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863 points IdealeZahlen | 1 comments | | HN request time: 0.293s | source
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megaman821 ◴[] No.43718617[source]
I don't think this article explains it well. Google sells ad space on behalf of the publishers and also sells the ads on behalf of the advertisers. It also runs the auction that places the ads into the ad space. See this graphic https://images.app.goo.gl/ADx5xrAnWNicgoFu7. Parts of this can definately be broken up without destroying Google.
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crowcroft ◴[] No.43719395[source]
When a media buyer puts $1.00 in on one side of the system, on average only $0.60 makes it to the publisher. In some cases less than $0.50 gets to them.

Advertising is an intentionally complex system so that companies can clip the ticket at multiple stages throughout the process. Google should be broken up, but the whole ad tech system needs to go into the bin if these problems are going to ever get fixed.

https://www.forbes.com/sites/augustinefou/2021/02/15/how-muc...

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aiauthoritydev ◴[] No.43719973[source]
As someone who has worked in AdTech I would respectfully disagree. It is indeed complex but it is incredibly efficient. Also it is irrelevant of whether publisher earns 75% or 30% of the total revenue. What matters is how much they are earning compared to the next best alternative.

Some companies like Google are incredible at this. Google is not a "monopoly" in this space. In fact the world has far too many Google equivalents but absolutely no one comes close to Google in generating top dollars for publishers. I am saying this after working for 10+ years competing against Google.

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ksec ◴[] No.43720244[source]
Thankfully HN is finally at a stage people can come out and talk about Ad tech without being harassed or attacked.

Could you explain more on this. What do you think makes Google Ad or DoubleClick so special? And

>What matters is how much they are earning compared to the next best alternative.

Correct me if I am wrong, you are suggesting even if publisher only earns 30% of the revenue they still earn more than on other alternative platform?

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adrr ◴[] No.43721356[source]
I am on the purchasing side. Google is very efficient when delivering traffic especially their Max Performance product. Probably the cheapest of all platforms. So they are serving relevant ads to users who engage with the ads. This is win for me and I assume also a win for publishers who get revenue due to higher engagement.

Also users should benefit because they are getting relevant ads. Linear tv is notorious for non relevant ads like all the drug ads for conditions you don’t have. If you’re forced to see ads, wouldn’t you want ads that are relevant?

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greenchair ◴[] No.43721918[source]
I don't think relevant ads are healthy for the many people who do not have enough self-control to resist temptation. Ads are essentially playing mindgames triggering fear/jealousy on these people to steal their money. For the people who do have self-control, they don't need other people trying to tell them what to buy.
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dgoldstein0 ◴[] No.43722842[source]
That's a good argument against bad and exploitative ads.

Not all ads are necessarily bad. Eg have you ever seen an ad for an event in your town? Maybe a play or a concert you'd want to see. Those to me feel more like "public notice: thing is happening" and every once in a while I'll actually go buy tickets. But technically, those are ads, just not the kind of exploitative ad you are talking about.

A good ad informs, while leaving the decision up to you. A bad ad distracts you with garbage and/or tries to get you to indulge in your worse impulses

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viraptor ◴[] No.43723161[source]
> have you ever seen an ad for an event in your town?

I get those on the local town board, online in the town group I explicitly joined, and from people around. I do not want those on a random page when I'm trying to do something else.

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1. johannes1234321 ◴[] No.43723740[source]
Especially as the random page will be organized in a way to steer me towards the ad rather than the thing I want to do.