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Argues that the internet is built on a fundamentally flawed model of ad-supported content with too many intermediaries to allow any certainty that real people, much less the right people, are seeing ads supposedly targeted to them, even before the ever-increasing presence of ad-blockers is taken into account. Rather than publishers being ad-supported, mostly it’s intermediaries sucking out as much as 70 percent of the revenues from an ad. I think the book is basically right except that a bubble can last a lot longer than it should when there don’t seem to be other, better alternatives, which I think is the case here—advertisers have budgets and want to use them. But the critique of targeted advertising—it’s way more expensive than nontargeted ads and often quite inaccurate and permeated with fraud—is persuasive for anyone looking for how they should allocate their ad budgets.… (más)

Hwang’s book takes a deep dive into the inner workings of the adtech industry and compares it, convincingly and in detail, to the subprime mortgage crisis that kicked off the 2008 global economic crisis. Where the industry (dominated by Google and Facebook, with ad auctioneers busy in the background) likes us to think they are “data-driven wizards of consumer persuasion,” they are actually at the helm of a rickety structure riven by “perverse incentives, outright fraud, and a web economy on the brink.” Yeah, that sounds eerily familiar.

Like the financial systems that used lightning-fast algorithmic predictions and computerized transactions to buy and sell derivatives that grew increasingly risky, the adtech industry suffers from a similar combination of hubris and opaque complexity that’s impossible to analyze clearly. Hwang draws an intriguing lesson from James C. Scott’s Seeing Like a State. To administer power over a large population, you need “legibility” – a way of identifying and tabulating humans and their behavior. To do this, platforms are designed to appropriate data in order to administer ads.

Though these companies collect an incredibly vast amount of data in violation of our privacy, legibility is one-way. In spite of data about click-throughs and impressions, nobody who places an ad can tell where it will end up or whether it is actually effective. A few big corporations have an outsize impact and no incentives to improve transparency or even simple accuracy. Hwang cites a claim Facebook once made about its ability to reach a coveted American youth demographic, stating it could put ads in front of 25 million more people in that age range than actually live in the entire US; its disastrous “pivot to video” claims cost media companies time, energy, and a lot of money.

What’s more, those dollars are chasing a dwindling audience, especially among younger people who increasingly use ad blockers, and a lot of the attention metrics are fraudulent. Many ads are never seen by anyone, and a large percentage of the “viewers” for those “seen” are non-human, automated systems designed to pump up the numbers. Hwang provides an in-depth analysis of how the financial incentives parallel the subprime mortgage crisis: people have more money to spend than they have places to put it. Google and Facebook not only absorb most digital ad dollars, they are replacing the media outlets that depend on ads – newspapers, for instance. As more people get their news directly through ad-driven platforms, traditional and new media watch their ability to influence the ad industry leached away, along with attention.

Hwang names, though doesn’t spend much time on, the anti-social tendencies of ad-driven persuasion, but urges us to recognize an economic bubble that will soon burst. The longer it has to grow, the more damaging the consequences. He urges us to imagine an alternative and to do a “controlled demolition” to avoid disaster. He argues for independent industry research to inform our understanding of digital advertising’s effects, legal protection for whistle-blowers, and recommends a regulatory overhaul similar to those imposed after the 1929 crash as a model for public accountability and the rebuilding of a more robust, bubble-proof internet. Apparently it’s one that might still be largely financed by advertising, (I wasn’t sure) but it would be less fraudulent and opaque.

"The internet we have, for better or worse, is yoked to the structure and prospects of the advertising economy by the business models, companies, and economics that have dominated over the last few decades. If this system of advertising is brittle, then the internet as we know it is brittle. Whether we leave these marketplaces deregulated and feral or implement systems to manage them for public benefit will define not just the future of advertising, but the future of the technologies that have shaped and continue to shape our society."

Hwang’s focus is on advertising as the financial backbone of the internet. The problems caused by giant corporations and their data-sucking assaults on privacy isn’t so much that they suck data, in his estimation, as that they suck at advertising, yet have been able to build fortunes through misleading and increasingly ineffective practices. He's a good guide to the problems caused by adtech and what might happen if we don't do something before the bubble bursts.… (más)