Advertising Feed back Loop: Facebook and Adwords

In Systems design a feedback loop is something that measures the difference between expected and actual output and adds it back to the system to enhance it’s performance

For a better more accurate definition see http://en.wikipedia.org/wiki/Feedback

Here is how Facebook measures the satisfaction whether I got for an ad on my page- note fraudelent or systematic cheaters would be eliminated by the law of averages.

It places a very small thumbs up or thumbs down on an ad on right hand corner.

When I place a thumbs down on an ad ( note it shows only graphical ads)-it asks me why i didnt like the ad

Was it

1) Misleading
2) Offensive
3) Uninteresting
4) Irrelevant
5) Repetitive
6) Other- allows text mining of free form allowing subjective feedback.

However if I type say Business Intelligence on Google – I get the following

http://www.google.co.in/search?hl=en&q=business+intelligence&meta=&aq=0&oq=business+intell

Open Source Ad on Pentaho at prime spot just above the results. Makes me wonder how much open source will spend.

Search Results-
Wikepedia entry usually at the top ( but no ads there*)

Search Optimization means SAS Business Intelligence is now fifth from top- which is the first mention of a BI vendor there ( Note cost to SAS is zero as you can see below). In the remaining top 4, two are similar http://www.businessintelligence.com and http://www.businessintelligence.co.uk as the title page tag remains more important than sheer consumer behaviour to Pagerank.

Right Column Sponsored Links ( These guys spend more money than SAS to be on the sponsored links and still end up in a less favourable ad page than in top vendor on search results page)-

1 http://www.brgglobal.com
2 SAP.com/India
3 IBM.com/cognos
4 http://www.BusinessObjects-India.com
5 http://www.softsmith.com
6 http://www.syncfusion.com/BizIntell
7 http://www.intelligententerprise.com/

(Note from Ajay*- A senior IIM Alumnus CK Prahlad (the first batch in fact) – first expounded the concept of core competence-

Now-what is Google’s core competence.
I believe that Google should simply donate all its information on wikipedia, and offer Google Knol to it- rather than just wallow in sunk cost theory or expect an immediate return from this transaction. It will get lots of goodwill- and maybe the Google Wikipedia Knol will take off.

Similarly sell Orkut to Facebook and just take the advertising and search functions to be combined in a seperate spin off called Google Search before Microsoft forces the Europeans and Justice department to do so.

Or continue to moon the giant.)

I didnt like the Adwords ads or the order they were in. But there is no way in Adwords for me to give feedback to it. Facebook listens. Will Adwords listen.

Author: Ajay Ohri

http://about.me/ajayohri

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