Wrestling, Upton Sinclair, Chief Marketing Officer discussed on Freakonomics

Freakonomics
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Automatic TRANSCRIPT

Consortium called the global alliance for responsible media which pushes for better add controls to protect brand safety end today. Everyone wants a well-functioning internet and everyone wants to have a positive impact on the world and not to have some of the issues. We're wrestling with right now. I think that off has not been easy. So far. This september after months of advertiser boycotts facebook twitter and youtube agreed to adopt a common set of definitions for hate speech and develop tools to let advertisers have more control over where their ads show up. But tim wong thinks the longstanding opacity of the online ad marketplaces. Just one reason. We might be in a digital advertising bubble. I think a second thing is a little bit like in the subprime mortgage crisis you have people who have very perverse incentives. I think to push the effectiveness of online ads. that's the ad agencies the ad platforms themselves. The people who run technology. All these people i think have a very strong incentive to say no. This stuff is way better than earlier generations of advertising. And this is why you should use it. If you've been listening closely you'll notice. This is the exact same problem. Steve levitt talked about regarding the tv ad ecosystem. Human beings generally make decisions based on self interest. No chief marketing officer is ever gonna say hey. I don't know maybe ads don't work. Let's not do a and see what happens. Or as the author upton sinclair once wrote it is difficult to get a man to understand something when his salary depends on his not understanding it so there is a common practice which is not very well disclosed in the ad industry whereby an ad tech company will basically offer ad inventory at a cheap price to the advertising agency the agency remember is paid by you the client who hired them to help you so what you're selling and the agency will turn around them say you should really use this ad tech product and sell at higher price and one of the worries about this is it changes the incentives right which is typically the ad agency should be working on behalf of the client but in these cases have very perverse incentives to push distribution of a message that may not otherwise be rational or even useful to them all of these issues and all the new empirical evidence we've been discussing about.

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