Ad Tech Could Be the Next Internet Bubble

Gilad Edelman in Wired:

WE LIVE IN an age of manipulation. An extensive network of commercial surveillance tracks our every move and a fair number of our thoughts. That data is fed into sophisticated artificial intelligence and used by advertisers to hit us with just the right sales pitch, at just the right time, to get us to buy a toothbrush or sign up for a meal kit or donate to a campaign. The technique is called behavioral advertising, and it raises the frightening prospect that we’ve been made the subjects of a highly personalized form of mind control.

Or maybe that fear is precisely backwards. The real trouble with digital advertising, argues former Google employee Tim Hwang—and the more immediate danger to our way of life—is that it doesn’t work.

Hwang’s new book, Subprime Attention Crisis, lays out the case that the new ad business is built on a fiction. Microtargeting is far less accurate, and far less persuasive, than it’s made out to be, he says, and yet it remains the foundation of the modern internet: the source of wealth for some of the world’s biggest, most important companies, and the mechanism by which almost every “free” website or app makes money. If that shaky foundation ever were to crumble, there’s no telling how much of the wider economy would go down with it.

More here.