The Arcology Garden

The new dot com bubble is here: it's called online advertising



We currently assume that advertising companies always benefit from more data. And certainly, live-gaming is more likely to appeal to gamers. But the majority of advertising companies feed their complex algorithms silos full of data even though the practice never delivers the desired result. In the worst case, all that invasion of privacy can even lead to targeting the wrong group of people.

This insight is conspicuously absent from the debate about online privacy. At the moment, we don’t even know whether all this privacy violation works as advertised.

It's clear that the industry and wall street thinks micro-targeted advertising is good, but it's certainly not clear to this economist… I've become really convinced over the last few years that everything comes down to simply capturing marketing budgets, that's where the vast majority of the Silicon Valley economy is built around.