,480 --> 00:01:39,680 Speaker 1: approaches to try and get ads in front of you. Yes, 26 00:01:39,720 --> 00:01:41,280 Speaker 1: and I'd like to point out that this episode is 27 00:01:41,319 --> 00:01:44,759 Speaker 1: brought to you by Chocolate Nibbles now with nine essential 28 00:01:44,880 --> 00:01:47,199 Speaker 1: vitamins and minerals. Yes, we got rid of that other 29 00:01:47,240 --> 00:01:50,480 Speaker 1: non essential vitamin and mineral. Yes, just it was looking 30 00:01:50,520 --> 00:01:54,400 Speaker 1: at us funny and we didn't like its face. But now, yeah, 31 00:01:54,880 --> 00:01:58,680 Speaker 1: we're talking about web advertising and there's good points to 32 00:01:58,720 --> 00:02:01,040 Speaker 1: it and bad points to it. Now, the good points 33 00:02:01,080 --> 00:02:04,040 Speaker 1: are that without web advertising, you'd have to find some 34 00:02:04,120 --> 00:02:07,080 Speaker 1: other way to make money putting content up on the web, 35 00:02:07,200 --> 00:02:09,200 Speaker 1: or else people wouldn't do it, or at least not 36 00:02:09,320 --> 00:02:12,280 Speaker 1: as many people would do it, and certainly not you 37 00:02:12,280 --> 00:02:16,000 Speaker 1: wouldn't see the same level of quality across the web. 38 00:02:16,080 --> 00:02:18,600 Speaker 1: There there'd be, you know, occasionally, there'd be someone who 39 00:02:18,600 --> 00:02:22,920 Speaker 1: would be amazingly talented, who for altruistic reasons, wants to 40 00:02:23,000 --> 00:02:26,200 Speaker 1: share what he or she has come up with on 41 00:02:26,280 --> 00:02:29,240 Speaker 1: the web. And those people will be amazing and their 42 00:02:29,280 --> 00:02:32,000 Speaker 1: content they create would be phenomenal, and it would all 43 00:02:32,040 --> 00:02:35,200 Speaker 1: be done, you know, the effort and the time being 44 00:02:35,200 --> 00:02:40,120 Speaker 1: put in would all be that one person's resources, and 45 00:02:40,200 --> 00:02:42,640 Speaker 1: that would be fantastic. Chances are it wouldn't be their 46 00:02:42,680 --> 00:02:45,040 Speaker 1: day job though, because they wouldn't be since you weren't 47 00:02:45,040 --> 00:02:46,920 Speaker 1: making money off of it. They've got to eat somehow, 48 00:02:47,040 --> 00:02:50,720 Speaker 1: so they would probably be doing something else for forty 49 00:02:50,720 --> 00:02:53,239 Speaker 1: hours a week. And then you think about all the 50 00:02:53,720 --> 00:02:56,600 Speaker 1: sites you regularly go to, a lot of those sites 51 00:02:56,639 --> 00:02:59,280 Speaker 1: are supported through advertising, and so without the ads, those 52 00:02:59,280 --> 00:03:02,280 Speaker 1: sitestone exists, which means that content that we have grown 53 00:03:02,400 --> 00:03:06,120 Speaker 1: so fond of accessing would no longer be there. So 54 00:03:06,160 --> 00:03:09,360 Speaker 1: in that case, advertising plays a very important role. Now, 55 00:03:09,480 --> 00:03:12,000 Speaker 1: of course, you can you can make money with online 56 00:03:12,000 --> 00:03:15,320 Speaker 1: through other ways besides advertising. You could have a subscription 57 00:03:15,360 --> 00:03:19,040 Speaker 1: based service where people have to pay a certain amount 58 00:03:19,160 --> 00:03:23,120 Speaker 1: per unit of time, usually be monthly, but it might 59 00:03:23,160 --> 00:03:25,280 Speaker 1: be you know, six months or a year or whatever. 60 00:03:25,600 --> 00:03:27,799 Speaker 1: You can't even do it smaller units if you really 61 00:03:27,800 --> 00:03:31,600 Speaker 1: wanted to um and make money that way by saying, 62 00:03:31,600 --> 00:03:33,960 Speaker 1: all right, well, you can access the content we create 63 00:03:34,000 --> 00:03:36,280 Speaker 1: on this site if you pay this amount of money 64 00:03:36,320 --> 00:03:39,760 Speaker 1: per this unit of time or or per article some, Um, 65 00:03:40,720 --> 00:03:43,960 Speaker 1: some sites do that, you know where you have Hey, 66 00:03:44,080 --> 00:03:45,720 Speaker 1: if you want to read this article, then it will 67 00:03:45,760 --> 00:03:50,760 Speaker 1: be to to read this one particular story, right. And 68 00:03:51,000 --> 00:03:55,280 Speaker 1: the thing is that the way the web has developed 69 00:03:55,280 --> 00:04:00,160 Speaker 1: over time, people have grown to expect free access us 70 00:04:00,200 --> 00:04:01,880 Speaker 1: to something if it's on the web. Yeah, it's a 71 00:04:01,880 --> 00:04:04,520 Speaker 1: cultural thing. Yeah. The early days of the Internet, I 72 00:04:04,520 --> 00:04:07,040 Speaker 1: mean that the people who were doing this were government 73 00:04:07,080 --> 00:04:11,280 Speaker 1: institutions in the United States and higher learning you know, 74 00:04:11,320 --> 00:04:16,120 Speaker 1: colleges and university so the the content online was specifically 75 00:04:16,279 --> 00:04:20,560 Speaker 1: for those groups and the commercial entities really weren't involved 76 00:04:20,560 --> 00:04:22,920 Speaker 1: in it in the early days. So the people who 77 00:04:22,920 --> 00:04:25,240 Speaker 1: were doing that or or actually you know, some of 78 00:04:25,240 --> 00:04:28,800 Speaker 1: it is from the online services UM. So if you 79 00:04:28,839 --> 00:04:31,240 Speaker 1: had a modem, you could dial up to a bulletin 80 00:04:31,240 --> 00:04:33,279 Speaker 1: board and you may not have to pay a fee, 81 00:04:33,640 --> 00:04:36,360 Speaker 1: and you would join the community there and swap stories 82 00:04:36,520 --> 00:04:40,240 Speaker 1: or you know whatever it is that they talked about. UM. 83 00:04:40,279 --> 00:04:43,039 Speaker 1: But they didn't they might pay a fee, a subscription 84 00:04:43,120 --> 00:04:47,400 Speaker 1: fee to join the BBS or for internet access in 85 00:04:47,440 --> 00:04:51,159 Speaker 1: the early days of the Internet as a commercial sense, UM, 86 00:04:51,200 --> 00:04:54,400 Speaker 1: but they wouldn't be paying for the content. And so 87 00:04:55,560 --> 00:05:00,240 Speaker 1: the idea came about that web advertising could potentially be 88 00:05:00,520 --> 00:05:04,640 Speaker 1: far more effective than traditional forms of advertising. That was 89 00:05:04,680 --> 00:05:07,200 Speaker 1: the initial thought, and the reason for that was that 90 00:05:07,640 --> 00:05:11,160 Speaker 1: if you buy an ad in a magazine, or you 91 00:05:11,160 --> 00:05:14,440 Speaker 1: put on a billboard, or you put in a television show, 92 00:05:14,680 --> 00:05:18,160 Speaker 1: it's a in the ad breaks you have a reasonable 93 00:05:18,200 --> 00:05:21,039 Speaker 1: expectation of a certain number of people that ad is 94 00:05:21,080 --> 00:05:25,200 Speaker 1: going to, UH is going to connect with. Now, whether 95 00:05:25,200 --> 00:05:27,240 Speaker 1: those people are paying attention to the ad, you don't 96 00:05:27,279 --> 00:05:30,000 Speaker 1: know whether if whether or not they pay attention to 97 00:05:30,040 --> 00:05:33,120 Speaker 1: the ad and then go forward and actually act based 98 00:05:33,200 --> 00:05:35,039 Speaker 1: upon what they saw in the ad. You don't know 99 00:05:35,160 --> 00:05:38,080 Speaker 1: that either, but you you what you do know is 100 00:05:38,120 --> 00:05:41,560 Speaker 1: that a certain number of people, based upon the market research, 101 00:05:41,680 --> 00:05:44,479 Speaker 1: are going to see that particular ad. Actually, this seems 102 00:05:44,480 --> 00:05:46,960 Speaker 1: like a good time to bring up a point that 103 00:05:47,000 --> 00:05:50,280 Speaker 1: there are two major types of advertising we're talking about 104 00:05:50,360 --> 00:05:54,080 Speaker 1: here too. Um. Direct response is the type of advertising 105 00:05:54,160 --> 00:05:58,160 Speaker 1: debt does encourage you to do something like if you 106 00:05:58,200 --> 00:06:01,440 Speaker 1: were going to UH listen to the podcast and suddenly 107 00:06:01,480 --> 00:06:03,760 Speaker 1: now you're craving a bowl of chocolate nibbles and let 108 00:06:03,839 --> 00:06:06,960 Speaker 1: me tell you they are delicious. Um, now we got 109 00:06:07,080 --> 00:06:09,160 Speaker 1: rid of the non essential vitamin mineral. Yes, you should 110 00:06:09,240 --> 00:06:11,240 Speaker 1: run out and buy something. That's the point of an 111 00:06:11,279 --> 00:06:15,800 Speaker 1: advertisement like that. UM. Then you have what they call branding, 112 00:06:16,600 --> 00:06:19,080 Speaker 1: which is basically, you know, hey, you don't have to 113 00:06:19,080 --> 00:06:22,279 Speaker 1: go run out and buy our product. Just think of 114 00:06:22,360 --> 00:06:25,279 Speaker 1: us the next time you're doing something like that. And 115 00:06:25,279 --> 00:06:26,880 Speaker 1: that's the kind of thing that you see like at 116 00:06:26,960 --> 00:06:30,720 Speaker 1: um uh sporting events. UH. For example, the ads on 117 00:06:30,760 --> 00:06:34,120 Speaker 1: the sides of hockey boards or on on the sides 118 00:06:34,200 --> 00:06:37,560 Speaker 1: of race cars. They don't say by you know, such 119 00:06:37,560 --> 00:06:39,920 Speaker 1: and such product. They're just showing you the brand name, 120 00:06:40,400 --> 00:06:42,960 Speaker 