WEBVTT - TechStuff Clicks on Web Ads

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<v Speaker 1>Brought to you by the reinvented two thousand twelve camera.

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<v Speaker 1>It's ready. Are you get in touch with technology? With

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<v Speaker 1>tech Stuff from how stuff flix dot com. Hello again, everyone,

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<v Speaker 1>and welcome to tech Stuff. My name is Chris Poulett,

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<v Speaker 1>and I'm an editor at how Stuff works dot com.

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<v Speaker 1>Sitting across from me as always a senior writer, Jonathan Stricklin.

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<v Speaker 1>Hey there, so, um, Chris, Yes, you like uh you

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<v Speaker 1>you like stuff on the web, right, yeah, I mean,

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<v Speaker 1>you know, both of our careers depend heavily, uh. In fact,

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<v Speaker 1>I would say entirely upon upon putting stuff up on

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<v Speaker 1>the web. And the reason why we're able to do

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<v Speaker 1>that is because we can make money by putting stuff

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<v Speaker 1>up on the web. Yes. And the reason why we

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<v Speaker 1>were able to make money putting stuff up on the

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<v Speaker 1>web stems mainly from advertising. Yes. And so we want

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<v Speaker 1>to talk today a little bit about web advertising. We've

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<v Speaker 1>covered the subject a little bit in previous episodes, but

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<v Speaker 1>we really wanted to kind of dive into it. And

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<v Speaker 1>advertising has a bad rap, and part of that is

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<v Speaker 1>because advertisers have sometimes used very invasive, intrusive or manipulative

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<v Speaker 1>approaches to try and get ads in front of you. Yes,

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<v Speaker 1>and I'd like to point out that this episode is

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<v Speaker 1>brought to you by Chocolate Nibbles now with nine essential

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<v Speaker 1>vitamins and minerals. Yes, we got rid of that other

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<v Speaker 1>non essential vitamin and mineral. Yes, just it was looking

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<v Speaker 1>at us funny and we didn't like its face. But now, yeah,

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<v Speaker 1>we're talking about web advertising and there's good points to

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<v Speaker 1>it and bad points to it. Now, the good points

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<v Speaker 1>are that without web advertising, you have to find some

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<v Speaker 1>other way to make money putting content up on the web,

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<v Speaker 1>or else people wouldn't do it, or at least not

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<v Speaker 1>as many people would do it, and certainly not you

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<v Speaker 1>wouldn't see the same level of quality across the web.

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<v Speaker 1>There there'd be, you know, occasionally there'd be someone who

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<v Speaker 1>would be amazingly talented who for altruistic reasons wants to

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<v Speaker 1>share what he or she has come up with on

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<v Speaker 1>the web. And those people will be amazing and their

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<v Speaker 1>content they create would be phenomenal, and it would all

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<v Speaker 1>be done, you know, the effort and the time being

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<v Speaker 1>put in would all be that one person's resources, and

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<v Speaker 1>that would be fantastic. Chances are it wouldn't be their

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<v Speaker 1>day job, though, because they wouldn't be since you weren't

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<v Speaker 1>making money off of it. They've got to eat somehow,

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<v Speaker 1>so they would probably be doing something else for forty

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<v Speaker 1>hours a week. And then you think about all the

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<v Speaker 1>sites you regularly go to. A lot of those sites

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<v Speaker 1>are supported through advertising, and so without the ads, those

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<v Speaker 1>sites don't exist, which means that content that we have

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<v Speaker 1>grown so fond of accessing would no longer be there.

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<v Speaker 1>So in that case, advertising plays a very important role. Now,

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<v Speaker 1>of course, you can you can make money with online

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<v Speaker 1>through other ways. Besides advertising. You could have a subscription

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<v Speaker 1>based service where people have to pay a certain amount

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<v Speaker 1>per unit of time, usually be monthly, but it might

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<v Speaker 1>be you know, six months or a year or whatever.

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<v Speaker 1>You can even do it smaller units if you really

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<v Speaker 1>wanted to um and make money that way by saying,

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<v Speaker 1>all right, well, you can access the content we create

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<v Speaker 1>on this site if you pay this amount of money

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<v Speaker 1>per this unit of time or or per article. Some

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<v Speaker 1>um some sites do that. You know where you have, Hey,

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<v Speaker 1>if you want to read this article, then it will

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<v Speaker 1>be to to read this one particular story. And the

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<v Speaker 1>thing is that the way the web has developed over time,

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<v Speaker 1>people have grown to expect free access to something if

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<v Speaker 1>it's on the web. Yeah, it's a cultural thing. Yeah.

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<v Speaker 1>The early days of the Internet, I mean, the people

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<v Speaker 1>who are doing this were government institutions in the United

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<v Speaker 1>States and higher learning you know, colleges and university. So

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<v Speaker 1>the the content online was specifically for those groups and

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<v Speaker 1>the commercial entities really weren't involved in it the early days.

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<v Speaker 1>So the people who were doing that or or actually,

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<v Speaker 1>you know, some of it is from the online services UM.

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<v Speaker 1>So if you had a modem, you could dial up

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<v Speaker 1>to a bulletin board and you may not have to

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<v Speaker 1>pay a fee, and you would join the community there

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<v Speaker 1>and swap stories or you know, whatever it is that

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<v Speaker 1>they talked about UM. But they didn't they might pay

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<v Speaker 1>a fee, a subscription fee to join the BBS or

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<v Speaker 1>for internet access in the early days of the Internet

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<v Speaker 1>as a commercial sense, UM, but they wouldn't be paying

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<v Speaker 1>for the content. And so the idea came about that

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<v Speaker 1>web advertising could potentially be far more effective than traditional

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<v Speaker 1>forms of advertising. That was the initial thought and the

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<v Speaker 1>reason for that was that if you buy an ad

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<v Speaker 1>in a magazine, or you put on a billboard, or

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<v Speaker 1>you put in a television show, it's ah in the

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<v Speaker 1>ad breaks, you have a reasonable expectation of a certain

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<v Speaker 1>number of people that add is going to uh is

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<v Speaker 1>going to connect with. Now, whether those people are paying

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<v Speaker 1>attention to the ad, you don't know whether if whether

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<v Speaker 1>or not they pay attention to the ad and then

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<v Speaker 1>go forward and actually act based upon what they saw

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<v Speaker 1>in the ad. You don't know that either, but you you,

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<v Speaker 1>what you do know is that a certain number of people,

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<v Speaker 1>based upon the market research, are going to see that

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<v Speaker 1>particular ad. Actually, this seems like a good time to

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<v Speaker 1>bring up a point that there are two major types

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<v Speaker 1>of advertising we're talking about here too. Um. Direct response

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<v Speaker 1>is the type of advertising that does encourage you to

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<v Speaker 1>do something like if you were going to uh it,

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<v Speaker 1>listened to the podcast and suddenly now you're craving a

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<v Speaker 1>bowl of chocolate nibbles and let me tell you they

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<v Speaker 1>are delicious. Um, now that we got rid of the

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<v Speaker 1>non essential vitamin in mintal, yes, you should run out

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<v Speaker 1>and buy something. That's the point of an advertisement like that. Um.

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<v Speaker 1>Then you have what they call branding, which is basically,

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<v Speaker 1>you know, hey, you don't have to go run out

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<v Speaker 1>and buy our product. Just think of us the next

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<v Speaker 1>time you're doing something like that, And that's the kind

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<v Speaker 1>of thing that you see like at um uh sporting events. UH.

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<v Speaker 1>For example, the ads on the sides of hockey boards

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<v Speaker 1>or on on the sides of race cars. They don't

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<v Speaker 1>say by you know, such and such product. They're just

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<v Speaker 1>showing you the brand name so that you sort of

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<v Speaker 1>think about them, and you're you're thinking, oh, well, you know,

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<v Speaker 1>I like these guys. They sponsor my favorite driver. Yeah.

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<v Speaker 1>The idea might be to get that brand name in

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<v Speaker 1>your mind so that the next time you go out

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<v Speaker 1>to get something, you actually think about that petular brand.

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<v Speaker 1>For example, you might think, hey, I'm thirsty, I would

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<v Speaker 1>like a soda. I just saw that ad for coke,

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<v Speaker 1>and maybe I wouldn't normally get a coke, but that

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<v Speaker 1>sounds good to me right now, I'll go ahead and

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<v Speaker 1>get a coke. UM. So it's it's one of those

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<v Speaker 1>things where getting the brand out there is really important,

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<v Speaker 1>and marketers will tell you how important that is. That

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<v Speaker 1>you know, you don't want to mess with your brand,

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<v Speaker 1>You don't want to change your brand identity to drastically

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<v Speaker 1>unless you do it in the way so that you

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<v Speaker 1>make it a sort of a public event where people

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<v Speaker 1>will make that transition with you, because it's you know,

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<v Speaker 1>this is stuff that's sticky in people's minds. Yeah, there

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<v Speaker 1>are people who are going to walk into the store

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<v Speaker 1>and they're going to see that brand name that they

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<v Speaker 1>know so well, um, and they're going to choose a

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<v Speaker 1>product from that manufacturer simply because they know the name.

