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Speaker 1: Get in touch with technology with tex Stuff from how

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Speaker 1: Stuff Works dot com. Be there and welcome to tech Stuff.

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Speaker 1: I'm Jonathan Strickland, and today we're going to talk about

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Speaker 1: mobile web advertising. Yes, now, I know that for some

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Speaker 1: of you this you're probably picking like, well, how is

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Speaker 1: that interesting? Really, this is incredibly important stuff because we're

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Speaker 1: talking about the fundamental change in the habits of users

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Speaker 1: in the way that they browse the web and consume content,

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Speaker 1: which in turn means a fundamental change in the way

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Speaker 1: that we can generate any form of revenue or monetization

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Speaker 1: so that we can continue to create content. And when

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Speaker 1: I say we, I mean everyone who creates content. Right,

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Speaker 1: although it is probably critical at this juncture to to

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Speaker 1: to note that that this is absolutely a thing that

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Speaker 1: How Stuff Works thinks about. Oh sure, yeah, any big

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Speaker 1: time any company has a web presence and they are,

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Speaker 1: let alone a company that is that is a web presence. Yeah,

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Speaker 1: they're all concerned about this because they want to make

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Speaker 1: sure that they're continuing to serve up and experience. There's

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Speaker 1: a good experience for the people who are using the

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Speaker 1: web on whatever device they happen to be on. And furthermore,

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Speaker 1: something that can actually make the money. Yeah. And as

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Speaker 1: it turns out, this whole mobile uh, this move to

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Speaker 1: mobile browsing is really disruptive as far as that goes.

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Speaker 1: But the it's it's a pretty big industry of UM.

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Speaker 1: As of August, according to an insight company called e Marketer,

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Speaker 1: the mobile advertising global market is set to be UH

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Speaker 1: worth over sixteen billion dollars this year. That's a lot

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Speaker 1: of money UM, which is a growth and I imagine

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Speaker 1: that we'll see that number even go even higher because

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Speaker 1: you're seeing when you start looking at sales figures for

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Speaker 1: things like tablets and smartphones, there through the roof, and

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Speaker 1: it's across the globe. Although I will say, and we'll

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Speaker 1: get into this, different parts of the globe value different platforms.

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Speaker 1: Some are very tablet crazy and some are like no,

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Speaker 1: I want my smartphone right. Absolutely, But but the marketers

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Speaker 1: also saying that the desktop ad market UM is set

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Speaker 1: to peak at around thirty five billion and be on

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Speaker 1: a decline after that. Yeah. And part of the reason

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Speaker 1: for that is that we're seeing more and more people

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Speaker 1: move away from those traditional desktop and laptop platforms. Uh.

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Speaker 1: And we're also seeing because we're seeing this move towards

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Speaker 1: mobile then itself is is in part devaluing advertising on

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Speaker 1: those traditional platforms, right, So if everyone is moving to

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Speaker 1: something else, then you can't sell your your website that's

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Speaker 1: designed for a desktop as a an ideal place for

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Speaker 1: you for advertisers to put ads, because if no one's

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Speaker 1: using a desktop to view that website, then no one's

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Speaker 1: getting that content right. And when whenever you have that split,

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Speaker 1: you're going to have some people who are who are

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Speaker 1: very happy with their experien rients and some people who

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Speaker 1: are not, just because of the way that the page

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Speaker 1: was designed. As I'm sure everyone listening to this has

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Speaker 1: has had the experience of in the past. Right. There's

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Speaker 1: even some discussion and some debate about the value of,

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Speaker 1: say a specific app for a web content creator versus

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Speaker 1: a mobile browser. So there are websites out there that

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Speaker 1: have apps. How stuff works has an app, and then

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Speaker 1: they also have a presence on the web and actual website.

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Speaker 1: And there are some people who who say that they

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Speaker 1: much prefer the experience of going through a mobile website

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Speaker 1: than using an app, even if that app has been

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Speaker 1: optimized to to really feature whatever the content is of

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Speaker 1: that website, because I guess partially part of it is

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Speaker 1: that when you're in a web browser, you have a

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Speaker 1: lot more freedom to go from one place to another,

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Speaker 1: and that may not be within the confines of whatever

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Speaker 1: website you're visiting, whereas if you're going through an app,

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Speaker 1: that's pretty much what you're seeing, right. So so okay,

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Speaker 1: so some of those more traditional methods that that we're

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Speaker 1: thinking are going to peak in the next couple of years. Right. So,

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Speaker 1: of course, the one that we all know because these

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Speaker 1: date back to the very earliest days of web pages

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Speaker 1: are banner ads, right. Those are the things that will

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Speaker 1: that you'll see along the top or sometimes along the

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Speaker 1: side of a web page that you're viewing, right, Yeah,

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Speaker 1: some people, some people will go so far as to

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Speaker 1: differentiate banner ads from whatever appears in the side but yes, sidebar.

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Speaker 1: But it's essentially the same thing. This is something that

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Speaker 1: is part of the frame of the website you're looking at.

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Speaker 1: So you're all familiar with this, I know, So I don't.

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Speaker 1: I'm not going to go into the great detailble it

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Speaker 1: is because assuming that you're listening to a podcast, I'm

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Speaker 1: pretty sure you've visited a web page as head of

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Speaker 1: banner ad on it. So, uh, that's one version. Another course,

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Speaker 1: are the dreaded pop ups and pop unders. These are

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Speaker 1: the ads that will either generate a window on top

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Speaker 1: of or beneath your web browser. So if it's on

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Speaker 1: top your web browser, you start your viewing experience. If

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Speaker 1: it's underneath, you'll see it when you finally close your

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Speaker 1: your page. Yeah, when you close your page or you

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Speaker 1: close your browser, and and then you see like eighteen

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Speaker 1: different windows there, and you think, whoa, something starts making

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Speaker 1: noise that you're not looking at. Oh man, hey, Lauren,

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Speaker 1: let me ask you is your favorite kind of ad?

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Speaker 1: My favorite kind of ad, you know, the one that

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Speaker 1: immediately starts to AutoPlay video with sound. That's my favorite.

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Speaker 1: How did you know? Yeah? It's also great when you're

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Speaker 1: doing research at work and then suddenly you've got like,

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Speaker 1: you know, despicable mean minions screaming at the top of

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Speaker 1: their lungs, but Nona, and you're like, well, that didn't

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Speaker 1: plan on treating everyone to that professionalism. Or if you're

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Speaker 1: or if you're like me and you think, I'm going

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Speaker 1: to click on this link and walk away to get

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Speaker 1: coffee because it's gonna take on this page to load,

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Speaker 1: and then you come back and there's a guess going

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Speaker 1: on at your desk, and all the writers and editors

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Speaker 1: of how stuff work hate you even more than they

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Speaker 1: did already anyway. So besides pop ups and pop unders,

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Speaker 1: you also have floating ads. These are the ones that

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Speaker 1: actually float over the text. They may even move as

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Speaker 1: you know, and block your view of it, and sometimes

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Speaker 1: there's not even a way of closing it. You just

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Speaker 1: have to wait until it goes away. And uh, expanding

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Speaker 1: ads These are the ones where if your cursor goes

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Speaker 1: over it, it suddenly expands to fill up and sometimes

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Speaker 1: we'll then start playing music video. Yeah, it can also happen,

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Speaker 1: but it'll it'll cover most of the web content that

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Speaker 1: you were going to visit. Then there of course ads

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Speaker 1: that are are not a line text ads yeah, which

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Speaker 1: are a little bit sneakier. Those those are the things

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Speaker 1: that you might have seen like a double underline and

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Speaker 1: article that you were reading that should you happen to

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Speaker 1: click on it, they might take it. It will take

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Speaker 1: you to some whoever is actually purchased the ad, and

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Speaker 1: usually it's something that directly relates to whatether the term is. So,

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Speaker 1: for example, if I were to write a blog post

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Speaker 1: and I'm mentioning a particular type of camera, there might

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Speaker 1: be a double underlined version of the camera's name, and

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Speaker 1: if you clicked on it, it might take you to

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Speaker 1: say Amazon dot com or some other retail site where

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Speaker 1: you can purchase the camera. So, I mean that's what

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Speaker 1: it's usually considered a slightly less obtrusive, but it can

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Speaker 1: also be sneaky or misleading or uh, just you know,

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Speaker 1: it might be one of those things where you're really

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Speaker 1: you've trained your mind in that Wikipedia approach where everything

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Speaker 1: that's a link will just take you to a different

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Speaker 1: article and you're expecting an article and you get something

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Speaker 1: information all rather than advertorial. But but you never know,

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Speaker 1: you know, uh, And then there are there's also search

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Speaker 1: engine marketing. That's where you end up paying a search

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Speaker 1: engine to feature your product on a results page that

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Speaker 1: relates back to whatever that product is. Those those will

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Speaker 1: be like a Google sponsored ads will pop up along

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Speaker 1: the like usually the first two at the top and

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Speaker 1: then maybe a few along a sidebar. Right, So it's

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Speaker 1: related to your search and and can be really very

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Speaker 1: helpful depending on on the the algorithms that Google is

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Speaker 1: using for that particular ad. But um, but yeah, it

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Speaker 1: has has been found to to create some confusion in

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Speaker 1: some populations of Internet goers as to whether those are

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Speaker 1: really the best search result or something that is sponsored.

