[HN Gopher] Forget privacy: you're terrible at targeting anyway ...
       ___________________________________________________________________
        
       Forget privacy: you're terrible at targeting anyway (2019)
        
       Author : bryanrasmussen
       Score  : 132 points
       Date   : 2021-08-28 09:52 UTC (2 days ago)
        
 (HTM) web link (apenwarr.ca)
 (TXT) w3m dump (apenwarr.ca)
        
       | mynegation wrote:
       | The thesis of the article might be true, but this is a reason to
       | be more careful with private information, not less. If companies
       | are sloppy in analyzing gathered data and do not value it enough,
       | they might not very good at safeguarding it from bad actors who
       | will use it to their advantage more "efficiently".
        
         | seemcat wrote:
         | Good point. But if trackers and profilers aren't that
         | good/accurate at analyzing the data, what makes us think that
         | bad actors are any better at it?
        
       | commandlinefan wrote:
       | > it will recommend you interview people with male, _white_
       | -sounding names, because it turns out that's what your HR
       | department already does
       | 
       | His linked article (https://www.reuters.com/article/us-amazon-
       | com-jobs-automatio...) says nothing about white or white-sounding
       | names. And I sincerely doubt that anybody's HR department is
       | screening out non-white sounding names for technical roles.
       | Certainly nowhere I've ever worked - I can't remember the last
       | time I saw a resume that _wasn 't_ Indian, male or female.
        
         | 542354234235 wrote:
         | >We perform a field experiment to measure racial discrimination
         | in the labor market. We respond with fictitious resumes to
         | help-wanted ads in Boston and Chicago newspapers. To manipulate
         | perception of race, each resume is assigned either a very
         | African American sounding name or a very White sounding name.
         | The results show significant discrimination against African-
         | American names: White names receive 50 percent more callbacks
         | for interviews. We also find that race affects the benefits of
         | a better resume. For White names, a higher quality resume
         | elicits 30 percent more callbacks whereas for African
         | Americans, it elicits a far smaller increase.[1]
         | 
         | >researchers created resumes for black and Asian applicants and
         | sent them out for 1,600 entry-level jobs posted on job search
         | websites in 16 metropolitan sections of the United States. Some
         | of the resumes included information that clearly pointed out
         | the applicants' minority status, while others were whitened, or
         | scrubbed of racial clues...Twenty-five percent of black
         | candidates received callbacks from their whitened resumes,
         | while only 10 percent got calls when they left ethnic details
         | intact. Among Asians, 21 percent got calls if they used
         | whitened resumes, whereas only 11.5 percent heard back if they
         | sent resumes with racial references[such as name changes,
         | removing membership in organizations, scholarships, or
         | achievements that might reveal race]. [2]
         | 
         | >Researchers from the University of California, Berkeley and
         | the University of Chicago sent 83,000 fictitious applications
         | for entry-level job postings to 108 Fortune 500 employers,
         | using randomly assigned and racially distinctive names. They
         | found that distinctively Black names on applications with
         | reduced the likelihood of hearing back from an employer by 2.1
         | percentage points relative to distinctively White names. But
         | differences in contact rates varied substantially across firms.
         | About 20% of the companies were responsible for roughly half of
         | the discriminatory behavior in the experiment. [3]
         | 
         | [1] https://www.nber.org/papers/w9873
         | 
         | [2] https://hbswk.hbs.edu/item/minorities-who-whiten-job-
         | resumes...
         | 
         | [3] https://www.bloomberg.com/news/articles/2021-07-29/job-
         | appli...
        
       | fsflover wrote:
       | This is completely missing the point of why one should fight
       | surveillance. Surveillance harms journalism and activism, making
       | the government too powerful and not accountable. If only
       | activists and journalists will try to have the privacy, it will
       | be much easier to target them. Everyone should have privacy to
       | protect them. It's sort of like freedom of speech is necessary
       | not just for journalists, but for everyone, even if you have
       | nothing to say.
        
         | vineyardmike wrote:
         | I agree, but this is a compelling reason _for businesses_ as to
         | why they should stop spending ( "wasting"?) the money and make
         | their product worse.
         | 
         | This article doesn't really compel individuals to act
         | differently.
        
       | truculent wrote:
       | Some good complementary links on this topic:
       | 
       | * "Ads Don't Work That Way" (https://meltingasphalt.com/ads-dont-
       | work-that-way/)
       | 
       | * "Why Online Ads Haven't Built Brands"
       | (https://adcontrarian.blogspot.com/2019/01/why-online-ads-hav...)
       | 
       | Both discussing theorems for how advertising actually works, and
       | why targeted advertising is counter-productive (for medium-to-
       | large brands, anyway).
       | 
       | The basic premise is that advertising works by seeding common-
       | knowledge within a society. It's important not just that I know
       | that Nike makes cool sneakers, but also that I know that my peers
       | know that. Otherwise, how can I be sure that my idea of cool
       | sneakers is the same as everyone else's?
       | 
       | Culture exists in the interactions between people; for brands,
       | hyper-targeted ads risk focusing on individuals and not cultural
       | influence.
        
       | aeturnum wrote:
       | > _See, the problem is there 's almost no way to know if you're
       | right._
       | 
       | It turns out that this doesn't matter a lot of the time. You only
       | notice because the advertising to you is bad - but once you can
       | notice the money has already changed hands.
       | 
       | I've worked with people who work on what is variously called
       | "data zombies" or "data shadows" or "data doubles" and the
       | problem is that: they often get it wrong and they do not care and
       | pretend it's correct. This is doubly-concerning in the security
       | realm (i.e. the NSA is only supposed to read data streams of non-
       | Americans so they have a lot of incentive to produce classifiers
       | that guess that things are not from the US).
        
       | pessimizer wrote:
       | The only people good at targeting are the ad platforms, and they
       | don't use an algorithm. What they do is slice up an audience into
       | interesting enough sounding chunks in order to attract ad buyers,
       | who are their actual customers. There's no reason to think,
       | however, that the ad buyers would be particularly good at
       | figuring out the audience for their product, or that a particular
       | product necessarily even has an audience. So you would expect the
       | vast majority of ads to be bad.
        
