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