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<v Speaker 1>They might see it next to something else that they've

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<v Speaker 1>never heard of and go, well, at least I know

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<v Speaker 1>who these people are. So that's just basic advertising. Now,

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<v Speaker 1>if you're talking about the web, the the the advantage,

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<v Speaker 1>or at least the apparent advantage back in the early days,

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<v Speaker 1>was that you could actually monitor what people were doing

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<v Speaker 1>based upon the webs you were the the ads you

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<v Speaker 1>were serving up on the web. Brother, So let's say

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<v Speaker 1>that you go and you put an ad on a

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<v Speaker 1>really heavily traffic site in the early days of the internet,

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<v Speaker 1>so Yahoo, say, um, you put an ad up on Yahoo. Well,

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<v Speaker 1>you already know that a certain number of users and

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<v Speaker 1>the millions perhaps visits Yahoo each day, so you know

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<v Speaker 1>that that that's how many people are going to see

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<v Speaker 1>your ad, and and the websites track their statistics so

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<v Speaker 1>that they can report back to advertisers. Hey, if you

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<v Speaker 1>advertise with us, you will reach at least two million people. Right,

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<v Speaker 1>this is how many This is how many unique visitors

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<v Speaker 1>you will see. Yes, this is how many people actually

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<v Speaker 1>have page views. Because the two things are different. Yes,

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<v Speaker 1>we can talk about that in a minute. Yeah, so

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<v Speaker 1>at any rate, Because the early days of the web advertising,

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<v Speaker 1>they were thinking, why is this any different from say,

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<v Speaker 1>a magazine Apart from the fact that we can actually

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<v Speaker 1>give you more data about the people who are taking

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<v Speaker 1>a look at this ad, um it should be the

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<v Speaker 1>same price, and in the beginning it was. But here's

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<v Speaker 1>the here a couple of problems. One is that it

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<v Speaker 1>also let you know when people were not uh reacting

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<v Speaker 1>to an ad, at least not actively reacting to an ad. So,

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<v Speaker 1>in other words, if no one's clicking on the ad,

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<v Speaker 1>or if it's a really really really small number of

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<v Speaker 1>people who are clicking on the ad, then you question

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<v Speaker 1>was the value of that ad? Right? Because if no

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<v Speaker 1>one's going converting over and clicking through, then the advertisers say, well,

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<v Speaker 1>why are we spending the same amount of money we

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<v Speaker 1>would for a magazine ad or a television ad. If this,

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<v Speaker 1>if only these few people are clicking through, never mind

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<v Speaker 1>the fact that we can't be sure how many people

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<v Speaker 1>see the magazine add or television ad and react to it.

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<v Speaker 1>That doesn't matter. They're saying, well, we have a proof

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<v Speaker 1>here that not that many people are clicking through, so

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<v Speaker 1>therefore this is overvalued. That was one problem. The other

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<v Speaker 1>problem was that lots of websites were popping up. That

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<v Speaker 1>meant there was a lot of landscape for advertising. So

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<v Speaker 1>with lots and lots of websites of various degrees of

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<v Speaker 1>popularity popping up on the web, that devalued web advertising.

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<v Speaker 1>It's like a supply and demand thing. So for example,

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<v Speaker 1>imagine that you have a stretch of highway and there

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<v Speaker 1>are three billboard signs up and they're only three, and

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<v Speaker 1>those three are would be a certain value to be

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<v Speaker 1>able to advertise on them because that that's the only

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<v Speaker 1>three that any drivers are going to see. Well, then

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<v Speaker 1>let's say fifteen new billboards pop up along that same

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<v Speaker 1>stretch of highway. Well, that's just devalued the the value

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<v Speaker 1>of the three that already existed there. And that can

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<v Speaker 1>actually happen on a site too, it's not just across

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<v Speaker 1>the the web. If you put up so many ads

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<v Speaker 1>that uh, it sort of drowns out the content. People

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<v Speaker 1>begin to tune them out, and your your message loses

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<v Speaker 1>its power. So it's a very delicate balancing act is

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<v Speaker 1>figuring out where the place ads, what sort of ads

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<v Speaker 1>you use, how many do you have per page? And

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<v Speaker 1>it's not just a balancing act of turning off readers

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<v Speaker 1>or turning off visitors from going to your site. It's

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<v Speaker 1>also a question of how much money does it cost

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<v Speaker 1>to run your business and how can you offset that

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<v Speaker 1>through advertising if that's your way of generating revenue. You

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<v Speaker 1>have to find that balance, and it's tricky because you know,

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<v Speaker 1>you if you're telling about the ads themselves are being

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<v Speaker 1>devalued the more they're out there. Then you have to

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<v Speaker 1>balance that out, like how do you take advantage of

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<v Speaker 1>advertising in such a way that you're actually making enough

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<v Speaker 1>money to sustain whatever your business you're in, right? And uh,

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<v Speaker 1>And it's not easy to do well, and it's it's

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<v Speaker 1>worth pointing out I think too that um, to some degree,

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<v Speaker 1>the web is a fairly inexpensive place to do business.

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<v Speaker 1>Buying a domain name, arranging hosting for a year. Um,

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<v Speaker 1>you know that's that's not terribly expensive. You start getting

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<v Speaker 1>into uh, some cost problems when you generate a lot

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<v Speaker 1>of traffic to the site because in a lot of cases, say,

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<v Speaker 1>if you you're just a person who wants to start

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<v Speaker 1>a blog just for the sake of starting a blog,

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<v Speaker 1>and you promote it to your friends on Facebook and

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<v Speaker 1>you get a couple of gigabytes worth of bandwidth per month,

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<v Speaker 1>that's probably not going to and that's a lot of

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<v Speaker 1>traffic just you know, for for a person with a

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<v Speaker 1>blog who's just having fun with it. Um, you know,

0:12:08.320 --> 0:12:10.199
<v Speaker 1>you might decide to stick some ads up there, but

0:12:10.400 --> 0:12:13.160
<v Speaker 1>and that may very well offset the cost because you're

0:12:13.440 --> 0:12:15.880
<v Speaker 1>web hosting provider. A lot of them these days don't

0:12:15.960 --> 0:12:19.600
<v Speaker 1>charge uh for a certain amount of traffic. Now, if

0:12:19.600 --> 0:12:25.439
<v Speaker 1>you're somebody like a magazine or streaming media side or

0:12:25.480 --> 0:12:27.920
<v Speaker 1>something like that, that's going to generate tons and tons

0:12:27.960 --> 0:12:31.200
<v Speaker 1>of traffic, and the web hosting providers gonna say, hey, look, pal,

0:12:31.880 --> 0:12:36.560
<v Speaker 1>you know, if you're taking up room on our servers, Yeah,

0:12:36.600 --> 0:12:38.840
<v Speaker 1>if you want, then you got to pay. Yeah, so

0:12:39.000 --> 0:12:40.920
<v Speaker 1>and then you have to pay people to run the

0:12:41.000 --> 0:12:44.000
<v Speaker 1>side and maintain the side. If you're a magazine, you

0:12:44.040 --> 0:12:48.040
<v Speaker 1>want to pay writers, maybe freelancers, editors. You know, you're

0:12:48.040 --> 0:12:49.880
<v Speaker 1>gonna have a lot of people working there, so you

0:12:49.920 --> 0:12:51.560
<v Speaker 1>have to pay for them too, and then you have

0:12:51.600 --> 0:12:54.120
<v Speaker 1>to generate more revenue to offset that. So it's it's

0:12:54.120 --> 0:12:57.560
<v Speaker 1>relatively inexpensive to get in, but depending on the scale

0:12:57.559 --> 0:13:00.559
<v Speaker 1>of the operation, you might need serious money to keep

0:13:00.559 --> 0:13:04.000
<v Speaker 1>it going right. And you know, we when we talked

0:13:04.040 --> 0:13:07.240
<v Speaker 1>with Bernie Burns of Rooster Teeth, you know, he talked

0:13:07.280 --> 0:13:09.680
<v Speaker 1>about back in the early days of Rooster Teeth, that

0:13:09.760 --> 0:13:12.280
<v Speaker 1>was before streaming video was a thing on the web.

0:13:12.360 --> 0:13:14.559
<v Speaker 1>So what people would do is they would actually download

0:13:14.600 --> 0:13:18.079
<v Speaker 1>an episode of Red Versus Blue, So they're downloading video

0:13:18.080 --> 0:13:21.439
<v Speaker 1>files and because it became so popular so quickly, that

0:13:21.480 --> 0:13:25.160
<v Speaker 1>meant that they were having some pretty massive bandwidth issues

0:13:25.760 --> 0:13:28.880
<v Speaker 1>and so that that sort of thing can come into play.