1: so that you sort of think about them and you're 121 00:06:43,000 --> 00:06:45,200 Speaker 1: you're thinking, oh, well, you know, I like these guys. 122 00:06:45,200 --> 00:06:48,080 Speaker 1: They sponsor my favorite driver. Yeah. The idea might be 123 00:06:48,279 --> 00:06:50,359 Speaker 1: to get that brand name in your mind so that 124 00:06:50,440 --> 00:06:52,960 Speaker 1: the next time you go out to get something, you 125 00:06:53,240 --> 00:06:57,440 Speaker 1: actually think about that particular brand. For example, you might think, hey, 126 00:06:57,680 --> 00:07:01,160 Speaker 1: I'm thirsty, I would like a soda. I just saw 127 00:07:01,200 --> 00:07:03,640 Speaker 1: that ad for coke, and maybe I wouldn't normally get 128 00:07:03,680 --> 00:07:05,720 Speaker 1: a coke, but that sounds good to me right now, 129 00:07:05,720 --> 00:07:08,000 Speaker 1: I'll go ahead and get a coke. UM. So it's 130 00:07:08,160 --> 00:07:10,600 Speaker 1: it's one of those things where getting the brand out 131 00:07:10,640 --> 00:07:13,600 Speaker 1: there is really important, and marketers will tell you how 132 00:07:13,640 --> 00:07:15,280 Speaker 1: important that is that you know, you don't want to 133 00:07:15,320 --> 00:07:17,720 Speaker 1: mess with your brand, You don't want to change your 134 00:07:17,720 --> 00:07:20,680 Speaker 1: brand identity to drastically unless you do it in the 135 00:07:20,760 --> 00:07:23,080 Speaker 1: right way so that you make it a sort of 136 00:07:23,120 --> 00:07:26,920 Speaker 1: a public event where people will make that transition with you, 137 00:07:27,000 --> 00:07:30,080 Speaker 1: because it's you know, this is stuff that's sticky in 138 00:07:30,160 --> 00:07:32,520 Speaker 1: people's minds. Yeah, there are people who are going to 139 00:07:32,560 --> 00:07:34,640 Speaker 1: walk into the store and they're going to see that 140 00:07:34,720 --> 00:07:38,040 Speaker 1: brand name that they know so well, um, and they're 141 00:07:38,080 --> 00:07:41,760 Speaker 1: going to choose a product from that manufacturer simply because 142 00:07:41,800 --> 00:07:44,120 Speaker 1: they know the name. They might see it next to 143 00:07:44,280 --> 00:07:46,400 Speaker 1: something else that they've never heard of and go, well, 144 00:07:46,440 --> 00:07:49,920 Speaker 1: at least I know who these people are. So that's 145 00:07:50,000 --> 00:07:52,240 Speaker 1: just basic advertising. Now, if you're talking about the web, 146 00:07:52,480 --> 00:07:55,840 Speaker 1: the the the advantage, or at least the apparent advantage 147 00:07:55,880 --> 00:07:59,320 Speaker 1: back in the early days, was that you could actually 148 00:08:00,040 --> 00:08:02,680 Speaker 1: monitor what people were doing based upon the webs you were, 149 00:08:02,920 --> 00:08:04,960 Speaker 1: the the ads you were serving up on the web. Brother, 150 00:08:05,240 --> 00:08:07,680 Speaker 1: So let's say that you go and you put an 151 00:08:07,680 --> 00:08:10,440 Speaker 1: ad on a really heavily traffic site in the early 152 00:08:10,520 --> 00:08:13,240 Speaker 1: days of the Internet, so Yahoo. Let's say, um, you 153 00:08:13,240 --> 00:08:15,400 Speaker 1: put an ad up on Yahoo. Well, you already know 154 00:08:15,600 --> 00:08:19,640 Speaker 1: that a certain number of users and the millions perhaps 155 00:08:19,840 --> 00:08:23,440 Speaker 1: visits Yahoo each day, so you know that that that's 156 00:08:23,480 --> 00:08:26,119 Speaker 1: how many people are going to see your ad, and 157 00:08:26,120 --> 00:08:28,440 Speaker 1: and the websites track their statistics so that they can 158 00:08:28,480 --> 00:08:31,120 Speaker 1: report back to advertisers. Hey, if you advertise with us, 159 00:08:31,600 --> 00:08:34,560 Speaker 1: you will reach at least two million people. Right, this 160 00:08:34,600 --> 00:08:36,880 Speaker 1: is how many This is how many unique visitors you 161 00:08:36,880 --> 00:08:39,760 Speaker 1: will see. Yes, this is how many people actually have 162 00:08:39,840 --> 00:08:42,800 Speaker 1: page views. Because the two things are different. Yes, we 163 00:08:43,040 --> 00:08:46,120 Speaker 1: talk about that in a minute. Yeah, so at any rate, 164 00:08:46,400 --> 00:08:50,520 Speaker 1: because the early days of the web advertising, they were thinking, 165 00:08:50,960 --> 00:08:53,160 Speaker 1: why is this any different from say a magazine Apart 166 00:08:53,200 --> 00:08:54,880 Speaker 1: from the fact that we can actually give you more 167 00:08:55,000 --> 00:08:57,400 Speaker 1: data about the people who are taking a look at 168 00:08:57,400 --> 00:09:00,360 Speaker 1: this ad, um, it should be the same price, and 169 00:09:00,360 --> 00:09:03,000 Speaker 1: in the beginning it was. But here's the Here a 170 00:09:03,000 --> 00:09:06,000 Speaker 1: couple of problems. One is that it also let you 171 00:09:06,040 --> 00:09:11,400 Speaker 1: know when people were not uh reacting to an ad, 172 00:09:11,440 --> 00:09:14,400 Speaker 1: at least not actively reacting to an ad. So, in 173 00:09:14,440 --> 00:09:17,559 Speaker 1: other words, if no one's clicking on the ad, or 174 00:09:17,600 --> 00:09:21,160 Speaker 1: if it's a really really really small number of people 175 00:09:21,200 --> 00:09:25,360 Speaker 1: who are clicking on the ad, then you question was 176 00:09:25,400 --> 00:09:28,439 Speaker 1: the value of that ad right, Because if no one's 177 00:09:28,800 --> 00:09:33,640 Speaker 1: going converting over and clicking through, then the advertisers say, well, 178 00:09:33,640 --> 00:09:35,920 Speaker 1: why are we spending the same amount of money we 179 00:09:35,960 --> 00:09:38,680 Speaker 1: would for a magazine ad or a television ad if 180 00:09:38,720 --> 00:09:41,800 Speaker 1: this if only these few people are clicking through. Never 181 00:09:41,880 --> 00:09:44,320 Speaker 1: mind the fact that we can't be sure how many 182 00:09:44,320 --> 00:09:47,000 Speaker 1: people see the magazine add or television ad and react 183 00:09:47,000 --> 00:09:50,000 Speaker 1: to it, that doesn't matter. They're saying, well, we have 184 00:09:50,360 --> 00:09:53,000 Speaker 1: a proof here that not that many people are clicking through, 185 00:09:53,080 --> 00:09:56,080 Speaker 1: so therefore this is overvalued. That was one problem. The 186 00:09:56,080 --> 00:09:59,679 Speaker 1: other problem was that lots of websites were popping up. 187 00:10:00,640 --> 00:10:03,960 Speaker 1: That meant there was a lot of landscape for advertising. 188 00:10:04,600 --> 00:10:08,560 Speaker 1: So with lots and lots of websites of various degrees 189 00:10:08,760 --> 00:10:14,840 Speaker 1: of popularity popping up on the web, that devalued web advertising. 190 00:10:14,880 --> 00:10:17,640 Speaker 1: It's like a supply and demand thing. So, for example, 191 00:10:17,679 --> 00:10:21,360 Speaker 1: imagine that you have a stretch of highway and there 192 00:10:21,400 --> 00:10:25,320 Speaker 1: are three billboard signs up, and they're only three, and 193 00:10:25,320 --> 00:10:28,520 Speaker 1: those three are would be a certain value to be 194 00:10:28,640 --> 00:10:30,920 Speaker 1: able to advertise on them, because that that's the only 195 00:10:30,920 --> 00:10:33,319 Speaker 1: three that any drivers are going to see. Well, then 196 00:10:33,400 --> 00:10:36,880 Speaker 1: let's say fifteen new billboards pop up along that same 197 00:10:36,920 --> 00:10:41,319 Speaker 1: stretch of highway. Well, that's just devalued the the value 198 00:10:41,320 --> 00:10:43,640 Speaker 1: of the three that already existed there. Yea. And that 199 00:10:43,640 --> 00:10:46,560 Speaker 1: can actually happen on a site too. It's not just 200 00:10:46,720 --> 00:10:50,640 Speaker 1: across the the web. If you put up so many 201 00:10:50,720 --> 00:10:54,160 Speaker 1: ads that uh, it sort of drowns out the content. 202 00:10:54,880 --> 00:10:57,480 Speaker 1: People begin to tune them out, and your your message 203 00:10:57,480 --> 00:11:00,240 Speaker 1: loses its power. So it's a very delicate balancing act 204 00:11:00,400 --> 00:11:03,200 Speaker 1: is figuring out where the place ads, what sort of 205 00:11:03,240 --> 00:11:06,079 Speaker 1: ads you use, how many do you have per page? 206 00:11:06,440 --> 00:11:09,199 Speaker 1: And it's not just a balancing act of turning off 207 00:11:09,520 --> 00:11:12,680 Speaker 1: readers or turning off visitors from going to your site. 208 00:11:13,080 --> 00:11:15,679 Speaker 1: It's also a question of how much money does it 209 00:11:15,720 --> 00:11:19,360 Speaker 1: cost to run your business and how can you offset 210 00:11:19,400 --> 00:11:22,520 Speaker 1: that through advertising? If that's your chief way of generating revenue. 