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Microsoft Says Not All Ad Clicks Are Created Equal

Posted by ScuttleMonkey on Mon Feb 25, 2008 01:05 PM
from the more-tracking-bloat-coming-to-a-site-near-you dept.
kyle6477 writes to share that Microsoft is hoping to change the way advertising is thought of, and ultimately valued, online. Their new Engagement ROI tool tries to track a user's ad clicking habits and distribute the credit over all of the ads that led to an eventual sale as opposed to the last ad clicked getting all the credit. "Say a consumer sees an ad for a product in a video ad one day, and then clicks on a text ad to visit the retailer's site the next day, and then eventually sees a banner ad that leads to a purchase. All of the monetary credit tends to go to the text link that was clicked on."
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  • Equal ads (Score:4, Funny)

    by Wowsers (1151731) on Monday February 25 2008, @01:06PM (#22548200) Journal
    Microsoft are wrong, I don't have any ads to click, so they are in fact all equal to me.
    • by sakdoctor (1087155) on Monday February 25 2008, @01:14PM (#22548338)
      You mean all ads are equally blocked?
    • Re: (Score:2, Funny)

      by Anonymous Coward
      I know! Advertisements on the internet? There's living in the 20th century, I haven't seen any ads on line for years.
    • Re: (Score:3, Insightful)

      I agree. Adblockplus FTW! I think a gradual shift in importance in online advertising is taking place...
      • Re:Equal ads (Score:4, Informative)

        by kc2keo (694222) on Monday February 25 2008, @01:28PM (#22548558) Homepage
        Yep, I use Adblock Plus too but along with noscript. Haven't seen a AD since installation. Even if I didn't have these plugins installed I never click on any ADs. The ads that bother me the most are the ones that flash like a strobe light, make noises (those have scared the hell out of me before), are in the way of articles I am reading, and the ADs that are popup's...
        • by haystor (102186) on Monday February 25 2008, @01:31PM (#22548598)
          I seem to keep getting ads for AdBlock whenever slashdot does a story involving ads.
            • Re:Equal ads (Score:5, Interesting)

              by haystor (102186) on Monday February 25 2008, @03:15PM (#22549972)
              To spell it out...every time anything on slashdot mentions ads, the first 100 or so posts are people commenting on how they haven't seen ads in years. They make these comments like the signal to noise ratio needed to satisfy their massive intellect needs to approach 100%. Then of course they proceed to fill up all the comments with the noise of one person saying "Adblock..." and 99 saying, "me too".

              - I don't care that you use AdBlock. If it's an ask slashdot about how to block ads, by all means post in response to that.
              - I also don't care about all of you that don't even have a tv but must comment on every tv story.
              - Nor do I care that Go is deeper than chess unless we're already discussing both of them (not just one).
    • You thief! (Score:4, Funny)

      by spun (1352) <[loverevolutionary] [at] [yahoo.com]> on Monday February 25 2008, @02:57PM (#22549762) Journal
      By not watching ads, you are stealing from the hard working website owners and operators like CmdrTaco here. I mean, due to lack of funds the poor guy has obviously had to hire brain damaged chimpanzees as editors.

      I keed, I keed, you guys are great, don't cancel my account please. ;)
  • by pembo13 (770295) on Monday February 25 2008, @01:11PM (#22548278) Homepage
    I barely trust javascript from Google, I trust even less stuff from Microsoft, so how well would their algorithms work without client side scripts?
    • Re: (Score:3, Interesting)

      That's largely my thought on this. The only way this can possibly work is if MS is using tracking cookies to follow people around.

      I'm fine with ads on the internet if it means that I don't have to pay for the content and that the hosting fees are covered with the earnings. But if it's an obnoxious ,browser crashing flash ad, uses offsite javascript or sets tracking cookies, it's banned from my browser.

