In this essay I will discuss the importance and evolution of algorithms in relation to modern day digital advertising. While critically discussing the potentials of digital advertising I will also argue the dangers affecting privacy issues. Therougout this essay the issues of online privacy and swithc of advertising from native to will be discussed in relation to social media and present day consumer culture. The media industry has completed two significant waves of evolution and is currently going through another which is digital media. The first wave was the introduction of newspapers as the main medium while the second was the dominance of television.
During the first wave publishers received their revenue from the price of the newspaper and from the sale of advertising space. Readers sometimes recieced free newspapers in exchange for exposure to advertsising. (reff) this exploitation has carried on throughout the years and can be considered similar to methods used in current day digital advertising. Popular free music streaming sites like spotify and souncloud run soley on ad revenue. However, Consuemrs can listen to their music ad free at a cost. Advertising has evolved laregly since the boom in the 1930’s. audience based messaging is still a vital part of modern day advertising but the progression of technology has allowed the market to become more data driven which allows the message received by the audience to be more perosnilsed and results in increased sales.
(tower data) The days of feeding a passive audience pre made media messages through the hypodermic needle have passed. Consumers have become active and are now able to interact directly with brands that they are loyal to. Consumer interaction has become a major part in the development of a marketing strategy. companies are now able to target audiences in the most cost effective way by reviewing their online behaviors and providing ads tailored to the customers needs. Targeted advertising allows advertises to target consumers with specific traits.
These traits can include race, sex , age, opinions, lifestyle and location. They can also be targeted by consumer behaviors, which includes browser and purchase history.(refff) Advertsierrs are able to utilise this information through the use of algorithms and the introduction of big data. Many consumers view this as issue because they feel that their pribvacy is being invaded by large corporatons like facebook, this concept will be discusse further later on. Algorthims demand a steady stream of accurate data to stay up to date. Online consuemers leave a continual stream of data from liking, sharing and posting online and pretty much anywhere online where they leave a digital footprint.(refff) These algorithms require a constant stream of data to stay up to date. But now that data is everywhere.
Internet users leave a constant stream of data not just on social media websites, but anywhere they go in the form of digital footprints. a pass this is due to algorithms and big data Katz and Lazarfeld (1955) . ‘An algorithm is a set of instructions for multivariate calculations that learn and adapt over time. To humanize this answer for digital advertising, an algorithm is a calculation that should simply meet customers’ goals creating value in the most cost-effective and transparent ways possible. Jason Kelly, CEO, Sociomantic’ As stated by CEO jason kelly, an algorithm used by an advertising company substantially increases the effiency of the business.
It allows companies like facebook to directly target their audience by providing them with ads for things that they would buy by creating a digitial profile for this results in increased visibilty for brands and sponsers