         | reaperducer wrote:
         | _The only people good at targeting are the ad platforms_
         | 
         | Honestly, I don't see it. The ad tech industry keeps telling
         | everyone that there are plenty of people out there who see
         | advertisements that matter to them, and they're happier because
         | of it. But my experience has been the opposite.
         | 
         | Ever since "ad tech" became a thing, and online advertising
         | started going after people and not context, it just seems to
         | have gotten worse.
         | 
         | Just in my open tabs right now:
         | 
         | An ad for a food product I cannot consume for medical reasons.
         | 
         | An ad for a local pizza joint in a city a thousand miles away.
         | 
         | An ad for something to use on body parts that I don't possess
         | because of my gender.
         | 
         | Advertising was a solved problem. But as is often the case, a
         | small group of people within the SV bubble decided to reinvent
         | the wheel, and did so badly.
        
           | [deleted]
        
           | Supermancho wrote:
           | Adtech isn't particularly complicated.
           | 
           | Ad Targeting, broadly fits into these categories (with
           | limited and over simplified descriptions):
           | 
           | Geographic - Where are you viewing the ad from?
           | 
           | Contextual - What is the content surrounding the ad?
           | 
           | Demographic - What do we know about you based on context?
           | (sites have demographics)
           | 
           | Behavioral - What did you buy in the past?
           | 
           | Appliance - what you are using to view the ad be it a toaster
           | or Chrome on Windows?
           | 
           | There are all sorts of possible reasons, to your observed
           | targeting failures.
           | 
           | > An ad for a food product I cannot consume for medical
           | reasons.
           | 
           | How would an ad company know that?
           | 
           | > An ad for a local pizza joint in a city a thousand miles
           | away.
           | 
           | This is a geographic targeting failure, unless - you are on a
           | VPN where the IP is misrepresented or you have purchased from
           | the location before.
           | 
           | > An ad for something to use on body parts that I don't
           | possess because of my gender.
           | 
           | This could be contextual or simply dumping impressions to
           | meet a campaign run expiry.
           | 
           | > a small group of people within the SV bubble decided to
           | reinvent the wheel, and did so badly.
           | 
           | Nope. So you are disappointed the heuristics don't have more
           | concrete data about you? It's the same as it always was.
           | Smaller and new(er) companies have different priorities for
           | what to focus on, but it's all the same tech.
        
             | reaperducer wrote:
             | All I see are excuses, not successes.
             | 
             | If the ad tech industry was as great as it tells the
             | advertisers, none of these thing would happen.
             | 
             | And, no. I'm not on a VPN. Even the most rudimentary what-
             | is-my-ip sites correctly display my location. But I bet
             | some ad tech company told that pizza joint its ads would be
             | targeted. And probably charged extra for it.
        
               | Supermancho wrote:
               | > All I see are excuses, not successes.
               | 
               | If that's what you want to see, you'll see it. This has
               | no effect on how it's done.
               | 
               | > If the ad tech industry was as great as it tells the
               | advertisers, none of these thing would happen.
               | 
               | How is that related to technical capabilities?
               | 
               | > I'm not on a VPN. Even the most rudimentary what-is-my-
               | ip sites correctly display my location.
               | 
               | A real-time lookup is not timely. You generally want to
               | have it pre-computed in a cache. If someone so much as
               | spoofed your IP, it will poison your location. God forbid
               | you leave a logged in browser session anywhere else.
               | Computers are dumb, but you expect more and blame the
               | adtech companies, I get it.
        
         | cm2012 wrote:
         | This is incredibly wrong. Google and Facebook are primarily
         | algo driven ad platforms now, with all the best targeting being
         | algorithmically derived. Large ad accounts on FB pretty much
         | never use the "interesting sounding chunks" you're referring to
         | anymore.
        
       | helen___keller wrote:
       | I briefly hit a period right around when I bought a home that the
       | recommended ads on instagram were really really good. I bought a
       | bed and a sofa from instagram recommendations, and looked at a
       | whole bunch of other things that I didn't end up buying.
       | 
       | Nowadays it's back to being garbage, but I have to imagine every
       | now and then these algorithms hit a gold mine like they did with
       | me.
        
       | alexslobodnik wrote:
       | Good targeting is acquiring customers at a profitable cost.
       | 
       | Bad targeting is acquiring customers at an unprofitable cost.
       | 
       | The difference can be 5% conversion for a segement of prospects
       | vs. 10% for another.
       | 
       | In both instances the majority of prospects are not interested.
       | Or more charitable, not interested _right now_.
       | 
       | Expectations for perfect ads and targeting is unreasonable.
        
       | MarkMc wrote:
       | This article is wrong to assume targeted advertising requires
       | complex machine learning algorithms. Here are some personal
       | examples where my ads have been poorly targeted:
       | 
       | - I'm actively looking to buy a house for more than a million
       | dollars, and I'm signed into my real estate app using my Google
       | email address. Meanwhile YouTube is showing me ads for Candy
       | Crush Saga.
       | 
       | - A week ago I almost bought an iMac on Apple's website but
       | bailed at the credit card payment screen. I had logged into my
       | Apple account with my Google email address, yet since then I've
       | not seen one ad to suggest I should buy that iMac (although I do
       | see Apple ads for iPhone on Twitter)
       | 
       | - Twitter kept showing me Disney Plus ads even after I signed up
       | 
       | - In 2019 on holiday in Bali I saw YouTube ads in Indonesian,
       | despite being logged in and being unable to speak that language
        
       | [deleted]
        
       | ahupp wrote:
       | My Facebook ads are well targeted: I've bought tickets to a book
       | signing for my daughter's favorite author, and awesome map, a
       | couch (!!), and a great pair of underwear off fb ads. I'm sure
       | there's other stuff I'm forgetting.
       | 
       | You could imagine an alternate world where FB has total
       | information about my online activity, and the ads are extremely
       | useful because they know what I want before I do.
        