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Speaker 1: Some people apparently don't read the fine print right right now,

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Speaker 1: there are different ways that these ads are actually making money, yea,

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Speaker 1: So we're gonna take you into the inside. Come along

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Speaker 1: with us. Of course, if you've listened to texta for

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Speaker 1: a while, you've heard that Chris and I did an

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Speaker 1: episode about um web advertising ages ago, and you probably

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Speaker 1: have heard these terms from that as well. But it's

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Speaker 1: certainly important in our discussion about mobile advertising. So one

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Speaker 1: of the very common forms of compensation is the CPM,

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Speaker 1: which is cost per mill which is not cost per million,

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Speaker 1: but rather cost per thousand. And we're talking about impressions

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Speaker 1: here or views. So it's every single time that page

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Speaker 1: that has that add on it has been loaded into

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Speaker 1: a browser, whether that's someone who has loaded it and

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Speaker 1: then hit refresh a billion times, or if it's a

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Speaker 1: billion people who looked at that page once. So it's

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Speaker 1: counting up every time that page is loaded, because every

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Speaker 1: time that page is loaded, that ad has been displayed,

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Speaker 1: and so that's a certain amount of money for every

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Speaker 1: thousand displays of of the page and therefore the ad, right,

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Speaker 1: and then that amount of money has changed dramatically over

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Speaker 1: the history of online advertising. There was a time where

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Speaker 1: if you had a really heavily traffic site, you could

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Speaker 1: demand a pretty high price for that. You know, we're talking.

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Speaker 1: You know, you might think thirty or forty dollars for

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Speaker 1: every thousand views isn't much, but if you get million

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Speaker 1: a million views per day, that really starts to add up.

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Speaker 1: But then you know, you have we talked about devaluing,

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Speaker 1: you start to see that that amount go down even

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Speaker 1: for the most heavily traffic sites because a lot of

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Speaker 1: traffic starts to come in through mobile. And we'll talk

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Speaker 1: about why that's a problem in a little bit, right.

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Speaker 1: So after that, you've got CPC, which has cost per click. Yeah,

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Speaker 1: now this is actually people who don't just see an AD,

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Speaker 1: but actively click on that ad to go through and

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Speaker 1: look at whatever the site is that that sponsors that

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Speaker 1: add So in this case, it doesn't matter how many

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Speaker 1: people view it. What matters is how many people click it.

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Speaker 1: And you could argue that this is not entirely up

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Speaker 1: to the content creator, because the content creator is just

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Speaker 1: creating stuff that they want people to look at. The

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Speaker 1: advertiser would have to create an ad that was enticing

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Speaker 1: enough to get people to click, or tricky enough so

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Speaker 1: that people click on it by accident, although I think

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Speaker 1: most people would argue that that's not very effective, not

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Speaker 1: really to the benefit of all involved. Right, And it

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Speaker 1: all depends on who's doing the marketing to Right. If

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Speaker 1: it's a third party marketing department that is creating these

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Speaker 1: ads and all they are concerned with is throwing as

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Speaker 1: much traffic to the to the advertiser as possible, then

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Speaker 1: they might not really care if it's truly effective in

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Speaker 1: getting people to convert. Where we talk about conversion numbers

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Speaker 1: to convert over into buying something, what's the whole third one?

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Speaker 1: That third one is cp A that's cost per action,

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Speaker 1: and that is going a step further than cost per click.

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Speaker 1: It's when someone has has clicked through to a site

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Speaker 1: and actually does whatever the advertiser wanted them to do,

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Speaker 1: like purchase a product or or in er a free trial.

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Speaker 1: So if you've listened scribe, yeah, you've listened to us

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Speaker 1: talk about our sponsors. We have several sponsors where they

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Speaker 1: use this approach. So if our listeners go and they

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Speaker 1: sign up for these things, then that means that the

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Speaker 1: sponsor will end up paying whatever the agreed upon amount is.

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Speaker 1: So in other words, go and sign up for those things, guys,

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Speaker 1: because that's awesome for us. Um Also, I mean, our

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Speaker 1: sponsors are great, so that helps too. So let's talk

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Speaker 1: about the mobile ad problem. Now. The problem is that

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Speaker 1: a lot of these these traditional ads that we talked about,

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Speaker 1: the banner ads and the pop ups, pop unders, the

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Speaker 1: text ads, are a lot harder to navigate or to

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Speaker 1: see in a mobile platform, particularly when you're talking about

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Speaker 1: something like a smartphone where the landscape of viewable area

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Speaker 1: is really tiny, right right, and people are are moving

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Speaker 1: through at a pretty rapid rate of reading speed, maybe

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Speaker 1: paying a little bit less attention. Yeah, And or it

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Speaker 1: may even be that in order to view whatever the

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Speaker 1: content is of the website, they re size it so

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Speaker 1: that they're only so that the text or whatever it

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Speaker 1: is they're looking at actually readable, therefore blocking out the

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Speaker 1: section of the page that've had a yeah, yeah, that

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Speaker 1: stuff might not even appear on the screen. Shure. There's

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Speaker 1: also a lot of programming bugs in which I mean,

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Speaker 1: you know, we've got so many, um so many mobile

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Speaker 1: devices and carriers and os. Is that at a certain

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Speaker 1: point it gets difficult for a single you know, web

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Speaker 1: developer to create a website that looks good on everything. Yeah.

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Speaker 1: A lot of these websites also have mobile versions of

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Speaker 1: them that are optimized for the mobile viewing experience, which

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Speaker 1: often means that they leave the ads off because there's

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Speaker 1: just no space for them. It ends up making the

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Speaker 1: content look all squished, and that's a terrible experience for

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Speaker 1: the user, which means that the user is less likely

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Speaker 1: to go to that website. So that means that in

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Speaker 1: order to monetize the website, we have to start looking

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Speaker 1: at different ways to to to have kind of ads

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Speaker 1: or sponsorships or whatever, because the traditional ways just aren't

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Speaker 1: they aren't designed with that platform in mind. Right, And

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Speaker 1: this is certainly not a new problem or or new

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Speaker 1: set of problems. As of two seven, mobile was becoming

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Speaker 1: a priority among media and marketing executives. Um. I mean

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Speaker 1: that was before the iPhone guys. Um you know. As

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Speaker 1: of two thousand six, Nielsen had started tracking cell phone

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Speaker 1: use across media, right right, Yeah, I remember that I

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Speaker 1: could browse with my old I had a Nokia phone

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Speaker 1: that hey, Microsoft buying them now. But I had a

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Speaker 1: I had an old Nokia phone that U or Nokia

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Speaker 1: phone that uh, that could browse websites and you would

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Speaker 1: just get in these little v texts and you'd have

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Speaker 1: to you know, you wouldn't get any graphics at all,

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Speaker 1: It's just text. Uh. I rapidly decided that was not

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Speaker 1: an ideal experience for me. Yeah, I believe I had

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Speaker 1: a Samsung like a like a flip flip phone that

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Speaker 1: allows you to do the same sort of thing anyway,

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Speaker 1: not important. It wasn't until I got a smartphone that

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Speaker 1: I really started to use it to do things like

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Speaker 1: browse the web. Yeah. So um so some some of

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Speaker 1: the trends that are going on right now, Yeah, let's

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Speaker 1: talk about them. So I got a lot of this

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Speaker 1: information from Adobe. Now, Adobe does a big digital index

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Speaker 1: report every now and then. It's semi regular, is how

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Speaker 1: I've seen it described. And part of it is the

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Speaker 1: State of Mobile benchmark study. And so these were some

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Speaker 1: things that they found in their study. They found that

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Speaker 1: tablets drive more web traffic than smartphones and may actually

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Speaker 1: be a PC replacement when it comes to web consumption. Now,

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Speaker 1: it's not that way, it's not like they've completely replaced

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Speaker 1: PCs already, but that it looks like tablets are poised

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Speaker 1: to take the place of PCs when it comes to

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Speaker 1: just browsing the web and consuming content for those for

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Speaker 1: those basic functions that are, you know, and anything more

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Speaker 1: simple than um, you know, complex photo editing or video

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Speaker 1: editing like that. So in general, people visit se more

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Speaker 1: web pages per visit on a tablet than they do

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Speaker 1: with a smartphone. So you know, that just means that

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Speaker 1: every time you get online with a tablet, then you're

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Speaker 1: you're in general you tend to be looking at more

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Speaker 1: web pages than you would be if you were using

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Speaker 1: a smartphone at the time. Now, it may turn out

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Speaker 1: that people use smartphones more freaquent le than tablets, and

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Speaker 1: so maybe those numbers are a little misleading, because if

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Speaker 1: you're using a smartphone a lot throughout the day, you

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Speaker 1: may actually visit more web pages accumulatively then you would

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Speaker 1: in one visit with the tablet. And and there are

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Speaker 1: more smartphones out there in the wild than there are tablets.

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Speaker 1: There's absolutely true, there are far more smartphones than tablets

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Speaker 1: in the wild, although according to Adobe, tablets are still

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Speaker 1: driving more traffic. Um. They said that people who use

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Speaker 1: tablets to browse shops are three times more likely to

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Speaker 1: buy something than someone on a smartphone. But it's probably

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Speaker 1: important now to look at some actual numbers because because

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Speaker 1: you sit there and thin, Wow, if I have if

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Speaker 1: I'm using a tablet, I'm three times more likely to

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Speaker 1: buy something than if I were looking at the same

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Speaker 1: content on a smartphone. Hold on their big guy, so

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Speaker 1: far this is where we start talking about conversion, converting

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Speaker 1: someone from browsing to buying. That's and that's that action.