      Unfortunately for marketers, that means that I don't see most of the ads, because the site that "hosts" the
  • My guess (Score:3, Insightful)

    by TheRecklessWanderer (929556) on Monday February 25 2008, @01:11PM (#22548286) Journal
    Who are the people who click on adds? Are they the same people who buy the products sold by spam?

    I think that perhaps click through addds are a means to an end, in that they don't sell any product themselves but create awareness.

    Once again tho, who are the people that actually buy something from a click through add, exempting porn of course, which everyone buys.

    • Re: (Score:3, Interesting)

    • Re: (Score:2, Interesting)

      How on earth did you manage to misspell "ads" three times in a single post (twice with an extra 'd', and once with two extra 'd's)?

      I'm pretty sure the overwhelming majority of people who use the Internet for porn do not pay for it. It's not exactly hard to come by.
    • I think that perhaps click through addds...

      Perhaps that was a typo, but if so it was a rather clever one on several levels.
      • Re:My guess (Score:4, Interesting)

        by mrxak (727974) on Monday February 25 2008, @01:28PM (#22548566)
        Yeah, google's text ads are perfectly reasonable, and those flash-based ones are atrocities. What's kind of interesting is how people pretty much block them out subconsciously after a while, especially if they become used to the site after visiting it numerous times. I guess that's why web ad companies suggest people move them around and try to make them look as much like actual content as possible.
          • Re:My guess (Score:5, Informative)

            by DeionXxX (261398) on Monday February 25 2008, @02:33PM (#22549394)
            Do you have the pre-fetch option on in Firefox? If you do, it might be requesting the page and therefore the cookie in the background. When on the Google results, it Firefox pre-fetches the first few links.

            That's probably what's going on.
  • Just an exuse (Score:5, Insightful)

    by SpaceLifeForm (228190) on Monday February 25 2008, @01:11PM (#22548298)
    To track all of your traffic.
  • Wasted Effort (Score:5, Insightful)

    by immcintosh (1089551) <slashdotNO@SPAMianmcintosh.org> on Monday February 25 2008, @01:12PM (#22548310) Homepage
    This really seems like a wasted effort. Presumably, it is either the case that the ad that was clicked on was more convincing than the other ads, causing the purchaser to finally cave in, or it was no more convincing and just benefited from the luck of the draw. If it was the case that this individual ad was what convinced the consumer, I see no reason it shouldn't get all the credit. If it was not the case that this individual ad was more convincing, then when you take the total ad revenue on average, none of the ads should be getting more revenue than any of the others.

    To put it another way, if one ad is generating a lot more revenue than other ads, there's a reason for this. Whether it be placement, timing, appropriate context, better design, or whatever. If none of these things are the case, then I submit that the ads should all be generating equivalent revenue.

    In short, Microsoft is developing a solution in search of a problem. Either that or it's just another attempt at tracking the consumer's every last act, hidden under a patina of equitable distribution of ad revenue.
    • Re:Wasted Effort (Score:5, Insightful)

      by teknopurge (199509) on Monday February 25 2008, @01:16PM (#22548370) Homepage
      Not true.

      This is in fact an issue we, as advertisers, have been dealing with for a long time. One ad does not sell a product or service, rather it takes multiple avenues to get a message across. If this tool helps up view thread within an ad campaign and at what points the campaign has different levels of impact, it would allow us to tune our ad-spend to a very granular level.

      Things like Adwords is a large toilet that we used to flush money down. Anything that makes our $$$ go further we are all for.

      Regards,
      • It's none of your god damn business which ones I see. Douchebags like you prevent your more ethical colleagues from getting through to people, because we just block or ignore all ads.
          • Re: (Score:3, Interesting)

            I remember hearing about a study where people rated one of two identical breakfast cereals as tasting better, simply because it came in a more attractive box. We are not as objective as we like to think.

