Blog #7: Are Consumers Becoming the New Product?
Article Source:
“Who Do Online Advertisers Think You Are?”; written by
Jeffrey Rosen
This was actually a pretty interesting article, originally
written for the NY Times by Jeffrey Rosen. Rosen discusses how internet users
are tracked and placed into any number of different market segments, based on
their predicted interests and purchasing powers. Companies then bid for the
right to advertise to those consumers they are targeting, deciding what ads the
consumers are exposed to. In this sense, we the consumers have actually become
the product as companies are sold pieces of our attention.
Rosen says that the problem with this kind of advertising is that people are never exposed to anything new. As our lives become more ‘customized’ according to our current interests and ability to buy stuff, all we will see is things that we are already interested in or can afford to buy. It will be hard to break the cycle once it has been put into place, because of our having been broken down, analyzed, and organized into tiny little consumer boxes. Rosen suggests that not only are companies not necessarily accurately categorizing people, but that the strategy itself could lead to exclusionary practices, price discrimination, and negative profiling.
Rosen says that the problem with this kind of advertising is that people are never exposed to anything new. As our lives become more ‘customized’ according to our current interests and ability to buy stuff, all we will see is things that we are already interested in or can afford to buy. It will be hard to break the cycle once it has been put into place, because of our having been broken down, analyzed, and organized into tiny little consumer boxes. Rosen suggests that not only are companies not necessarily accurately categorizing people, but that the strategy itself could lead to exclusionary practices, price discrimination, and negative profiling.
Also, this “real-time bidding” strategy is not limited to
advertising. Rosen adds that the news media is employing the same practice in
providing news to internet users. Based on predictions of what the news outlet
thinks we want to read about, we’re being spoon fed biased information based on
our preferences, rather than being exposed to the full spectrum of information.
To me, this practice is eerily reminiscent of “Brave New World”, in
which people are categorized and shaped according to their predetermined place
in the universe, and information is withheld from those deemed ‘unworthy’. In
this case, when consumers are the products, some of us are judged as being of
no value and aren’t getting any bids. In short, nobody wants to pay to
advertise to us.
What do you guys think about real-time bidding? How does it
make you feel to think that what you search for online will impact the ads you’re
exposed to in the future? Do the benefits of having customized advertising
outweigh the negatives?
I encourage you to read the article before responding! It is
actually very insightful and interesting, and offers up more information than what
I have chosen to highlight here.
I found it interesting how Internet users can be placed into different maket segments based on their interests and purchasing power. I find this interesting because, Internet users are tracked in everything they do allowing companies to compare consumer preferences and target their ideal consumer. I also really liked your title, with companies biding on consumers it seems that we are now products
ReplyDeleteIt's understandable that companies want to get the most out of their advertising $$$ by being able to target consumers directly, but in trying to use their money more efficiently, they might be losing out on potential future customers. College students are a prime example of why this type of advertising is doomed to fail. As students, most of us have lower purchasing power than we intend to have in the future. From this perspective, we might be overlooked by companies that don't believe we're worth spending money on to advertise to. But once we get out of college and have careers, our purchasing power will be much greater... but at that point, companies that previously ignored us might fall off our radar altogether.
DeleteI find it interesting that nothing I really do on the internet goes unrecorded. This helps advertisers target certain people with particular interests but also can’t be very accurate. If I don’t know something, usually the first thing I do is google it. I can’t imagine how random these recorded searches are and am interested as to what products would be targeted to me personally. This article was very interesting and I appreciate seeing a different point of view on the issue.
ReplyDeleteI find this interesting as well. Sometimes I wonder if I'm being targeted based on the random things I've plugged into Google simply because I was curious. Our searches also help build our "online profiles", but aren't necessarily an even remotely accurate view of who we really are as individuals.
DeleteWhat a great article, I can say that I have experience or i am experiencing this type of advertising right now and to say the least, it is annoying to the point I don't even want to buy the products being advertise to me. I visited a clothing website a few months back and every time I get on any website, I get coupons and advertisement for the same store. There is no variations, no competing company trying to win my business and I am just tired of it. Do you know if there is a way to remove myself from that. This type of advertising is actually negatively profiling shoppers; because it doesn't take into account when someone borrowers your laptop for a few second.
ReplyDeleteThank you for writing this blog, i now know what is happening every-time I get online.
I think a type of 'do not call' list is in the works for internet users, based on disallowing cookie tracking. It will be interesting to see the government's role in this.
DeleteI am in a similar spot with being inundated with not only web-based advertisements, but stuff being MAILED to me! I got engaged back in August and (mistakenly?) posted it on Facebook. Now, I can't stop getting emails, brochures, mailers, and ads for anything from wedding and bridesmaid dresses to sweepstakes to honeymoon packages. The worst part is, I know it's coming entirely from Facebook because between school and work I haven't actually been able to even begin the planning process yet. So I know all of this is based on the one event I posted online. *sigh
I share the same views as Moussa. I visited two websites - Vineyard Vine and Prentice Hall LSAT - and now those are the only two advertisements I ever see. It is annoying to see the same thing on every website I go to, but at the same time it is less annoying than seeing ads that don't appeal to me at all. I strongly dislike seeing video ads on Hulu about baby products (useless to me) which is why it's great there's now a feature where you can select "yes" or "no" as to whether the ad pertains to you. Maybe companies need to let customers choose which market they want to be in. I'm not sure how it would work. That way companies and people know a little more about what they're getting with "real-time bidding."
ReplyDeleteI would LOVE for there to be some way for customers to place THEMSELVES into their preferred market segment. I think this would be a fantastic idea. What I hate about all of this is that the customer is being excluded from the segmentation process. Of course there will always be people that are unwilling to participate, but I would be a lot more appreciative of the process if I was allowed to be a part of it. Like I said in a previous comment, our purchasing power is going to be fluctuating greatly in the next 10 years. There are many of us that won't be in the same market segment even months from now. It would be better to be able to place ourselves, both current and 'ideal' market segments.
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ReplyDeleteSo who do the profits of this real time bidding go to? Do they go to those who run the websites displaying the ads? Also, has a study been conducted to measure the increase/decrease in profits this real time bidding creates? In my experience I has essentially tuned out any ads that pop on the sides of my browser due to the simple fact that I see the same ads every time.
ReplyDeleteYou Know when I found out about this I was a little scared. I mean it is crazy how people can just follow you around online and bid on you. This just shows you how easy it is to invade someone's privacy and possibly even steal their identity. I understand that this is for advertising but I really feel like this could also create a doorway for even more cyber crime when I realize exactly what the internet provides.
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