Re:Apple’s Ad-Targeting Crackdown Shakes Up Ad Market
by swish_bob on Tuesday December 10, 2019 @07:50AM
(#21751926)
This makes it clear why it's in the individual advertiser's interest _and_ advertising network/website's interest to get more data on the users.
The cost to the advertiser has stayed the same (or in reality, has probably gone down slightly, as it's likely fewer people are bidding on the impression) while the revenue per impression has overall gone up.
If we can't tell which user is which, we know 50% of our views will lead to a conversion, so you and I will both spend $0.50 per view. The orange seller beats us and the price is $0.75 per user (assuming an old fashioned auction).
If we can tell which user's which, I can spend my $1 on the apple eater, and you can spend yours on the banana eater. Both of us will spend more than the orange seller, who is still only willing to spend $0.75 per view. The price rises to $1 per user.
Dollar per conversion is the constant, and the pile of converting users doesn't change. With less targeting, there's just more hay in the haystack. Dollars per viewer goes up as the number of viewers goes down.