211 00:11:22,960 --> 00:11:26,080 Speaker 1: You have to find that balance. And it's tricky because 212 00:11:26,400 --> 00:11:29,280 Speaker 1: you know, you, if you're talking about the ads themselves 213 00:11:29,320 --> 00:11:32,560 Speaker 1: are being devalued the more they're out there. Then you 214 00:11:32,679 --> 00:11:35,120 Speaker 1: have to balance that out, like how do you take 215 00:11:35,400 --> 00:11:38,160 Speaker 1: advantage of advertising in such a way that you're actually 216 00:11:38,160 --> 00:11:42,679 Speaker 1: making enough money to sustain whatever your business you're in, right, 217 00:11:42,960 --> 00:11:45,720 Speaker 1: and uh, and it's not easy to do well. And 218 00:11:45,760 --> 00:11:48,840 Speaker 1: it it's worth pointing out I think too that um, 219 00:11:48,880 --> 00:11:52,640 Speaker 1: to some degree, the web is a fairly inexpensive place 220 00:11:52,679 --> 00:11:56,720 Speaker 1: to do business. Buying a domain name, arranging hosting for 221 00:11:56,800 --> 00:12:00,840 Speaker 1: a year, um, you know, that's that's not terribly expensive. 222 00:12:01,040 --> 00:12:05,320 Speaker 1: You start getting into, uh, some cost problems when you 223 00:12:05,840 --> 00:12:08,400 Speaker 1: generate a lot of traffic to the site, because in 224 00:12:08,440 --> 00:12:10,880 Speaker 1: a lot of cases, say, if you you're just a 225 00:12:10,920 --> 00:12:13,360 Speaker 1: person who wants to start a blog just for the 226 00:12:13,360 --> 00:12:15,240 Speaker 1: sake of starting a blog, and you promote it to 227 00:12:15,280 --> 00:12:18,280 Speaker 1: your friends on Facebook, and you get a couple of 228 00:12:18,280 --> 00:12:21,480 Speaker 1: gigabytes worth of bandwidth per month, that's probably not going 229 00:12:21,559 --> 00:12:24,760 Speaker 1: to and that's a lot of traffic just you know, 230 00:12:25,000 --> 00:12:27,080 Speaker 1: for for a person with a blog who's just having 231 00:12:27,120 --> 00:12:29,839 Speaker 1: fun with it. Um, you know, you might decide to 232 00:12:29,840 --> 00:12:31,959 Speaker 1: stick some ads up there. But and and that may 233 00:12:32,080 --> 00:12:35,240 Speaker 1: very well offset the cost because you're web hosting provider. 234 00:12:35,280 --> 00:12:38,120 Speaker 1: A lot of them these days don't charge uh for 235 00:12:38,200 --> 00:12:41,400 Speaker 1: a certain amount of traffic. Now, if you're somebody like 236 00:12:42,200 --> 00:12:47,040 Speaker 1: a magazine or streaming media side or something like that, 237 00:12:47,040 --> 00:12:49,400 Speaker 1: that's going to generate tons and tons of traffic, and 238 00:12:49,440 --> 00:12:52,080 Speaker 1: the web hosting provider is gonna say, hey, look, pal, 239 00:12:52,720 --> 00:12:55,240 Speaker 1: you know, if you're taking up room on our servers, 240 00:12:55,280 --> 00:12:58,320 Speaker 1: you want yeah, if you want the band with, you 241 00:12:58,360 --> 00:13:01,160 Speaker 1: gotta pay. Yeah, So know, you have to pay people 242 00:13:01,200 --> 00:13:04,280 Speaker 1: to run the side and maintain the side. If you're 243 00:13:04,280 --> 00:13:08,160 Speaker 1: a magazine, you want to pay writers, maybe freelancers, editors. 244 00:13:08,559 --> 00:13:10,320 Speaker 1: You know, you're gonna have a lot of people working there, 245 00:13:10,520 --> 00:13:12,160 Speaker 1: so you have to pay for them too, and then 246 00:13:12,200 --> 00:13:14,520 Speaker 1: you have to generate more revenue to offset that. So 247 00:13:14,559 --> 00:13:17,880 Speaker 1: it's it's relatively inexpensive to get in, but depending on 248 00:13:17,880 --> 00:13:21,079 Speaker 1: the scale of the operation, you might need serious money 249 00:13:21,080 --> 00:13:24,360 Speaker 1: to keep it going right. And you know, we when 250 00:13:24,360 --> 00:13:27,559 Speaker 1: we talked with Bernie Burns of Rooster Teeth, Yeah, you 251 00:13:27,600 --> 00:13:29,400 Speaker 1: know he talked about back in the early days of 252 00:13:29,520 --> 00:13:32,679 Speaker 1: Rooster Teeth, that was before streaming video was a thing 253 00:13:32,720 --> 00:13:34,280 Speaker 1: on the web. So what people would do is they 254 00:13:34,280 --> 00:13:37,560 Speaker 1: would actually download an episode of Red Versus Blue, Right, 255 00:13:37,640 --> 00:13:40,160 Speaker 1: So they're downloading video files. And because it became so 256 00:13:40,280 --> 00:13:44,080 Speaker 1: popular so quickly, that meant that they were having some 257 00:13:44,120 --> 00:13:48,360 Speaker 1: pretty massive bandwidth issues and so that that sort of 258 00:13:48,400 --> 00:13:51,000 Speaker 1: thing can come into play. And yeah, like I said, 259 00:13:51,040 --> 00:13:52,520 Speaker 1: it's it's one of those things where you've got to 260 00:13:52,520 --> 00:13:55,600 Speaker 1: figure out, well, we have to make a certain amount 261 00:13:55,600 --> 00:13:57,920 Speaker 1: of money just to sustain our businesses. And then in 262 00:13:58,000 --> 00:13:59,840 Speaker 1: order to be a successful business, you have to actually 263 00:14:00,000 --> 00:14:02,560 Speaker 1: a money. So you have to determine what kind of 264 00:14:02,559 --> 00:14:06,640 Speaker 1: ads you use and how much how many of them 265 00:14:06,679 --> 00:14:09,360 Speaker 1: you use. So now, back back in those early days 266 00:14:09,400 --> 00:14:13,240 Speaker 1: when I was talking about UM, the the days like 267 00:14:13,280 --> 00:14:16,560 Speaker 1: when Yahoo was selling ads at around the same rate 268 00:14:16,640 --> 00:14:19,880 Speaker 1: as what you would get for a magazine ad. That 269 00:14:20,000 --> 00:14:25,040 Speaker 1: was about around sometimes thirty dollars per one thousand clicks 270 00:14:25,880 --> 00:14:29,480 Speaker 1: or one thousand um impressions actually, and impressions and clicks 271 00:14:29,480 --> 00:14:32,560 Speaker 1: are two different things. Impressions essentially means that if a 272 00:14:32,640 --> 00:14:36,520 Speaker 1: thousand people visit that that particular website and that one 273 00:14:36,600 --> 00:14:40,680 Speaker 1: ad is on that website, then the average advertiser would 274 00:14:40,720 --> 00:14:44,920 Speaker 1: pay the website thirty bucks for every thousand. Well, yeah, 275 00:14:45,000 --> 00:14:47,480 Speaker 1: he's just that that is not a standard necessarily a 276 00:14:47,480 --> 00:14:50,680 Speaker 1: standard rate he's just using. Yes, that that was back 277 00:14:50,720 --> 00:14:54,040 Speaker 1: in the early days, just web thirty, sometimes more than 278 00:14:54,080 --> 00:14:57,320 Speaker 1: thirty dollars per one thousand. But as time has gone 279 00:14:57,360 --> 00:15:01,320 Speaker 1: on that that price has been seriously cut down. And 280 00:15:01,320 --> 00:15:03,640 Speaker 1: it all depends on what kind of website you run too. 281 00:15:03,680 --> 00:15:06,080 Speaker 1: If you're running a website that's incredibly popular, then you 282 00:15:06,080 --> 00:15:09,120 Speaker 1: can command higher prices than you can than a smaller 283 00:15:09,160 --> 00:15:12,640 Speaker 1: website can. But in general you're now talking about a 284 00:15:12,760 --> 00:15:18,240 Speaker 1: few cents per one thousand visitors if it's a uh 285 00:15:18,600 --> 00:15:21,480 Speaker 1: CPM model, And we'll talk about that in a second. 286 00:15:21,480 --> 00:15:23,520 Speaker 1: But before we before we get into the various models, 287 00:15:23,560 --> 00:15:26,160 Speaker 1: I wanted to talk about the different formats that you 288 00:15:26,200 --> 00:15:30,160 Speaker 1: find in web advertising. Yeah, probably the most popular in 289 00:15:30,160 --> 00:15:32,240 Speaker 1: those early days was the banner at the banner adea. 290 00:15:32,280 --> 00:15:34,360 Speaker 1: These were the ones that ran along the top of 291 00:15:34,400 --> 00:15:36,960 Speaker 1: the ad of the site, sometimes along the bottom, and 292 00:15:37,000 --> 00:15:39,359 Speaker 1: if it was along the side, we called them sidebars 293 00:15:39,440 --> 00:15:41,440 Speaker 1: as opposed to banner ads, but the same sort of thing. 294 00:15:41,880 --> 00:15:46,960 Speaker 1: It's a a long, narrow band that would have an 295 00:15:46,960 --> 00:15:50,520 Speaker 1: add on it for for some product or service. Usually 296 00:15:50,600 --> 00:15:53,120 Speaker 1: it was a link, so that if you clicked on 297 00:15:53,120 --> 00:15:56,120 Speaker 1: the banner, you would go to the website of said 298 00:15:56,280 --> 00:16:01,120 Speaker 1: product or service. And uh, it was the way to 299 00:16:01,440 --> 00:16:04,440 Speaker 1: advertise on the web for a really long time. UM. 300 00:16:04,440 --> 00:16:07,080 Speaker 1: But again, because it's a link, it's one of those 301 00:16:07,080 --> 00:16:09,600 Speaker 1: things that can be monitored and in fact, if it's 302 00:16:09,600 --> 00:16:13,880 Speaker 1: a link that's coming into a company's website, they may 303 00:16:13,920 --> 00:16:17,320 Speaker 1: not even need the advertising. UM. The They may not 304 00:16:17,400 --> 00:16:19,920 Speaker 1: need another agency to tell them anything about the traffic, 305 00:16:19,920 --> 00:16:21,280 Speaker 1: they might be able to see it on their own. 306 00:16:21,880 --> 00:16:26,040 Speaker 1: But if they see that the traffic just hasn't increased significantly, 307 00:16:26,280 --> 00:16:30,440 Speaker 1: or that, uh, that traffic from that ad hasn't really 308 00:16:30,600 --> 00:16:32,800 Speaker 1: picked up, and that they're not really seeing a conversion 309 00:16:32,800 --> 00:16:37,080 Speaker 1: into sales, then that's going to really cut down on like, 310 00:16:37,120 --> 00:16:40,080 Speaker 1: why would anyone bother buying an AD if it's not working. 