Digital advertising, a multi-billion-dollar industry, has become the backbone of the internet economy. Yet, it is also the root cause of several problems plaguing the digital world, such as fake news, clickbait, and privacy invasion. These issues are not just by-products but are directly driven by the advertising model that prioritises engagement and attention over content quality and user privacy.
Tech giants like Facebook and Google have built an oligopoly, dominating the digital advertising market. Their algorithms, designed to maximise user engagement, have inadvertently created an environment conducive to the spread of misinformation and divisive content. This is because sensational and provocative content tends to generate more engagement, leading to higher ad revenues.
The ad-driven model also incentivises data collection on a massive scale, leading to privacy concerns. Users’ personal data is harvested to create precise profiles, which are used to deliver personalised ads. This practice has led to widespread data breaches and misuse.
The solution lies in creating alternative business models that value content quality and user privacy. Subscription-based models, where users pay for ad-free experiences, are gaining traction. Such models could reduce the dependence on ads, promoting a healthier digital ecosystem. However, this transition will be challenging, given the entrenched dominance of the ad-driven model.
Go to source article: https://shift.newco.co/its-the-advertising-model-stupid-b843cd7edbe9