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this post was submitted on 02 Jul 2023
505 points (96.0% liked)
No Stupid Questions
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No such thing. Ask away!
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Because the days of just shoveling money into various silicon valley projects in the hope that maybe they'll turn a profit eventually is over. Big investment firms now want an actual return from their investment, and because of that, tech companies are desperately trying whatever they can to turn a profit from these massive services that are also very expensive to run. That usually comes in the form of changes that makes things harder for the users, but is significantly more profitable for the companies that run them.
For some more context, this is probably tied into at least two things. One is that the bubble was starting to be recognized for what it was. The other is that interest rates became positive again, so the bar for a good investment suddenly went from "I'll be happy if I get my money back" to "I want to be paid back double within 20 years".
I'm just waiting for the ads bubble to explore. There is very little real ROI. As a user, my eyes and mind are well training to avoid seeing any ad that traverses the adblocker, I never clic on any PROMOTED content nor on any link of the ad-top results. Always REJECT cookies I've the option. The advertising companies pay on what they believe I'm seeing, but on what I really see (and care). Just waiting for the day they realize and stop wasting money and disturbance.
I agree with you, but recently started a Distillery and I'm able to get a positive Roi from Facebook ads. To be fair, I have a very compelling offer. Also to be fair, it's the first time I've ever made something that can generate a positive Roi so your point stands.
The hard part for advertisers is there's very few options to get your message out these days as traditional media has died and people spend so much if their lives on their phones.
Also I think it's worth noting that if you are on Lemmy you are probably in a class of more savvy and - dare I say - intelligent than the average bear scrolling Facebook.
Seeing that so much of the traffic on the big social media sites these days is bots, I'm thinking the day that bubble pops is close. Advertisers tend to get upset if they're spending good money to serve ads to bots that will never buy anything. That, and ad-blindness like you mentioned, and blowback because ads are getting really fucking obnoxious right now. And with Elon's platforming of hate, and Reddit's nerfing of moderators, advertisers are going to see their ads displayed next to some nazi toxicity, and that'll make them upset.
The advertisers will run their analytics, and find that the ads they're paying for are doing less and less in terms of actually getting people to buy,
No ROI?? Google 60b, Apple 99b, msft 72b. You are delusional.
I've expressed wrongly. My intend was to refer the companies paying for the ad not the ones managng the ads. Also ROI wanted to refer to the return for the investment on ads. Edit: typo
People like you and I are very rare. Advertising is effective. About 5% of people buy something because of any given ad (if you think about it, even we can probably admit to buying something now and then after seeing an ad). If you pay a little to reach millions of people, that converts into a really good ROI.
Yeah, it's not just the current state that's the problem.
If these companies didn't spend 20 years not worrying about making a profit, they'd have had sustainable growth and be able to stand on their own long ago.
At this point no one could turn them around, it's too late.
And it's not just the lack of big money. The entire startup business model is the main investors immediately selling very small chunks to normal people. With the whole economy in the shitter, the big investors after an IPO are going to have to hold for a while before they can sell without nosediving the price.
I disagree. The valuations might be lower but tech is still where it's at and it's the only field getting exponentially better.