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Speaker 1: That's that that's that cost per action kind of right

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Speaker 1: that we were talking about earlier. Yeah, this is this

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Speaker 1: is where we go from that's a pretty pair of

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Speaker 1: shoes to hey, I own those shoes now. So if

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Speaker 1: you're using a smartphone, it said that there was a

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Speaker 1: point seven percent conversion rate, meaning that point seven percent

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Speaker 1: of the people shopping on a smartphone would buy stuff

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Speaker 1: on a particularly on a typical visit, and so three

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Speaker 1: times that for for tablets, that would make it two

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Speaker 1: point two percent. Yeah, so when we're talking three times,

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Speaker 1: we're talking from less than one percent to just over

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Speaker 1: two percent. It's not it's not like some overwhelming number,

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Speaker 1: but also for PCs not that impressive. Actually, it's only

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Speaker 1: three point three percent for PCs. So again this is

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Speaker 1: and so this is not actually a method that is

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Speaker 1: working on on a particularly calculable level across the field. Yeah. Now,

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Speaker 1: if you look at if you look at just the

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Speaker 1: mass number of purchases, it ends up being huge numbers. Right,

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Speaker 1: we're talking billions of dollars. But when you're talking when

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Speaker 1: you're looking at all of traffic that is going to

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Speaker 1: these sites, it's a tiny little percentage. Now, if you

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Speaker 1: were to compare that to say, a person who walks

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Speaker 1: into a brick and mortar store and how likely they

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Speaker 1: are to actually walk out with a purchase, I'm sure

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Speaker 1: the numbers are are pathetic. However, way more people can

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Speaker 1: come to your website than can come to a typical

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Speaker 1: breaking mortar store. Yeah, you know, just the physical limitations

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Speaker 1: there means that it's a totally different set of numbers.

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Speaker 1: So even though it's a small percentage, it may still

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Speaker 1: be a large number of people. That's still I don't

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Speaker 1: know that. Nonetheless as to me that that possibly a

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Speaker 1: better system could be found. Oh sure, if we can

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Speaker 1: get to a point where we are compelled to buy.

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Speaker 1: You know that we are punished if we do not buy,

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Speaker 1: and that world is coming. I've said too much, all right, So, uh,

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Speaker 1: the leading operating system in the United States mobile operating system,

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Speaker 1: I should say, in the United States is here's a

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Speaker 1: big shock. Yeah, people love their Apple products. Sheep. I'm

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Speaker 1: just kidding. I'm just kidding. My wife. My wife uses

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Speaker 1: uh an iPad and an iPhone. She loves it. I

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Speaker 1: actually really think that iOS devices are amazing. I just

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Speaker 1: happen to be an Android user. So while I make

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Speaker 1: the joke, I am not one of those people who's

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Speaker 1: like Android good, iOS bad, which is which is good

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Speaker 1: because because I might we might have to fight. Yeah,

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Speaker 1: and I don't want to do that because she's scrappy, y'all.

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Speaker 1: I am elbows like knives. Um. But yeah. And then

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Speaker 1: that's despite the fact that there are more Android devices

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Speaker 1: overall available in the market. Oh yeah, sure, by far,

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Speaker 1: I mean considering that the iPhone is one device. Yeah,

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Speaker 1: you can buy an older iPhone, but it's still one

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Speaker 1: line of products, whereas Android comes in all shapes, sizes, flavors,

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Speaker 1: and problems. Uh, there's this whole fracturing of the market thing.

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Speaker 1: That we could talk about, but that's a different podcast. Uh,

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Speaker 1: Tablet versus smartphone use is not steady across the globe.

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Speaker 1: I mentioned that earlier, that there are some places in

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Speaker 1: the world where people prefer to browse on tablets and

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Speaker 1: others where they prefer smartphones. So, for example, in the UK,

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Speaker 1: about people use tablets, so that's the majority there. But

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Speaker 1: in China it's like nine of the people in China

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Speaker 1: are using smartphones to browse the web. So so it's

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Speaker 1: also hard to create a strategy, a mobile strategy that

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Speaker 1: is going to affect the entire globe. First of all,

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Speaker 1: being able to do business around the world is problematic too.

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Speaker 1: That that's sure, sure, And then that's why companies like

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Speaker 1: I think that right now, Google owns more than half

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Speaker 1: of the share in the mobile digital ad market across

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Speaker 1: the globe. Google. When you think about Google, and we've

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Speaker 1: said this before, to Google is not really a search company.

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Speaker 1: Google is an online advertising company, right and and they've

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Speaker 1: incorporated YouTube into that. They've incorporated they've incorporated everything like tracking,

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Speaker 1: GPS tracking, I mean, there's based upon what region you're in.

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Speaker 1: Now a lot of this is opt in, so you're

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Speaker 1: not forced to do it yet the compulsions coming people

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Speaker 1: just telling you now, but no, you're not forced to

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Speaker 1: do it. But if you do it, then you end

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Speaker 1: up getting what we call targeted ads. Right. They're targeted

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Speaker 1: to you based upon your behaviors, based upon where you're from,

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Speaker 1: if if there are more demographic things known about you,

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Speaker 1: like your gender and your age that can go into

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Speaker 1: targeted advertising, which I understand for some people it's really

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Speaker 1: kind of a creepy idea, this idea that the advertisers

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Speaker 1: know more about a lot of privacy issues wrapped up

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Speaker 1: in this now personally, and this is this is just

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Speaker 1: personally literally, like just as it applies to me, I

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Speaker 1: don't apply this to anyone else. I love targeted advertising,

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Speaker 1: and the reason why I love it is because I'm

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Speaker 1: seeing ads that are really much more relevant to my

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Speaker 1: interests and I learned about things I never would have

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Speaker 1: known about otherwise. And I love to to be able

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Speaker 1: to do that kind of shopping. But I would not

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Speaker 1: say that everyone wants to have that exact same experience.

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Speaker 1: And there are people who have had very disruptive things

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Speaker 1: happened to them because advertisers were able to figure out

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Speaker 1: certain life situations and send the messages unsolicited. There's that

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Speaker 1: one horror story of that um target girl who is

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Speaker 1: living with her parents, and Target, based on her purchasing behavior,

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Speaker 1: sent her a congratulations you're having a baby package and

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Speaker 1: then her father got all upset at Targets saying how

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Speaker 1: dare you send this to her, and then send another

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Speaker 1: layer's target saying I'm sorry, I did not realize my

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Speaker 1: daughter was pregnant and boy, yeah, so they're There are

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Speaker 1: definitely ways that this this tool can go wrong, all right,

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Speaker 1: you know, it can be pretty awkward and pretty invasive.

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Speaker 1: At the same time, I do have to say that, yes,

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Speaker 1: I agree with you, Jonathan, and I personally am am

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Speaker 1: happier when, for example, I've just gone through a terrifyingly

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Speaker 1: bad breakup and Facebook is not sending me engagement ring ads.

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Speaker 1: That's a that's a great day for me. Yeah, yeah,

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Speaker 1: personally I could see that. Okay, that's fair. Uh. The

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Speaker 1: last point I have under the trends this one I

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Speaker 1: recommend we all take with a huge grain of salt.

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Speaker 1: And the reason is that, like you said Lauren at

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Speaker 1: the top of the show, some of the sources we

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Speaker 1: have for the information are from companies that have vested

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Speaker 1: interest in online advertising basically all of them, to which

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Speaker 1: which makes things a little bit sticky, right because I mean,

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Speaker 1: they might be saying, hey, you know, you shouldn't get

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Speaker 1: out of desktop advertising because it's gonna come back in

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Speaker 1: a big way. And it turns out the reason why

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Speaker 1: they say that because they have this whole advertising strategy

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Speaker 1: that they want to sell. But in this case, there's

431
00:22:14,400 --> 00:22:19,080
Speaker 1: a company called host Gator which is vested in mobile advertising.

432
00:22:19,200 --> 00:22:23,240
Speaker 1: So again let's let's take that into consideration. But they

433
00:22:23,280 --> 00:22:26,600
Speaker 1: they say that they figure that mobile will overtake fixed

434
00:22:26,640 --> 00:22:31,359
Speaker 1: internet access by teen. So we're recording this, which means

435
00:22:31,359 --> 00:22:35,320
Speaker 1: next year we would see mobile browsing overtake internet browsing,

436
00:22:35,359 --> 00:22:39,439
Speaker 1: or at least mobile access to the Internet overtake fixed access. Now,

437
00:22:39,920 --> 00:22:42,959
Speaker 1: while that is coming from a company that is offering

438
00:22:43,040 --> 00:22:46,480
Speaker 1: up mobile advertising strategies, it's also one of those things

439
00:22:46,480 --> 00:22:49,520
Speaker 1: that I find easy to believe just based upon the

440
00:22:49,520 --> 00:22:52,240
Speaker 1: trends we've been seeing so far. Now, maybe it means

441
00:22:52,280 --> 00:22:54,639
Speaker 1: that it's not really fourteen, Maybe it will be a

442
00:22:54,640 --> 00:22:56,720
Speaker 1: few more years down the road before we actually see

443
00:22:56,760 --> 00:23:00,439
Speaker 1: this happen, But I think it is happening. And you know,

444
00:23:00,440 --> 00:23:03,880
Speaker 1: whether whether it overtakes it or not, it's it's clearly

445
00:23:04,040 --> 00:23:09,480
Speaker 1: a a functioning revenue source. Um or. Facebook reported that

446
00:23:09,520 --> 00:23:14,159
Speaker 1: as of Q two, of mobile ads made up of

447
00:23:14,200 --> 00:23:17,960
Speaker 1: its revenue. Yeah. And in fact, that was one of

448
00:23:17,960 --> 00:23:20,239
Speaker 1: those things that when Facebook was having its I p

449
00:23:20,359 --> 00:23:22,199
Speaker 1: O there was a little bit of a shake up

