One day, we will look forward to commercial breaks!

As data collection methods grow, advertisers will be able to better predict what information/ads would be relevant to each of us individual consumers.   And as more relevant ads are served to the consumer/individual, higher click-through rates will result, and advertisers will be able to afford an advertising model that has fewer numbers of ads shown to the user.  For example, today, say–on-average–click-through rates on ads are 10%, then this means that an advertiser–on average–has to show the consumer 10 ads before one click-through is generated; but in the future, say click-through rates on ads improve to 50%, now only two ads need to be shown to the consumer before a click-through is generated.  So this would lead us to believe consumers will have to sit through fewer ads; but in all likelihood, advertisers will not be satisfied with the same number of click-throughs per pair of eyes.

That is, say today, 10 commercials are shown to a pair eyes for a given 30-minute television episode, and one click-through is generated per pair of eyes.    Then, I am saying, that advertisers, in the future, when click-through rates improve to 50%, each pair of consumer eyes will likely be shown more than two ads per 30-minute episode.   Advertisers, content creators, and distribution channels will do this because they will know they can.  They will know that we consumers are happy to sit through 4 ads because 4 ads is still a 60% reduction in ads; not to mention these ads are more relevant to the individual.  So what will happen is total number of click-throughs generated per pair of eyes per 30-minute episode will increase from 1 to 2; and advertisers, content creators, and distribution channels will all be making more money off the same 30-minute long piece of content.

In this future state of the world of media and ad consumption, both advertisers and consumers are happier.

Data is what’s needed.

As I understand the state of the art, the artificial intelligence algorithums needed to make the accurate predictions not only already exist, but are considered quite basic now.   What is missing is the data needed by these algorithms to make predictions!

One day, an individual consumer watching TV any day of the week will be like watching the Super Bowl, when we look forward to the commercials; but it will actually be better.   Right now, many people hate ads; but ads actually serve a very useful function of informing us about things we should know about.   The problem with the current advertising system today is that ads annoy us more often then they inform us.   In the future, ads will do a better job of informing us, and will hence be less annoying.

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