311 00:16:40,840 --> 00:16:44,200 Speaker 1: So those were some of the earliest ones, and they're 312 00:16:44,200 --> 00:16:46,800 Speaker 1: also some of the ones that are easiest for users 313 00:16:46,840 --> 00:16:49,920 Speaker 1: to ignore. In fact, there's you know we talked about 314 00:16:50,000 --> 00:16:53,000 Speaker 1: in the business, it's called ad blindness, where you just 315 00:16:53,480 --> 00:16:55,720 Speaker 1: you just don't even register it anymore. You're used to 316 00:16:55,880 --> 00:17:00,680 Speaker 1: ignoring anything that falls in certain quadrants on a website 317 00:17:00,680 --> 00:17:03,000 Speaker 1: because that's where everyone puts their ads, and you just 318 00:17:03,040 --> 00:17:05,639 Speaker 1: don't even notice it anymore because you're just looking for 319 00:17:05,680 --> 00:17:10,359 Speaker 1: the content. Well, advertisers hate that because it negates the 320 00:17:10,400 --> 00:17:13,560 Speaker 1: whole ad and you know, people are spending time and 321 00:17:13,600 --> 00:17:16,719 Speaker 1: money to develop these ads, and and again they're not 322 00:17:16,760 --> 00:17:20,359 Speaker 1: necessarily being evil. They're trying to reach an audience so 323 00:17:20,400 --> 00:17:22,320 Speaker 1: that they can sell their products or services. Some of 324 00:17:22,320 --> 00:17:26,200 Speaker 1: those products and services may be amazing, but it doesn't 325 00:17:26,240 --> 00:17:28,199 Speaker 1: change the fact that people have gotten really good at 326 00:17:28,240 --> 00:17:30,960 Speaker 1: ignoring those ads. So there's other kinds as well. Uh, 327 00:17:31,000 --> 00:17:34,600 Speaker 1: there's the floating ads which float across your screen and 328 00:17:34,640 --> 00:17:36,800 Speaker 1: you have to Yeah, I'm not a big fan of 329 00:17:36,800 --> 00:17:40,400 Speaker 1: them either, but again they are hard. They they're they're 330 00:17:40,400 --> 00:17:43,520 Speaker 1: impossible to ignore because they float right in front of 331 00:17:43,520 --> 00:17:46,160 Speaker 1: your screen and until you close them or click on them, 332 00:17:46,240 --> 00:17:48,920 Speaker 1: there they stay there. And the cousins of the pop 333 00:17:49,000 --> 00:17:52,119 Speaker 1: up ad, right, pop up and pop under ads are similar. 334 00:17:52,160 --> 00:17:54,560 Speaker 1: Now pop up ads become their own it's their own 335 00:17:54,560 --> 00:17:58,000 Speaker 1: window that pops on top of the browser. And those 336 00:17:58,000 --> 00:18:01,160 Speaker 1: were popular for a while. In fact, I remember back 337 00:18:01,200 --> 00:18:05,159 Speaker 1: when you would hit certain sites like uh like like 338 00:18:05,560 --> 00:18:07,639 Speaker 1: there were a few sites that I went to there 339 00:18:07,640 --> 00:18:10,359 Speaker 1: were like a movie rumor sites, right because I was 340 00:18:10,400 --> 00:18:12,560 Speaker 1: just interested in what was coming up in movies. And 341 00:18:12,640 --> 00:18:16,080 Speaker 1: some of them would work with advertising agencies that did 342 00:18:16,119 --> 00:18:18,960 Speaker 1: pop up ads, and you would get one pop up 343 00:18:19,000 --> 00:18:20,439 Speaker 1: ad and as soon as you go to close that, 344 00:18:20,520 --> 00:18:22,600 Speaker 1: two more pop up ads would pop up, and then 345 00:18:22,880 --> 00:18:25,640 Speaker 1: you suddenly you've got you know, five or six pop 346 00:18:25,720 --> 00:18:28,760 Speaker 1: up beds covering up your the content you were trying 347 00:18:28,800 --> 00:18:30,479 Speaker 1: to read and then eventually you just say, why am 348 00:18:30,480 --> 00:18:32,040 Speaker 1: I even bothering going to the site? I'm going to 349 00:18:32,119 --> 00:18:34,719 Speaker 1: find some other place to go rather than deal with 350 00:18:34,720 --> 00:18:38,080 Speaker 1: this frustration. Pop under ads are similar, except that the 351 00:18:38,119 --> 00:18:41,359 Speaker 1: new window pops up under your browser, so that until 352 00:18:41,480 --> 00:18:43,560 Speaker 1: you close your browser, you may not even be aware 353 00:18:43,560 --> 00:18:46,679 Speaker 1: that it's there. Yeah, and some some sites used to 354 00:18:46,720 --> 00:18:49,240 Speaker 1: track the length of time that the ad appeared on 355 00:18:49,280 --> 00:18:52,359 Speaker 1: the screen. So let's say there's a pop under ad 356 00:18:52,480 --> 00:18:54,480 Speaker 1: and it's been up and you don't even know it. 357 00:18:54,760 --> 00:18:57,280 Speaker 1: So they're the site is getting to say, hey, you 358 00:18:57,280 --> 00:19:00,240 Speaker 1: know so, and so we we actually have a a 359 00:19:00,320 --> 00:19:02,800 Speaker 1: great rate of people having this up on their screen 360 00:19:02,840 --> 00:19:05,159 Speaker 1: because there are some people here who have it up 361 00:19:05,200 --> 00:19:07,560 Speaker 1: for hours and hours. Of course, if they're of course 362 00:19:07,560 --> 00:19:09,719 Speaker 1: they can't see it. And of course if if not 363 00:19:09,800 --> 00:19:12,400 Speaker 1: that many people are clicking on the ad, then that 364 00:19:12,400 --> 00:19:15,240 Speaker 1: that's not as powerful story, right, Like, yeah, they have 365 00:19:15,280 --> 00:19:17,320 Speaker 1: it up for hours, but no one actually ever bothers 366 00:19:17,320 --> 00:19:19,840 Speaker 1: to click on the ad, then that falls apart. Now, 367 00:19:19,880 --> 00:19:22,679 Speaker 1: see that's just in the details. And and one of 368 00:19:22,680 --> 00:19:27,120 Speaker 1: the things that has made these ads less common, uh 369 00:19:27,240 --> 00:19:31,400 Speaker 1: is the functionality and virtually every browser that I've seen 370 00:19:31,480 --> 00:19:34,560 Speaker 1: in the last three or four years that has the 371 00:19:34,600 --> 00:19:38,199 Speaker 1: pop up blocker enabled in the preferences so that you 372 00:19:38,240 --> 00:19:40,520 Speaker 1: can go in turn it off before you you know, 373 00:19:40,640 --> 00:19:42,200 Speaker 1: the first thing you do is you you go into 374 00:19:42,200 --> 00:19:44,560 Speaker 1: the preferences and start setting it to the way you 375 00:19:44,560 --> 00:19:46,560 Speaker 1: want it to work. And one of the first things 376 00:19:46,600 --> 00:19:50,040 Speaker 1: I do is turn off the pop up ad, you know, 377 00:19:50,520 --> 00:19:53,000 Speaker 1: and and they just completely prevent it from opening, right. 378 00:19:53,080 --> 00:19:54,919 Speaker 1: And then there's some sites that use pop ups for 379 00:19:55,040 --> 00:19:58,760 Speaker 1: legitimate well advertising is legitimate, but there's some sites that 380 00:19:58,880 --> 00:20:02,879 Speaker 1: use it for purposes that like interact exactly, so like 381 00:20:03,000 --> 00:20:05,359 Speaker 1: filling out a form. So in those cases you have 382 00:20:05,400 --> 00:20:07,960 Speaker 1: to just you have to disable the pop up blocker, 383 00:20:08,040 --> 00:20:10,640 Speaker 1: maybe just for that one site, but yeah, I mean 384 00:20:10,640 --> 00:20:13,199 Speaker 1: that that's the things that these pop up ads and 385 00:20:13,240 --> 00:20:18,400 Speaker 1: pop under ads are intrusive enough so that users really 386 00:20:18,400 --> 00:20:20,600 Speaker 1: don't like them. The floating floating adds in a way 387 00:20:20,640 --> 00:20:24,160 Speaker 1: can be too. They're not quite as bad in my opinion, um, 388 00:20:25,160 --> 00:20:29,160 Speaker 1: but they also can be irritating if you're just trying 389 00:20:29,200 --> 00:20:34,399 Speaker 1: to get to certain content. The floating adds, though, don't 390 00:20:34,480 --> 00:20:38,400 Speaker 1: irritate me the way peel or expanding ads do. These 391 00:20:38,440 --> 00:20:40,960 Speaker 1: are the ones where if your cursor floats over the ad, 392 00:20:41,000 --> 00:20:43,760 Speaker 1: it suddenly takes up half your screen space or more, 393 00:20:44,280 --> 00:20:49,320 Speaker 1: it will unroll. And we've we're just gonna be completely 394 00:20:49,359 --> 00:20:52,320 Speaker 1: blunt here, all right. So, so the company we work for, 395 00:20:52,400 --> 00:20:55,920 Speaker 1: how stuff Works dot com and as part of Discovery Communication, 396 00:20:55,960 --> 00:21:01,120 Speaker 1: part Discovery Communications makes revenue through advertising m other things. Yes, 397 00:21:01,160 --> 00:21:04,560 Speaker 1: and so we have had these these peel ads, these 398 00:21:04,560 --> 00:21:09,480 Speaker 1: expanding ads on our site. Uh and I think, um, 399 00:21:09,280 --> 00:21:11,760 Speaker 1: I think I'm safe to say I'm not the only 400 00:21:11,800 --> 00:21:13,959 Speaker 1: one who found it frustrating when I would visit my 401 00:21:14,000 --> 00:21:17,200 Speaker 1: own site and try to find a particular article only 402 00:21:17,240 --> 00:21:20,359 Speaker 1: to have an uh an ad cover up half the page. 403 00:21:21,080 --> 00:21:25,600 Speaker 1: While a lot of these things, too were trials to see, uh, 404 00:21:25,640 --> 00:21:28,399 Speaker 1: how well the public would get into it. So not 405 00:21:28,520 --> 00:21:30,639 Speaker 1: only do you want to find out, hey, are people 406 00:21:30,680 --> 00:21:33,000 Speaker 1: looking at these? Are people clicking through to see what's 407 00:21:33,000 --> 00:21:35,240 Speaker 1: on the other side of these? And how many people 408 00:21:36,080 --> 00:21:39,200 Speaker 1: uh stop coming because what they you know, because when 409 00:21:39,200 --> 00:21:40,960 Speaker 1: they say, you know, hey, I don't like these pop 410 00:21:41,040 --> 00:21:42,359 Speaker 1: up ads, I don't like these pop up ads. I 411 00:21:42,359 --> 00:21:44,639 Speaker 1: don't like these peel ads, they may stop coming to 412 00:21:44,680 --> 00:21:48,280 Speaker 1: the site. As Jonathan was pointing out, and if if 413 00:21:48,320 --> 00:21:51,600 Speaker 1: the the site that is running advertising notices this as 414 00:21:51,600 --> 00:21:54,280 Speaker 1: a trend. They'll say, hey, you know what, this is 415 00:21:54,320 --> 00:21:57,280 Speaker 1: working to the point where it's not working. Yeah, yeah, 416 00:21:57,320 --> 00:21:59,760 Speaker 1: And people are seeing these and they don't like them 417 00:21:59,760 --> 00:22:02,199 Speaker 1: and are leaving. Right. The goal of the advertiser is 418 00:22:02,240 --> 00:22:04,359 Speaker 1: to get that ad in front of your your eyes 419 00:22:04,400 --> 00:22:06,640 Speaker 1: and to have you act in some way on that 420 00:22:06,720 --> 00:22:08,679 Speaker 1: ad in a in a positive way. As far as 421 00:22:08,680 --> 00:22:10,560 Speaker 1: the advertiser is concerned. You don't want to turn off 422 00:22:10,560 --> 00:22:13,760 Speaker 1: your potential buyers, right, So they're not trying to alienate 423 00:22:13,800 --> 00:22:16,440 Speaker 1: the audience. That's not the that's not the goal at all. 424 00:22:16,520 --> 00:22:20,880 Speaker 1: In fact, that's completely antithetical to their goals. So that 425 00:22:20,960 --> 00:22:23,399 Speaker 1: you know, there are times where you'll see certain ads 426 00:22:23,480 --> 00:22:28,080 Speaker 1: kind of fade away from popularity because advertisers have learned 427 00:22:28,119 --> 00:22:30,840 Speaker 1: like this has such a negative impact on the user 428 00:22:30,880 --> 00:22:34,639 Speaker 1: experience that that there that any benefit of getting that 429 00:22:34,800 --> 00:22:39,440 Speaker 1: name out into the world is negated by how they 430 00:22:39,480 --> 00:22:44,119 Speaker 1: are are associating that ad with their experience. So some 431 00:22:44,200 --> 00:22:47,240 Speaker 1: of these ads you just don't even see that frequently anymore. 432 00:22:47,440 --> 00:22:49,840 Speaker 1: There are other kinds as well, their wallpaper ads, where 433 00:22:49,840 --> 00:22:53,440 Speaker 1: it will change the background of a website to to 434 00:22:53,960 --> 00:22:57,800 Speaker 1: be a certain uh wallpaper, Like I've seen that for 435 00:22:57,800 --> 00:23:01,720 Speaker 1: for movies, gaming times to gaming, so it's also I 436 00:23:01,720 --> 00:23:04,400 Speaker 1: mean I've even seen it for things like, um like 437 00:23:04,720 --> 00:23:07,560 Speaker 1: snack foods where you'll see like along the background, it'll 438 00:23:07,600 --> 00:23:10,920 Speaker 1: be snacks instead of whatever the normal background would be. 439 00:23:11,720 --> 00:23:14,640 Speaker 1: There their ads that can be inserted into text, so 440 00:23:15,280 --> 00:23:19,240 Speaker 1: they you'll see in the content that certain words are highlighted, 441 00:23:19,280 --> 00:23:21,199 Speaker 1: and it may be that those words like if you're like, 442 00:23:21,240 --> 00:23:23,119 Speaker 1: oh wow, that is kind of cool, and you click 443 00:23:23,119 --> 00:23:25,240 Speaker 1: on it and it goes to the uh to a 444 00:23:25,320 --> 00:23:28,040 Speaker 1: site that sells something that falls into the category of 445 00:23:28,080 --> 00:23:30,960 Speaker 1: whatever the text was, so it's kind of a type 446 00:23:30,960 --> 00:23:34,359 Speaker 1: of contextual ad. And also there's the video ads, the 447 00:23:35,200 --> 00:23:38,120 Speaker 1: ones that were made famous by Uncast, where you would 448 00:23:38,160 --> 00:23:41,040 Speaker 1: go to a site and there'd be a little video 449 00:23:41,080 --> 00:23:45,520 Speaker 1: ad running, usually in one of the rails, so like 450 00:23:45,640 --> 00:23:47,840 Speaker 1: off to the right or something, and it would have 451 00:23:47,920 --> 00:23:52,160 Speaker 1: full video and full sound, which could be very uh, 452 00:23:52,480 --> 00:23:56,199 Speaker 1: very jarring if you are like me often listening to 453 00:23:56,400 --> 00:24:00,360 Speaker 1: music on your headphones over your computer and you visit 454 00:24:00,359 --> 00:24:02,240 Speaker 1: a website and then you suddenly hear someone talking to 455 00:24:02,280 --> 00:24:04,560 Speaker 1: you and you're like, someone, what's what's going on? And 456 00:24:04,600 --> 00:24:06,399 Speaker 1: you start looking around there there's no one around me. 457 00:24:06,840 --> 00:24:09,280 Speaker 1: And uh, most of the ones I've seen recently that 458 00:24:09,359 --> 00:24:11,760 Speaker 1: do that leave the sound off until you noticed the 459 00:24:11,840 --> 00:24:14,320 Speaker 1: video is playing, and then some people will turn the 460 00:24:14,400 --> 00:24:17,280 Speaker 1: video on the sound on, and some people won't. Um. 461 00:24:17,440 --> 00:24:19,920 Speaker 1: Something that I just thought of that's sort of unusual. 462 00:24:20,480 --> 00:24:25,560 Speaker 1: Um the music station Pandora will do. They'll do advertisement 463 00:24:25,640 --> 00:24:30,159 Speaker 1: deals with companies and they'll build a special music station 464 00:24:30,680 --> 00:24:34,520 Speaker 1: around the product that they're trying to do. Um. Yeah. 465 00:24:34,560 --> 00:24:37,479 Speaker 1: Spotify does the same thing. Yeah yeah, which is kind 466 00:24:37,520 --> 00:24:39,880 Speaker 1: of a unique thing because they'll do the wallpaper type 467 00:24:39,880 --> 00:24:43,880 Speaker 1: thing too, but they'll also do uh something that other 468 00:24:43,920 --> 00:24:46,920 Speaker 1: sites can't, which will have, you know, a special tie 469 00:24:47,000 --> 00:24:51,480 Speaker 1: into the type of site. Um that that it works with. Guys, 470 00:24:51,520 --> 00:24:55,600 Speaker 1: it's Jonathan from the Future interrupting this classic episode about 471 00:24:55,680 --> 00:24:58,760 Speaker 1: web advertising so that we can listen to some advertising 472 00:24:59,000 --> 00:25:02,040 Speaker 1: that helps support the We'll be back after this quick break. 473 00:25:09,680 --> 00:25:12,240 Speaker 1: Formats that ads can take, and there are other ones 474 00:25:12,280 --> 00:25:14,200 Speaker 1: as well. There's more than what we just covered, but 475 00:25:14,240 --> 00:25:18,720 Speaker 1: those are the basic ones. There are different approaches. These 476 00:25:18,760 --> 00:25:20,920 Speaker 1: ads can take two and you alluded to one of them, 477 00:25:20,920 --> 00:25:23,880 Speaker 1: and one of them is being contextual or targeted. Yes, 478 00:25:24,000 --> 00:25:26,480 Speaker 1: and when you're talking about a contextual or targeted AD, 479 00:25:26,480 --> 00:25:30,040 Speaker 1: you're talking about designing the ad so that it will 480 00:25:30,960 --> 00:25:33,760 Speaker 1: like using ads that will appeal to the same audience 481 00:25:33,760 --> 00:25:36,159 Speaker 1: space as the ones that are there to consume whatever 482 00:25:36,240 --> 00:25:39,280 Speaker 1: content is on that site. So, for example, if I 483 00:25:39,320 --> 00:25:42,119 Speaker 1: were to go to how stuff works dot com and 484 00:25:42,160 --> 00:25:45,800 Speaker 1: I'm looking at how GPS systems work or GPS works, 485 00:25:46,480 --> 00:25:48,800 Speaker 1: would say GPS systems because I would want to go 486 00:25:48,840 --> 00:25:50,960 Speaker 1: to my A t M machine and use my PIN number. 