450
00:23:22,200 --> 00:23:24,600
Speaker 1: because Facebook at that point had not really figured out

451
00:23:24,600 --> 00:23:27,480
Speaker 1: how it was going to handle the mobile ads part

452
00:23:27,600 --> 00:23:31,159
Speaker 1: of its of its revenue stream. And so they discovered

453
00:23:31,200 --> 00:23:35,480
Speaker 1: that their um their their revenues for one quarter that

454
00:23:35,560 --> 00:23:38,560
Speaker 1: year were lower than what had they had projected. And

455
00:23:38,600 --> 00:23:41,639
Speaker 1: it was partially because everyone was starting to when I

456
00:23:41,640 --> 00:23:43,880
Speaker 1: say everyone, so many people were starting to use the

457
00:23:43,920 --> 00:23:47,320
Speaker 1: Facebook mobile app or or just to access Facebook on

458
00:23:47,440 --> 00:23:51,480
Speaker 1: mobile platform, which again gives you a totally different experience

459
00:23:51,520 --> 00:23:54,960
Speaker 1: than than on a desktop. It made it made a

460
00:23:55,000 --> 00:23:57,880
Speaker 1: lot of investors lose faith in them. And in fact, this,

461
00:23:57,880 --> 00:24:01,399
Speaker 1: this news, this Q two news um was basically what

462
00:24:01,640 --> 00:24:04,960
Speaker 1: preempted the rebound and Facebook staff this summer. It shows

463
00:24:04,960 --> 00:24:08,120
Speaker 1: how powerful mobile really is. Well, we'll talk a little

464
00:24:08,119 --> 00:24:11,240
Speaker 1: bit more about some of these challenges in just a minute,

465
00:24:11,240 --> 00:24:12,880
Speaker 1: but before we do, we're going to take our own

466
00:24:12,920 --> 00:24:17,480
Speaker 1: little break to thank our sponsor. Okay, so let's talk

467
00:24:17,520 --> 00:24:20,840
Speaker 1: about some of the challenges about mobile advertising. We've touched

468
00:24:20,840 --> 00:24:22,720
Speaker 1: on some of them already, but we'll we'll kind of

469
00:24:22,760 --> 00:24:26,439
Speaker 1: have to pull them all into this gigantic cloud of

470
00:24:26,600 --> 00:24:31,520
Speaker 1: how do we do this? Right? So, the type of

471
00:24:31,560 --> 00:24:35,080
Speaker 1: content you consume might depend upon the device you're using,

472
00:24:35,119 --> 00:24:38,160
Speaker 1: because some devices use certain make certain type of content

473
00:24:38,560 --> 00:24:41,359
Speaker 1: easier to access or to consume. For example, if a

474
00:24:41,359 --> 00:24:43,879
Speaker 1: website is in flash, probably you're not looking at that

475
00:24:44,160 --> 00:24:47,040
Speaker 1: on an iOS device anyway. You know, Android for a

476
00:24:47,040 --> 00:24:51,600
Speaker 1: while supported Flash for a while. Um, yeah, so you

477
00:24:51,720 --> 00:24:54,159
Speaker 1: that that's a good example exactly when I don't know

478
00:24:54,200 --> 00:24:56,600
Speaker 1: about you, Lauren, I don't know how how frequently you

479
00:24:56,600 --> 00:24:59,200
Speaker 1: you will occasion go out to eat at some place

480
00:24:59,200 --> 00:25:01,520
Speaker 1: where you're not really familiar with the menu. But if

481
00:25:01,560 --> 00:25:03,280
Speaker 1: you've ever had the experience where you click on the

482
00:25:03,280 --> 00:25:05,320
Speaker 1: menu thing and then you realize that the menu was

483
00:25:05,320 --> 00:25:08,199
Speaker 1: programmed in flash, you probably have had some choice words.

484
00:25:08,440 --> 00:25:10,960
Speaker 1: I have I have cursed the heavens multiple times based

485
00:25:10,960 --> 00:25:15,879
Speaker 1: on that. Yes, when occurred grasp of hanger, which is

486
00:25:16,880 --> 00:25:20,119
Speaker 1: the combination of being hungry and angry at the same time.

487
00:25:21,200 --> 00:25:23,479
Speaker 1: Lauren and I both suffer from this, So you do

488
00:25:23,560 --> 00:25:25,000
Speaker 1: not want to be in a room with us when

489
00:25:25,040 --> 00:25:27,160
Speaker 1: neither of us have had a snack. Yeah, both both

490
00:25:27,160 --> 00:25:29,400
Speaker 1: of us are are a tiny bit on the hypoglycemic

491
00:25:29,480 --> 00:25:32,679
Speaker 1: end and also have very particular dietary restrictions. Right, it

492
00:25:32,720 --> 00:25:36,280
Speaker 1: makes us really entertaining. The longer our podcast, the longer

493
00:25:36,280 --> 00:25:38,800
Speaker 1: our podcast goes, the more likely we are to come

494
00:25:38,840 --> 00:25:41,080
Speaker 1: to blows, not because we don't like each other, but

495
00:25:41,160 --> 00:25:46,720
Speaker 1: because we're angry. Well, I go into fits of rage

496
00:25:46,840 --> 00:25:49,840
Speaker 1: when I try and access something like a menu on

497
00:25:49,840 --> 00:25:52,280
Speaker 1: on a mobile device. And that's a perfect example of

498
00:25:52,320 --> 00:25:55,199
Speaker 1: how companies have to really take that into account when

499
00:25:55,240 --> 00:25:59,800
Speaker 1: they're designing their their mobile websites or their mobile applications.

500
00:26:00,160 --> 00:26:02,600
Speaker 1: They need to make sure that they are catering to

501
00:26:02,960 --> 00:26:06,960
Speaker 1: a platform that has its own set of advantages and disadvantages,

502
00:26:07,000 --> 00:26:10,359
Speaker 1: things that can and cannot do. Um. And then there's

503
00:26:10,440 --> 00:26:13,840
Speaker 1: also the concept of content grazing, which makes it even

504
00:26:13,920 --> 00:26:17,000
Speaker 1: more complicated. And uh, that is that is the concept

505
00:26:17,080 --> 00:26:19,639
Speaker 1: that um that most people when they're on their mobile

506
00:26:19,680 --> 00:26:23,200
Speaker 1: devices are doing multiple other things at the same time,

507
00:26:23,840 --> 00:26:27,440
Speaker 1: maybe watching TV, maybe on their tablet, maybe also checking

508
00:26:27,440 --> 00:26:30,960
Speaker 1: their smartphones simultaneous. Yeah, they might have usually it's too

509
00:26:31,280 --> 00:26:34,720
Speaker 1: at least two screens, probably more than two screens for

510
00:26:34,760 --> 00:26:39,800
Speaker 1: some of us, where we are consuming things on multiple platforms,

511
00:26:39,840 --> 00:26:41,479
Speaker 1: all at the same time, all of which have their

512
00:26:41,520 --> 00:26:44,040
Speaker 1: own advantages and disadvantages, like I just said, so that

513
00:26:44,080 --> 00:26:45,879
Speaker 1: may or may not be related. You know that. I

514
00:26:45,880 --> 00:26:48,159
Speaker 1: think the hope like that, if you're watching television is

515
00:26:48,200 --> 00:26:50,400
Speaker 1: that you're going to be on your tablet looking up

516
00:26:50,400 --> 00:26:54,520
Speaker 1: extraneous information about that television program. Yeah, but does not

517
00:26:54,640 --> 00:26:57,919
Speaker 1: necessarily the case because let me tell you, I have

518
00:26:58,160 --> 00:27:03,920
Speaker 1: frequently watched uh Netflix on my Xbox three sixty. There's

519
00:27:03,920 --> 00:27:06,040
Speaker 1: gonna be a lot of name dropping here because I

520
00:27:06,040 --> 00:27:09,480
Speaker 1: want to just point out how insane I am. So

521
00:27:09,720 --> 00:27:11,960
Speaker 1: I've got my television on, I've got my Xbox three

522
00:27:12,000 --> 00:27:14,160
Speaker 1: sixty on. I'm watching Netflix for that, so that's one

523
00:27:14,200 --> 00:27:16,600
Speaker 1: thing I've got going on. Meanwhile, I've got my laptop

524
00:27:16,680 --> 00:27:18,440
Speaker 1: up and I'm in Google Docs so that i can

525
00:27:18,480 --> 00:27:20,880
Speaker 1: type in snarky comments about whatever it is I'm watching,

526
00:27:20,880 --> 00:27:23,359
Speaker 1: because I'm probably doing this for another show I do. So.

527
00:27:23,400 --> 00:27:26,359
Speaker 1: Then I've also got my smartphone there where I'm getting

528
00:27:26,359 --> 00:27:29,000
Speaker 1: all of my status updates from various things because I

529
00:27:29,000 --> 00:27:31,120
Speaker 1: don't want to have too many tabs open on my laptop.

530
00:27:31,200 --> 00:27:34,240
Speaker 1: That slows things down for all the snark. So already

531
00:27:34,240 --> 00:27:38,480
Speaker 1: I've got three screens going. I have a problem. And

532
00:27:38,520 --> 00:27:41,880
Speaker 1: I'm not alone. It turns out the problem right, and

533
00:27:41,880 --> 00:27:44,560
Speaker 1: and and and people cite all kinds of different reasons

534
00:27:44,600 --> 00:27:46,760
Speaker 1: for doing this, and and it might be it might

535
00:27:46,760 --> 00:27:49,720
Speaker 1: be that where you just don't want to put down

536
00:27:49,800 --> 00:27:52,120
Speaker 1: all of your feeds, where you have the slight addiction

537
00:27:52,240 --> 00:27:54,840
Speaker 1: to all of the information coming in. You're very kind

538
00:27:54,880 --> 00:27:58,040
Speaker 1: to say slight, yes, but that is that is one.