         | thom wrote:
         | I think it would help dispel the suspicion that the Facebook ad
         | targeting algorithm itself wrote this, if you added a little
         | disclaimer that you work(ed) there.
        
           | ahupp wrote:
           | Fair enough: I did work there, though never on ads, and it's
           | been a few years.
           | 
           | To be clear, I realize the privacy tradeoffs are probably
           | unacceptable and I'm not seriously proposing the FB
           | panopticon. But I do think it's an interesting thought
           | experiment to consider how good this could be without
           | constraints.
        
         | jamestanderson wrote:
         | >they know what I want before I do.
         | 
         | Or did they tell you what to want?
        
       | blunte wrote:
       | Targeted ads have been useful to me about 1 time in the last 5
       | years. Being generous, maybe as many as 5 times. The other 99999
       | ads I've had to endure have either been for something I just do
       | not care about, or more frustratingly for something I already own
       | or currently pay for.
       | 
       | If targeted ads worked at least 25% of the time, I might even
       | appreciate them. But they are virtually worthless. People paying
       | to run ads are suckers, because there's no way their ads get much
       | real, useful business. Social marketing and other approaches just
       | must be more effective.
        
         | changoplatanero wrote:
         | Have you considered that the targeted ads might have worked on
         | you without you realizing it? You might have clicked on an ad
         | and it was such a non event for you that it never made it into
         | your long term memory.
        
           | Swenrekcah wrote:
           | I think you're describing adverts disguised as content.
           | 
           | They can be either context or target based, scummy in either
           | case.
        
           | blunte wrote:
           | I very much doubt that I have fallen for a ruse like this.
           | 
           | However, with all the cookie and newsletter popups, it has
           | happened that an object moved on screen as I was clicking,
           | and I ended up clicking some stupid ad. I don't count that
           | since it wasn't my intention nor my mistake.
        
         | 2pEXgD0fZ5cF wrote:
         | I can't help but feel that the whole advertisement and "ad
         | targeting" business is built upon quite a few lies and a dose
         | of misinformation to make the whole thing seem way more
         | effective than it is.
        
         | stronglikedan wrote:
         | Targeted ads have been _very_ useful to me, but I do game the
         | system a bit. When I start seeing targeted ads for irrelevant
         | things, I just do some searches for things I like to look at,
         | and shortly thereafter, all of the ads I get are for things I
         | like to look at. It 's a few minutes of effort once every
         | couple of weeks, but I feel the results are a lot less
         | intrusive.
        
           | JohnFen wrote:
           | How are they less intrusive? Perhaps they're more "accurate",
           | but that's a different thing.
        
         | Jensson wrote:
         | Targeted ads isn't about targeting people who are very likely
         | to buy the product, they just target people who are slightly
         | more likely than average to buy the product.
         | 
         | Take the classical example "I just bought a vacuum cleaner, why
         | do I get lots of vacuum cleaner ads?", well the reason is that
         | people who just bought a vacuum cleaner sometimes are unhappy
         | with the purchase and buy another one. The probability isn't
         | high, but still higher than the probability that a random
         | person would want to buy one. It might still feel like just
         | noise to the person seeing the ads, but to the advertiser
         | getting 20% higher conversion rate is huge (or whatever number
         | they are getting).
        
       | SamirNP wrote:
       | i think your camera photos seem to be the hottest cake.to get
       | cool ads move your cool images(downloaded or created) to the
       | camera folder in your.AI will "think" you are visiting "these
       | cool places" and "snapping lambos,jets,rubber banded cash" like
       | some really rich person. suddenly i bet you will start seeing the
       | rich traveler's ads. not your damn activity mirror
        
       | marcus_holmes wrote:
       | Tangentially related but getting on my nerves a lot recently:
       | 
       | Ad targeting for stuff that I've just bought. Worst offender:
       | Remarkable - really good product, love mine, but I'm still seeing
       | their ads everywhere. I'm not going to buy a second one.
       | 
       | It's almost confidence-inspiring. Like how evil-overlord can this
       | be if they can't even get this basic stuff right?
        
         | jklinger410 wrote:
         | I always exclude purchasers from my ads, but ironically,
         | privacy protections make this harder to do.
        
         | nemo1618 wrote:
         | > It's almost confidence-inspiring. Like how evil-overlord can
         | this be if they can't even get this basic stuff right?
         | 
         | In the same vein, consider that ad agencies have spent millions
         | of man-hours and many billions of dollars essentially trying to
         | control your brain, and _this_ (the status quo) is the best
         | they 've come up with. All of that effort, and they can't even
         | get me to buy a 12-pack of Coke when I shop for groceries,
         | _even though I like Coke!_
        
           | zo1 wrote:
           | Meta-take on it: Maybe you as the consumer aren't their
           | target. Maybe it's the businesses that they've successfully
           | "tricked" into thinking that advertising works.
           | 
           | For that to work, they need lots of "metrics", "knobs and
           | dials", graphs, "conversion funnels" and a myriad of other
           | doo-dads that can be used to give the impression that they're
           | doing something useful. Hence the focus on tracking, I'd
           | argue.
        
         | marcinzm wrote:
         | >I'm not going to buy a second one.
         | 
         | I suspect the % of people who buy a second one for themselves,
         | their spouse, kids, friends, etc. (or recommend someone else to
         | buy one) is higher than the % of other people who buy one for
         | the first time. Neither number is large but as long as the
         | former one is slightly larger it makes sense to pay money for
         | that advertising.
        
           | cronix wrote:
           | I don't know, maybe if the product is subpar to begin with
           | additional "reminders" help? If I buy something and I like
           | it, or especially really like it, I usually tell everyone I
           | know who I think might like it or benefit from it as well -
           | for free. And if I like it I usually don't have to be
           | reminded of it. It's already in the "good stuff" section of
           | my brain. I've already been sold. I really don't see ads as
           | helpful for things you've already been sold on and use. At
           | that point, at least for me and I assume the poster you're
           | responding to, the opposite effect starts happening and it
           | taints the product negatively, even if you like it.
        
