Mickey Greenfield

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Mickey Greenfield
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Who participated in the study Israeli professor Stephen Tdlis makes what is customary to think about pulling customers through Google. "Search engine advertising is focused on customers and handbags, but these return to the site anyway. EBay, for instance, loses every year more than 38 million dollars because of wrong turnings"
Web giants Google and Yahoo, whose main income comes from advertising based search, put last year with $ 55 billion through ampoule led this mechanism. The method is simple: the advertiser acquires the related keywords such as name, names of competitors, or the area in which it operates, ampoule led and then link to their site appears as a sponsored link with a relevant search. Search for dresses, for example, displays network links to stores and shops paid to "stick" to the word dresses.
Read more Calcalist: New eBay: Application for a customized design of products prepared printers ampoule led 3d car from the President: Jaguar Candy for sale on eBay eBay is establishing incubator start - ups in Israel, but recent study published recently ampoule led led by the economists from Berkeley and Chicago threatens to bury the model upon which are based most of the revenue Search-based advertising. According to the team which former Israeli Member Professor Steven Tdlis, the model of Google and Yahoo just does not work. Israel Tdlis feel more free to be interviewed on the subject following the presentation of his research to the participants of the international conference held at the Faculty of Economics Advertising Management at Tel Aviv University.
According to the study, this broken model, which annually spend large advertisers such as eBay and AT & T millions of dollars, the total return search advertising is not only high but also negative. In fact, for every dollar spend on advertising ampoule led advertisers on Google are losing 75 cents - a huge fortune just goes down the drain.
The problem lies in the online advertising industry, according Tdlis, its research methods, and only controlled scientific research can come to the conclusion that no published ahead: search advertising just does not work, or not work as expected. "Google advertising works only for very specific sector," he says in an interview cAlcAlist. " "The ampoule led same people who have never visited a site, or barely visiting, be affected ampoule led by an advertising campaign. Contrast, search advertising to an audience loyal shoppers, those who return and visit the site again and again to buy, just not effective."
Stephen Tdlis is Professor of Economics University of longtime Berkeley, has completed a master's degree in economics at the Technion and left Israel in the early nineties promising academic career abroad. His research is performed as part of his sabbatical year for the retail giant eBay, when she asked his research team to test the effectiveness publication of its stores in search engines.
As a scientist, Tdlis went to work from the perspective of research. But when he and his colleagues Thomas Blake and Chris soars examined the methods in which it is customary ampoule led to measure the effectiveness of search advertising ampoule led industry, they were horrified by the non-scientific methods that are used to date. The people behind the search engines, it turns out, major advertising agencies, consulting companies and analysts, all wrong thinking system. From this mistake intentional or not, one thing is clear from the study of Tdlis and colleagues Blake RISES: they confuse cause and effect.
The fact that consumers ampoule led click search engine advertisements are also loyal buyers network does not necessarily mean that advertising is focused ampoule led on that work. "The models that describe today the return on investment in advertising, particularly in consulting, confuse causation and correlation simple. Consulting companies boast that they can perform analytics complex data and collect that much money, but they use modeling errors. Has nuances that come statistics and econometric fields see more academic and less outside, so easy to lapse intuitive thinking and incorrect. "
To illustrate the difference between correlation and causation, Tdlis number one visitor experience last country: "My wife and I went to dinner at a restaurant. Meal was wonderful, but if we suddenly advertising this restaurant, it did not make us want to eat it again, but the memory and experience Our last visit. Take Amazon, for example., I know the site well and bought books there occasionally., I know that if I wanted to buy a book, get first Amazon and look for it there. then why Amazon should invest in and advertise for me? who drinks a lot of Diet Coke, not stop drinking the drink just because Coca - Cola does not publish it. "
"If companies were chopped off half of their advertising budget, nothing would happen," concludes ampoule led Tdlis, "but the CEO would cut its advertising budget in half considered suicidal. Advertising market works on beliefs that are not necessarily true, and mentions that some witch doctors. ampoule led What we tried to do research is to challenge these beliefs through ampoule led trial. "
Tdlis performed the research for eBay, e-commerce giant published quite a bit on Google and spends $ 51 million annually in the U.S. alone, about half of its advertising budget on keyword-based advertising such as "shoes" or "tennis rackets." Luckily for Tdlis, eBay dominates the huge advertising budget website automatically at 170 million keywords and combinations of words, and thus managed to get a sample provides to reach a decisive conclusion.
Tdlis and colleagues examined the effectiveness of advertising investment for a whole day shopping through an examination made as a result of clicking a link published on Google. Previous studies have shown a clear correlation between advertising spend and sales: a 10% increase in advertising expenses led to an increase of 9% in sales, and this assumption is required for a reconsideration, this time through a controlled experiment. <