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.

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