487 00:25:51,320 --> 00:25:53,439 Speaker 1: But if you went to UH, if you went to 488 00:25:53,520 --> 00:25:57,880 Speaker 1: that and then there was an AD about a particular 489 00:25:57,960 --> 00:26:01,840 Speaker 1: vendor that sells GPS units, then you'd be more likely 490 00:26:02,760 --> 00:26:05,080 Speaker 1: the thought processes, you'd be more likely to click on 491 00:26:05,119 --> 00:26:08,679 Speaker 1: that because you're already interested in the topic, as opposed 492 00:26:08,720 --> 00:26:11,680 Speaker 1: to going to an article about how GPS units work 493 00:26:11,960 --> 00:26:15,639 Speaker 1: and seeing an AD for I don't know, um, a 494 00:26:15,720 --> 00:26:19,000 Speaker 1: gelatin dessert. Yeah, those two things don't really connect to 495 00:26:19,000 --> 00:26:21,880 Speaker 1: one another, although there's always room for it. There's no 496 00:26:22,160 --> 00:26:24,720 Speaker 1: there's no I wasn't using the brand name and then 497 00:26:24,760 --> 00:26:28,320 Speaker 1: I go and user slogan, but the the Yeah, that's 498 00:26:28,359 --> 00:26:32,080 Speaker 1: the that's an example. You know you wanted the contextual 499 00:26:32,359 --> 00:26:38,080 Speaker 1: or targeted ads tend to have a higher degree of engagement, 500 00:26:38,800 --> 00:26:41,960 Speaker 1: meaning that more people click on it than ones that 501 00:26:42,080 --> 00:26:44,480 Speaker 1: have no connection to whatever the content is for the 502 00:26:44,520 --> 00:26:47,280 Speaker 1: site that is in question. So one of the things 503 00:26:47,359 --> 00:26:50,600 Speaker 1: that makes web advertising so appealing for advertisers is their 504 00:26:50,600 --> 00:26:55,080 Speaker 1: ability to target uh this to their customers, as you 505 00:26:55,119 --> 00:26:58,280 Speaker 1: were saying. And they can't do that with other media 506 00:26:58,359 --> 00:27:00,520 Speaker 1: because they would need to do a serve. They would 507 00:27:00,520 --> 00:27:02,920 Speaker 1: actually have to find out, hey, how how did you 508 00:27:02,960 --> 00:27:05,800 Speaker 1: hear about us? With the web, they use cookies, which 509 00:27:05,840 --> 00:27:08,359 Speaker 1: are little pieces of text that are downloaded to your 510 00:27:08,359 --> 00:27:13,160 Speaker 1: computer and uh written to and they'll go okay. So, uh, 511 00:27:13,200 --> 00:27:16,520 Speaker 1: you know, Steve visited how stuff Works dot com and 512 00:27:16,600 --> 00:27:21,439 Speaker 1: he also visited uh CNN, and he also visited his 513 00:27:21,520 --> 00:27:25,080 Speaker 1: local papers website, and so apparently he likes reading uh 514 00:27:25,280 --> 00:27:30,280 Speaker 1: stories about what's going on. He's intellectually curious. Um, so 515 00:27:30,440 --> 00:27:33,320 Speaker 1: we're gonna you know, he's interested in animals because we 516 00:27:33,359 --> 00:27:35,440 Speaker 1: know he visited the Animals channel and how stuff Works 517 00:27:35,440 --> 00:27:37,920 Speaker 1: dot com and read a story about a rescue dog 518 00:27:37,920 --> 00:27:40,680 Speaker 1: in his local paper. So we're gonna send him and 519 00:27:40,800 --> 00:27:43,920 Speaker 1: add about dog food and maybe he has a dog 520 00:27:44,000 --> 00:27:46,560 Speaker 1: or maybe as a cat. We'll try a cat cat 521 00:27:46,600 --> 00:27:48,800 Speaker 1: food ad on the next page. And so, if you've 522 00:27:48,840 --> 00:27:52,720 Speaker 1: ever looked at a website and seen an ad targeted 523 00:27:52,760 --> 00:27:56,040 Speaker 1: to you in your specifical something that you typically buy 524 00:27:56,280 --> 00:28:01,880 Speaker 1: or are orientist, or are interested in, and it says, hey, um, 525 00:28:01,920 --> 00:28:05,040 Speaker 1: if you're in the Dallas area and looking to buy 526 00:28:05,119 --> 00:28:07,280 Speaker 1: something something, you can wait a minute, How in the 527 00:28:07,320 --> 00:28:09,640 Speaker 1: world did they know I was in Dallas. Well, they're 528 00:28:09,720 --> 00:28:15,520 Speaker 1: using these cookies on your computer to gather information about you. Um. 529 00:28:15,640 --> 00:28:18,960 Speaker 1: Some people see it as a major privacy, privacy issue 530 00:28:19,000 --> 00:28:21,719 Speaker 1: because it has information about you and they're looking at that. 531 00:28:22,680 --> 00:28:24,840 Speaker 1: I would say that, yes, it's a privacy issue, but 532 00:28:25,240 --> 00:28:28,120 Speaker 1: in general, they don't really want to know what kind 533 00:28:28,160 --> 00:28:31,480 Speaker 1: of underwhere you prefer, and where you live. They don't 534 00:28:31,520 --> 00:28:33,640 Speaker 1: even care what your name is. They really just they 535 00:28:33,680 --> 00:28:37,320 Speaker 1: just think of you as potential customer. Yeah, and so 536 00:28:37,359 --> 00:28:40,360 Speaker 1: this is to convert you from potential customer to actual customer. 537 00:28:40,360 --> 00:28:42,880 Speaker 1: And yeah, that's a good, good progression. Because I was 538 00:28:42,880 --> 00:28:45,960 Speaker 1: talking about the general ads, the contextual or targeted ads, 539 00:28:46,000 --> 00:28:49,280 Speaker 1: and then personalized ads, which is what Chris's time all 540 00:28:49,360 --> 00:28:52,560 Speaker 1: right here, where it's personalized based upon your experience. And 541 00:28:52,800 --> 00:28:55,880 Speaker 1: there's some companies that do this better than others. Um, 542 00:28:55,920 --> 00:28:59,160 Speaker 1: there's some companies that are much better at gathering information 543 00:28:59,160 --> 00:29:03,479 Speaker 1: about you. It's ample Facebook. Yes, Facebook doesn't even have 544 00:29:03,560 --> 00:29:06,520 Speaker 1: to bother gathering information about you because you give Facebook 545 00:29:06,560 --> 00:29:08,960 Speaker 1: the information about you every time you use it. This 546 00:29:09,000 --> 00:29:12,440 Speaker 1: is what makes Facebook such a valuable company. People not 547 00:29:12,520 --> 00:29:17,200 Speaker 1: only opt in um to their advertising by being there, 548 00:29:17,240 --> 00:29:21,360 Speaker 1: they're also providing them all sorts of context for themselves. 549 00:29:21,400 --> 00:29:23,680 Speaker 1: You know, I like these bands, I like watching these 550 00:29:23,720 --> 00:29:27,200 Speaker 1: movies and reading these books. I've noticed on my Facebook 551 00:29:27,200 --> 00:29:29,960 Speaker 1: page when I go there, I noticed that the ads 552 00:29:30,080 --> 00:29:33,840 Speaker 1: often seemed to mirror some of the stuff that's been 553 00:29:33,880 --> 00:29:37,600 Speaker 1: posted on my in my news feed. So I'm reading 554 00:29:37,600 --> 00:29:39,720 Speaker 1: the reading stories or whatever, and I look clients over 555 00:29:39,720 --> 00:29:42,480 Speaker 1: at the advertising and like, that's kind of clever that 556 00:29:42,520 --> 00:29:46,160 Speaker 1: they actually, you know, that they've taken the context of 557 00:29:46,160 --> 00:29:51,000 Speaker 1: what was posted and managed to pull an ad that related, 558 00:29:51,600 --> 00:29:56,400 Speaker 1: sometimes extremely tangentially to whatever the content was. It's also 559 00:29:56,400 --> 00:29:59,560 Speaker 1: a little creepy, but anyway, that's Those are the three 560 00:29:59,640 --> 00:30:03,280 Speaker 1: general role approaches. The general general advertising, where it doesn't 561 00:30:03,280 --> 00:30:05,680 Speaker 1: have anything necessarily to do with whatever the content is. 562 00:30:06,080 --> 00:30:08,880 Speaker 1: The contextual one, where it does have to relate to 563 00:30:08,880 --> 00:30:11,280 Speaker 1: whatever the content the site is and then the personalized one, 564 00:30:11,320 --> 00:30:14,520 Speaker 1: which relates more to the actual user than necessarily even 565 00:30:14,560 --> 00:30:19,000 Speaker 1: the content. The early days of web advertising UM sort 566 00:30:19,000 --> 00:30:21,880 Speaker 1: of looked like it was going the whole concept was 567 00:30:21,920 --> 00:30:25,280 Speaker 1: going to be sort of a dud because at first 568 00:30:25,320 --> 00:30:28,360 Speaker 1: it looked like, uh, it just didn't reach people in 569 00:30:28,360 --> 00:30:30,560 Speaker 1: the way that advertisers were used to. They were used 570 00:30:30,560 --> 00:30:32,520 Speaker 1: to the the old style of media. They couldn't figure 571 00:30:32,560 --> 00:30:35,520 Speaker 1: out exactly the best approach. They couldn't figure out the 572 00:30:35,640 --> 00:30:38,440 Speaker 1: size or the placement on the page that they wanted 573 00:30:38,440 --> 00:30:40,240 Speaker 1: to use, and it looked like it was going to 574 00:30:40,280 --> 00:30:43,360 Speaker 1: be more of a branding than a direct response target. 575 00:30:43,440 --> 00:30:46,560 Speaker 1: And then, you know, once cookies, once they figured out 576 00:30:46,560 --> 00:30:49,040 Speaker 1: how to use cookies to their advantage, they were able 577 00:30:49,080 --> 00:30:52,480 Speaker 1: to do more targeted and more personalized advertising. And now 578 00:30:52,480 --> 00:30:57,200 Speaker 1: it's become uh, you know, a multi multi billion dollar 579 00:30:57,280 --> 00:30:59,479 Speaker 1: business and that the you know, this is what has 580 00:30:59,520 --> 00:31:04,160 Speaker 1: helped UH companies like Yahoo, Facebook, Google and others to 581 00:31:04,280 --> 00:31:07,560 Speaker 1: grow as as much as they have is because they're 582 00:31:07,560 --> 00:31:12,800 Speaker 1: able to target advertising so precisely UM, you know, and 583 00:31:13,000 --> 00:31:16,000 Speaker 1: use it in different places like Google makes Gmail free 584 00:31:16,120 --> 00:31:20,840 Speaker 1: because it's able to advertise alongside UM and and we've 585 00:31:20,960 --> 00:31:24,560 Speaker 1: you know, taken advantage of that. But because so many 586 00:31:24,560 --> 00:31:27,840 Speaker 1: places offer us free services that are supported by advertising, 587 00:31:28,200 --> 00:31:31,120 Speaker 1: so it's it's sort of a trade off that we make, um, 588 00:31:31,160 --> 00:31:35,400 Speaker 1: providing this information in exchange for free web services. So 589 00:31:35,560 --> 00:31:40,440 Speaker 1: let's talk a little bit about how these ads actually 590 00:31:40,440 --> 00:31:44,840 Speaker 1: generate money. And there are various strategies that advertisers use. 591 00:31:45,520 --> 00:31:49,160 Speaker 1: One is called CPM, which is a