539
00:27:58,119 --> 00:28:00,080
Speaker 1: There's one where it's just I just want something on

540
00:28:00,119 --> 00:28:02,080
Speaker 1: the background. I just I can't have to be quiet.

541
00:28:02,119 --> 00:28:03,679
Speaker 1: I just have to have something on in the background

542
00:28:03,680 --> 00:28:05,199
Speaker 1: while I'm doing this other thing. And it's not that

543
00:28:05,240 --> 00:28:07,240
Speaker 1: I'm paying any attention to that, but I have to

544
00:28:07,240 --> 00:28:09,760
Speaker 1: have it on right um or even that, you know,

545
00:28:09,880 --> 00:28:12,400
Speaker 1: during commercial breaks or if something is if you're having

546
00:28:12,840 --> 00:28:15,960
Speaker 1: load screen issues or something like that. It's just your board,

547
00:28:16,119 --> 00:28:18,919
Speaker 1: exactly that, your board. And rather than be bored, you

548
00:28:18,920 --> 00:28:21,000
Speaker 1: want to switch your attention to something else to keep

549
00:28:21,040 --> 00:28:23,200
Speaker 1: you entertained what you're waiting for the boring thing to stop.

550
00:28:23,320 --> 00:28:25,560
Speaker 1: I am so guilty of that. I am to that

551
00:28:25,680 --> 00:28:28,080
Speaker 1: is really that's the thing that I'm working on. But yeah,

552
00:28:28,160 --> 00:28:30,760
Speaker 1: I fall into that same sort of category. And we're

553
00:28:30,760 --> 00:28:32,000
Speaker 1: not alone. There are a lot of people, and of

554
00:28:32,040 --> 00:28:36,440
Speaker 1: course everyone seems to think that they are the ideal multitasker,

555
00:28:36,520 --> 00:28:40,160
Speaker 1: even though studies have shown repeatedly that the vast majority

556
00:28:40,360 --> 00:28:43,240
Speaker 1: portion of the population is actually good at multitask like

557
00:28:43,360 --> 00:28:47,440
Speaker 1: one or two percent of the entire population. Everyone else

558
00:28:47,480 --> 00:28:50,720
Speaker 1: is lying to themselves, me included, right right, everyone else

559
00:28:50,920 --> 00:28:53,840
Speaker 1: that your performance on every individual task you are trying

560
00:28:53,840 --> 00:28:58,320
Speaker 1: to do simultaneously declines for a few people, the supertaskers,

561
00:28:58,600 --> 00:29:01,320
Speaker 1: this is not the case. But if you are wondering

562
00:29:01,400 --> 00:29:04,000
Speaker 1: if you're a supertasker, you're not. I mean, I'm just

563
00:29:04,040 --> 00:29:08,280
Speaker 1: safe to say that statistically speaking. Nope. All right, so um,

564
00:29:08,320 --> 00:29:11,560
Speaker 1: there's also, uh the idea that we had before about

565
00:29:11,600 --> 00:29:14,760
Speaker 1: these these different screen landscapes, the fact that that websites

566
00:29:14,840 --> 00:29:17,200
Speaker 1: are laid out in a different way depending upon what

567
00:29:17,360 --> 00:29:19,960
Speaker 1: kind of device you're looking at. You know, if you're

568
00:29:20,040 --> 00:29:22,600
Speaker 1: using a smartphone, you're going to get a certain layout.

569
00:29:22,640 --> 00:29:24,760
Speaker 1: If you get a tablets a different layout that might

570
00:29:24,800 --> 00:29:27,120
Speaker 1: be similar to the layout you might get from a

571
00:29:27,200 --> 00:29:30,040
Speaker 1: laptop or desktop. But it's still a little different. It's

572
00:29:30,080 --> 00:29:31,800
Speaker 1: not you know that each one is trying to be

573
00:29:31,880 --> 00:29:37,400
Speaker 1: optimized for the experience, because one size does not that all. Like,

574
00:29:37,480 --> 00:29:40,200
Speaker 1: you can't have one design of a website and expect

575
00:29:40,240 --> 00:29:43,560
Speaker 1: that to work across all devices. I mean, there's a

576
00:29:43,560 --> 00:29:46,000
Speaker 1: lot of variety out there, especially right Yes, and like,

577
00:29:46,000 --> 00:29:48,400
Speaker 1: like we're saying earlier, there are so many different screen

578
00:29:48,400 --> 00:29:51,880
Speaker 1: sizes when you get into Android devices in particular, that

579
00:29:52,040 --> 00:29:54,840
Speaker 1: um that it's yeah, yeah, so so okay. So so

580
00:29:54,880 --> 00:29:57,160
Speaker 1: you're working with a whole bunch of different devices, all

581
00:29:57,200 --> 00:30:01,880
Speaker 1: of which are carried by many different wireless operators, working

582
00:30:01,920 --> 00:30:08,040
Speaker 1: working upon many different operating systems from many different locations. Um. So,

583
00:30:08,040 --> 00:30:11,720
Speaker 1: so location based stuff has to be very particular. Um,

584
00:30:12,080 --> 00:30:15,240
Speaker 1: the the the advertisers creating this content may not actually

585
00:30:15,280 --> 00:30:17,960
Speaker 1: be personally using the mobile platforms that they're working with,

586
00:30:18,040 --> 00:30:20,760
Speaker 1: and therefore might not be familiar enough with them to

587
00:30:20,920 --> 00:30:23,520
Speaker 1: really have insight into what will and will work for

588
00:30:23,520 --> 00:30:27,560
Speaker 1: for people. Um And and furthermore, um, you know, this

589
00:30:27,640 --> 00:30:32,280
Speaker 1: is all a new, new issue new as of two thousands,

590
00:30:32,440 --> 00:30:34,800
Speaker 1: I would say, I would say it's still very much

591
00:30:34,840 --> 00:30:38,720
Speaker 1: an emerging technology. I mean, it's by now, I think

592
00:30:38,760 --> 00:30:41,160
Speaker 1: from a consumer standpoint, we're looking at and saying, this

593
00:30:41,240 --> 00:30:43,720
Speaker 1: is a fairly mature technology at this point. We're seeing

594
00:30:43,720 --> 00:30:47,240
Speaker 1: we're seeing refinements, but not giant leaps and evolution from

595
00:30:47,240 --> 00:30:49,920
Speaker 1: a consumer standpoint. But on the back end of it,

596
00:30:50,080 --> 00:30:53,600
Speaker 1: the actual creation and delivery of content, it's still like,

597
00:30:53,800 --> 00:30:56,480
Speaker 1: you know, corporations don't move at the speed of consumers.

598
00:30:57,000 --> 00:30:59,880
Speaker 1: All right, So we've covered the fact that mobile advertising

599
00:30:59,920 --> 00:31:02,840
Speaker 1: is hard. You uh, Let's talk about some of the

600
00:31:03,600 --> 00:31:07,400
Speaker 1: strategies that have been applied to mobile advertising. We mentioned

601
00:31:07,400 --> 00:31:12,320
Speaker 1: one targeted ads, specifically targeting your not just your behaviors

602
00:31:12,400 --> 00:31:16,040
Speaker 1: like what your your past browsing habits are, but also

603
00:31:16,080 --> 00:31:18,440
Speaker 1: your location. If you do enable that, Like I said,

604
00:31:18,440 --> 00:31:21,760
Speaker 1: for most systems, it's an opt in situation, so you're

605
00:31:21,800 --> 00:31:25,120
Speaker 1: not being tracked to do it right or you know,

606
00:31:25,160 --> 00:31:28,800
Speaker 1: in some cases it might be an opt out like

607
00:31:28,920 --> 00:31:32,160
Speaker 1: default on right. I much prefer opt in obviously to

608
00:31:32,200 --> 00:31:34,840
Speaker 1: opt out, just because it gives the consumer much more

609
00:31:35,600 --> 00:31:38,840
Speaker 1: transparent control of what is going on with their data.

610
00:31:39,240 --> 00:31:42,360
Speaker 1: But yes, you in those cases, you will have the

611
00:31:42,440 --> 00:31:45,720
Speaker 1: ability to reach people and give them ads that are

612
00:31:46,160 --> 00:31:49,120
Speaker 1: at least have a probability of being more relevant to

613
00:31:49,120 --> 00:31:51,800
Speaker 1: them than just and you know, an ad from a

614
00:31:51,880 --> 00:31:57,600
Speaker 1: database of sponsors. UM. Also, video ads big big deal

615
00:31:57,640 --> 00:32:01,200
Speaker 1: with mobile advertising and mobile platforms because since people aren't

616
00:32:01,240 --> 00:32:05,000
Speaker 1: necessarily paying, you know, they're they're not necessarily reading really

617
00:32:05,040 --> 00:32:07,720
Speaker 1: in depth articles about stuff on their mobile platforms, they

618
00:32:07,800 --> 00:32:10,600
Speaker 1: might be watching a quick video or listening to something. Yeah,

619
00:32:10,600 --> 00:32:14,600
Speaker 1: there's a lot more of video consumption on mobile platforms. Uh.