0:13:29.160 --> 0:13:30.959
<v Speaker 1>And yeah, like I said, it's it's one of those

0:13:30.960 --> 0:13:32.760
<v Speaker 1>things where you've got to figure out, well, we have

0:13:32.840 --> 0:13:35.720
<v Speaker 1>to make a certain amount of money just to sustain

0:13:35.760 --> 0:13:38.400
<v Speaker 1>our business. And then in order to be a successful business,

0:13:38.440 --> 0:13:40.720
<v Speaker 1>you have to actually make money. So you have to

0:13:40.760 --> 0:13:44.040
<v Speaker 1>determine what kind of ads you use and how much

0:13:45.080 --> 0:13:47.800
<v Speaker 1>how many of them you use. So now, back back

0:13:47.840 --> 0:13:51.120
<v Speaker 1>in those early days when I was talking about um,

0:13:51.200 --> 0:13:54.640
<v Speaker 1>the the days, like when Yahoo was selling ads at

0:13:54.720 --> 0:13:57.000
<v Speaker 1>around the same rate as what you would get for

0:13:57.080 --> 0:14:02.120
<v Speaker 1>a magazine ad. That was about around sometimes thirty dollars

0:14:02.160 --> 0:14:07.600
<v Speaker 1>per one thousand clicks or one thousand um impressions actually,

0:14:07.600 --> 0:14:10.360
<v Speaker 1>and impressions and clicks are two different things. Impressions essentially

0:14:10.400 --> 0:14:15.000
<v Speaker 1>means that if a thousand people visit that that particular website,

0:14:15.040 --> 0:14:18.320
<v Speaker 1>and that one ad is on that website, then the

0:14:18.400 --> 0:14:24.120
<v Speaker 1>average advertiser would pay the website thirty bucks for every thousand. Yeah,

0:14:24.120 --> 0:14:26.600
<v Speaker 1>he's just that that is not a standard, necessarily a

0:14:26.640 --> 0:14:29.840
<v Speaker 1>standard rate. He's just us yes, that that was back

0:14:29.840 --> 0:14:32.960
<v Speaker 1>in the early days, just web thirty dollars, sometimes more

0:14:33.000 --> 0:14:36.280
<v Speaker 1>than thirty dollars per one thousand, But as time has

0:14:36.280 --> 0:14:39.760
<v Speaker 1>gone on that that price has been seriously cut down.

0:14:40.200 --> 0:14:42.360
<v Speaker 1>And it all depends on what kind of website you

0:14:42.440 --> 0:14:44.960
<v Speaker 1>run too. If you're running a website that's incredibly popular,

0:14:44.960 --> 0:14:47.320
<v Speaker 1>then you can command higher prices than you can't than

0:14:47.800 --> 0:14:50.800
<v Speaker 1>a smaller website can. But in general, you're now talking

0:14:50.840 --> 0:14:56.440
<v Speaker 1>about a few cents per one thousand visitors if it's

0:14:56.520 --> 0:15:00.600
<v Speaker 1>a um CPM model. And we'll talk about then a second,

0:15:00.640 --> 0:15:02.680
<v Speaker 1>but before we before we get into the various models.

0:15:02.680 --> 0:15:05.240
<v Speaker 1>I wanted to talk about the different formats that you

0:15:05.360 --> 0:15:09.280
<v Speaker 1>find in web advertising. Yeah, probably the most popular in

0:15:09.320 --> 0:15:11.440
<v Speaker 1>those early days was the banner at the banner ad. Yeah,

0:15:11.440 --> 0:15:13.520
<v Speaker 1>These were the ones that ran along the top of

0:15:13.560 --> 0:15:16.120
<v Speaker 1>the a of the site, sometimes along the bottom, and

0:15:16.120 --> 0:15:18.520
<v Speaker 1>if it was along the side, we called them sidebars

0:15:18.560 --> 0:15:20.560
<v Speaker 1>as opposed to banner ads, but the same sort of thing.

0:15:21.000 --> 0:15:26.080
<v Speaker 1>It's a a long, narrow band that would have an

0:15:26.120 --> 0:15:29.680
<v Speaker 1>add on it for for some product or service. Usually

0:15:29.760 --> 0:15:32.240
<v Speaker 1>it was a link, so that if you clicked on

0:15:32.280 --> 0:15:35.240
<v Speaker 1>the banner, you would go to the website of said

0:15:35.440 --> 0:15:40.280
<v Speaker 1>product or service. And uh, it was the way to

0:15:40.560 --> 0:15:43.560
<v Speaker 1>advertise on the web for a really long time. Um.

0:15:43.600 --> 0:15:46.200
<v Speaker 1>But again, because it's a link, it's one of those

0:15:46.240 --> 0:15:48.720
<v Speaker 1>things that can be monitored. And in fact, if it's

0:15:48.760 --> 0:15:53.040
<v Speaker 1>a link that's coming into a company's website, they may

0:15:53.080 --> 0:15:56.480
<v Speaker 1>not even need the advertising, um. The they may not

0:15:56.520 --> 0:15:59.040
<v Speaker 1>need another agency to tell them anything about the traffic.

0:15:59.080 --> 0:16:01.120
<v Speaker 1>They might be able to see it their own. But

0:16:02.080 --> 0:16:05.160
<v Speaker 1>if they see that the traffic just hasn't increased significantly,

0:16:05.440 --> 0:16:09.600
<v Speaker 1>or that, uh, that traffic from that ad hasn't really

0:16:09.720 --> 0:16:11.960
<v Speaker 1>picked up, and that they're not really seeing a conversion

0:16:11.960 --> 0:16:16.240
<v Speaker 1>into sales. Then that's going to really cut down on like,

0:16:16.280 --> 0:16:19.240
<v Speaker 1>why would anyone bother buying an ad if it's not working.

0:16:20.000 --> 0:16:23.360
<v Speaker 1>So those were some of the earliest ones, and they're

0:16:23.360 --> 0:16:25.920
<v Speaker 1>also some of the ones that are easiest for users

0:16:25.960 --> 0:16:29.080
<v Speaker 1>to ignore. In fact, there's you know we talk about

0:16:29.120 --> 0:16:32.120
<v Speaker 1>in the business, it's called ad blindness, where you just

0:16:32.640 --> 0:16:34.840
<v Speaker 1>you just don't even register it anymore. You're used to

0:16:35.040 --> 0:16:39.800
<v Speaker 1>ignoring anything that falls in certain quadrants on a website

0:16:39.800 --> 0:16:42.160
<v Speaker 1>because that's where everyone puts their ads, and you just

0:16:42.200 --> 0:16:44.760
<v Speaker 1>don't even notice it anymore because you're just looking for

0:16:44.800 --> 0:16:49.520
<v Speaker 1>the content. Well, advertisers hate that because it negates the

0:16:49.560 --> 0:16:52.680
<v Speaker 1>whole ad and you know, people are spending time and

0:16:52.720 --> 0:16:55.840
<v Speaker 1>money to develop these ads, and and again they're not

0:16:55.880 --> 0:16:59.480
<v Speaker 1>necessarily being evil. They're trying to reach an audience so

0:16:59.520 --> 0:17:01.440
<v Speaker 1>that they can sell their products or services. Some of

0:17:01.480 --> 0:17:05.600
<v Speaker 1>those products and services maybe amazing, but it doesn't change

0:17:05.640 --> 0:17:07.760
<v Speaker 1>the fact that people have gotten really good at ignoring

0:17:07.800 --> 0:17:10.400
<v Speaker 1>those ads. So there's other kinds as well. Uh, there's

0:17:10.440 --> 0:17:13.879
<v Speaker 1>the floating ads which float across your screen and you

0:17:13.880 --> 0:17:16.399
<v Speaker 1>have to Yeah, I'm not a big fan of them either,

0:17:17.160 --> 0:17:20.119
<v Speaker 1>but again, they are hard, they're they're they're impossible to

0:17:20.160 --> 0:17:23.080
<v Speaker 1>ignore because they float right in front of your screen

0:17:23.119 --> 0:17:25.600
<v Speaker 1>and until you close them or click on them, there

0:17:25.640 --> 0:17:29.399
<v Speaker 1>they stay there and the cousin up a right. Pop

0:17:29.480 --> 0:17:31.840
<v Speaker 1>up and pop under ads are similar. Now, pop up

0:17:31.840 --> 0:17:34.480
<v Speaker 1>ads become their own it's their own window that pops

0:17:34.480 --> 0:17:37.960
<v Speaker 1>on top of the browser, and those were popular for

0:17:38.000 --> 0:17:40.840
<v Speaker 1>a while. In fact, I remember back when you would

0:17:41.040 --> 0:17:45.000
<v Speaker 1>hit certain sites like uh like like like. There were

0:17:45.040 --> 0:17:47.240
<v Speaker 1>a few sites that went to There were like a

0:17:47.320 --> 0:17:50.159
<v Speaker 1>movie rumor sites, right, because I was just interested in

0:17:50.160 --> 0:17:52.199
<v Speaker 1>what was coming up in movies, and some of them

0:17:52.240 --> 0:17:56.000
<v Speaker 1>would work with advertising agencies that did pop up ads,

0:17:56.640 --> 0:17:58.560
<v Speaker 1>and you would get one pop up ad and as

0:17:58.560 --> 0:18:00.280
<v Speaker 1>soon as you go to close that two or pop

0:18:00.359 --> 0:18:02.800
<v Speaker 1>up beds would pop up, and then you suddenly you've

0:18:02.840 --> 0:18:05.719
<v Speaker 1>got you know, five or six papa beds covering up

0:18:05.760 --> 0:18:08.880
<v Speaker 1>your the content you're trying to read. And then eventually

0:18:08.880 --> 0:18:10.520
<v Speaker 1>you just say, why am I even bothering going to

0:18:10.560 --> 0:18:12.240
<v Speaker 1>the site. I'm going to find some other place to

0:18:12.280 --> 0:18:15.920
<v Speaker 1>go rather than deal with this frustration. Pop under ads

0:18:15.920 --> 0:18:19.119
<v Speaker 1>are similar, except that the new window pops up under