           | Joker_vD wrote:
           | Dude, come on: after I've bought a new dinner table, I am not
           | going to buy another one just because. Or buy it for my
           | friend. Seriously. It's similar to how people don't generally
           | go around recommending OSes to their friends and relatives.
        
             | WesolyKubeczek wrote:
             | Or fridges, or vacuum cleaners you usually keep one per
             | household. One of my friends was being haunted by vacuum
             | cleaners for months.
        
           | mountainb wrote:
           | It's easier to set up remarketing than it is to manage the
           | remarketing ads to put people who have purchased on a
           | blacklist or to put a frequency cap on the ads. Lots of times
           | companies just turn it on without configuring anything,
           | making more money for the platform and wasting spending on
           | showing the same ad to the same user 800 times.
        
           | danShumway wrote:
           | I strongly suspect you're correct, but I still think it's
           | terrible targeting. The "sell to people who already bought
           | one" approach is only better when compared against awful
           | targeting techniques. And it kind of misses the point anyway.
           | For a niche product, a market that already knows about you is
           | pretty much always going to be more likely to buy from you
           | than a market that has never heard of you. But part of the
           | job of an advertiser is to _expand_ the market that has heard
           | of you, not just wallow in it.
           | 
           | Think of it this way: if I'm building a video recommendation
           | system, I guarantee I can get much better click rates over
           | random recommendations if instead I recommend you random
           | videos only from your watch history. Heck, honestly I can
           | probably boost click rates over almost any existing
           | recommendation system by taking that system and filtering it
           | so it _only_ shows suggestions from channels in your watch
           | history. People are repetitive.
           | 
           | But is that system good? Is it innovative or useful for a
           | recommendation be constantly asking you to re-watch videos
           | from your history? Is that actually fulfilling any of the
           | promises that the recommendation system was sold on? No, not
           | really. I definitely wouldn't call that a 'smart' system.
           | 
           | And if I had a company that had invested years of research
           | into building an ad targeting system, and the result was just
           | "sometimes people repeat themselves" -- that seems like a ton
           | of wasted effort in order to get a pretty underwhelming
           | result.
           | 
           | Targeted ads are sold to consumers as an unobtrusive way to
           | learn about new products (whether that's an honest
           | representation of the system is a separate question). So
           | targeting of this nature is still a pretty big failure, even
           | if it does increase clicks.
        
             | yawaworht1978 wrote:
             | While I agree that much of targeted advertising is very
             | intrusive and not accurate, it's still very much cost
             | efficient compared to anything. Initially, acquisition cost
             | are there, either by generating SEO content or marketing or
             | lead generation. Retargeting is one step beyond that, off
             | course if you get ads for a car you've just bought, it's
             | pretty bad. The ads should display aftermarket parts for
             | that car or insurance offers, but these wouldn't come from
             | the same vendor. At least it leaves some branding impact.
             | Or if it's food items, it had led me to buy the same things
             | a few times again. Source, very good friend is head of
             | online advertising in a company.
             | 
             | He swears up and down, it can be a very good product if you
             | have a large online audience.
        
             | actually_a_dog wrote:
             | > But is that system good? Is it innovative or useful for a
             | recommendation be constantly asking you to re-watch videos
             | from your history? Is that actually fulfilling any of the
             | promises that the recommendation system was sold on? No,
             | not really. I definitely wouldn't call that a 'smart'
             | system.
             | 
             | It seems to work well enough for Netflix. I probably end up
             | watching stuff in the "Watch it Again" list almost as often
             | as I do anything else.
        
               | danShumway wrote:
               | That's what I mean: it works in the sense that it does
               | the strict job it was designed to do. It definitely
               | _works_ , strictly speaking.
               | 
               | But is it working in a way that gives you any value? Are
               | you happy that you're just clicking "Watch it Again", or
               | did you want a system that would actually find new shows
               | for you and let you know about new release that you'd be
               | likely to enjoy?
               | 
               | If you are happy with that, then from an engineering
               | perspective, was it necessary to build a complicated
               | algorithm to show you a "Watch it Again" list, or could
               | we have used a single database query and about a hundred
               | lines of code instead?
               | 
               | There are lots of simple heuristics to make a
               | recommendation engine have better success rates. I can
               | build a pretty good movie recommendation engine by just
               | recommending every single Marvel movie that comes out:
               | they're already popular so on average people will click
               | on them. That's not hard. But that's also not the promise
               | that we were sold when companies started
               | proposing/building these systems into their products.
        
             | marcinzm wrote:
             | >But part of the job of an advertiser is to expand the
             | market that has heard of you, not just wallow in it.
             | 
             | Why do you assume so strongly that they're not doing both.
             | Advertising isn't a zero sum game or something you can only
             | do a limited quantity of. You advertise on all channels
             | that bring you a positive ROI. The ROI is based on the cost
             | of advertising, effort of advertising (ie: $ spent on human
             | labor) and the generated profit from advertising. Assuming
             | that number is positive you should advertise with that
             | channel on top of everything else you do.
        
