Is online advertising subprime?

The Contagious Edit /

A new school of criticism against online advertising is gathering steam. Not one that argues the harm caused by invasive targeting, but one that claims it’s a swizz.

A 2019 piece in The Correspondent was widely shared for explaining how online ads were taking credit for sales that would have happened anyway through the ‘selection effect’, while acclaimed journalist Cory Doctorow this year wrote a free book attacking the competence of so-called surveillance capitalism.

Now, former Google employee Tim Hwang has published a book comparing online advertising to the 2007-08 financial crash. Subprime Attention Crisis argues microtargeting is basically impotent but, like with the subprime mortgages, no one yet grasps its worthlessness. And given that Facebook, Google and Amazon, which account for approximately 10% of the US stock market’s worth, would be among the biggest casualties, a collapse could spell disaster for the economy.

There’s no precedent (that we’re aware of) for such a collapse in advertising, and the idea that one could spell disaster of the magnitude of the 2007-08 crisis feels far-fetched.

But as more and more – apparently very knowledgeable – people join the dogpile, it feels increasingly possible that some kind of reckoning is on its way for online advertising.

Campaign of the week /

The Invisible Influencer

A 2012 study published in the Journal of Marketing Research showed car buyers were influenced by the purchases of their neighbours. So Chevrolet in Mexico mapped out an area where it had sold lots of Aveo model cars (in blue) and flooded the area with more ads for the same vehicle.

The brand targeted busy locations with OOH posters, as well as geo-targeted digital and social media ads, which offered customers a discount, in the hope that this would provide the final nudge for a target audience already more disposed to buying an Aveo.

McCann Mexico City created the campaign, which it claims boosted sales 146% in the target area. Read more about the campaign here. Contagious.

Read this /

Gerard Crichlow’s Strategy Diet

In the latest edition of our Strategy Diet series, we ask strategic consultant Gerard Crichlow about the media he consumes and the resources he uses to stay informed and crack briefs.

Before establishing his consultancy, Crichlow developed social strategies for a host of blue-chip clients at top agencies, including R/GA, Droga5 and AMV BBDO. Click on to read about drinking from the Twitter firehose, why we’re all in the business of influence, and the restorative powers of a good banya. Contagious.

Watch this /

Peloton’s New Ad

Peloton is back with a new ad and you’re all going to be disappointed because it’s... fine. Last Christmas, Peloton released the unwittingly hilarious ‘Peloton Wife’ ad, but then took a break from marketing earlier this year because, according to an interview in AdAge, the company was already struggling to keep up with the demand from positive word-of-mouth.

The latest campaign features real customers talking about why they bought a Peloton bike, and there’s nothing funny (or memorable, to be honest) about it. YouTube.

Watch this /

Objectives Unlocked: Earn Media

Register for this week’s free Objectives Unlocked live stream to learn how to earn media for your brand. In this session we’ll explore why fame has become the weapon of choice for brands that want to reach people, and which brands have excelled at finding the spotlight. We’ll get under the skin of the work that worked, and share what your brand can learn from those earned media success stories. Contagious

Earn Media 2 (1)

Prescribe this /

Viagra Ads Cause Baby Boom

A researcher at the University of Texas measured how ads for erectile dysfunction drugs affected birth rates and found an increase in ZIP codes where campaigns had run 10 months prior. According to a report, the ‘results showed that a 1% increase in [erectile dysfunction] drug advertising contributed to an increase of 0.04% to 0.08% of total births.’

The researchers claim it is likely some consumers purchased the drugs after seeing the ads, to raise the likelihood of pregnancy, but others were simply made horny by the suggestive content of the ads and didn’t even buy the drugs. NewsMedical.

Buy this /

Most Contagious 2020: Early Bird Discounts

Tickets for Most Contagious (UK & Europe) are now on sale and for a limited time you can buy them for just £250 (usual price £350).

This year, we’re live streaming Most Contagious straight to your screen from the hot-pink Contagious studio. And for the first time, the event will be spread over two days. But not everything’s changed: we’re still delivering a year’s worth of marketing insights, trends and case studies to help you make better, braver work.

Burger King’s global CMO, Fernando Machado, will be there, as will the founders of one of the world’s hottest advertising startups, Uncommon. And that’s just a taste of the must-see lineup that we’ve put together. Click on for more details. Contagious.