0:18:19.160 --> 0:18:21.680
<v Speaker 1>your browser, so that until you close your browser you

0:18:21.720 --> 0:18:24.439
<v Speaker 1>may not even be aware that it's there. Yeah, and

0:18:24.480 --> 0:18:27.399
<v Speaker 1>some some sites used to track the length of time

0:18:27.400 --> 0:18:30.000
<v Speaker 1>that the ad appeared on the screen. So let's say

0:18:30.040 --> 0:18:32.639
<v Speaker 1>there's a pop under ad and it's been up and

0:18:32.680 --> 0:18:35.320
<v Speaker 1>you don't even know it. So they're the site is

0:18:35.359 --> 0:18:37.840
<v Speaker 1>getting to say, hey, you know so and so we

0:18:37.840 --> 0:18:41.119
<v Speaker 1>we actually have a great rate of people having this

0:18:41.240 --> 0:18:43.760
<v Speaker 1>up on their screen because there are some people here

0:18:43.800 --> 0:18:45.960
<v Speaker 1>who have it up for hours and hours. Of course

0:18:46.000 --> 0:18:48.280
<v Speaker 1>if they're course they can't see it. And of course

0:18:48.320 --> 0:18:50.840
<v Speaker 1>if if not that many people are clicking on the ad,

0:18:50.880 --> 0:18:54.120
<v Speaker 1>then that that's not as powerful story, right, Like, yeah,

0:18:54.160 --> 0:18:55.879
<v Speaker 1>they have it up for hours, but no one actually

0:18:55.880 --> 0:18:59.000
<v Speaker 1>ever bothers to click on the ad, then that falls apart. Now,

0:18:59.040 --> 0:19:01.800
<v Speaker 1>see that's just in the details. And and one of

0:19:01.840 --> 0:19:06.239
<v Speaker 1>the things that has made these ads less common, uh

0:19:06.400 --> 0:19:10.560
<v Speaker 1>is the functionality. And virtually every browser that I've seen

0:19:10.640 --> 0:19:13.720
<v Speaker 1>in the last three or four years that has the

0:19:13.760 --> 0:19:17.359
<v Speaker 1>pop up blocker enabled in the preferences so that you

0:19:17.400 --> 0:19:19.679
<v Speaker 1>can go in turn it off before you you know,

0:19:19.760 --> 0:19:21.320
<v Speaker 1>the first thing you do is you you go into

0:19:21.359 --> 0:19:23.639
<v Speaker 1>the preferences and start setting it to the way you

0:19:23.720 --> 0:19:25.720
<v Speaker 1>want it to work. And one of the first things

0:19:25.760 --> 0:19:28.160
<v Speaker 1>I do is turn off the pop up ad plocker,

0:19:28.960 --> 0:19:31.280
<v Speaker 1>you know, and then and they just completely prevent it

0:19:31.320 --> 0:19:33.439
<v Speaker 1>from opening, right. And then there's some sites that use

0:19:33.480 --> 0:19:37.200
<v Speaker 1>pop ups for legitimate well advertising is legitimate, but there's

0:19:37.240 --> 0:19:41.760
<v Speaker 1>some sites that use it for purposes that like so

0:19:41.960 --> 0:19:44.359
<v Speaker 1>like filling out a form. So in those cases you

0:19:44.400 --> 0:19:47.119
<v Speaker 1>have to just you have to disable the pop up blocker,

0:19:47.160 --> 0:19:49.800
<v Speaker 1>maybe just for that one site. But yeah, I mean

0:19:49.800 --> 0:19:52.280
<v Speaker 1>that that's the thing is that these pop up ads

0:19:52.280 --> 0:19:57.240
<v Speaker 1>and pop under ads are intrusive enough so that users

0:19:57.280 --> 0:19:59.480
<v Speaker 1>really don't like them. The floating floating adds, in a

0:19:59.520 --> 0:20:01.879
<v Speaker 1>way can be two. They're not quite as bad in

0:20:01.920 --> 0:20:07.679
<v Speaker 1>my opinion, um, but they also can be irritating if

0:20:07.720 --> 0:20:10.879
<v Speaker 1>you're just trying to get to certain content the uh

0:20:11.920 --> 0:20:14.879
<v Speaker 1>the floating ends though, don't irritate me the way peel

0:20:15.280 --> 0:20:18.560
<v Speaker 1>or expanding ads do. These are the ones where if

0:20:18.600 --> 0:20:21.080
<v Speaker 1>your cursor floats over the ad, it suddenly takes up

0:20:21.160 --> 0:20:25.119
<v Speaker 1>half their screen space or more. It will unroll. And

0:20:25.119 --> 0:20:29.720
<v Speaker 1>we've we're just gonna be completely blunt here, all right. So,

0:20:29.720 --> 0:20:32.680
<v Speaker 1>so the company we work for, how stuff works dot com,

0:20:33.320 --> 0:20:37.000
<v Speaker 1>it has part of Discovery Communications. Part Discovery Communications makes

0:20:37.040 --> 0:20:41.639
<v Speaker 1>revenue through advertising among other things, And so we have

0:20:41.760 --> 0:20:45.040
<v Speaker 1>had these these peel ads, these expanding ads on our site.

0:20:45.760 --> 0:20:49.760
<v Speaker 1>Uh and I think, um, I think I'm safe to

0:20:49.760 --> 0:20:52.160
<v Speaker 1>say I'm not the only one who found it frustrating

0:20:52.160 --> 0:20:54.840
<v Speaker 1>when I would visit my own site and try to

0:20:54.880 --> 0:20:57.680
<v Speaker 1>find a particular article only to have an uh an

0:20:57.720 --> 0:21:00.760
<v Speaker 1>ad cover up half the page. Well, a lot of

0:21:00.760 --> 0:21:05.320
<v Speaker 1>these things, too, were trials to see, uh, how well

0:21:05.440 --> 0:21:08.080
<v Speaker 1>the public would get into it. So not only do

0:21:08.119 --> 0:21:10.440
<v Speaker 1>you want to find out, hey, are people looking at these?

0:21:10.440 --> 0:21:12.480
<v Speaker 1>Are people clicking through to see what's on the other

0:21:12.520 --> 0:21:16.600
<v Speaker 1>side of these? And how many people uh stop coming

0:21:16.720 --> 0:21:19.240
<v Speaker 1>because what they you know, because if they say, you know, hey,

0:21:19.280 --> 0:21:20.800
<v Speaker 1>I don't like these pop up ads, I don't like

0:21:20.800 --> 0:21:22.560
<v Speaker 1>these pop up your ads. I don't like these peel ads,

0:21:22.920 --> 0:21:24.760
<v Speaker 1>they may stop coming to the side. As Jonathan was

0:21:24.760 --> 0:21:28.639
<v Speaker 1>pointing out, and if if the the site that is

0:21:28.720 --> 0:21:31.720
<v Speaker 1>running advertising notices this as a trend, they'll say, hey,

0:21:31.720 --> 0:21:34.560
<v Speaker 1>you know what, this is working to the point where

0:21:34.800 --> 0:21:38.160
<v Speaker 1>it's not working and people are seeing these and they

0:21:38.200 --> 0:21:40.359
<v Speaker 1>don't like them, and they're leaving. Right. The goal of

0:21:40.359 --> 0:21:42.679
<v Speaker 1>the advertiser is to get that ad in front of

0:21:42.680 --> 0:21:45.040
<v Speaker 1>your your eyes and to have you act in some

0:21:45.080 --> 0:21:47.400
<v Speaker 1>way on that ad in a in a positive way

0:21:47.440 --> 0:21:49.320
<v Speaker 1>as far as the advertiser is concerned. You don't want

0:21:49.320 --> 0:21:51.399
<v Speaker 1>to turn off your potential buyers, right, So they're not

0:21:51.600 --> 0:21:54.800
<v Speaker 1>trying to alienate the audience. That's not the that's not

0:21:54.840 --> 0:21:58.080
<v Speaker 1>the goal at all. In fact, that's completely antithetical to

0:21:58.119 --> 0:22:01.359
<v Speaker 1>their goals. So the you know, there are times where

0:22:01.400 --> 0:22:04.680
<v Speaker 1>you'll see certain ads kind of fade away from popularity

0:22:04.760 --> 0:22:09.119
<v Speaker 1>because advertisers have learned like this has such a negative

0:22:09.160 --> 0:22:12.480
<v Speaker 1>impact on the user experience, that that there that any

0:22:12.560 --> 0:22:16.280
<v Speaker 1>benefit of getting that name out into the world is

0:22:16.400 --> 0:22:21.199
<v Speaker 1>negated by how they are are associating that ad with

0:22:21.320 --> 0:22:24.440
<v Speaker 1>their experience. So some of these ads you just don't

0:22:24.520 --> 0:22:27.600
<v Speaker 1>even see that frequently anymore. There are other kinds as well.