cost per mille 592 00:31:50,080 --> 00:31:54,080 Speaker 1: or thousand, yes not a million for my fellow Americans 593 00:31:54,080 --> 00:31:57,360 Speaker 1: who would possibly think such a thing, but cost per 594 00:31:57,440 --> 00:32:01,080 Speaker 1: thousand impressions, and an impression is a essentially you're looking 595 00:32:01,120 --> 00:32:04,000 Speaker 1: at it. Yeah, there's a there's a there's a set 596 00:32:04,000 --> 00:32:07,440 Speaker 1: of eyes that are on that that website. Um, so 597 00:32:07,600 --> 00:32:11,440 Speaker 1: for every one thousand times someone views that website, uh, 598 00:32:11,560 --> 00:32:15,800 Speaker 1: the average advertiser would would give a certain amount of 599 00:32:15,800 --> 00:32:19,520 Speaker 1: money to the site itself. And again it's probably on 600 00:32:19,640 --> 00:32:22,200 Speaker 1: a the order of a few cents, so let's say 601 00:32:22,200 --> 00:32:26,760 Speaker 1: a nickel. So every time, uh, that counter hits one 602 00:32:26,880 --> 00:32:30,720 Speaker 1: thousand for that site, the advertiser gives a nickel over 603 00:32:30,760 --> 00:32:33,120 Speaker 1: to the site. So you have to get lots and 604 00:32:33,160 --> 00:32:35,680 Speaker 1: lots and lots of eyes on that site for it 605 00:32:35,720 --> 00:32:40,960 Speaker 1: to actually be worthwhile for the website, you know, so 606 00:32:41,160 --> 00:32:43,360 Speaker 1: they get that's the idea is that it gives an 607 00:32:43,360 --> 00:32:46,880 Speaker 1: incentive to the website to create really awesome content that's 608 00:32:46,920 --> 00:32:50,000 Speaker 1: going to pull lots of people there, and in web terms, 609 00:32:50,000 --> 00:32:52,880 Speaker 1: that's called sticky. You want people to go there and 610 00:32:53,000 --> 00:32:55,240 Speaker 1: stay there. Yeah. Yeah, if if people just go and 611 00:32:55,240 --> 00:32:59,360 Speaker 1: then and then bail, well then once the advertiser starts 612 00:32:59,360 --> 00:33:03,479 Speaker 1: looking at the figures, they're gonna say, well, this person 613 00:33:03,560 --> 00:33:06,360 Speaker 1: was here so briefly that they probably didn't even see 614 00:33:06,400 --> 00:33:10,120 Speaker 1: my ad So there's no point in paying you a 615 00:33:10,200 --> 00:33:14,480 Speaker 1: higher amount of money per thousand eyeballs when or pairs 616 00:33:14,520 --> 00:33:19,560 Speaker 1: of eyeballs when when people aren't even bothering looking at stuff. 617 00:33:19,960 --> 00:33:22,320 Speaker 1: So yeah, it's it's more than just the fact that 618 00:33:22,360 --> 00:33:25,600 Speaker 1: a thousand people got there. And sometimes this gets knocked 619 00:33:25,600 --> 00:33:31,120 Speaker 1: down to um a CPV, which is a click per visitor, 620 00:33:31,320 --> 00:33:34,840 Speaker 1: which again is different than an impression, because an impression 621 00:33:34,880 --> 00:33:38,600 Speaker 1: could be that you go to a website, you click 622 00:33:38,720 --> 00:33:41,200 Speaker 1: to a different page on the website, you go back 623 00:33:41,200 --> 00:33:43,960 Speaker 1: to the home page. Well, your two visits to that 624 00:33:44,040 --> 00:33:47,920 Speaker 1: homepage may each count as an impression, even though it's 625 00:33:47,960 --> 00:33:50,600 Speaker 1: the same person looking at it. You have seen that 626 00:33:50,720 --> 00:33:53,560 Speaker 1: same page twice, so you've seen the same ad twice. 627 00:33:53,920 --> 00:33:58,440 Speaker 1: A CPM maybe UH may count both of those visits. 628 00:33:58,880 --> 00:34:01,640 Speaker 1: A CPV is to different. That's count. That's clicks per 629 00:34:01,760 --> 00:34:04,880 Speaker 1: or sorry, not clicks, but cost per visitor. So the 630 00:34:04,920 --> 00:34:09,280 Speaker 1: idea being that every unique visitor counts towards that AD. 631 00:34:09,600 --> 00:34:12,000 Speaker 1: But if you were to keep refreshing the page or 632 00:34:12,120 --> 00:34:15,240 Speaker 1: click around and keep coming back to that homepage, those 633 00:34:15,320 --> 00:34:19,760 Speaker 1: additional visits would not count. It's only the unique visitor 634 00:34:19,840 --> 00:34:22,440 Speaker 1: that counts, and usually that's on a per day basis, 635 00:34:23,040 --> 00:34:25,319 Speaker 1: so for every twenty four hours. So if you came 636 00:34:25,360 --> 00:34:27,680 Speaker 1: back to that page the next day, sure it would 637 00:34:27,680 --> 00:34:31,440 Speaker 1: count then, but it doesn't count during your visit when 638 00:34:31,440 --> 00:34:34,640 Speaker 1: you're at that page um or that website. I should say, 639 00:34:34,920 --> 00:34:36,680 Speaker 1: Chris and I have a bit more to say about 640 00:34:36,680 --> 00:34:39,480 Speaker 1: web ads, but before we get into the final segment, 641 00:34:39,680 --> 00:34:49,839 Speaker 1: let's take another quick break to thank our sponsor. Then 642 00:34:49,880 --> 00:34:54,000 Speaker 1: you've got uh CPC, which is cost per click. Now 643 00:34:54,080 --> 00:34:58,160 Speaker 1: this is a little more challenging in that you have 644 00:34:58,280 --> 00:35:02,200 Speaker 1: to create really good ads that will get people excited 645 00:35:02,280 --> 00:35:04,760 Speaker 1: to click on it, to actually click on an AD, 646 00:35:05,200 --> 00:35:07,640 Speaker 1: because for a lot of us that feels like the 647 00:35:07,719 --> 00:35:09,640 Speaker 1: last thing in the world you want to do. You know, 648 00:35:09,680 --> 00:35:11,239 Speaker 1: you just want to look at the content. You don't 649 00:35:11,320 --> 00:35:13,960 Speaker 1: want to click on an ad. But clicking on the ads, 650 00:35:14,120 --> 00:35:16,280 Speaker 1: you know, that helps pay for the site. And also 651 00:35:16,400 --> 00:35:18,680 Speaker 1: there may very well be stuff that the ads are 652 00:35:18,760 --> 00:35:24,920 Speaker 1: are advertising that you're interested interested in. So as uh 653 00:35:25,360 --> 00:35:29,680 Speaker 1: cpc UM means that every time someone actually clicks on 654 00:35:29,719 --> 00:35:33,600 Speaker 1: the ad, the advert advertiser will give a certain amount 655 00:35:33,600 --> 00:35:36,920 Speaker 1: of money to the website. And that money, you know, 656 00:35:37,000 --> 00:35:41,160 Speaker 1: it may be every several every thousand clicks in that case, 657 00:35:41,200 --> 00:35:43,919 Speaker 1: but it tends to be a much higher rate than 658 00:35:44,000 --> 00:35:47,760 Speaker 1: the impressions because now you've gone from people just looking 659 00:35:47,760 --> 00:35:51,759 Speaker 1: in an ad to people actually reacting to an ad. Uh. 660 00:35:51,760 --> 00:35:53,880 Speaker 1: And then the other big one is c p A, 661 00:35:54,040 --> 00:35:57,920 Speaker 1: which is cost per acquisition or cost per action and 662 00:35:57,960 --> 00:36:02,080 Speaker 1: this is an affiliate program. This is when a company 663 00:36:02,200 --> 00:36:07,520 Speaker 1: offers up an affiliate program where um the they have 664 00:36:07,719 --> 00:36:10,720 Speaker 1: an agreement. For example, we we've done this in the past. 665 00:36:11,440 --> 00:36:13,239 Speaker 1: Tech stuff has done this because we did and we 666 00:36:13,280 --> 00:36:16,799 Speaker 1: did audible ads audible dot com. And the way that 667 00:36:16,800 --> 00:36:19,000 Speaker 1: that one but who are as far as I know, 668 00:36:19,080 --> 00:36:23,160 Speaker 1: are not are not sponsoring this particular episode. But the 669 00:36:23,200 --> 00:36:27,719 Speaker 1: way those those agreements tend to work is that the 670 00:36:29,520 --> 00:36:34,040 Speaker 1: vendor works with the site or service. So for example, 671 00:36:34,040 --> 00:36:37,279 Speaker 1: we'll stick with audible dot Com. They come to us 672 00:36:37,320 --> 00:36:40,319 Speaker 1: and say, we would like to make a partnership with 673 00:36:40,360 --> 00:36:42,640 Speaker 1: you if you you need to run an ad in 674 00:36:42,680 --> 00:36:45,760 Speaker 1: your podcast. When you run that ad, you tell people 675 00:36:45,840 --> 00:36:49,080 Speaker 1: to go to audible dot com and use this particular 676 00:36:49,719 --> 00:36:54,120 Speaker 1: UM password or or code when they go, and then 677 00:36:54,160 --> 00:36:57,640 Speaker 1: they will get UM. They'll they'll be able to join 678 00:36:57,719 --> 00:37:01,359 Speaker 1: for a discounted rate, and every user that does that, 679 00:37:01,440 --> 00:37:03,960 Speaker 1: we will we will pay you a certain amount of money. 680 00:37:04,320 --> 00:37:07,200 Speaker 1: And it all depends on the advertiser and the service. 681 00:37:07,239 --> 00:37:10,680 Speaker 1: I mean, it's all this is all negotiable stuff, right 682 00:37:10,960 --> 00:37:13,279 Speaker 1: and frankly, I am not privy to that. I have 683 00:37:13,400 --> 00:37:15,200 Speaker 1: no idea what it is because that's not my part 684 00:37:15,200 --> 00:37:20,080 Speaker 1: of the business. I create content. So, uh, every time 685 00:37:20,120 --> 00:37:23,600 Speaker 1: someone actually goes and signs up for these services using 686 00:37:23,600 --> 00:37:28,880 Speaker 1: the ad the promotional code that the website or podcast 687 00:37:29,000 --> 00:37:33,600 Speaker 1: whatever gives out, then money goes to that site from 688 00:37:33,640 --> 00:37:37,640 Speaker 1: the advertiser, from the vendor. And again this is much 689 00:37:37,680 --> 00:37:40,280 Speaker 1: more valuable because now you have people not just clicking 690 00:37:40,320 --> 00:37:45,040 Speaker 1: on something but actually enrolling in some sort of product 691 00:37:45,160 --> 00:37:49,759 Speaker 1: or service, and so that's considered much more valuable than 692 00:37:49,960 --> 00:37:54,880 Speaker 1: a typical impression would be. Now those are your major types. 