The future of online advertising: a dialogue with Jeff Einstein (i)

I've been thinking about how the online advertising industry will evolve, and I believe that the best way to move forward with an ad ecosystem is by automating the work done by thousands of people on a daily basis.

On a high level, I'm with the industry's leading expert, Jeff. Albert Einstein (Jeff Einstein) discussed automated processing and optimization, optimizing the ROI of advertisers and the capacity of distributors. From a technical perspective, we have a consistent view that the complexity of the work exceeds the human capacity.

Recently, I gave Jeff. Einstein sent an email to talk about the problem. As early as 1984, Jeff set up the first digital advertising company Einstein & Sandom. Recently, he advises advertisers and advertising agencies to oppose media integration strategies.

Jeff。 Albert Einstein: When, before the popularity of digital advertising, advertisers and advertising agencies believed that advertising only had a 50% effect, even though they could not prove which 50%. After years of digital advertising business, the effect is declining. So instead of finding ways to deliver more effective information, it's better to look for ways to provide quality advertising.

Since the advent of online advertising, we have been looking for an effective way to measure the effectiveness of advertising. Our confusion about the effectiveness and scale of advertising reduces the quality of information, mainly because quality is difficult to measure and formalize. We can fix it through methods and formats, but as long as we remain focused on the effect and scale, the advertising performance will continue to decline.

Eric Picard: I also think the advertising effect has reached the range that humans can measure. I think advertising technology will make a leap in this area. Given Moore's law, the vast majority of people have not worked around this issue. Soon, with the development of technology, the problems we cannot solve can be done by the Ad server. Depth analysis, depth orientation and depth optimization can be achieved.

Jeff。 Albert Einstein: I remember discussing this issue with young people in Turkey decades ago. At the time, they had been misled by the technical performance and measurement, unable to verify the meaningful advertising budget. The industry's focus on advertising forms and methods will lead to a decline in the quality of our sales of intangible media. But instead of selling online advertising experience, we might as well choose to sell ad performance. We do not need to limit ourselves to a small scale and evaluate. All the techniques you mentioned above are inherently risky. The greater our size, the greater the risk we face.

Eric Picard: There are a number of factors that are causing our problems now, and one of the biggest problems is our lack of investment in core technology. During the dotcom bubble of the 2000 and 2001, major advertising companies such as DoubleClick, real Media, Atlas, Mediaplex and Bluestreak reduced their investment. Many advertising platforms are run by outdated technologies. For years, there has been no innovation in online advertising. There was little innovation before Google went public, and now every business is looking for innovation.

ROI is an innovative way to achieve the advertising industry, whether you like it or not. For those of us who want to change the status of advertising, the challenge is to make sure that we gain intangible value in this respect. In contrast to traditional media, we believe that we will gain long-term value.

Jeff。 Einstein: Interestingly, when you get something intangible, it is no longer invisible. When we define it, we destroy this intangible thing and lose its measure. You can't remove intangible stuff from the media until you have an effective adjustment to the business model.

Efficiency does not produce love, laughter, tears, anger and envy, only effective advertising activities can produce results. Our confusion about ROI stems from our arrogance, which has not translated into practical action what would have been good for the advertising business.

Eric Picard: I agree that advertising technology innovation is important, but it's just part of the campaign. We have been using computer advertising optimization technology for more than five years, it will be the media buyers and sales people have a meaningful role. Next time, we will discuss the depth of advertising and the size of the problem.

(Original: March 10, 2008; Compiling: Song XI)