            Yeah, I agree that packaging matters. So much so, in fact, that knockoff brands tend to use packing similar to the brand they are imitating. I would say a real renegade would buy his breakfast in the bag instead of the box that the overpriced General Mills or Post stuff comes in. That said, I like Cheerios and Honey Nut Cheerios because of its taste and it usually has a more reasonable price than most other stuff (about $0.25 per bowl of cereal). And everytime I buy knockoff brand Cheerios, I am disap

            • Re: (Score:3, Insightful)

              >Take software for instance, it costs $0 to copy and Microsoft charges $800 for Windows Vista Ultimate without batting an eye

              You've posted the very incorrect raw material cost analogy. Raw material cost != actual cost to create: if I distill a CPU to just some bits of metal & silicon it's cost will be hardly anything. If I distill a skyscraper to just buying a quantity of raw concrete and metal, it's cost will be just a fraction of what it cost to put it up (we'll ignore the window drapes, elevator
    • I thought this too, initially, but there's some possible benefits for the customer and for the person(s) making money off the ad.

      The customer (the company advertising) will have better metrics. Let's say you've got two banner ads (A and B) and a video ad (C). It turns out that out of all the combinations, having the ads viewed in B-C-A order is most succesful. Now the advertiser can model future campaigns on this one. In the past, they may have thought the "A" ad was the best, but they didn't realize it was
    • Or perhaps the ads that create an impression that results in a purchase are measurably distinct from the ads people click on. In that case, advertisers would like to data mine to see which ad impressions correlate with purchases and such.

      Of course, there is the whole privacy / tracking issue...

    • In short, Microsoft is developing a solution in search of a problem.

      Like in sports, the person who passes the ball/puck/etc does not do the scoring but they do get credit for the assist. Doing so in advertising does make logical sense, and it also seems to be a more fair system. Be careful that you are not against a good idea merely because it was from Microsoft, if Google had suggested this would you have had the same reactions?

      Either that or it's just another attempt at tracking the consumer's every last act, hidden under a patina of equitable distribution of ad revenue.

      To continue in the theme of the above question, does it bother you that google is actually doing so? Mining email, etc?
    • by sm62704 (957197) on Monday February 25 2008, @01:36PM (#22548702) Journal
      In short, Microsoft is developing a solution in search of a problem.

      That's what marketers do. Sell the sizzle, not the steak. Some ads can even make a product's suckyness a selling point. Consider these automobile ads:

      At Pontiac, we build excitement! (Brakes are bad and teh handling sucks)

      Chevy, like a rock (damned thing won't start)

      At Ford, Quality is Job one! (they have their work cut out for them)

      -mcgrew
      (speaking of ads, here's one: new journal today. It's about the eclipse last Wednesday. There are no hookers or sex in it, but it does feature a violent lunatic)
  • ... can probably afford to pay for every ad they click on. Why not make it so clicking an add withdraws 2 cents from your Visa account, or something?

    I don't know anyone who's ever been surfing a website, saw an ad for a gadget, or a shirt, or anything, and said "Wow, I just found out I need to buy that!"
    • by Vellmont (569020) on Monday February 25 2008, @01:24PM (#22548506)

      I don't know anyone who's ever been surfing a website, saw an ad for a gadget, or a shirt, or anything, and said "Wow, I just found out I need to buy that!"

      Advertising doesn't really work like that. Much of advertising is just an attempt to create familiarity. So when you DO suddenly decide you "need to buy that!" you'll at least have a passing familiarity with the product that was advertised to you.
      • I suppose... most of the ads I see, though, just drive home the fact that I desperately don't need a product that uses a banner ad that bogs down the entire website, covers up the text I'm trying to read, has a hidden "Shut off" button, irritating music, animated flame effects, and so forth.

        Then again, I'm probably not the target audience. If I want to buy something, I don't click banner ads... I research the different products that are out there, go directly to the site that has them, and buy the best
          • Re: (Score:3, Interesting)

            If a banner ad is indeed bogging down "an entire website" I propose to you that it is your browser/computer that is being bogged down, and needs to be replaced. go ahead and click on that Dell ad.