0:22:27.600 --> 0:22:30.679
<v Speaker 1>There wallpaper ads where it will change the background of

0:22:30.720 --> 0:22:35.639
<v Speaker 1>a website to uh, to be a certain uh wallpaper,

0:22:35.720 --> 0:22:40.760
<v Speaker 1>like I've seen that for for movies, gaming sites also,

0:22:40.800 --> 0:22:42.399
<v Speaker 1>I mean I've I've even seen it for things like

0:22:42.560 --> 0:22:45.920
<v Speaker 1>um like snack foods, where you'll see like along the

0:22:45.960 --> 0:22:49.640
<v Speaker 1>background it'll be snacks instead of whatever the normal background

0:22:49.680 --> 0:22:53.439
<v Speaker 1>would be. They're there ads that can be inserted into text,

0:22:53.640 --> 0:22:57.600
<v Speaker 1>so they you'll see in the content that certain words

0:22:57.640 --> 0:23:00.280
<v Speaker 1>are highlighted, and it may be that those words like

0:23:00.280 --> 0:23:01.960
<v Speaker 1>like oh wow, that is kind of cool, and you

0:23:02.000 --> 0:23:04.159
<v Speaker 1>click on it and it goes to the uh to

0:23:04.280 --> 0:23:07.120
<v Speaker 1>a site that sells something that falls into the category

0:23:07.119 --> 0:23:09.720
<v Speaker 1>of whatever the text was. So it's kind of a

0:23:09.800 --> 0:23:13.440
<v Speaker 1>type of contextual ad. And also there's the video ads,

0:23:13.480 --> 0:23:17.040
<v Speaker 1>the ones that were made famous by Uncast, where you

0:23:17.040 --> 0:23:19.560
<v Speaker 1>would go to a site and there'd be a little

0:23:19.880 --> 0:23:24.439
<v Speaker 1>video ad running, usually in one of the rails, so

0:23:24.600 --> 0:23:26.880
<v Speaker 1>like off to the right or something, and it would

0:23:26.880 --> 0:23:31.320
<v Speaker 1>have full video and full sound, which could be very uh,

0:23:31.640 --> 0:23:35.359
<v Speaker 1>very jarring if you are like me often listening to

0:23:35.520 --> 0:23:39.480
<v Speaker 1>music on your headphones over your computer and you visit

0:23:39.520 --> 0:23:41.440
<v Speaker 1>a website and then you suddenly hear someone talking to you,

0:23:41.480 --> 0:23:43.679
<v Speaker 1>and you're like, is someone What's what's going on? And

0:23:43.720 --> 0:23:45.600
<v Speaker 1>you start looking around there there's no one around me,

0:23:46.000 --> 0:23:48.399
<v Speaker 1>and uh, most of the ones I've seen recently that

0:23:48.480 --> 0:23:50.879
<v Speaker 1>do that leave the sound off until you noticed the

0:23:50.960 --> 0:23:53.440
<v Speaker 1>video is playing, and then some people will turn the

0:23:53.520 --> 0:23:56.360
<v Speaker 1>video on the sound on, and some people won't. Um

0:23:56.600 --> 0:24:00.000
<v Speaker 1>something that I just thought of that sort of unusual. Um.

0:24:00.040 --> 0:24:04.720
<v Speaker 1>The music station Pandora will do they'll do um advertisement

0:24:04.760 --> 0:24:09.320
<v Speaker 1>deals with companies and they'll build a special music station

0:24:09.800 --> 0:24:13.679
<v Speaker 1>around the product that they're trying to do. Um yeah.

0:24:13.680 --> 0:24:16.639
<v Speaker 1>Spotify does the same thing, yeah yeah, which is kind

0:24:16.640 --> 0:24:19.040
<v Speaker 1>of a unique thing because they'll do the wallpaper type

0:24:19.040 --> 0:24:23.040
<v Speaker 1>thing too, but they also do uh something that other

0:24:23.080 --> 0:24:26.080
<v Speaker 1>sites can't, which will have, you know, a special tie

0:24:26.119 --> 0:24:29.880
<v Speaker 1>into the type of site um that that it works with,

0:24:30.000 --> 0:24:32.920
<v Speaker 1>which kind of brings me to So we talked about

0:24:32.920 --> 0:24:35.719
<v Speaker 1>the different formats that ads can take, and there are

0:24:35.720 --> 0:24:38.080
<v Speaker 1>other ones as well. There's more than what we just covered,

0:24:38.080 --> 0:24:40.320
<v Speaker 1>but those are the basic ones and the predominant ones.

0:24:40.520 --> 0:24:43.720
<v Speaker 1>There are different approaches. These ads can take two and

0:24:43.760 --> 0:24:45.320
<v Speaker 1>you alluded to one of them, and one of them

0:24:45.440 --> 0:24:48.720
<v Speaker 1>is being contextual or targeted. Yes, And when you're talking

0:24:48.760 --> 0:24:51.960
<v Speaker 1>about a contextual or targeted AD, you're talking about designing

0:24:51.960 --> 0:24:55.960
<v Speaker 1>the ad so that it will like using ads that

0:24:56.000 --> 0:24:58.640
<v Speaker 1>will appeal to the same audience space as the ones

0:24:58.680 --> 0:25:02.080
<v Speaker 1>that are there to consume what content is on that site. So,

0:25:02.200 --> 0:25:04.760
<v Speaker 1>for example, if I were to go to how stuff

0:25:04.800 --> 0:25:08.080
<v Speaker 1>works dot com and I'm looking at how GPS systems

0:25:08.119 --> 0:25:12.040
<v Speaker 1>work or GPS works, I wouldn't say GPS systems because

0:25:12.080 --> 0:25:13.359
<v Speaker 1>I would want to go to my a t M

0:25:13.359 --> 0:25:16.240
<v Speaker 1>machine and use my pen number. But if you went

0:25:16.320 --> 0:25:18.200
<v Speaker 1>to UH, if you went to that and then there

0:25:18.280 --> 0:25:23.639
<v Speaker 1>was an ad about a particular vendor that sells GPS units,

0:25:24.200 --> 0:25:28.040
<v Speaker 1>then you'd be more likely the thought processes, you'd be

0:25:28.080 --> 0:25:30.520
<v Speaker 1>more likely to click on that because you're already interested

0:25:30.560 --> 0:25:34.040
<v Speaker 1>in the topic, as opposed to going to an article

0:25:34.040 --> 0:25:37.000
<v Speaker 1>about how GPS units work and seeing an ad for

0:25:37.359 --> 0:25:42.040
<v Speaker 1>I don't know, um a gelatin dessert. Those two things

0:25:42.119 --> 0:25:44.720
<v Speaker 1>don't really connect to one another, although there's always room

0:25:44.800 --> 0:25:48.159
<v Speaker 1>for it. There's no there's no I wasn't using the

0:25:48.160 --> 0:25:50.080
<v Speaker 1>brand name and then I go and user slogan, but

0:25:50.200 --> 0:25:53.959
<v Speaker 1>the the yeah, that's the that's an example, you know

0:25:54.000 --> 0:25:58.720
<v Speaker 1>you want. The contextual or targeted ads tend to have

0:25:59.000 --> 0:26:04.000
<v Speaker 1>a higher degree of engagement, meaning that more people click

0:26:04.080 --> 0:26:07.320
<v Speaker 1>on it than ones that have no connection to whatever

0:26:07.359 --> 0:26:10.280
<v Speaker 1>the content is for the site that is in question.

0:26:10.520 --> 0:26:12.639
<v Speaker 1>So one of the things that makes web advertising so

0:26:12.720 --> 0:26:17.840
<v Speaker 1>appealing for advertisers is their ability to target UH this

0:26:18.000 --> 0:26:20.560
<v Speaker 1>to their customers, as you were saying, And they can't

0:26:20.560 --> 0:26:23.320
<v Speaker 1>do that with other media because they would need to

0:26:23.359 --> 0:26:25.760
<v Speaker 1>do a survey. They would actually have to find out, Hey,

0:26:26.000 --> 0:26:28.840
<v Speaker 1>how how did you hear about us? With the web?

0:26:28.880 --> 0:26:31.399
<v Speaker 1>They use cookies, which are little pieces of text that

0:26:31.440 --> 0:26:35.359
<v Speaker 1>are downloaded to your computer and uh written to and

0:26:35.400 --> 0:26:38.880
<v Speaker 1>they'll go okay, So, uh, you know, Steve visited how

0:26:38.920 --> 0:26:43.040
<v Speaker 1>stuff Works dot com and he also visited uh CNN,

0:26:43.440 --> 0:26:47.280
<v Speaker 1>and he also visited his local papers website, and so

0:26:47.359 --> 0:26:50.640
<v Speaker 1>apparently he likes reading uh stories about what's going on.

0:26:51.080 --> 0:26:55.760
<v Speaker 1>He's intellectually curious. Um, so we're gonna you know, he's

0:26:55.800 --> 0:26:58.280
<v Speaker 1>interested in animals, because we know he visited the Animals

0:26:58.320 --> 0:27:00.400
<v Speaker 1>channel and how stuff Works dot com and and read

0:27:00.520 --> 0:27:02.760
<v Speaker 1>a story about a rescue dog in his local paper.

0:27:03.320 --> 0:27:06.040
<v Speaker 1>So we're gonna send him an add about dog food

0:27:06.560 --> 0:27:08.720
<v Speaker 1>and maybe he has a dog, or maybe as a cat.

0:27:08.760 --> 0:27:11.680
<v Speaker 1>We'll try a cat cat food ad on the next page.

