Thursday, November 2, 2017

Underestimating the Impact of Facebook and Political Ads

I happened to catch this story on Talking Points Memo, Rosenstein: Americans Not ‘Influenced By Ads Posted By Foreign Governments’. In the post, here's the key quote from Deputy Attorney General Rosenstein.
“American citizens are pretty savvy, and they decide who to vote for,” he said in a podcast interview on the Target USA network. “I don’t think they’d be influenced by ads posted by foreign governments.”
Previously, I've also seen a similar quote from House Speaker Paul Ryan. The general theme is sort of a play to the vanity of an audience as a way to psychologically put a thumb on the scale of perception. Phrased a different way, it's sort of like, "come on, millions of people see infomercials every day, but people like you and I are smart enough not to actually order those products."

Of course, the obvious extension of that is that, some people do order these products. In the same way, it's easy to assume that no one would click on an attachment in a strange email or no one would fall for a Nigerian prince scam. But they do. In pure advertising terms, you can call these conversions. And while it's easy to say that well over a majority of people viewing ads, impressions, wouldn't convert, that's normal. With Adwords, Google considers 5% a good conversion rate. That means that 95% of the people who searched a specific term will see ads on that term without clicking on them. That's a successful ad.

The Impact May Have Been Much Greater Than A Conversion Rate Implies
The impact of these Facebook ads may have been far greater than the specific dollar amount sited or that any conversion rate implies. There are a couple of reasons behind this.

First, one aspect that hasn't really highlighted in the media coverage of these ads is the nature of the campaigns being run. For example, if the ads were running on a cost-per-click (CPC) model, then it's possible that the optimal cost result (for the people placing the ads) would have been few clicks, but many impressions. Essentially, this is like a brand identity campaign -- you don't necessarily need clicks, just the impressions can build mind share.

Another element might have used re-marketing campaign techniques to only show ads to people who had visited other specific content in the past. Using this technique, you could help identify and heavily target the ones who were most likely to buy into your message.

But perhaps the most important thing to keep in mind is related to this story from back in 2014, Facebook Can (and has) Manipulated You With Their Feed Algorithm. In summary, what Facebook posted a paper detailing how they modified the algorithm that delivers the feed to users, and for one set, they delivered more negative, less positive emotionally colored results, and for the other set, they delivered more positive, less negative emotionally colored results. As you might imagine, both groups essentially began echoing and amplifying the tone of their feed -- the negative group producing more negative content while the positive group produced more positive emotions.

As I wrote back in 2014,
For me, I see a much bigger danger implied by the Facebook study reference here. If you think of the ability to influence in this way, then the Facebook "scientific" paper is potentially a press release announcing their offering of an entirely new type of advertising. Imagine if you wanted to broadly shift public option. With the right amount of money and access to the right platform, you could pay for shifting the filter of the algorithm.  
What if you didn't need to broadly shift public opinion, you just needed a marginal push? What's more, you probably don't need to change the whole algorithm -- the algorithm already responds to a certain level of political polarization. Instead, perhaps all you need to do is color in some of the spaces...

In summary, I'd say, don't buy into the notion that these ads had no impact, that there's no there there.

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