MARKET FACTS

  • March 27, 2018


market-facts-introduction-v1.0

THE MARKET FACTS LIST
The Links below are just so you can jump straight to the card, its highlights and comments.

MARKET FACT #7

99%
of JP Morgan’s display ads on websites were completely wasted due to massive ad fraud

COMMENT: JP Morgan & Chase had ads on 400,000 websites. Then just on 5,000. And they got the same results. This is a critical fact exposing how the advertising industry is infested with ad fraud, robots and every other criminal activity that drain marketing budgets from companies on a daily basis. The famous Methbot case where hackers made $5 MILLION dollars per day by faking 300M video views was already something hard to swallow for the industry. Then there was the case of a Business Insider advertiser who thought they had purchased $40,000 worth of ad inventory through the open exchanges when in reality, the publication only saw $97 indicating the rest of the money went to fraud. And now this. And don’t you forget about all the additional facts exposed in Market Facts #4. Bottom line? Save your money. Because now ad fraud is the favorite activity of some professional criminals due to the high ROI compared with extorsion or counterfeiting goods.

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MARKET FACT #6

48%
of online traffic is made of humans while the rest is just robots

COMMENT: Complementary facts: around 23% of the remaining robot traffic comes from good bots such as crawlers from search engines and bots used by professional web tools for monitoring or data extraction purposes, while the rest (29%), is from bad robots like impersonators, scrapers, spammers and hackers tools. PS: This latest survey was based on an analysis of nearly 17 billion website visits from across 100,000 domains. A quick example on how impersonators can work in practice: on Twitter, bots are being used to spread information on the French presidential campaign with 5% of the accounts tweeting a related hashtag making 40% of that hashtag’s tweets. That’s one example. Other bot impersonators may pretend to be using a certain browser with a faked header and everything to deceive your Google Analytics filters for a shady purpose. Others, may use social accounts to like posts and follow accounts automatically to inflate the following of the likes such as celebrities, TV stars, professional athletes, actors etc. Just on Facebook alone, there are around 60 MILLION fake automated accounts already. Just know this: human traffic is the minority now.

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MARKET FACT #5

40%
of Google searches result in ZERO clicks because of Google answering them

COMMENT: Some SEO experts advise brands to use rich snippets as a way to get Google to rank them in the top first results. However, as you can see this is stupid because Google is using your content to answer many questions by itself. I personally click on a snippet of a website once every 15 TIMES I get a snippet as an answer. Gather these facts and put together with the reality that Google’s search market share is 91% by March 2018 (worldwide) and you’ll realize why most companies have a real problem today when it comes to bringing customers via content in search results.

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MARKET FACT #4

84%
of Global digital investments are going only to Google & Facebook

COMMENT: Now, how serious do you think this is once you find out that Google is giving brands robot traffic and therefore, also fake clicks in return for their money? Maybe after you find out that Facebook’s ad reach “estimative” is LARGER than the actual population alive in some countries you’ll see the big problematic picture. Especially when Facebook has over 10 metrics errors that few companies knew about all these years. So besides this duopoly taking over the majority of all ad dollars available, it’s also not delivering as promised to its customers anymore.

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MARKET FACT #3

70%
of America’s wealth is controlled by Americans over 50 years old

COMMENT: Another important point: If Americans over 50 were a country by themselves, they would be the 3rd largest economy in the world AND they’re only targeted by 5% of all US adverts. Businesses should pay attention to these facts because there’s no point in pursuing other demographic classes too much if they won’t be able to pay you for your product/service once your marketing hits. Plus, brands are spending too much already in customer acquisition which is about to become the next big marketing problem for companies. Your company is feeding the marketing machine but when there’s a sale, your cost per acquisition is just not worth the hustle. That’s what companies are going through nowadays because the reality is that the real money, the kind of money that can keep businesses alive, is going to fewer hands. The World’s 500 Richest people saw their wealth increase by 1 TRILLION in 2017. Paying attention to what demographic can actually grow your business is critical for success in bad economic times.

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MARKET FACT #2

90%
of Annual Growth in Europe’s Digital Advertising market relies on data use

COMMENT: Independent Media and the EU economy will suffer now that there’s a political crackdown on data due to data misuse of tech behemoths like Google and Facebook. The Market found out about Google tracking your location even when location services are disabled, or Facebook’s famous Cambridge Analytica scandal (which apparently wasn’t enough since we now also know that Facebook collects your phone records and text messages as well). Those companies grew because of data. But the newest competitors aren’t having the same chance because of their errors and mistakes. Finally, add the famous General Data Protection Regulation destructive force to the mix and you have a real problem for data-based European Startups and consequently, for the EU economy at the end of the day. The scenario is too problematic already. This is why european regulators are getting a lot of heat from advertising experts for killing the media industry. Good thing startups are fighting (and winning) in court in order to use data from big social networks.

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MARKET FACT #1

77%
of content is being shared via Dark Social channels

COMMENT: There are a few reasons for this. Due to lack of trust in Social Networks’ algorithms by normal users when it comes to deliverability is one. Second, youngsters are leaving those social networks because their grandparents are liking their pictures, or employers are using Facebook to investigate them for a job application. Third, because social networks cannot beat instant messaging if you want people to actually engage. This is why CEOs share content usually via Email. Here’s a breakdown with France, Australia, Europe, UK and North America for this along with an image categorized by content categories like News, Health, Sports, Religion, Fitness etc.

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