In all the mounting media coverage of problems with the Internet, such as invasion of privacy, vulnerability to hacking, political manipulation, and user addiction, there is one constant: online advertising. Online advertising is the lifeblood of Google, Facebook, and many other Internet enterprises that profit by providing personal data to various vendors. Moreover, the move of tens of billions of dollars from conventional print and broadcast media continues, with devastating impacts, especially on print newspapers and magazines.
But does online advertising work for consumers? The Internet was once considered a less commercial medium. But today consumers are inundated with targeted ads, reviews, comments, friends’ reactions, and other digital data. Unfortunately for advertisers, consumers are not intentionally clicking on online ads in big numbers.
Google’s search ads tackle people when they search for a product or service. A controlled study by eBay research labs in 2014 concluded that Google was greatly exaggerating the effectiveness of such ads—at least those bought by eBay. eBay’s researchers concluded that “More frequent users whose purchasing behavior is not influenced by ads account for most of the advertising expenses, resulting in average returns that are negative.” This is the “I-was-gonna-buy-it-anyway problem,” says an article in the Atlantic.
The Atlantic notes:
Whether all advertising—online and off—is losing its persuasive punch…Think about how much you can learn about products today before seeing an ad. Comments, user reviews, friends’ opinions, price-comparison tools…they’re much more powerful than advertising because we consider them information rather than marketing. The difference is enormous: We seek information, so we’re more likely to trust it; marketing seeks us, so we’re more likely to distrust it.
Some companies like Coca-Cola have cooled on using online advertising. But advertising revenues keep growing for Google, Facebook, and the other giants of the Internet. These companies are racing to innovate, connecting ads to more tailored audiences, which tantalize and keeps hope springing eternal for the advertisers. The Internet ad sellers also provide detailed data to advertise themselves to the advertisers staying one step ahead of growing skepticism. This is especially a problem when there is inadequate government regulation of deceptive advertising. It is the Wild West! Online advertising revenues are the Achilles’ heel of these big Internet companies. Any decline will deflate them immensely; more than public and Congressional criticism of their intrusiveness, their massive allowed fakeries, their broken promises to reform, and their openings to unsavory political and commercial users. If they lose advertising revenue, a major revenue bubble will burst and there goes their business model, along with their funding for ventures from video hosting to global mapping.
After reviewing the many major negatives attributed to the Internet, the New York Times’ Farhad Manjoo writes, “So who is the central villain in this story, the driving force behind much of the chaos and disrepute online?… It’s the advertising business, stupid.” He adds, perhaps optimistically, “If you want to fix much of what ails the internet right now, the ad business would be the perfect perp to handcuff and restrain.”
Randall Rothenberg, who heads a trade association of companies in the digital ad business, urges advertisers “to take civic responsibility for our effect on the world.” Then he shows his frustration by saying that, “Technology has largely been outpacing the ability of individual companies to understand what is actually going on.” All of this even before artificial intelligence (AI) takes root. Meanwhile, Facebook, Google, and Twitter keep announcing new tools to make their ads “safe and civil” (Facebook), open and protective of privacy. At the same time matters keep getting worse for consumers. The backers and abusers keep getting more skilled too (see Youtube Kids ).
In a recent report titled “Digital Deceit,” authors Dipayan Ghosh and Ben Scott wrote:
The Central problem of disinformation corrupting American political culture is not Russian spies or a particular media platform. The central problem is that the entire industry is built to leverage sophisticated technology to aggregate user attention and sell advertising.
If so, why isn’t more public attention being paid to this root cause? Not by the mass media which is obviously too compromised by the Congress, by academia, or by more of US before “We the People” become the conditioned responders that Ivan Pavlov warned about so many years ago.
Nader is opposed to big insurance companies, "corporate welfare," and the "dangerous convergence of corporate and government power." While consumer advocate/environmentalist Ralph Nader has virtually no chance of winning the White House, he has been taken quite seriously on the campaign trail.Indeed, he poses the greatest threat to Sen. John Kerry. Democrats fear that Nader will be a spoiler, as he was in the 2000 election, when he took more than 97,000 votes in Florida. Bush won Florida by just 537 votes. The win gave Bush the election. Nader, an independent candidate, who also ran in 1992 and 1996, is on the ballot in 33 states, including Florida, Ohio, Wisconsin, and New Mexico—tough battleground states. Kerry stands a chance of losing those vital states if Nader siphons away the votes of Democrats. President Bush and Kerry have been in a statistical dead heat in nationwide polls, and votes for Nader could well tip the balance in favor of Bush.Many Kerry supporters contend that a vote for Nader is in reality a vote for Bush and have made concerted efforts to persuade Nader to throw his support behind the Democratic candidate. Nader, however, has held fast to his convictions that the two candidates are nearly indistinguishable and are pawns of big business.Designing Cars for Everything but SafetyNader was born in Winsted, Connecticut, on Feb. 27, 1934 to Lebanese immigrants Nathra and Rose Nader. Nathra ran a bakery and restaurant. As a child, Ralph played with David Halberstam, who\'s now a highly regarded journalist.Nader with Democratic nominee Jimmy Carter outside of Jimmy Carter\'s home on August 7, 1976, discussing Consumer Protection. (Source/AP) Nader graduated magna cum laude from Princeton in 1955 and from Harvard Law School in 1958. As a student at Harvard, Nader first researched the design of automobiles. In an article titled "The Safe Car You Can\'t Buy," which appeared in the Nation in 1959, he concluded, "It is clear Detroit today is designing automobiles for style, cost, performance, and calculated obsolescence, but not—despite the 5,000,000 reported accidents, nearly 40,000 fatalities, 110,000 permanent disabilities, and 1,500,000 injuries yearly—for safety."Early Years as a Consumer AdvocateAfter a stint working as a lawyer in Hartford, Connecticut, Nader headed for Washington, where he began his career as a consumer advocate. He worked for Daniel Patrick Moynihan in the Department of Labor and volunteered as an adviser to a Senate subcommittee that was studying automobile safety.In 1965, he published Unsafe at Any Speed, a best-selling indictment of the auto industry and its poor safety standards. He specifically targeted General Motors\' Corvair. Largely because of his influence, Congress passed the 1966 National Traffic and Motor Vehicle Safety Act. Nader was also influential in the passage of 1967\'s Wholesome Meat Act, which called for federal inspections of beef and poultry and imposed standards on slaughterhouses, as well as the Clean Air Act and the Freedom of Information Act."Nader\'s Raiders" and Modern Consumer MovementNader\'s crusade caught on, and swarms of activists, called "Nader\'s Raiders," joined his modern consumer movement. They pressed for protections for workers, taxpayers, and the environment and fought to stem the power of large corporations.In 1969 Nader established the Center for the Study of Responsive Law, which exposed corporate irresponsibility and the federal government\'s failure to enforce regulation of business. He founded Public Citizen and U.S. Public Interest Research Group in 1971, an umbrella for many other such groups.A prolific writer, Nader\'s books include Corporate Power in America (1973), Who\'s Poisoning America (1981), and Winning the Insurance Game (1990).
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