               | danShumway wrote:
               | > Why do you assume so strongly that they're not doing
               | both.
               | 
               | That's a good question. I guess I do assume they're doing
               | both, but the extreme degree to which they lean on repeat
               | targeting, to the point where it's this noticeable, and
               | to the point where repeat targeting overwhelms other
               | advertisers to this degree, still means that they're
               | incredibly _bad_ at expanding their market.
               | 
               | Let's look at Youtube again. Youtube can both recommend
               | new videos and old videos. It can do both at the same
               | time. But if the majority of my feed is recommending
               | repeat videos, that signifies to me that they're not very
               | confident about the main part I care about as a consumer:
               | showing me knew things.
               | 
               | Looking back at what OP says in the linked article:
               | 
               | > I don't mind letting your programs see my private data
               | as long as I get something useful in exchange. But that's
               | not what happens.
               | 
               | > the dirty secret of the machine learning movement:
               | almost everything produced by ML could have been
               | produced, more cheaply, using a very dumb heuristic you
               | coded up by hand, because mostly the ML is trained by
               | feeding it examples of what humans did while following a
               | very dumb heuristic. There's no magic here.
               | 
               | I still don't think it's all that impressive to increase
               | ROI using this kind of simplistic heuristic. More than
               | that, I don't think it justifies the incredibly large
               | amount of money and infrastructure that gets devoted to
               | ad targeting online. If some of the most prominent parts
               | of a gigantic system can be replicated by a couple of
               | purchasing history lookups in a database.
               | 
               | It would be impressive for them to increase advertising
               | ROI in a way that increases value for consumers, or that
               | justifies the tracking mechanisms or the extensive
               | research and AI poured into the system, or in a way that
               | is giving _better_ ROI than ridiculously naive
               | approaches, but repeat targeting doesn 't seem to do any
               | of that as far as I can tell.
               | 
               | TLDR I assume they're trying to do both, but the
               | proportion of repeat advertising indicates to me that
               | it's giving them a lot better results than more
               | sophisticated methods, which (to me) indicates that their
               | sophisticated methods are all bad. If better targeting
               | methods existed, repeat targeting wouldn't be so
               | prominent and obvious because it would be getting crowded
               | out by other targeting techniques.
        
               | tshaddox wrote:
               | > I guess I do assume they're doing both, but the extreme
               | degree to which they lean on repeat targeting, to the
               | point where it's this noticeable, and to the point where
               | repeat targeting overwhelms other advertisers to this
               | degree, still means that they're incredibly bad at
               | expanding their market.
               | 
               | > TLDR I assume they're trying to do both, but the
               | proportion of repeat advertising indicates to me that
               | it's giving them a lot better results than more
               | sophisticated methods
               | 
               | I don't think you can conclude anything about how they
               | are "leaning" or what "proportion" of their ad budget is
               | being spent on different things, if the only evidence you
               | have is the portion of ads _shown to you_.
               | 
               | The fact that their "post-sales targeting" can overwhelm
               | other advertisers who are just doing "market expansion"
               | targeting doesn't tell you much at all, because the
               | number of people who would be eligible for post-sales
               | targeting would obviously be vastly smaller than the
               | number of people eligible for market expansion targeting.
               | It seems very reasonable that the company you just spent
               | hundreds of dollars at would be willing to bid more for
               | an ad on your timeline than the thousands of other
               | companies who want to show you an ad about something
               | you've never heard of.
        
               | danShumway wrote:
               | > The fact that their "post-sales targeting" can
               | overwhelm other advertisers who are just doing "market
               | expansion" targeting doesn't tell you much at all
               | 
               | It shows me that the simplistic method of "advertise to
               | people who have already bought our product" performs
               | vastly better than any of the other sophisticated
               | targeting that advertisers like to tout.
               | 
               | To clarify -- I'm not talking about the proportion of an
               | individual company's budget -- I'm talking about the
               | proportion of the overall market for that product. Every
               | time that someone is shown an ad, that ad is the result
               | of a bidding war. If a large proportion of those ads are
               | retargeted that means the market has decided that the
               | vast majority of advertisers are less confident about
               | their targeting systems then they are about a simplistic,
               | vaguely annoying heuristic.
               | 
               | We can make an assumption about the market as a whole
               | because we believe that the market is at least somewhat
               | efficient. If advanced, targeted advertising that used
               | tons of demographic data and personal information was
               | competitive with these naive targeting techniques, then a
               | higher proportion of those ads would outbid retargeted
               | ads on any given page.
               | 
               | > doesn't tell you much at all
               | 
               | I also want to broaden out a little bit here. In the OP's
               | article, the main complaint being made is not that
               | advertising has zero ROI (although the author is critical
               | of the effectiveness as well). The criticism is that the
               | ads provide no benefit to the user, that they're annoying
               | and reductionist, and that they fail to live up to the
               | promises of companies like Facebook that claim targeted
               | ads connect people to new products that they'll love.
               | 
               | Independent of whether or not we can be critical of the
               | effectiveness of ads for companies, the proportion of
               | retargeted ads also tells us that advertisers broadly, as
               | a market, are incapable of delivering on their promises
               | to consumers and are incapable of building a system that
               | is mutually beneficial to both companies and consumers.
               | 
               | See also some of the authors criticism of recommendation
               | algorithms, which fall into the same boat. Who cares if
               | Netflix's recommendation algorithm increases clicks?
               | Consumers don't sign up for Netflix out of charity, they
               | want a system that serves _their_ interests, not just the
               | company 's. For advertisers to try and make the case that
               | access to private data is good for consumers, they need
               | to have something to show that's better than this.
        
               | tshaddox wrote:
               | > It shows me that the simplistic method of "advertise to
               | people who have already bought our product" performs
               | vastly better than any of the other sophisticated
               | targeting that advertisers like to tout.
               | 
               | Well, yes, it performs better, but _only to people who
               | have already bought the product_. It 's not surprising
               | that this would perform better than whatever
               | sophisticated ML-based targeting system they use over the
               | general population.
               | 
               | > If a large proportion of those ads are retargeted that
               | means the market has decided that the vast majority of
               | advertisers are less confident about their targeting
               | systems then they are about a simplistic, vaguely
               | annoying heuristic.
               | 
               | Again, this isn't surprising, and I don't think it leads
               | to the conclusion you're making. I think you're getting
               | tripped up because you're not considering the
               | _denominator_ here. There 's nothing odd about the fact
               | that a single ad impression shown to a recent purchaser
               | of your product would perform better than a single ad
               | impression shown to someone who has never heard of your
               | product (but perhaps is targeted using something more
               | sophisticated based on their Internet traffic). It's also
               | not odd that the ad publisher would pay a lot more for
               | the former impression than the latter impression (and
               | thus recent purchasers would see a lot of the former
               | type). What's important to note is that the ad publisher
               | is most likely showing _orders of magnitude more_
               | impressions of the latter type than of the former.
        