            Honestly, one add is killing the website?

            One ad.. perhaps not, but half a dozen ads being delivered from a server that can barely keep up? most definitely yes. I've seen it countless times. The text I want loads, the web site graphics load, but the ads are still chugging along and will eventually stop. The worst ones are the ones that don't allow the rest of the page to load until they have finished. It must be even worse for those who have a dial up connection.

  • Some are more equal than others.

    Ooo! Was that the first Orwell reference for this article? Do I win an iPod?
  • Even beyond that this is Microsoft, I think there's a simpler answer here too. Is not the only person who made the sale the one who clicked the final link to purchase? I would say so. No matter how much advertising went into before that and how well it can be tracked it is still only deserving to the owner of the sale.
  • How do you track reliably who is clicking on an ad? Unless the person is forced to sign in (emit a personal cookie) on every browser, on every computer, there's no way to know his/her clicking habits on other machines. If the person cleans cookies periodically, there's no way to know what ads led to the sale.

    This seems to me like yet another boondoggle...
  • Counter-productive (Score:4, Insightful)

    by Dolohov (114209) on Monday February 25 2008, @01:23PM (#22548476)
    This would make me far less likely to click on ads. Right now, I only click on ads for two reasons:
    1) I am already interested in that product
    2) I would like to kick back a little money to the site I'm currently surfing. (I frequently have no other way of supporting them)
    (OK, I also occasionally click on ads by accident -- especially those annoying ones that hover over the text and have really tiny "close" boxes)

    If I'm no longer supporting the site I'm on by clicking an ad, then I lose all motivation to click on them. At that point, I start remembering how annoying ads are, and start considering an ad blocker.

    Furthermore, it defeats the efforts of conscientious site hosters like Penny Arcade and Something*Positive (both webcomics, oddly) who are careful to only pick ads for products/sites they can support, and tailor the ads to be useful to their readers. As a result, I strongly suspect that their ads lead to more clicks and more purchases. A scheme like Microsoft's would add a whole lot of free-loaders to their hard work and make it no longer worth while (financially, anyway -- they still have their reputations, of course)
  • Counting clicks (Score:5, Insightful)

    by z80kid (711852) on Monday February 25 2008, @01:25PM (#22548518)
    I'll admit to not knowing a whole lot about web advertising.

    But it's occurred to me that this business about measuring an ad's value by counting clicks is BS.

    The same marketers that think an ad is worthless because not enough people visited their page don't think that television or newspaper ads are worthless because not enough people snapped off the TV and called the company.

    They get no feedback from TV or newspaper ads - other than a rough estimate of how many people viewed them. Yet from an Internet ad, they expect potential customers to drop what they're doing and rush to the company's website.

    For instance, the ad at the top of this slashdot page right now says "A golden opportunity to make Java apps richer... click here". It includes a meaningless picture of some golden eggs. No mention of the company name, product name, or anything that might stick in our minds for later. From their perspective, either we click now or the ad was useless.

    They'd never run that ad on TV or in the paper ("blah blah blah, call now."), then cancel their TV ad because nobody called. They'd include some company and product info, and hope we remember them.

    So why do they expect so much more from Internet ads?

  • by Ralph Spoilsport (673134) on Monday February 25 2008, @01:31PM (#22548600) Journal
    I honestly can't remember the last time I clicked on an ad to see what it was advertising. As far as I know, everyone I know is pretty much the same - clicking on ads only encourages them.

    RS

  • Why are Microsoft so desperate to get into net advertising? It simply isn't their area of expertise.

    Microsoft's strongest markets are the corporate desktop market and games markets.