0:27:11.920 --> 0:27:15.280
<v Speaker 1>And so, if you've ever looked at a website and

0:27:15.359 --> 0:27:18.359
<v Speaker 1>seen an ad targeted to you in your specific like

0:27:18.520 --> 0:27:22.640
<v Speaker 1>something that you typically buy or are orientisty, or are

0:27:22.720 --> 0:27:26.600
<v Speaker 1>interested in, and it says, hey, um, if you're in

0:27:26.640 --> 0:27:30.040
<v Speaker 1>the Dallas area and looking to buy something something, you

0:27:30.080 --> 0:27:31.880
<v Speaker 1>can wait a minute, how in the world did they

0:27:31.960 --> 0:27:34.800
<v Speaker 1>know I was in Dallas? Well, they're using these cookies

0:27:35.000 --> 0:27:39.720
<v Speaker 1>on your computer to gather information about you. Um, some

0:27:39.760 --> 0:27:43.400
<v Speaker 1>people see it as a major privacy, privacy issue because

0:27:43.480 --> 0:27:45.639
<v Speaker 1>it has information about you and they're looking at that.

0:27:46.400 --> 0:27:48.800
<v Speaker 1>I would say that, yes, it's a privacy issue, but

0:27:49.200 --> 0:27:52.040
<v Speaker 1>in general, they don't really want to know what kind

0:27:52.080 --> 0:27:55.840
<v Speaker 1>of underwear you prefer, and where they don't even care

0:27:55.880 --> 0:27:58.040
<v Speaker 1>what your name is really just they just think of

0:27:58.080 --> 0:28:02.159
<v Speaker 1>you as potential customer. And so this is to convert

0:28:02.240 --> 0:28:04.760
<v Speaker 1>you from potential customer to actual customer. And yeah, that's

0:28:04.800 --> 0:28:07.320
<v Speaker 1>a good, a good progression because I was talking about

0:28:07.359 --> 0:28:10.240
<v Speaker 1>the general ads that contextual or targeted ads, and then

0:28:10.680 --> 0:28:13.640
<v Speaker 1>personalized ads, which is what Chris is talking about right here,

0:28:14.080 --> 0:28:17.119
<v Speaker 1>where it's personalized based upon your experience. And there's some

0:28:17.160 --> 0:28:20.239
<v Speaker 1>companies that do this better than others. Um, there's some

0:28:20.280 --> 0:28:23.520
<v Speaker 1>companies that are much better at gathering information about you.

0:28:23.600 --> 0:28:28.359
<v Speaker 1>For example, Facebook, Facebook doesn't even have to bother gathering

0:28:28.400 --> 0:28:31.400
<v Speaker 1>information about you because you give Facebook the information about

0:28:31.440 --> 0:28:33.480
<v Speaker 1>you every time you use it. This is what makes

0:28:33.520 --> 0:28:37.600
<v Speaker 1>Facebook such a valuable company. People not only opt in

0:28:38.400 --> 0:28:42.400
<v Speaker 1>um to their advertising by being there, they're also providing

0:28:42.440 --> 0:28:45.880
<v Speaker 1>them all sorts of context for themselves. You know, I

0:28:45.960 --> 0:28:48.320
<v Speaker 1>like these bands, I like watching these movies and reading

0:28:48.360 --> 0:28:51.760
<v Speaker 1>these books. I've noticed on my Facebook page when I

0:28:51.800 --> 0:28:55.160
<v Speaker 1>go there, I noticed that the ads often seem to

0:28:56.080 --> 0:28:58.760
<v Speaker 1>mirror some of the stuff that's been posted on my

0:28:59.560 --> 0:29:02.200
<v Speaker 1>in my new news feed. So I'm reading the reading

0:29:02.200 --> 0:29:04.840
<v Speaker 1>stories or whatever, and I glance over at the advertising,

0:29:04.840 --> 0:29:08.040
<v Speaker 1>and my, that's kind of clever that they actually, you know,

0:29:08.200 --> 0:29:12.000
<v Speaker 1>that they've taken the context of what was posted and

0:29:12.400 --> 0:29:18.040
<v Speaker 1>managed to pull an ad that related, sometimes extremely tangentially

0:29:18.640 --> 0:29:21.360
<v Speaker 1>to whatever the content was. It's also a little creepy,

0:29:21.400 --> 0:29:24.720
<v Speaker 1>but anyway that those are the three general approaches. The

0:29:24.760 --> 0:29:28.320
<v Speaker 1>general general advertising, where it doesn't have anything necessarily to

0:29:28.360 --> 0:29:31.320
<v Speaker 1>do with whatever the content is, the contextual one, where

0:29:31.400 --> 0:29:33.640
<v Speaker 1>it does have to relate to whatever the content the

0:29:33.680 --> 0:29:36.000
<v Speaker 1>site is. And then the personalized one, which relates more

0:29:36.040 --> 0:29:39.880
<v Speaker 1>to the actual user than necessarily even the content. The

0:29:39.920 --> 0:29:43.600
<v Speaker 1>early days of web advertising um sort of looked like

0:29:43.880 --> 0:29:46.280
<v Speaker 1>it was going the whole concept was going to be

0:29:46.920 --> 0:29:50.840
<v Speaker 1>sort of a dud because at first it looked like, uh,

0:29:51.000 --> 0:29:53.360
<v Speaker 1>it just didn't reach people in the way that advertisers

0:29:53.360 --> 0:29:55.200
<v Speaker 1>were used to. They were used to the the old

0:29:55.200 --> 0:29:58.520
<v Speaker 1>style of media. They couldn't figure out exactly the best approach.

0:29:58.560 --> 0:30:00.920
<v Speaker 1>They couldn't figure out the size or the placement on

0:30:00.960 --> 0:30:03.640
<v Speaker 1>the page that they wanted to use, and it looked

0:30:03.640 --> 0:30:05.000
<v Speaker 1>like it was going to be more of a branding

0:30:05.000 --> 0:30:09.200
<v Speaker 1>than a direct response target. And then, you know, once cookies,

0:30:09.560 --> 0:30:12.360
<v Speaker 1>once they figured out how to use cookies to their advantage,

0:30:12.360 --> 0:30:15.840
<v Speaker 1>they were able to do more targeted and more personalized advertising.

0:30:16.120 --> 0:30:20.320
<v Speaker 1>And now it's become uh, you know, a multi multi

0:30:20.440 --> 0:30:23.080
<v Speaker 1>billion dollar business. And that the you know, this is

0:30:23.120 --> 0:30:27.560
<v Speaker 1>what has helped UH companies like Yahoo, Facebook, Google and

0:30:27.640 --> 0:30:30.960
<v Speaker 1>others to grow as as much as they have is

0:30:30.960 --> 0:30:36.400
<v Speaker 1>because they're able to target advertising so precisely UM, you know,

0:30:36.560 --> 0:30:39.040
<v Speaker 1>and and use it in different places like Google makes

0:30:39.080 --> 0:30:44.360
<v Speaker 1>Gmail free because it's able to advertise alongside UM and

0:30:44.360 --> 0:30:48.040
<v Speaker 1>and we've you know, taken advantage of that. But because

0:30:48.080 --> 0:30:50.880
<v Speaker 1>so many places offer us free services that are supported

0:30:50.920 --> 0:30:53.600
<v Speaker 1>by advertising, so it's it's sort of a trade off

0:30:53.600 --> 0:30:57.280
<v Speaker 1>that we make UM providing this information in exchange for

0:30:57.480 --> 0:31:00.920
<v Speaker 1>free web services. So let's talk a little bit about

0:31:01.120 --> 0:31:06.360
<v Speaker 1>how these ads actually generate money. And there are various

0:31:06.440 --> 0:31:11.560
<v Speaker 1>strategies that the advertisers use. One is called CPM, which

0:31:11.600 --> 0:31:15.720
<v Speaker 1>is a cost per mille or thousand. It's not a

0:31:15.760 --> 0:31:20.080
<v Speaker 1>million for my fellow Americans would possibly think such a thing,

0:31:20.360 --> 0:31:24.400
<v Speaker 1>but cost per thousand impressions, and an impression is essentially

0:31:24.800 --> 0:31:27.640
<v Speaker 1>looking at it. Yeah, there's a there's a there's a

0:31:27.680 --> 0:31:30.880
<v Speaker 1>set of eyes that are on that that website. Um,

0:31:31.160 --> 0:31:35.400
<v Speaker 1>so for every one thousand times someone views that website, Uh,

0:31:35.520 --> 0:31:39.720
<v Speaker 1>the average advertiser would would give a certain amount of

0:31:39.720 --> 0:31:43.440
<v Speaker 1>money to the site itself. And again it's probably on

0:31:43.560 --> 0:31:46.160
<v Speaker 1>a the order of a few cents, so let's say

0:31:46.160 --> 0:31:50.720
<v Speaker 1>a nickel. So every time, uh, that counter hits one

0:31:50.800 --> 0:31:54.680
<v Speaker 1>thousand for that site, the advertiser gives a nickel over

0:31:54.680 --> 0:31:57.040
<v Speaker 1>to the site. So you have to get lots and

0:31:57.080 --> 0:31:59.600
<v Speaker 1>lots and lots of eyes on that site for it

0:31:59.640 --> 0:32:04.920
<v Speaker 1>to actually be worthwhile for the website, you know, So

0:32:05.080 --> 0:32:07.280
<v Speaker 1>they get that's the idea is that it gives an

0:32:07.320 --> 0:32:10.840
<v Speaker 1>incentive to the website to create really awesome content that's