               | mountainb wrote:
               | No one thinks that showing the same ad to the same person
               | 100 times is effective. It does, however, make more money
               | for the ad seller for ad customers to waste spending.
               | 
               | Much of ad targeting is not automatic, but manually
               | configured by advertisers in one way or another. Many of
               | these users manually configure their ads poorly. If I
               | tell the system "show this ad to everyone in this
               | geography with no restriction on frequency" the only
               | 'smart' targeting is the stuff that restricts it to users
               | that appear to be in that geography. Everything else is
               | the 'dumb' method specified by the user.
               | 
               | I think also the purely automated methods are not
               | necessarily incented to provide better targeting for the
               | ad buyer. Their incentive is to spend all the budget and
               | to try to get the user to refill the budget. For large
               | sectors of this spending, there isn't that much
               | sensitivity to waste so long as the people responsible
               | for wasting the money don't lose their jobs. You wouldn't
               | believe it just as an ordinary smart person but people do
               | waste billions of dollars a year on this stuff. The
               | 'smarts' of the system is dedicated to parting fools from
               | their money repeatedly while giving them enough
               | justification with 'greedy' attribution metrics to keep
               | filling up the budget.
        
               | nobody9999 wrote:
               | >No one thinks that showing the same ad to the same
               | person 100 times is effective.
               | 
               | That depends on what you consider "effective"
               | advertising. Keeping a brand in your (and others') face
               | is a key goal of advertising.
               | 
               | In fact, two (of many) of those goals for advertisers are
               | "top-of-mind awareness"[0]:                  In
               | marketing, "top-of-mind awareness" refers to a
               | brand or specific product being first in
               | customers' minds when thinking of a particular
               | industry or category.
               | 
               | and "unaided awareness"[1]:                  Brand recall
               | is also known as unaided recall or         spontaneous
               | recall and refers to the ability of         the consumer
               | to correctly generate a brand from         memory when
               | prompted by a product category.
               | 
               | [0] https://en.wikipedia.org/wiki/Top-of-mind_awareness
               | 
               | [1] https://en.wikipedia.org/wiki/Brand_awareness
        
               | pixl97 wrote:
               | >No one thinks that showing the same ad to the same
               | person 100 times is effective.
               | 
               | No one told that to Coca-Cola
        
               | xmprt wrote:
               | Because after making the purchase, the number of ads for
               | the item INCREASE. I don't mind seeing a handful of ads
               | for something I've already bought but what usually
               | happens is that about 30-50% of ads that I see suddenly
               | become ads for the item I just bought.
        
               | tshaddox wrote:
               | > Because after making the purchase, the number of ads
               | for the item INCREASE.
               | 
               | Even if you've actually measured this and it's true (and
               | not frequency illusion), that still doesn't mean they're
               | not doing both.
        
           | disgruntledphd2 wrote:
           | it's stupid though.
           | 
           | Like, they are normally my top ad in Facebook, and have been
           | since well before I bought it.
           | 
           | And I did buy it, so score 1 for them. And then i recommended
           | it to everyone I know who likes technical PDF's (which was a
           | lot of people, it turns out).
           | 
           | But now, it's just wasted inventory (for FB), and a minor
           | annoyance (for me), along with a bunch of money (for
           | Remarkable).
        
         | WalterBright wrote:
         | > get this basic stuff right?
         | 
         | I bought the cheaper Kindle with the ads enabled. They were
         | supposed to be targeted ads, but were usually for feminine
         | hygiene products. I have no idea how any reasonable targeting
         | algorithm would have decided to pitch that stuff to me.
         | 
         | I also enabled for a time context sensitive Amazon ads on my
         | programming web site. What did I get? Endless ads for the
         | Batman movie. Google would do slightly better, they'd show the
         | same ad for a C++ training course over and over and over and
         | over.
         | 
         | I abandoned both of them.
         | 
         | I also have a site on the American Revolution. Google's context
         | sensitive ads showed ads for travel agencies.
         | 
         | Context sensitive ads are so pathetically bad. I can't recall
         | ever seeing one that I even wanted to click on, let alone buy.
         | 
         | There is a simple fix, that nobody does. Allow me, the website
         | designer, to list the categories for the ads. I know my
         | audience far better than Google/Amazon, why don't they allow a
         | little human guidance? Geez, maybe I should patent this idea.
        
         | ajb wrote:
         | 3% is a good conversion rate for a selling page. So 97%+ of
         | people who looked at the buying page were interested but didn't
         | buy. Getting those people to come back is a major target and
         | most companies don't care about the 3% loss in re-targeting
         | those who actually bought.
         | 
         | So re-advertising to people who already bought is not evidence
         | that they aren't "evil-overlord". Evil overlords only care
         | about what benefits them.
        
         | 053227420 wrote:
         | > Like how evil-overlord can this be if they can't even get
         | this basic stuff right?
         | 
         | Imagine living with schizophrenia in this era. It's a
         | nightmare.
         | 
         | You're primed to see connections (and threats), even when there
         | is no plausible mechanism to create the connection. In earlier
         | years you could reason yourself out of it by saying "that is
         | not technologically possible" or "that is not cost effective".
         | 
         | Nowadays you can end up with _insane_ ideas like,  "my forum
         | posts are being de-anonymized via stylometry and someone is
         | broadcasting threatening messages using language that mirrors
         | my recent post." It's insane and unrealistic, but
         | technologically possible. That makes it harder for a
         | schizophrenic to dismiss.
         | 
         | When websites adapt to your behavior, it just gets worse. A/B
         | testing isn't just annoying, it feels threatening. That's why
         | HN is great.
         | 
         | Using anonymizing tools is one way to cope. It helps you avoid
         | feeling "targeted".
        
           | bilekas wrote:
           | This seems quite intense and you've described it really
           | well..
           | 
           | I wonder does the current online climate nurture
           | schizophrenia a bit more than would naturally.
        