693 00:37:54,920 --> 00:37:58,319 Speaker 1: There are lots of other variations of this, but those 694 00:37:58,400 --> 00:38:00,960 Speaker 1: were what I would say are the dominant ones in 695 00:38:01,040 --> 00:38:06,320 Speaker 1: online advertising. Okay, and uh, and again all three of these, 696 00:38:06,400 --> 00:38:08,640 Speaker 1: none of these are. None of these are on their 697 00:38:08,680 --> 00:38:11,399 Speaker 1: own good or bad. It's all on how they are 698 00:38:11,560 --> 00:38:15,839 Speaker 1: used and whether or not they are part of the 699 00:38:15,840 --> 00:38:18,799 Speaker 1: experience in a way that's not intrusive, or if they 700 00:38:19,000 --> 00:38:24,040 Speaker 1: in fact get in your way and irritate you. Yeah, yeah, 701 00:38:24,360 --> 00:38:27,600 Speaker 1: and then and that makes tracking all that much more 702 00:38:28,440 --> 00:38:32,360 Speaker 1: valuable for the advertiser and for the sites. Um, because 703 00:38:32,440 --> 00:38:37,600 Speaker 1: you know, as tastes change as to how the effectiveness 704 00:38:37,640 --> 00:38:41,000 Speaker 1: of of web advertising is measured. Um, you know, they've 705 00:38:41,040 --> 00:38:43,840 Speaker 1: they've gone from these through these different models, and sometimes 706 00:38:43,880 --> 00:38:46,400 Speaker 1: they shift toward one and conventional wisdom says that's the 707 00:38:46,440 --> 00:38:49,439 Speaker 1: best way to do it, and they'll change their mind 708 00:38:49,440 --> 00:38:53,399 Speaker 1: and shift back. So they track all of that information, um, 709 00:38:53,440 --> 00:38:55,839 Speaker 1: just so that they have an idea of who they're 710 00:38:55,840 --> 00:38:59,399 Speaker 1: reaching and how so, UM, you know that that's why 711 00:38:59,440 --> 00:39:03,000 Speaker 1: they do a lot that. So Chris, you're you're probably 712 00:39:03,000 --> 00:39:05,000 Speaker 1: gonna know the answer to this question, but I'm going 713 00:39:05,040 --> 00:39:07,239 Speaker 1: to ask it and see if you see in fact, 714 00:39:07,280 --> 00:39:10,719 Speaker 1: see if in fact you do know the answer. There 715 00:39:10,840 --> 00:39:15,200 Speaker 1: is one company out there on the Internet that is 716 00:39:15,800 --> 00:39:20,800 Speaker 1: dominant as far as the web advertising business goes. As in, 717 00:39:21,360 --> 00:39:24,719 Speaker 1: this is the company that provides the outlet for web advertising. 718 00:39:24,719 --> 00:39:28,640 Speaker 1: It's not itself necessarily an advertiser. Do you know what 719 00:39:28,680 --> 00:39:30,640 Speaker 1: that company is? I would have assumed it was a 720 00:39:30,640 --> 00:39:33,719 Speaker 1: company that rhymes with Schmoogle. In fact, you are corrected, 721 00:39:33,920 --> 00:39:37,759 Speaker 1: is Google, which according to at least some figures, has 722 00:39:37,840 --> 00:39:43,520 Speaker 1: about almost seventy of the online advertising market. That's very impressive. Yeah, 723 00:39:43,520 --> 00:39:46,160 Speaker 1: you think about that, Think about all the different advertising 724 00:39:46,160 --> 00:39:48,080 Speaker 1: companies that could be out there on the web, and 725 00:39:48,239 --> 00:39:52,040 Speaker 1: for one to have nearly sevent of the market share, 726 00:39:52,840 --> 00:39:56,759 Speaker 1: and you're talking billions of dollars of revenues going through 727 00:39:56,800 --> 00:40:02,440 Speaker 1: this this whole industry, that is amazing and scary. You know. 728 00:40:02,560 --> 00:40:05,360 Speaker 1: That's that's funny too, because that's the one type of 729 00:40:05,360 --> 00:40:10,480 Speaker 1: ad we didn't mention ad sense text text advertising. Well 730 00:40:10,520 --> 00:40:12,360 Speaker 1: I did mention it briefly because I thought about the 731 00:40:12,719 --> 00:40:15,000 Speaker 1: little bit and you know, but yes, but yeah, they 732 00:40:15,000 --> 00:40:19,120 Speaker 1: don't do the you know, the banner ads or or 733 00:40:19,200 --> 00:40:22,000 Speaker 1: sidebar ads, or or pop ups or pop unders. It's 734 00:40:22,040 --> 00:40:25,839 Speaker 1: all done with text. They'll have sponsored results that kind 735 00:40:25,840 --> 00:40:29,160 Speaker 1: of thing, exactly. It's it's just kind of funny that 736 00:40:29,160 --> 00:40:31,239 Speaker 1: that much of the ad industry is dominated by something 737 00:40:31,280 --> 00:40:34,960 Speaker 1: that doesn't actually use it whiches yeah and we you know, yeah, 738 00:40:35,120 --> 00:40:38,920 Speaker 1: so it's I mean, it's it's big business stuff. It's 739 00:40:38,960 --> 00:40:42,680 Speaker 1: still even today, despite the fact that the web has 740 00:40:42,719 --> 00:40:46,480 Speaker 1: been around for more than two decades now, um, we're 741 00:40:46,560 --> 00:40:51,279 Speaker 1: really still trying to find the right balance between the 742 00:40:51,400 --> 00:40:56,880 Speaker 1: value of advertising and um and and how it impacts 743 00:40:56,920 --> 00:41:01,120 Speaker 1: the user. Because if the value you have advertising keeps 744 00:41:01,120 --> 00:41:04,240 Speaker 1: falling as a result of users being alienated by ads, 745 00:41:04,840 --> 00:41:08,640 Speaker 1: then web content creators have to find new ways to 746 00:41:08,680 --> 00:41:12,000 Speaker 1: make money. And without finding new ways to make money, 747 00:41:12,040 --> 00:41:14,359 Speaker 1: we're not going to have nearly as much content on 748 00:41:14,400 --> 00:41:18,040 Speaker 1: the web, and so it could turn out to be 749 00:41:18,160 --> 00:41:21,239 Speaker 1: a bad thing for users in the long run. Now 750 00:41:21,280 --> 00:41:23,279 Speaker 1: that doesn't mean that users should just sit there and 751 00:41:23,320 --> 00:41:26,320 Speaker 1: say I love ads and click on everything. But if 752 00:41:26,360 --> 00:41:30,640 Speaker 1: there are ads that are effective, then users probably shouldn't 753 00:41:31,000 --> 00:41:35,520 Speaker 1: um complain about them too much, because again, the alternative 754 00:41:35,560 --> 00:41:37,960 Speaker 1: is that we lose all that content. In the long run, 755 00:41:39,760 --> 00:41:41,560 Speaker 1: It's definitely something that you have to be willing to 756 00:41:41,880 --> 00:41:44,640 Speaker 1: make the trade off for. Yeah, it's and it is tricky. 757 00:41:44,680 --> 00:41:46,719 Speaker 1: I mean I as a consumer, I can tell you 758 00:41:46,760 --> 00:41:50,480 Speaker 1: that a bad ad really ruins my mood when I'm 759 00:41:50,520 --> 00:41:53,200 Speaker 1: on a on a website, even if I love the website. 760 00:41:53,200 --> 00:41:57,200 Speaker 1: If it's a really bad ad, then my first reaction 761 00:41:57,280 --> 00:41:59,200 Speaker 1: is I think, you know what, I'll just come back 762 00:41:59,239 --> 00:42:01,960 Speaker 1: some other time. The different advertising campaign is running on 763 00:42:02,000 --> 00:42:06,480 Speaker 1: this site, and that wraps up this discussion about web ads. Obviously, 764 00:42:06,880 --> 00:42:11,239 Speaker 1: things have continued to evolve since two thousand twelve, and 765 00:42:11,280 --> 00:42:14,280 Speaker 1: I've talked about web advertising and advertising on the Internet 766 00:42:14,320 --> 00:42:16,839 Speaker 1: in general in a few other episodes, So you can 767 00:42:16,880 --> 00:42:20,840 Speaker 1: always go through the archive and look at those topics. 768 00:42:20,880 --> 00:42:23,560 Speaker 1: If you are interested in learning more. To do that, 769 00:42:23,880 --> 00:42:27,799 Speaker 1: head on over to text stuff podcast dot com. That's 770 00:42:27,840 --> 00:42:31,640 Speaker 1: our website where we have the archive, plus background information 771 00:42:31,680 --> 00:42:35,960 Speaker 1: on me, links to our presence on social networking sites, 772 00:42:36,320 --> 00:42:39,800 Speaker 1: and a link to our online store. And every purchase 773 00:42:39,840 --> 00:42:41,719 Speaker 1: you make goes to help the show. If you have 774 00:42:41,760 --> 00:42:45,120 Speaker 1: any suggestions for future topics I should cover on this show, 775 00:42:45,400 --> 00:42:48,920 Speaker 1: you can email me at tech Stuff at how Stuff 776 00:42:48,920 --> 00:42:53,160 Speaker 1: works dot com and I'll talk to you again really soon. 777 00:42:57,760 --> 00:43:00,000 Speaker 1: Text Stuff is a production of My heart Radios How 778 00:43:00,040 --> 00:43:03,399 Speaker 1: stuff Works. For more podcasts from I heart Radio, visit 779 00:43:03,440 --> 00:43:06,520 Speaker 1: the i heart Radio app, Apple Podcasts, or wherever you 780 00:43:06,600 --> 00:43:12,520 Speaker 1: listen to your favorite shows. H