0:32:10.840 --> 0:32:13.360
<v Speaker 1>going to pull lots of people there. Yea, And in

0:32:13.400 --> 0:32:16.320
<v Speaker 1>web terms, that's called sticky. You want people to go

0:32:16.440 --> 0:32:19.040
<v Speaker 1>there and stay there. Yeah. Yeah. If people just go

0:32:19.120 --> 0:32:22.960
<v Speaker 1>and then and then bail, well, then once the advertiser

0:32:22.960 --> 0:32:27.040
<v Speaker 1>starts looking at the figures, they're gonna say, well, this

0:32:27.080 --> 0:32:30.120
<v Speaker 1>person was here so briefly that they probably didn't even

0:32:30.120 --> 0:32:32.960
<v Speaker 1>see my AD. So there's no point in paying you

0:32:33.200 --> 0:32:38.000
<v Speaker 1>a higher amount of money per thousand eyeballs when or

0:32:38.120 --> 0:32:42.960
<v Speaker 1>pairs of eyeballs when when people aren't even bothering looking

0:32:43.000 --> 0:32:45.880
<v Speaker 1>at stuff. So yeah, it's it's more than just the

0:32:45.920 --> 0:32:48.800
<v Speaker 1>fact that a thousand people got there. And sometimes this

0:32:48.880 --> 0:32:53.800
<v Speaker 1>gets knocked down to um A CPV, which is a

0:32:53.840 --> 0:32:57.360
<v Speaker 1>click per visitor, which again is different than an impression,

0:32:57.560 --> 0:33:01.240
<v Speaker 1>because an impression could be the you go to a website,

0:33:01.920 --> 0:33:04.680
<v Speaker 1>you click to a different page on the website, you

0:33:04.720 --> 0:33:07.680
<v Speaker 1>go back to the home page. Well, your two visits

0:33:07.680 --> 0:33:11.440
<v Speaker 1>to that homepage may each count as an impression, even

0:33:11.480 --> 0:33:14.080
<v Speaker 1>though it's the same person looking at it. You have

0:33:14.160 --> 0:33:16.760
<v Speaker 1>seen that same page twice, so you've seen the same

0:33:16.800 --> 0:33:21.680
<v Speaker 1>ad twice. A CPM, maybe uh, may count both of

0:33:21.680 --> 0:33:25.400
<v Speaker 1>those visits. A CPV is different. That's count that's clicks

0:33:25.400 --> 0:33:28.680
<v Speaker 1>per or sorry, not clicks but cost per visitor. So

0:33:28.720 --> 0:33:33.480
<v Speaker 1>the idea being that every unique visitor counts towards that AD.

0:33:33.520 --> 0:33:35.960
<v Speaker 1>But if you were to keep refreshing the page or

0:33:35.960 --> 0:33:38.400
<v Speaker 1>a click around and keep coming back to that homepage,

0:33:38.800 --> 0:33:43.240
<v Speaker 1>those additional visits would not count. It's only the unique

0:33:43.320 --> 0:33:46.400
<v Speaker 1>visitor that counts, and usually that's on a per day basis,

0:33:46.960 --> 0:33:49.280
<v Speaker 1>so for every twenty four hours. So if you came

0:33:49.320 --> 0:33:51.560
<v Speaker 1>back to that page the next day, sure it would

0:33:51.640 --> 0:33:55.400
<v Speaker 1>count then, but it doesn't count during your visit. When

0:33:55.400 --> 0:33:58.920
<v Speaker 1>you're at that page um or that website, I should say,

0:33:59.400 --> 0:34:02.760
<v Speaker 1>then you've got uh CPC, which has cost per click.

0:34:03.560 --> 0:34:07.719
<v Speaker 1>Now this is a little more challenging in that you

0:34:07.800 --> 0:34:11.000
<v Speaker 1>have to create really good ads that will get people

0:34:11.440 --> 0:34:14.520
<v Speaker 1>excited to click on it, to actually click on an ad,

0:34:14.960 --> 0:34:17.359
<v Speaker 1>because for a lot of us that feels like the

0:34:17.480 --> 0:34:19.360
<v Speaker 1>last thing in the world you want to do. You know,

0:34:19.440 --> 0:34:21.040
<v Speaker 1>you just want to look at the content. You don't

0:34:21.040 --> 0:34:23.680
<v Speaker 1>want to click on an ad. But clicking on the ads,

0:34:23.880 --> 0:34:26.040
<v Speaker 1>you know, that helps pay for the site. And also

0:34:26.160 --> 0:34:28.399
<v Speaker 1>there may very well be stuff that the ads are

0:34:28.520 --> 0:34:34.680
<v Speaker 1>are advertising that you're interested interested in. So as uh

0:34:35.080 --> 0:34:39.440
<v Speaker 1>CPC um means that every time someone actually clicks on

0:34:39.480 --> 0:34:43.320
<v Speaker 1>the ad, the advert advertiser will give a certain amount

0:34:43.320 --> 0:34:46.680
<v Speaker 1>of money to the website. And that money, you know,

0:34:46.760 --> 0:34:50.879
<v Speaker 1>it may be every several every thousand clicks in that case,

0:34:50.960 --> 0:34:53.680
<v Speaker 1>but it tends to be a much higher rate than

0:34:53.719 --> 0:34:57.520
<v Speaker 1>the impressions because now you've gone from people just looking

0:34:57.520 --> 0:35:01.480
<v Speaker 1>in an AD to people actually reacting to an AD. Yeah. Uh.

0:35:01.520 --> 0:35:03.600
<v Speaker 1>And then the other big one is c p A,

0:35:03.760 --> 0:35:07.680
<v Speaker 1>which is cost per acquisition or cost per action. And

0:35:07.719 --> 0:35:11.800
<v Speaker 1>this is an affiliate program. This is when a company

0:35:11.920 --> 0:35:16.960
<v Speaker 1>offers up an an affiliate program where UM the they

0:35:17.040 --> 0:35:20.000
<v Speaker 1>have an agreement. For example, we we've done this in

0:35:20.040 --> 0:35:22.600
<v Speaker 1>the past. Tech stuff has done this because we did

0:35:22.680 --> 0:35:26.080
<v Speaker 1>and we did audible ads audible dot com. And the

0:35:26.120 --> 0:35:28.440
<v Speaker 1>way that that one but who are as far as

0:35:28.520 --> 0:35:31.720
<v Speaker 1>I know, are not are not sponsoring this particular episode.

0:35:32.280 --> 0:35:36.520
<v Speaker 1>But the way those those agreements tend to work is

0:35:36.560 --> 0:35:42.719
<v Speaker 1>that the vendor works with the site or service. And

0:35:42.800 --> 0:35:46.000
<v Speaker 1>so for example, we'll stick with audible dot Com. They

0:35:46.040 --> 0:35:49.239
<v Speaker 1>come to us and say, we would like to make

0:35:49.280 --> 0:35:51.799
<v Speaker 1>a partnership with you if you you need to run

0:35:51.800 --> 0:35:54.680
<v Speaker 1>an AD in your podcast. When you run that ad,

0:35:54.800 --> 0:35:57.480
<v Speaker 1>you tell people to go to audible dot com and

0:35:57.600 --> 0:36:03.400
<v Speaker 1>use this particular UM password or or code when they go,

0:36:03.600 --> 0:36:07.000
<v Speaker 1>and then they will get UM. They'll they'll be able

0:36:07.000 --> 0:36:10.600
<v Speaker 1>to join for a discounted rate, and every user that

0:36:10.640 --> 0:36:13.040
<v Speaker 1>does that, we will we will pay you a certain

0:36:13.080 --> 0:36:16.040
<v Speaker 1>amount of money and it all depends on the advertiser

0:36:16.160 --> 0:36:18.560
<v Speaker 1>and the service. I mean, it's all this is all

0:36:18.760 --> 0:36:22.759
<v Speaker 1>negotiable stuff, right, and frankly, I am not privy to that.

0:36:22.840 --> 0:36:24.520
<v Speaker 1>I have no idea what it is because that's not

0:36:24.600 --> 0:36:29.200
<v Speaker 1>my part of the business. I create content. So, Uh,

0:36:29.280 --> 0:36:32.040
<v Speaker 1>every time someone actually goes and signs up for these

0:36:32.040 --> 0:36:37.799
<v Speaker 1>services using the ad the promotional code that the website

0:36:37.920 --> 0:36:42.279
<v Speaker 1>or podcast or whatever gives out, then money goes to

0:36:42.440 --> 0:36:46.840
<v Speaker 1>that site from the advertiser or from the vendor. And again,

0:36:46.920 --> 0:36:49.040
<v Speaker 1>this is much more valuable because now you have people

0:36:49.040 --> 0:36:53.359
<v Speaker 1>not just clicking on something, but actually enrolling in some

0:36:53.440 --> 0:36:57.919
<v Speaker 1>sort of product or service, and so that's considered much

0:36:57.920 --> 0:37:03.080
<v Speaker 1>more valuable than a to tpical impression would be. Now

0:37:03.080 --> 0:37:05.640
<v Speaker 1>those are your major types. There are lots of other

0:37:05.800 --> 0:37:09.319
<v Speaker 1>variations of this, but those were what I would say

0:37:09.320 --> 0:37:14.320
<v Speaker 1>are the dominant ones in online advertising. Okay, and uh,

0:37:14.400 --> 0:37:16.799
<v Speaker 1>and again all three of these, none of these are.