           | lmkg wrote:
           | While the trope is "relevant XKCD," sometimes SMBC is the
           | webcomic with the on-point reference.
           | 
           | https://www.smbc-comics.com/comic/right
        
           | pjc50 wrote:
           | > "my forum posts are being de-anonymized via stylometry and
           | someone is broadcasting threatening messages using language
           | that mirrors my recent post
           | 
           | I wouldn't be surprised if that's actually happened to
           | someone, given how intense forum wars and stalkers can get.
           | Especially if it's a group targeting an individual.
           | 
           | There is however the effect that people who leap straight to
           | extraordinary claims for which they get publicity are almost
           | certainly wrong, while the stalking victim to which this
           | stuff has actually happened cannot get anyone to listen.
        
         | dheera wrote:
         | > Ad targeting for stuff that I've just bought. Worst offender:
         | Remarkable
         | 
         | In all honesty Remarkable isn't at fault for your ad targeting,
         | Google and Facebook are.
         | 
         | If you stop buying Remarkable and start buying farm fresh
         | produce online you'll start getting ads for local produce.
        
           | singlow wrote:
           | No - Remarkable has a lot of control over how Google and
           | Facebook target you. Maybe they could offer better tools, but
           | those tools already let Remarkable remove you from audience
           | lists after purchase, if they chose to do so.
        
             | dheera wrote:
             | I mean, to be fair, maybe they _aren 't_ using those tools
             | to remove you individually and that's a good thing.
             | 
             | FWIW I get tons of Remarkable ads as well and I don't own a
             | Remarkable, so it just means they're NOT differentiating
             | between you and me. If they did differentiate on the basis
             | that you have a Remarkable then that is a step in the
             | direction of violating privacy.
        
               | singlow wrote:
               | I don't really know what Remarkable is. I might google
               | them now just to find out. I don't think I am on their
               | audience list yet, because I haven't seen many ads. But
               | if they ever add me to an audience list based on some
               | action I take online, I would not view it as more/less
               | egregious for them to then remove me after I am a
               | customer. In fact, if I were to voluntarily associate
               | myself as a customer, I would expect a more customized
               | experience, depending on the nature of their product,
               | whatever it is.
        
               | singlow wrote:
               | I googled (incognito) and see that I do remember them
               | now. Surprised I am not in their audience list as I have
               | read several articles about them and gone to their
               | website a few times, in addition to having researched
               | similar products.
        
         | larrik wrote:
         | This was explicitly covered in the article, actually.
        
         | wintermutestwin wrote:
         | >Like how evil-overlord can this be if they can't even get this
         | basic stuff right?
         | 
         | I'd recommend a read of some Kafka to get a picture of how it
         | could turn out...
        
         | reaperducer wrote:
         | Not the same, but equally stupid: Amazon asking me to subscribe
         | to every single thing I put in my cart.
         | 
         | No, Amazon, nobody needs another bird feeder every month. We're
         | not feeding pterodactyls.
        
         | andy_ppp wrote:
         | You're forgetting the incentives here, of course it's in the ad
         | companies interest to keep showing you ads even if they can
         | discern a signal that you've probably already made the
         | purchase...
        
         | Jenk wrote:
         | BMW (or maybe a design/ad agency at their behest I think) once
         | said that the BMW car adverts are not for people who don't yet
         | own a BMW, they are to reassure the people who have just bought
         | a BMW that they have made the right choice.
         | 
         | In reality I suspect there is a whole spectrum of audience
         | coverage in the results from those who don't have one and never
         | thought about getting one before seeing the ad, to encouraging
         | existing owners to promote the brand to others, but I thought
         | it was a poignant point at the time.
        
         | nerdponx wrote:
         | _Like how evil-overlord can this be if they can 't even get
         | this basic stuff right?_
         | 
         | The problem is not that the data is being used for ads, but
         | that it exists at all. Google isn't what makes it scary that
         | Google collects data. The scary part is hackers, state
         | governments, and malicious authorized Google personnel.
        
         | xenonite wrote:
         | On the contrary: Actually I guess they get it absolutely right.
         | This way, they address buyer's remorse. To ensure you really
         | like the product and spread the word, don't return it, and
         | ensure that after few years time you do buy the followup
         | product.
        
           | TeMPOraL wrote:
           | How is rubbing the decision in someone's face with retargeted
           | ads a way to address buyer's remorse?
        
         | willis936 wrote:
         | >how evil-overlord can this be if they can't even get this
         | basic stuff right?
         | 
         | The same style of speculation works the other way too. If the
         | advertisee thinks the advertiser is incompetent then they will
         | lower their guard and be more influenced by ads. Perhaps they
         | are maximum evil-overlord and projecting incompetence is a
         | minimum-energy state.
        
         | dazc wrote:
         | Ironically, I didn't know what 'Remarkable' was so had to
         | search for it.
        
           | new_guy wrote:
           | Strangely enough I only heard about them the other day, and
           | now I'm constantly getting ads for them on FB and seeing them
           | mentioned everywhere.
        
         | kgwxd wrote:
         | They just got you to advertise for them.
        
           | marcus_holmes wrote:
           | hehe, true. I'm OK with that for this case.
        
           | marcosdumay wrote:
           | At least is not targeted with user data.
        
         | ashtonkem wrote:
         | I get the same thing, but for the engagement ring I bought my
         | (now) wife. I feel like this signals one of two things: either
         | the advertisers are incompetent (most likely), or they have
         | very low confidence in my marriage (less likely, but funnier).
        
           | soared wrote:
           | Or if you shop for a ring on two sites, but purchase from
           | one, the other site doesn't get data about your purchase on
           | the other site. So the site you shopped at but didn't buy
           | from doesn't know you made a purchase.
        
           | CodesInChaos wrote:
           | You should buy another diamond ring at every 10 year
           | anniversary, to show that you still love her.
           | 
           | -- This comment was totally not sponsored by De Beers
        
             | thaumasiotes wrote:
             | https://mattguzzardo23.files.wordpress.com/2014/04/debeers.
             | j...
             | 
             | Checkerboard Nightmare seems to have vanished off the face
             | of the internet, despite the author maintaining an active
             | presence, but this gem lives on in random corners.
        