    Sure, there's money in advertising. But why spend to much effort in these markets while your desktop OS is in crisis?
  • Three Year Old News (Score:3, Interesting)

    by TheNarrator (200498) on Monday February 25 2008, @02:27PM (#22549306)
    I remember seeing a presentation on this at a Search Engine Marketing conference in 2005. PPC bidding companies have been doing this for a long time. Microsoft has the media muscle to get the average IT dummy to start thinking about this like it's a revolutionary breakthrough that only the geniuses at Microsoft could possibly figure out.
  • by blanks (108019) on Monday February 25 2008, @03:35PM (#22550266) Homepage Journal
    As a web publisher I could see how this would benefit me as I only display ad's specific to what my sites are about. The problem lies with all the spam content sites that normally draw traffic from non-spam content sites.

    People click on ad's displayed on a site mainly because of how the ad is displayed; mainly though good ad placement, or relevent content. Just because it was displayed on a half dozen other sites the person may have visited dosen't mean they should receive some of the payment. The fact that a user DIDN'T click on the ad on the other sites should infact punish the publishers as their ad's are aparently not specific to their customers visitiing the sites.
    • Make a secure operating system that works!! Think of the money you'd make!!
      No more than they're making now? Honestly, what's the cost of their insecurities? The people who go to Mac go there because of the programs, the community, the "cool" factor, and the UI. Security is a minor factor to most of those people, and Linux gets the marketshare by being open source. Even then, Microsoft controls the vast majority of the market.
    • I gotta better one! Instead of spending time trying to beat Google at their own game, they could concentrate their efforts at improving their core products. Like, say, operating systems!

      • by Entropius (188861) on Monday February 25 2008, @01:28PM (#22548564)
        If they made Vista-brand snails or vacuum cleaners, they'd sell like mad.
        • by B3ryllium (571199) on Monday February 25 2008, @02:22PM (#22549258) Homepage
          bah, who needs a vacuum cleaner that blows?
        • by EmbeddedJanitor (597831) on Monday February 25 2008, @03:42PM (#22550372)
          I act on behalf of the International Gastapodian Society.

          The Society finds your comments repulsive. Associating Vista with snails gives said snails a very bad name.

          Contrary to your misinformed opinion, some snails are capable of very high speeds, up to 12 inches per minute (15 with a good tailwind). I think we can all agree that this is far faster than Vista.

          We therefore request that you withdraw your hurtful comments.

          Yours in slime,

          S. Cargo

        • by Sancho (17056) on Monday February 25 2008, @02:30PM (#22549360) Homepage
          Actually, the answer probably lies somewhere between these extremes.

          Almost every computer sold comes with Windows. The deals OEMs make with Microsoft vary--Dell probably pays about $50 per copy. At millions of machines sold per month (239 million sales in 2006, estimated 264 million in 2007), it's going to add up. Then you start talking about the volume licensing that Microsoft does, and the copies that they sell off of the shelf (at much, much higher prices, but to an ever growing market of Mac users who want to virtualize) and I don't think that it's fair to call it just "leverage."
    • Why? I mean, yeah, some ads are more annoying/deceptive than others, but how do you expect anyone to promote their product without advertising?

      Your opinion seems just as rediculous as Microsoft's spyware-ish opinion, just in the opposite direction.
    • by Omestes (471991) <<omestes> <at> <gmail.com>> on Monday February 25 2008, @03:26PM (#22550124) Homepage Journal
      I can't even do this anymore. Even before AdBlock ubiquitous ads (noise) caused my brain to automatically filter the header of websites, the same with the 2 minute blocks between television shows. With AdBlock the topic is invalidated of course, since I never deal with online ads. But with television sometimes my family/friends comment on an ad that was just on, and I have no awareness of what the hell they are talking about. If you were a young ape in the forest you couldn't survive being aware of every useless detail (noise), thus you filter them out unless they are actually useful.

      I'm just getting sick of how ubiquitous they are now, thanks to the increase in advertising I pretty much stopped watching TV and going to sporting events, since the actual events have pretty much turned into a mere advertisement for the advertisements. The event is only a way to get you to see ads, and thus has as much content as the ads themselves, none.