0:37:17.360 --> 0:37:19.920
<v Speaker 1>None of these are on their own good or bad.

0:37:20.040 --> 0:37:23.120
<v Speaker 1>It's all on how they are used and whether or

0:37:23.160 --> 0:37:26.560
<v Speaker 1>not they are part of the experience in a way

0:37:26.600 --> 0:37:31.200
<v Speaker 1>that's not intrusive, or if they in fact get in

0:37:31.239 --> 0:37:34.600
<v Speaker 1>your way and irritate you. Yeah, yeah, And then and

0:37:34.640 --> 0:37:39.120
<v Speaker 1>that makes tracking all that much more valuable for the

0:37:39.200 --> 0:37:43.399
<v Speaker 1>advertiser and for the sites. Um, because you know, as

0:37:43.840 --> 0:37:47.959
<v Speaker 1>tastes change as to how the effectiveness of of web

0:37:48.000 --> 0:37:51.480
<v Speaker 1>advertising is measured. UM, you know, they've they've gone from

0:37:51.520 --> 0:37:54.359
<v Speaker 1>these through these different models, and sometimes they shift toward

0:37:54.440 --> 0:37:56.719
<v Speaker 1>one and conventional wisdom says that's the best way to

0:37:56.719 --> 0:37:59.919
<v Speaker 1>do it, and they'll change their mind and shift back.

0:38:00.239 --> 0:38:03.520
<v Speaker 1>So they track all of that information, um, just so

0:38:03.560 --> 0:38:06.000
<v Speaker 1>that they have an idea of who they're reaching and

0:38:06.440 --> 0:38:09.440
<v Speaker 1>how so. UM, you know that that's why they do

0:38:09.480 --> 0:38:13.000
<v Speaker 1>a lot of that. So Chris, you're you're probably gonna

0:38:13.000 --> 0:38:14.840
<v Speaker 1>know the answer to this question, but I'm going to

0:38:14.920 --> 0:38:17.200
<v Speaker 1>ask it and see if you see in fact, see

0:38:17.239 --> 0:38:20.640
<v Speaker 1>if in fact you do know the answer. There is

0:38:20.800 --> 0:38:26.160
<v Speaker 1>one company out there on the Internet that is dominant

0:38:26.680 --> 0:38:30.560
<v Speaker 1>as far as the web advertising business goes. As in,

0:38:31.080 --> 0:38:34.440
<v Speaker 1>this is the company that provides the outlet for web advertising.

0:38:34.480 --> 0:38:38.319
<v Speaker 1>It's not itself necessarily an advertiser. Do you know what

0:38:38.400 --> 0:38:40.360
<v Speaker 1>that company is? I would have assumed it was a

0:38:40.400 --> 0:38:43.480
<v Speaker 1>company that rhymes with shmoogle. In fact, you are corrected,

0:38:43.640 --> 0:38:47.520
<v Speaker 1>is Google, which according to at least some figures, has

0:38:47.560 --> 0:38:53.239
<v Speaker 1>about almost seventy of the online advertising market. That's very impressive. Yeah,

0:38:53.280 --> 0:38:55.880
<v Speaker 1>you think about that, think about all the different advertising

0:38:55.920 --> 0:38:57.839
<v Speaker 1>companies that could be out there on the web, and

0:38:58.000 --> 0:39:02.759
<v Speaker 1>for one to have nearly of the market share, and

0:39:02.840 --> 0:39:06.840
<v Speaker 1>you're talking billions of dollars of revenues going through this

0:39:06.840 --> 0:39:12.200
<v Speaker 1>this whole industry, that is amazing and scary. You know.

0:39:12.320 --> 0:39:15.080
<v Speaker 1>That's that's funny too, because that's the one type of

0:39:15.120 --> 0:39:20.239
<v Speaker 1>ad we didn't mention ad sense tex text advertising. Well,

0:39:20.280 --> 0:39:22.120
<v Speaker 1>I did mention it briefly because I felt about the

0:39:22.480 --> 0:39:24.960
<v Speaker 1>little bit and you know, but yes, yeah, they don't

0:39:25.000 --> 0:39:29.400
<v Speaker 1>do the you know, the banner ads or or sidebar

0:39:29.440 --> 0:39:32.040
<v Speaker 1>ads or or pop ups or pop unders. It's all

0:39:32.200 --> 0:39:35.879
<v Speaker 1>done with text. They'll have sponsored results that kind of thing.

0:39:37.000 --> 0:39:39.279
<v Speaker 1>So it's it's just kind of funny that that much

0:39:39.280 --> 0:39:41.359
<v Speaker 1>of the ad industry is dominated by something that doesn't

0:39:41.360 --> 0:39:44.680
<v Speaker 1>actually use it, which is yeah, and we you know, yeah,

0:39:44.840 --> 0:39:48.640
<v Speaker 1>so it's I mean, it's it's big business stuff. It's

0:39:48.719 --> 0:39:52.440
<v Speaker 1>still even today, despite the fact that the web has

0:39:52.440 --> 0:39:56.200
<v Speaker 1>been around for more than two decades now, UM, we're

0:39:56.280 --> 0:40:00.239
<v Speaker 1>really still trying to find the right balance betwe ween

0:40:00.880 --> 0:40:06.120
<v Speaker 1>the value of advertising and UM and and how it

0:40:06.160 --> 0:40:10.839
<v Speaker 1>impacts the user because if the value of advertising keeps

0:40:10.880 --> 0:40:14.000
<v Speaker 1>falling as a result of users being alienated by ads,

0:40:14.600 --> 0:40:18.400
<v Speaker 1>then web content creators have to find new ways to

0:40:18.440 --> 0:40:21.799
<v Speaker 1>make money. And without finding new ways to make money,

0:40:21.800 --> 0:40:24.120
<v Speaker 1>we're not going to have nearly as much content on

0:40:24.160 --> 0:40:27.759
<v Speaker 1>the web, and so it could turn out to be

0:40:27.920 --> 0:40:31.000
<v Speaker 1>a bad thing for users in the long run. Now

0:40:31.040 --> 0:40:33.040
<v Speaker 1>that doesn't mean that users should just sit there and

0:40:33.080 --> 0:40:36.040
<v Speaker 1>say I love ads and click on everything. But if

0:40:36.080 --> 0:40:40.360
<v Speaker 1>there are ads that are effective, then users probably shouldn't

0:40:40.760 --> 0:40:45.279
<v Speaker 1>um complain about them too much, because again, the alternative

0:40:45.320 --> 0:40:47.719
<v Speaker 1>is that we lose all that content in the long run.

0:40:49.480 --> 0:40:51.279
<v Speaker 1>It's definitely something that you have to be willing to

0:40:51.640 --> 0:40:54.400
<v Speaker 1>make the trade off for. Yeah, it's and it is tricky.

0:40:54.440 --> 0:40:56.440
<v Speaker 1>I mean I as a consumer, I can tell you

0:40:56.480 --> 0:41:00.239
<v Speaker 1>that a bad ad really ruins my mood. And I'm

0:41:00.280 --> 0:41:02.920
<v Speaker 1>on a on a website, even if I love the website.

0:41:02.960 --> 0:41:06.920
<v Speaker 1>If it's a really bad ad, then my first reaction

0:41:07.040 --> 0:41:08.920
<v Speaker 1>is I think, you know what, I'll just come back

0:41:09.000 --> 0:41:11.600
<v Speaker 1>some other time when a different advertising campaign is running

0:41:11.640 --> 0:41:14.880
<v Speaker 1>on this site. Which that's terrible news. It's a terrible thing.

0:41:14.920 --> 0:41:17.520
<v Speaker 1>It's a very human thing to do. But for the

0:41:18.040 --> 0:41:23.160
<v Speaker 1>website owner and for the advertiser, that's bad news. They hate. Yeah,

0:41:23.200 --> 0:41:26.399
<v Speaker 1>they want people who are engaged and happy and who

0:41:26.640 --> 0:41:31.160
<v Speaker 1>are willing to actually act on that advertising um because

0:41:31.160 --> 0:41:34.720
<v Speaker 1>otherwise it wouldn't exist. So anyway, that kind of wraps

0:41:34.800 --> 0:41:38.280
<v Speaker 1>up our discussion on web advertising and the sticky situation

0:41:38.320 --> 0:41:43.040
<v Speaker 1>that it's in. I see. And we will conclude this

0:41:43.160 --> 0:41:46.880
<v Speaker 1>by saying, if you guys have any suggestions for topics

0:41:46.880 --> 0:41:49.359
<v Speaker 1>that we should cover in future episode, you can let

0:41:49.440 --> 0:41:53.600
<v Speaker 1>us know through email or address. Is tech stuff at

0:41:53.840 --> 0:41:57.480
<v Speaker 1>Discovery dot com or let us know on Facebook or

0:41:57.520 --> 0:42:00.920
<v Speaker 1>Twitter are handled there is text stuff. H. S W

0:42:01.560 --> 0:42:03.920
<v Speaker 1>and Chris and I will talk to you again really

0:42:03.960 --> 0:42:07.640
<v Speaker 1>soon for more on this and thousands of other topics.

0:42:07.880 --> 0:42:13.920
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0:42:13.960 --> 0:42:17.319
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0:42:17.400 --> 0:42:17.560
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