             | handrous wrote:
             | The idea that you should upgrade your "wedding set"
             | periodically is, in fact, fairly common. Which is pretty
             | sharply at-odds with diamonds being forever, but then none
             | of this makes much sense to me, so what do I know.
        
               | CodesInChaos wrote:
               | Diamonds being forever only means that you shouldn't sell
               | yours. Can't have a flourishing market for used diamonds
               | if we want to sell many overpriced new ones, can we?
        
           | selectout wrote:
           | Could also be that if you only purchase 1 item from a store
           | you might forget the stores name, but referrals for large
           | purchases are likely a big driver of their business so they
           | want to make sure you do remember where you got this from in
           | the hopes you can refer one person to make a purchase.
           | 
           | A multi-thousand dollar purchase is likely worth it for an
           | extra $15 in targeted ads to somebody.
        
       | paulsutter wrote:
       | This is no more than Sturgeon's law (90% of everything is crap).
       | 
       | Beyond that no, you cant do GPT-3 or Yolo or even MNIST[1][2]
       | with a dumb heuristic.
       | 
       | > almost everything produced by ML could have been produced, more
       | cheaply, using a very dumb heuristic you coded up by hand,
       | because mostly the ML is trained by feeding it examples of what
       | humans did while following a very dumb heuristic
       | 
       | [1] https://en.wikipedia.org/wiki/MNIST_database
       | 
       | [2] http://vision.stanford.edu/cs598_spring07/papers/Lecun98.pdf
        
       | vmoore wrote:
       | What (nob obvious) ways do people avoid leaving a huge data
       | trail?
       | 
       | I'm not talking about the obvious stuff, like not carrying a
       | smartphone, using an AD blocker, choosing privacy-aware operating
       | systems and apps etc
       | 
       | I mean, what non-obvious ways are there which people employ to
       | avoid getting their data harvested for AD targeting?
        
         | nicbou wrote:
         | I think that you covered most bases already. I'd add these: pay
         | with cash, use throwaway emails for everything, scramble
         | anything that can be used to fingerprint you, give false
         | information unless you have a reason not to, move to a cabin in
         | the woods, speak in code, wear a wig.
        
         | dredmorbius wrote:
         | Your purchase history is probably the largest, most useful, and
         | most difficult-to-hide signal.
         | 
         | It can be directly accessed through credit and debit payments,
         | as well as contactless payment mechanisms. It's increasingly
         | possible through facial and other biometrics data. It is
         | specifically associated with spending patterns.
         | 
         | Travel data are available through licence plate scanners,
         | tollway tokens, and transit passes, as well as, again,
         | biometrics.
         | 
         | Anything online leaves a very fat and wide trail, of course.
         | 
         | Your employer's payroll processor would be another data
         | channel. That's going to be available to other prospective
         | employers, increasingly.
         | 
         | Utilities data might also be available.
         | 
         | Auto repair and smog-station data are collected and reported,
         | and often sold to insurance companies for rating purposes.
         | (Distance driven correlates strongly to risk.)
        
       | [deleted]
        
       | dang wrote:
       | Discussed at the time:
       | 
       |  _Forget privacy: you 're terrible at targeting anyway_ -
       | https://news.ycombinator.com/item?id=19055119 - Feb 2019 (109
       | comments)
        
       | woliveirajr wrote:
       | Once I was searching for a surprise vacation for family. After
       | buying it, ads began to pop not only in my notebook but at any
       | device at home, no matter who was using wich device.
        
         | [deleted]
        
       | ericholscher wrote:
       | This has been our experience running an ad network that only does
       | content-based targeting (https://www.ethicalads.io/). As noted in
       | the article, simple heuristics and topics are plenty to target
       | ads, and provide great value for both advertisers and publishers.
       | We're also cutting out all the ad tech middlemen who take a cut,
       | keeping the value in the developer ecosystem, and keeping the web
       | more private & secure.
       | 
       | We basically let someone like Sentry or Twilio target JS
       | developers with a specific ad about their JS integrations. They
       | can link to JS-specific landing pages with sample code, etc. It
       | works super well, and doesn't require anything beyond knowing the
       | content of a page.
        
         | float4 wrote:
         | Very inspiring stuff!
         | 
         | Given that "simple heuristics and topics are plenty to target
         | ads", is it correct to assume that your payout/cost is similar
         | for publishers/advertisers compared to networks that target
         | users?
        
           | ericholscher wrote:
           | That's the goal! It definitely varies by audience & location,
           | but generally we're pretty competitive.
        
       | cormacrelf wrote:
       | > _Let 's be clear: the best targeted ads I will ever see are the
       | ones I get from a search engine when it serves an ad for exactly
       | the thing I was searching for. Everybody wins: I find what I
       | wanted, the vendor helps me buy their thing, and the search
       | engine gets paid for connecting us. I don't know anybody who
       | complains about this sort of ad. It's a good ad._
       | 
       | Not the point of the article, but it's typically the vendors who
       | complain. Other vendors can and do buy up ad space on their
       | keywords, pushing the thing you were searching for further down
       | the page. Search for Miele vacuums, get an ad for Dyson. Now
       | Miele has to buy up ad space for the keyword "miele", which it
       | worked hard to get name recognition for. Some people think this
       | is a bit like extortion, but really it's just the cost of people
       | being able to find your product in 0.00045s. The search engine is
       | just charging the vendor for the service.
        
       | fxtentacle wrote:
       | Great article :)
       | 
       | "Embarrassingly, the trackers themselves don't even need to cause
       | a slowdown, but they always do, because their developers are
       | invariably idiots who each need to load thousands of lines of
       | javascript to do what could be done in two"
        
         | seemcat wrote:
         | Haha yeah, I'd really like to hear this story.
        
       | Jiro wrote:
       | Data that is incorrectly analyzed much of the time is still a
       | privacy threat, and sometimes a bigger privacy threat. It's bad
       | enough if your purchases are correlated with being a terrorist,
       | but having your purchases sometimes incorrectly correlated with
       | being a terrorist is worse.
        
       | NoImmatureAdHom wrote:
       | I am amazed that, in 2021, people who read HN are seeing ads.
        
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