On: Who 'likes' my Virtual Bagels?

[schulz]

> they are willing to pay extra for things they think they can track. > This means that if I'm right (and who knows) then the brand-building advertising, > that most people consider largely untrackable, is underpriced.

I disagree. Online display advertising, which can be tracked effectively has had incredible downward pressure on prices as tracking has gotten better.

I think most advertising is highly overpriced (brand advertising especially) and as tracking gets better prices will drop.

Ad supported business models get harder and harder in that world.

[lsc → schulz]

>I disagree. Online display advertising, which can be tracked effectively has had incredible downward pressure on prices as tracking has gotten better

that's essentially what I was trying to say. The part where we disagree is that I think tracking is not as good as you (and most people) think it is.

[schulz → lsc]

I read your comment as: Brand building advertising is under priced because people think it can't be tracked.

My point was once it can be tracked well it will come to light that it's not very valuable. Because that's the pattern we've seen with online display.

But, as I reread your comment I realize that I'm thinking TV style mass broadcast advertising here, and if you mean branding advertising on online platforms then I agree with you that in that context it's under priced.

[lsc → schulz]

Actually, you had me right the first time.

I'm mostly talking about offline brand building advertising. "Nobody is lining up to fill billboards" - I just bought some advertising on the checkout lane for the Safeway nearest google. (If that works, I think it will mostly work because it's so unusual. That, and the density of potential customers in the area.)

Really, I think sponsorship is an extremely effective way to build your brand; way more effective than billboards. I mean, if you can sponsor something that the people you sell to care deeply about. But, that's nearly impossible to track. My theory is that a customer might click on an adword (or organic search result) and sign up because they saw me at SCALE or something... but there is really no way for me to prove that.