Lecture Notes: Advertising Techniques in the Digital Age

Introduction to Window Shopping Analogy

• Concept of window shopping explained
• Items following you as a metaphor for online advertising
• Transition from traditional to online advertising

History of Advertising

Traditional Advertising

• Limited tracking capabilities
  • Advertisers couldn't see specific shopping habits
  • Ads were contextual: placed in expected places for broad audiences
• Examples of traditional ad placements:
  • Commercials during popular TV shows
  • Billboards on highways
  • Magazine ads
• Advertisers relied on broad demographic targeting
  • Groups included teenagers, families, specific ethnicities
• Need for mass appeal products because of broad targeting

The Rise of the Internet

• Early internet ads similar to print/TV ads
• Introduction of display ads and pop-ups
• Innovation of ads as clickable links
  • Direct connection to products
• Emergence of cookies
  • Cookies track online behavior and shopping habits
  • Enable advertisers to gather detailed data on users

Addressable Advertising

• Shift to targeted advertising
  • Can target specific demographics with precision
  • Examples of targeting:
    • 18-24 year old women interested in science in Brazil
    • 34-45 year old men who like soccer in Canada
• Discussion on the effectiveness of targeted ads on platforms like YouTube

Privacy Concerns

Terms and Conditions

• Users often skip reading terms of service
• Implications of accepting terms:
  • Potential rights and privacy waivers
• Example of Instagram's terms regarding user content

Data Collection

• Companies collect data for personalized ads
• Potential for misuse of personal information

Recommendation Systems

• Algorithms providing tailored suggestions
• Concern over limiting user options

Types of Advertising

Sponsored Content

• Blending of ads with editorial content
• Importance of identifying sponsored posts and content

The "Free" Product

• When something is free, the user is often the product
• Awareness of personal data being tracked and sold

Recommendations for Online Safety

• Review online profiles and personal information given
• Limit data sharing, like geolocation and microphone access
• Consider creating dummy accounts for less important services
• Acknowledge the permanence of online data

Conclusion

• The internet has changed advertising drastically
• Importance of being vigilant about personal information online
• Upcoming discussions on policies regulating big tech companies

Additional Resources

• Encouragement to support Crash Course on Patreon
• Mention of associated channels for further learning
• Thanks to patrons for supporting the series.