620
00:32:14,600 --> 00:32:16,600
Speaker 1: And you know, I remember a few years ago when

621
00:32:17,200 --> 00:32:20,640
Speaker 1: the the cellular speeds weren't really good enough to give

622
00:32:20,680 --> 00:32:25,640
Speaker 1: a very good experience for video, and I was thinking, like,

623
00:32:25,960 --> 00:32:27,800
Speaker 1: this is never going to take off. But of course,

624
00:32:27,840 --> 00:32:30,560
Speaker 1: once those speeds got better, and once the processors got

625
00:32:30,560 --> 00:32:32,840
Speaker 1: better and the battery life got better on these devices,

626
00:32:32,920 --> 00:32:37,040
Speaker 1: it became a viable uh thing, a viable feature. And

627
00:32:37,160 --> 00:32:40,959
Speaker 1: so a lot of web content creators are making a

628
00:32:41,000 --> 00:32:44,320
Speaker 1: slow move from traditional web content that you might think

629
00:32:44,320 --> 00:32:46,920
Speaker 1: of as a uh, you know, a database of articles

630
00:32:46,920 --> 00:32:50,120
Speaker 1: and start to create more video content. Uh. And that

631
00:32:50,400 --> 00:32:53,440
Speaker 1: it's in part because that's the kind of content that

632
00:32:53,480 --> 00:32:56,120
Speaker 1: people are seeking out. It's the it's easy to consume

633
00:32:56,160 --> 00:33:00,880
Speaker 1: in these mobile platforms. And it doesn't mean that the

634
00:33:00,960 --> 00:33:05,920
Speaker 1: content quality changes, it just the actual delivery of it changes.

635
00:33:06,680 --> 00:33:11,960
Speaker 1: So you then have a move to start inserting video

636
00:33:12,000 --> 00:33:14,560
Speaker 1: ads into things. But even that gets a little tough,

637
00:33:14,640 --> 00:33:17,840
Speaker 1: I mean, depending upon what you're using as a way

638
00:33:17,880 --> 00:33:20,880
Speaker 1: of delivering video to your consumer. For example, if you're

639
00:33:20,920 --> 00:33:26,080
Speaker 1: using YouTube, YouTube allows people to serve ads against their content,

640
00:33:26,680 --> 00:33:29,000
Speaker 1: and if you do that then you get a certain

641
00:33:29,040 --> 00:33:33,680
Speaker 1: percentage of the ad revenue and Google gets the rest, right,

642
00:33:33,680 --> 00:33:36,680
Speaker 1: And it's not an insignificant amount that Google gets, no, Google,

643
00:33:36,720 --> 00:33:39,320
Speaker 1: Google gets a significant amount of that, you know, depending

644
00:33:39,400 --> 00:33:41,800
Speaker 1: upon I don't know if all the agreements are the

645
00:33:41,840 --> 00:33:44,880
Speaker 1: same across all content creators. I imagine that there are

646
00:33:44,920 --> 00:33:47,800
Speaker 1: different ones, but at any rate, Google does take a

647
00:33:47,800 --> 00:33:50,680
Speaker 1: cut of that. And on top of that, Google also

648
00:33:50,720 --> 00:33:54,280
Speaker 1: has an algorithm where you can sometimes skip an ad

649
00:33:54,320 --> 00:33:57,000
Speaker 1: if you've ever watched a YouTube video in five seconds,

650
00:33:58,040 --> 00:34:02,120
Speaker 1: So skipping that ad, I suspect impacts how much money

651
00:34:02,240 --> 00:34:05,440
Speaker 1: the the person who has that content will receive because

652
00:34:05,480 --> 00:34:07,880
Speaker 1: you've you've just allowed the user to skip it. Why

653
00:34:07,920 --> 00:34:10,719
Speaker 1: does Google do this, Well, it's for user experience, you know.

654
00:34:10,800 --> 00:34:13,080
Speaker 1: They it's too it's this idea that by doing this

655
00:34:13,400 --> 00:34:17,600
Speaker 1: you keep user satisfaction up. And uh, the algorithm is

656
00:34:17,640 --> 00:34:20,759
Speaker 1: designed so that there are certain times when you are

657
00:34:20,840 --> 00:34:22,680
Speaker 1: not going to be allowed to skip an AD, and

658
00:34:22,719 --> 00:34:26,800
Speaker 1: it doesn't necessarily mean that that particular AD is different

659
00:34:26,800 --> 00:34:29,360
Speaker 1: from another, it's just that the algorithm has lined it

660
00:34:29,440 --> 00:34:31,920
Speaker 1: up that way. Um. There are other times where I

661
00:34:31,960 --> 00:34:33,960
Speaker 1: guess there are AD deals where no matter what, you're

662
00:34:34,000 --> 00:34:36,120
Speaker 1: never able to skip it because I've I've seen some

663
00:34:36,239 --> 00:34:39,840
Speaker 1: ads that didn't it didn't matter what video I was watching,

664
00:34:39,880 --> 00:34:41,319
Speaker 1: that ad was going to play all the way through

665
00:34:41,680 --> 00:34:45,560
Speaker 1: every time. UM. So these deals are complicated. There's no

666
00:34:45,640 --> 00:34:48,759
Speaker 1: one size fits all approach. Even with YouTube, and that's

667
00:34:48,840 --> 00:34:51,759
Speaker 1: just one delivery system. Now there are other ones that

668
00:34:51,800 --> 00:34:53,480
Speaker 1: are out there on the web, but YouTube is just

669
00:34:53,520 --> 00:34:58,040
Speaker 1: one of those that's incredibly well known. On top of that,

670
00:34:58,080 --> 00:35:01,320
Speaker 1: you have social platform ads, So this is using stuff

671
00:35:01,360 --> 00:35:04,440
Speaker 1: like Twitter and Facebook to kind of advertise, so you know,

672
00:35:04,560 --> 00:35:08,960
Speaker 1: sponsored tweets where you'll look at your Twitter feed and

673
00:35:09,000 --> 00:35:11,920
Speaker 1: you're like, I'm not following Burger King. Yeah, why am

674
00:35:11,960 --> 00:35:14,399
Speaker 1: I seeing this? It's because it's a promoted tweet that

675
00:35:14,400 --> 00:35:16,920
Speaker 1: that the company in this case Burger King, has paid

676
00:35:17,120 --> 00:35:19,880
Speaker 1: so that you will know that their latest version of

677
00:35:19,880 --> 00:35:23,319
Speaker 1: the Whopper is available or whatever, and so you'll, um,

678
00:35:23,560 --> 00:35:26,960
Speaker 1: you know, you'll see that because it's been promoted into Twitter.

679
00:35:27,520 --> 00:35:30,560
Speaker 1: Um that's one way. Another is a course on platforms

680
00:35:30,600 --> 00:35:33,000
Speaker 1: like Facebook, where you'll see those ads that are maybe

681
00:35:33,040 --> 00:35:36,640
Speaker 1: along the right rail, or occasionally you'll see sponsored inline. Yeah,

682
00:35:36,640 --> 00:35:39,680
Speaker 1: you'll see sponsored stuff pop up in your feed. And

683
00:35:39,719 --> 00:35:42,359
Speaker 1: again that stuff that companies have paid for and and

684
00:35:42,480 --> 00:35:45,640
Speaker 1: in this case that also tends to be run through

685
00:35:45,880 --> 00:35:49,640
Speaker 1: some algorithms, so that the ads that you see, Lauren,

686
00:35:50,400 --> 00:35:53,239
Speaker 1: are probably different from the ads that I see. I

687
00:35:53,239 --> 00:35:57,800
Speaker 1: imagine that you get fewer ads for my aforementioned example,

688
00:35:58,160 --> 00:36:01,200
Speaker 1: engagement rings than I do because I'm female and therefore

689
00:36:01,239 --> 00:36:05,080
Speaker 1: I'm clearly interested in receiving a diamond from somebody. And

690
00:36:05,120 --> 00:36:08,040
Speaker 1: I'm married, So if I start shopping for engagement rings,

691
00:36:08,080 --> 00:36:12,439
Speaker 1: I'm going to have some serious questions to answer. Also, yeah,

692
00:36:12,719 --> 00:36:15,640
Speaker 1: it's also based upon your browsing habits. I know this

693
00:36:15,800 --> 00:36:19,759
Speaker 1: because I was recently looking at a costume piece. I

694
00:36:19,800 --> 00:36:23,040
Speaker 1: was looking for a specific costume piece, and I went

695
00:36:23,120 --> 00:36:26,400
Speaker 1: to several different websites looking for this, you know, variations

696
00:36:26,400 --> 00:36:28,200
Speaker 1: on this costume piece, and then I went up back

697
00:36:28,280 --> 00:36:31,400
Speaker 1: over to Facebook and lo and behold, one of the

698
00:36:31,440 --> 00:36:33,440
Speaker 1: things I was looking for was right there in the

699
00:36:33,520 --> 00:36:35,879
Speaker 1: right rail with the other ads. So it was going

700
00:36:35,920 --> 00:36:39,719
Speaker 1: beyond just my uh, my experience on Facebook. It was

701
00:36:39,719 --> 00:36:44,480
Speaker 1: looking at my browsing history fun times. So um. It

702
00:36:44,560 --> 00:36:49,200
Speaker 1: does then filter the various ads that you could get

703
00:36:49,239 --> 00:36:51,239
Speaker 1: and goes with the ones that you are most likely

704
00:36:51,320 --> 00:36:54,040
Speaker 1: to find relevant based upon your behaviors and what you've

705
00:36:54,080 --> 00:36:56,520
Speaker 1: liked in the past. And it may very well be

706
00:36:56,680 --> 00:37:00,719
Speaker 1: that perhaps that that ad I saw isn't related to

