Online advertising and the return of the Wanamaker problem

This morning’s Observer column:

And so the advertisers’ money, diverted from print and TV, cascaded into the coffers of Google and co. In 2012, Procter & Gamble announced that it would make $1bn in savings by targeting consumers through digital and social media. It has got to the point where, according to last week’s Financial Times, 2017 will be the year when advertisers spend more online than they do on TV.

Trebles all round, then? Not quite. It turns out that the advertising industry is beginning to smell a rat in this hi-tech nirvana. In a speech to the annual conference of the Internet Advertising Bureau in January, the Procter & Gamble boss, Marc Pritchard, said this: “We have seen an exponential increase in, well… crap. Craft or crap? Technology enables both and all too often the outcome has been more crappy advertising accompanied by even crappier viewing experiences… is it any wonder ad blockers are growing 40%?”

But the exponential growth in crap is not the biggest problem, he said. Much more worrying was the return of the Wanamaker problem: how many people are actually seeing these ads?

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