Former advertising executive Dina Srinivasan released a fairly comprehensive article in The American Prospect that describes how today’s digital advertising markets work.
It’s no secret that Facebook and Google have become the kingpins of our digital streets. Some would claim they’ve developed monopolistic tendencies that are stifling competition from other advertising and networking sources.
Dina’s lengthy but thorough article on How Digital Advertising Markets Really Work is worth the read, both for a primer on understanding what the ad networks make possible for your business and how their dominance has become monopolistic.
One of her main points is that the more data you have about the audience the more you can charge to advertise to them. Nobody has more data than Google and Facebook. In their defense, the tech titans will claim tracking users is not only important for targeting ads, but also to improve user experience by showing relevant content in search and social feeds.
It’s difficult to determine if their competitors are being unfairly pushed out of business, or if Google and Facebook just built better mousetraps? Could it be that declining traditional journalism outlets are today’s compact disc and rental DVD in the wake of streaming platforms like Spotify and Netflix?
Regardless, it seems as if the market is ripe for a social disruptor that can gain traction without tracking mountains of private information. Several blockchain based social networks have already launched decentralized social media experiences that allow users to control their own data.
We’ll keep you posted as this story unfolds. Whatever the platform, rest assured we’ll be there working together to determine the best way to deliver an unforgettable user experience and generate positive ROI in the process!