707
00:37:00,719 --> 00:37:03,640
Speaker 1: my browsing history. Maybe I liked something in the past

708
00:37:03,680 --> 00:37:06,239
Speaker 1: that brought it up. That's quite possible because it was

709
00:37:06,280 --> 00:37:08,640
Speaker 1: just a coincidence that you that you noticed because your

710
00:37:08,640 --> 00:37:11,279
Speaker 1: brain had been on that exactly exactly. It could very

711
00:37:11,320 --> 00:37:15,279
Speaker 1: well be a coincidence. I'm not totally on the this

712
00:37:15,360 --> 00:37:18,040
Speaker 1: is the cause and this is the effect bandwagon. I've

713
00:37:18,120 --> 00:37:23,480
Speaker 1: just so um. But then there's also the suggestion that

714
00:37:23,560 --> 00:37:25,560
Speaker 1: content creators have to find ways to make the stuff

715
00:37:25,600 --> 00:37:28,560
Speaker 1: they generate easy to consume on mobile devices, and it

716
00:37:28,600 --> 00:37:31,600
Speaker 1: has to be engaging and optimized, and then that means

717
00:37:31,680 --> 00:37:34,719
Speaker 1: that it needs to be snack sized, kind of like

718
00:37:34,800 --> 00:37:37,879
Speaker 1: we were saying with more content moving to video, this

719
00:37:37,880 --> 00:37:39,520
Speaker 1: this is this is similar. This is you know, if

720
00:37:39,560 --> 00:37:41,560
Speaker 1: you do have an article. Have its something that someone

721
00:37:41,640 --> 00:37:45,480
Speaker 1: can consume easily and quickly while they're on a mobile tablet,

722
00:37:45,920 --> 00:37:48,640
Speaker 1: mobile platform. It might be a paragraph as opposed to

723
00:37:48,680 --> 00:37:51,040
Speaker 1: an article. It might you know, you'll see a lot

724
00:37:51,080 --> 00:37:55,200
Speaker 1: of things like uh images, slide shows. You'll see um,

725
00:37:55,239 --> 00:37:58,680
Speaker 1: you know, quick quick things, because the idea is that

726
00:37:58,800 --> 00:38:02,120
Speaker 1: no one wants to sit and read an in depth

727
00:38:02,200 --> 00:38:04,480
Speaker 1: article on a mobile platform, or at least that that's

728
00:38:04,480 --> 00:38:06,560
Speaker 1: not what the majority wants to do. Because as soon

729
00:38:06,600 --> 00:38:07,879
Speaker 1: as I say that, I'm going to get a lot

730
00:38:07,920 --> 00:38:10,640
Speaker 1: of people writing in saying I love reading along articles

731
00:38:10,640 --> 00:38:12,880
Speaker 1: on my mobile device. I'm one of them. I wade

732
00:38:12,920 --> 00:38:15,520
Speaker 1: the train all the time, so I'll read. I read

733
00:38:15,560 --> 00:38:18,600
Speaker 1: books on my phone sometimes, but I'll also read you know,

734
00:38:18,800 --> 00:38:24,640
Speaker 1: really long pieces written in various uh publications. So I'm

735
00:38:24,680 --> 00:38:28,040
Speaker 1: outside the norm. They're like I am, with lots of things.

736
00:38:29,160 --> 00:38:32,120
Speaker 1: I can't help it. Uh. And then also there's the

737
00:38:32,200 --> 00:38:35,759
Speaker 1: chance of seeing more sponsored content on mobile platforms. So

738
00:38:35,800 --> 00:38:38,040
Speaker 1: in this case, you might see a site or an

739
00:38:38,160 --> 00:38:43,120
Speaker 1: article brought to you by something. Yeah, especially if it's

740
00:38:43,160 --> 00:38:46,319
Speaker 1: something that's related to whatever the content of that, like

741
00:38:46,360 --> 00:38:49,759
Speaker 1: if it's a blog that's about a specific thing like

742
00:38:49,800 --> 00:38:53,200
Speaker 1: a specific subculture or specific like it's you know, a

743
00:38:53,200 --> 00:38:56,200
Speaker 1: movie commentary or whatever, you could imagine that that would

744
00:38:56,239 --> 00:38:59,200
Speaker 1: be sponsored by a company that's related to that subject.

745
00:38:59,760 --> 00:39:03,640
Speaker 1: And um, I mean obviously that also means that you

746
00:39:04,480 --> 00:39:09,520
Speaker 1: have examples of editorial content, and then there's advertorial content

747
00:39:09,560 --> 00:39:12,360
Speaker 1: where it's kind of a mixed between advertisement and editorial,

748
00:39:12,800 --> 00:39:15,920
Speaker 1: and then there's just ads. It does mean that there's

749
00:39:16,160 --> 00:39:17,960
Speaker 1: there's a lot more navigation needed on the part of

750
00:39:18,000 --> 00:39:21,719
Speaker 1: the user, right if they're if they're out for something specific. Sure,

751
00:39:21,800 --> 00:39:23,880
Speaker 1: that's that's actually a huge problem for me while I'm

752
00:39:23,880 --> 00:39:26,759
Speaker 1: while I'm researching, especially topics like this that um that

753
00:39:26,960 --> 00:39:32,000
Speaker 1: it's hard to tell sometimes whether articles from from some

754
00:39:32,120 --> 00:39:36,239
Speaker 1: of these UM marketing companies, yeah, are are just advertising

755
00:39:36,280 --> 00:39:40,319
Speaker 1: around services or if they're making a valid point, right,

756
00:39:40,680 --> 00:39:42,800
Speaker 1: I think that it's hard to say what the future

757
00:39:42,840 --> 00:39:44,920
Speaker 1: will be of this kind of thing. Um, I mean,

758
00:39:44,960 --> 00:39:47,600
Speaker 1: obviously mobile is going to play a huge part, so

759
00:39:47,680 --> 00:39:50,520
Speaker 1: we know that the question is, you know, people are

760
00:39:50,520 --> 00:39:54,480
Speaker 1: trying to innovate new ways of putting ad content into

761
00:39:55,200 --> 00:39:58,560
Speaker 1: into our our browsing experiences that is going to be

762
00:39:58,800 --> 00:40:02,840
Speaker 1: UM less disrupt of and more natural and and just

763
00:40:02,880 --> 00:40:05,640
Speaker 1: work out better for everybody. You know, it's certainly nobody

764
00:40:05,719 --> 00:40:08,040
Speaker 1: wants the user to have a bad experience. That's not

765
00:40:08,160 --> 00:40:10,880
Speaker 1: going to make someone more likely to buy a product.

766
00:40:11,160 --> 00:40:14,000
Speaker 1: But at the same time, if there's not this support,

767
00:40:14,040 --> 00:40:15,880
Speaker 1: then the people who are creating the content have to

768
00:40:15,920 --> 00:40:19,200
Speaker 1: find other ways of making money because, you know, while

769
00:40:19,200 --> 00:40:21,759
Speaker 1: there's going to be some content created for free on

770
00:40:21,800 --> 00:40:24,960
Speaker 1: the Internet by people who are just very passionate about

771
00:40:24,960 --> 00:40:27,759
Speaker 1: whatever it is they're doing, the reality is if you

772
00:40:27,800 --> 00:40:29,719
Speaker 1: want to make a living at it, then someone has

773
00:40:29,760 --> 00:40:33,319
Speaker 1: to pay somewhere. Because we're not We haven't reached a

774
00:40:33,320 --> 00:40:37,040
Speaker 1: point where I can release a podcast in return for

775
00:40:37,080 --> 00:40:41,200
Speaker 1: a sandwich. Although I don't I shouldn't say that because

776
00:40:41,280 --> 00:40:43,520
Speaker 1: next thing I know, I could be brought in for

777
00:40:43,640 --> 00:40:45,480
Speaker 1: my annual review would say, so we hear you want

778
00:40:45,480 --> 00:40:50,000
Speaker 1: to be paid in sandwiches? Um, I think. I think

779
00:40:50,000 --> 00:40:52,000
Speaker 1: that's how money works. In fact, you can buy as

780
00:40:52,040 --> 00:40:54,919
Speaker 1: many sandwiches as you want. Can I buy other things

781
00:40:54,960 --> 00:40:57,880
Speaker 1: besides sandwiches? I suppose you could. I'm sold on this

782
00:40:57,920 --> 00:41:01,920
Speaker 1: money idea. UM. There. For example, while I was doing

783
00:41:01,920 --> 00:41:04,959
Speaker 1: research for this podcast, I ran across a study done

784
00:41:05,000 --> 00:41:09,680
Speaker 1: by a CEO of a app called pocket change, and

785
00:41:09,680 --> 00:41:11,840
Speaker 1: pocket Change is an Apple let's you earn points for

786
00:41:11,920 --> 00:41:16,400
Speaker 1: activity on other apps. So wow, it's a meta app.

787
00:41:16,680 --> 00:41:19,719
Speaker 1: Yeah yeah, um so so you know, you'll you'll go

788
00:41:19,880 --> 00:41:22,560
Speaker 1: and you know, for for the number of pages that

789
00:41:22,600 --> 00:41:26,280
Speaker 1: you browse, are the number of candies that you crush?

790
00:41:26,400 --> 00:41:28,839
Speaker 1: I don't know what that is, you know, etcetera. Um,

791
00:41:29,280 --> 00:41:31,840
Speaker 1: you you'll earn points that you can exchange for rewards

792
00:41:31,960 --> 00:41:34,839
Speaker 1: and and so it's a it's another form of advertising.

793
00:41:34,840 --> 00:41:37,839
Speaker 1: And um so in this way, what what this app

794
00:41:37,920 --> 00:41:42,000
Speaker 1: is doing is encouraging your engagement with other apps and

795
00:41:42,040 --> 00:41:45,719
Speaker 1: other services, and in return, you get rewarded for it,

796
00:41:45,840 --> 00:41:48,120
Speaker 1: similar to the way that you earned might arn reward

797
00:41:48,160 --> 00:41:52,640
Speaker 1: points on a credit card. That's ingenious. That is incredible,

798
00:41:52,680 --> 00:41:55,600
Speaker 1: I honestly when I was doing my research, and that's

799
00:41:55,640 --> 00:42:00,640
Speaker 1: such a simple, elegant way of encouraging people to consume,

800
00:42:01,719 --> 00:42:03,920
Speaker 1: do what you want to do, and right like, here

801
00:42:03,920 --> 00:42:05,920
Speaker 1: are the things that's going to help you earn points,

802
00:42:06,520 --> 00:42:09,120
Speaker 1: and you know, and hopefully along the way you are

803
00:42:09,160 --> 00:42:13,240
Speaker 1: going to enjoy whatever that particular content is. And obviously

804
00:42:13,280 --> 00:42:15,960
Speaker 1: some people would just be playing just to accumulate points,

805
00:42:16,000 --> 00:42:18,399
Speaker 1: but the hope is, of course that they're doing going

806
00:42:18,440 --> 00:42:20,719
Speaker 1: beyond that, and they're actually consuming what it is that

807
00:42:20,760 --> 00:42:23,960
Speaker 1: people are creating. Right right, Microsoft has started doing a

808
00:42:24,080 --> 00:42:26,440
Speaker 1: vaguely similar thing with some of their Microsoft Points. You

809
00:42:26,440 --> 00:42:30,279
Speaker 1: can you can earn points by by playing games or

810
00:42:30,280 --> 00:42:32,839
Speaker 1: by downloading new games, and um, and I'm not sure

811
00:42:32,880 --> 00:42:36,200
Speaker 1: what you can exchange those points for right now exactly

812
00:42:36,280 --> 00:42:39,000
Speaker 1: because I've earned a grand total of zero of them.

813
00:42:39,040 --> 00:42:44,280
Speaker 1: But Lauren's an overachiever, and and you know that's not mobile.

814
00:42:44,280 --> 00:42:46,319
Speaker 1: But but I think that this is that kind of

815
00:42:46,360 --> 00:42:49,919
Speaker 1: gamification is something that people are starting to think about doing.

816
00:42:50,239 --> 00:42:53,320
Speaker 1: I can see that. Yeah, so there are some creative

817
00:42:53,360 --> 00:42:56,680
Speaker 1: ways that people are exploring to try and and and

818
00:42:56,719 --> 00:43:01,560
Speaker 1: generate money using the mobile platform experience. Because again, the

819
00:43:01,560 --> 00:43:04,840
Speaker 1: the traditional one we've talked about is becoming less relevant

820
00:43:05,000 --> 00:43:07,879
Speaker 1: over time. It's not like it's irrelevant now, it's not.

821
00:43:08,480 --> 00:43:12,640
Speaker 1: It's just it's just slowly declining or it maybe maybe

822
00:43:12,640 --> 00:43:14,799
Speaker 1: declines even the wrong word, but starting to plateau, and

823
00:43:14,800 --> 00:43:17,600
Speaker 1: then it looks like it's going to decline. So the

824
00:43:17,640 --> 00:43:20,080
Speaker 1: writings on the wall really people have to find other

825
00:43:20,160 --> 00:43:23,800
Speaker 1: ways of making this work or else entire companies could

826
00:43:23,920 --> 00:43:28,480
Speaker 1: end up having to either restructure drastically or even go

827
00:43:28,560 --> 00:43:33,759
Speaker 1: away because they cannot do business. Yeah, so um, you know,

828
00:43:33,840 --> 00:43:36,719
Speaker 1: and and you know it's it's it'll be interesting to

829
00:43:36,719 --> 00:43:39,680
Speaker 1: see how it plays out. I'm sure that solutions will

830
00:43:39,719 --> 00:43:44,440
Speaker 1: be proposed, implemented, discarded, refined. We're gonna see it. It's

831
00:43:44,520 --> 00:43:47,400
Speaker 1: never going to be a super clean process that you

832
00:43:47,480 --> 00:43:50,160
Speaker 1: can point from the beginning to the end and say

833
00:43:50,160 --> 00:43:52,720
Speaker 1: and here's the story. It's gonna be complex and messy

834
00:43:52,760 --> 00:43:56,000
Speaker 1: because that's kind of how humans are. But I do

835
00:43:56,200 --> 00:44:00,120
Speaker 1: think that we will crack this somehow where it's going

836
00:44:00,160 --> 00:44:02,080
Speaker 1: to be the kind of experience where no one is

837
00:44:02,080 --> 00:44:04,959
Speaker 1: going to be feeling like it was, you know, like

838
00:44:04,960 --> 00:44:07,719
Speaker 1: like you're being punished for browsing the web. That that

839
00:44:07,960 --> 00:44:11,920
Speaker 1: obviously would be the wrong message to show, because like

840
00:44:11,960 --> 00:44:14,640
Speaker 1: you said, Lauren, I'm not likely to buy something if

841
00:44:14,680 --> 00:44:18,320
Speaker 1: I'm irritated at my experience. But if it's an experience

842
00:44:18,320 --> 00:44:23,040
Speaker 1: that is entertaining, it's compelling, I'm feeling rewarded, then I'm

843
00:44:23,120 --> 00:44:27,040
Speaker 1: much more likely to buy something or to look at

844
00:44:27,239 --> 00:44:31,960
Speaker 1: a particular vendor services. So it's just making that work.

845
00:44:32,440 --> 00:44:34,560
Speaker 1: You know, it sounds like a simple idea, but making

846
00:44:34,560 --> 00:44:38,880
Speaker 1: it work in practice is a complex process. Well, excited

847
00:44:38,920 --> 00:44:40,799
Speaker 1: to see where it goes. Me too, because you know

848
00:44:41,000 --> 00:44:43,880
Speaker 1: I lacks my smartphones, and I lacks my tablets and

849
00:44:43,880 --> 00:44:47,120
Speaker 1: I lacks my laptops. Also like having a job, that's

850
00:44:47,239 --> 00:44:50,480
Speaker 1: also good. Yes, considering that the way we work is

851
00:44:50,600 --> 00:44:53,960
Speaker 1: very much dependent upon this. Uh yeah, it's it's important

852
00:44:53,960 --> 00:44:56,520
Speaker 1: to us on a personal level, there's no getting around that.

853
00:44:56,760 --> 00:45:00,359
Speaker 1: And you know we love it. So please help us,

854
00:45:00,520 --> 00:45:03,360
Speaker 1: help us solve this. No, seriously, guys, if you have

855
00:45:03,400 --> 00:45:06,719
Speaker 1: any suggestions for future episodes of tech Stuff, maybe you've

856
00:45:06,719 --> 00:45:09,880
Speaker 1: got a particular technology you've always wanted to hear more about,

857
00:45:10,000 --> 00:45:13,359
Speaker 1: or maybe there's a leader in the text space that

858
00:45:13,480 --> 00:45:16,359
Speaker 1: you are dying to learn about. Let us know. Send

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00:45:16,440 --> 00:45:19,840
Speaker 1: us a message. Our email is tech Stuff at Discovery

860
00:45:19,880 --> 00:45:22,640
Speaker 1: dot com, or drop us a line on Facebook or Twitter.

861
00:45:22,840 --> 00:45:25,279
Speaker 1: You don't have to sponsor the message, just right on

862
00:45:25,320 --> 00:45:28,120
Speaker 1: our on our our pages, we'll we'll read it. You

863
00:45:28,160 --> 00:45:31,480
Speaker 1: can find us Our handle is text Stuff h s W.

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00:45:31,800 --> 00:45:34,040
Speaker 1: You can also find us on Tumbler under that screen name.

865
00:45:34,120 --> 00:45:36,720
Speaker 1: You have to do this every time, like we literally

866
00:45:36,760 --> 00:45:39,839
Speaker 1: just did this an hour ago and I still forget. Yes,

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00:45:39,920 --> 00:45:42,800
Speaker 1: you can find us on Tumbler and it is really good,

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00:45:43,080 --> 00:45:47,919
Speaker 1: good uh content. There Lauren is is curating an amazing

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00:45:47,960 --> 00:45:51,120
Speaker 1: tumbler page. So go check that out. You just good work.

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00:45:51,160 --> 00:45:54,160
Speaker 1: I made that tumbler page what like two years ago.

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00:45:54,520 --> 00:45:56,720
Speaker 1: How much was on that tumbler page when you went there, Lauren?

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00:45:57,400 --> 00:45:59,839
Speaker 1: There is literally nothing on that tumbler page. Side think

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00:46:00,000 --> 00:46:03,520
Speaker 1: title of podcasts. There you go that pretty That pretty

874
00:46:03,560 --> 00:46:05,839
Speaker 1: much says it all. Lauren pretty much says it all.

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00:46:06,120 --> 00:46:08,240
Speaker 1: Al Right, guys, So I hope you enjoyed this episode.

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00:46:08,280 --> 00:46:10,719
Speaker 1: Let us know what you think, and we will talk

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00:46:10,719 --> 00:46:16,160
Speaker 1: to you again really soon for more on this and

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00:46:16,239 --> 00:46:18,799
Speaker 1: thousands of other topics. Is it how stuff works dot

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Speaker 1: com