Showing posts with label IAB. Show all posts
Showing posts with label IAB. Show all posts

22 November 2020

Book Review: If Then by Jill Lepore

If Then: How the Simulmatics Corporation Invented the Future
By Jill Lepore
Liveright Publishing, 432 pages

The guys who invented predictive analytics never saw failure coming.

That’s the upshot of Jill Lepore’s latest book, If Then: How the Simulmatics Corporation Invented the Future


Ostensibly, it’s the story of Simulmatics, founded in 1959 on the idea that with enough data collected in one place, everything and everyone would become predictable. The name is an attempted portmanteau combining the words “simulation” and “automatic.” You’ve probably never heard of Simulmatics because it folded in 1970, but during its short history it played a role in electing John F. Kennedy, mismanaging the Vietnam War, seeking answers to 1960s social upheaval, and speeding the presence of mainframe computers at advertising agencies.


If Then: Book Summary


The founder of Simulmatics was Ed Greenfield, a midcentury ad man, but not like Don Draper. Lepore delightfully introduces him: “He was like a ten-million-volt Looney Tunes electric magnet, a giant red-handled iron U that pulled everyone toward him.” His personality, his ability to influence others, was what propelled him. As evidence, the story includes a lot of bold-faced names, especially from Democratic Party politics, which is what Greenfield cared about most.


Indeed, he built an impressive team. Lepore introduces the other main players early, and efficiently. Harold Laswell, the influential communications theorist. Eugene Burdick, novelist and self-styled adventurer. Alex Bernstein, mathematician and computer programming pioneer. Ithiel de Sola Pool, a social scientist specializing in technology. Bill McPhee, a FORTRAN programmer – and this is such an emblematic aspect of the story – who wrote “the core intellectual property” of Simulmatics while he was committed to Bellevue. Yes, a mental hospital.

Punchcards
on parade


Like any startup, the group had big plans. They bragged they had invented “the A-bomb of the social sciences.” They called it a “People Machine” that could predict the outcomes of advertising campaigns and government policy initiatives. Sadly, they couldn’t get out of their own way. They overplayed their true role in JFK’s winning presidential campaign of 1960. They overpromised how they could help the New York Times analyze the 1962 midterm elections in real time. They overestimated, tragically, how Western-style social science techniques could understand Vietnamese culture. They oversold their value to blue chip brands but opened the door to a legion of market research providers still selling soap today.


One gap in the story: What projects did they actually finish? The only projects fully described were the political ones, and there was only fleeting mention of having sold studies to various corporations, like Bristol Laboratories, Philip Morris, P&G, and some others. Simulmatics was always starved for data, so most of the projects had little effect. Still, it would have been interesting to read more about those episodes.


Eventually Simulmatics folded, although some of its work survived in projects undertaken by individual team members, thus laying the groundwork for today’s data-driven marketing. They accomplished just enough to push things forward, but not enough to get pinned with credit or blame for what we have now. Oddly, Simulmatics’ most accurate predictions came not from data but from the very human insights of Ithiel de Sola Pool. He envisioned with eerie accuracy the role of technology in our lives today: the interconnectedness of the World Wide Web, the ubiquity of social media, and the rise of “mobile computers,” today’s smartphones.


Why Simulmatics matters now


Lepore’s book is thoroughly researched and well-written. It’s a solid history, which is why Simulmatics matters: because we learn from history. Here’s what I took away:

  • No data. It shouldn’t have been surprising, but was nevertheless shocking, how Simulmatics never seemed to have data that were complete or accurate. In an almost poignant moment, Lepore writes, “Pool raised the question that Simulmatics would never really answer: ‘What is the data we would need for this model?’” Ad agencies, which had data, filled the gap, bringing in their own IBM mainframes and offering the services to clients directly. Today we have plenty of data, but we still have to answer the question: Which data do we need to solve this problem?
  • No humility. The Vietnam phase of the book is a troubling read. Defense Secretary Robert McNamara in 1962: “Every quantitative measurement we have shows we are winning the war.” That might have been all too true; Lepore points out that military progress was measured by “the number of insurgents killed,” with the implication that indiscriminate killing ran up the numbers. Humility is a function of introspection. Are we thinking things through? Are we seeing the big picture? Are tracking the right metrics? These questions are relevant to the work we do today.
  • No humanity. Lepore points out that computers can simulate a flight because physical laws like F=ma are constant. “But the computer simulation of human behavior … is much more difficult. Behavior is not a law.” If, as some Artificial Intelligence experts say, the brain is just a very sophisticated machine, then eventually we will create a machine that can think like a human brain. But there is a (so far) unquantified human element that no series of If-Then scenarios in FORTRAN, C++ or Python could ever predict.

Simulmatics failed where other succeeded. There’s still lots of room for modern failure, which is why these lessons from the past are important.

24 April 2015

Display Ads: the New Subliminal Advertising


In the days of Ye Olde Marketing there was a belief in "subliminal advertising" -- the idea that TV commercials would be spliced with fleeting images, usually sexual, to overpower your psyche and make you buy something you didn't need.

Although the science behind subliminal stimuli is interesting, it's never really been used in advertising and we have no examples of it ever working.  Most of the urban legend is based on a 1957 movie theater experiment that never actually happened.  

Comedian Steven Wright sent this up with one of his 1980s one-liners:  "I saw a Subliminal Advertising executive….but only for a second."

Online Display is the New Subliminal Advertising

This all came to mind when reading the Internet Advertising Bureau's latest viewability standards:  "Desktop display ads to be considered viewable if 50% of their pixels are in view for a minimum of one second."

Banner ad?
I didn't see any
banner ad.
50% of the ad for just one second.  We used to call that subliminal advertising.

In a not very subliminal display of honesty, the IAB press release on this topic is headlined "100% Viewability Measurement Is Not Yet Possible".


It's Like We Never Noticed This Before

How did we get to this point?

The Internet didn't used to allow advertising at all, banning it until 1991.  The first form of advertising was actually email — yes, direct mail — which as we all know spawned spam.  The first clickable display ad came in 1993, and in 1994 Wired started selling banner ads to clients like AT&T, with a click-through rate of 44% (no, that's not a typo, and we should point out that the click bait was an online tour of seven of the world's most acclaimed art museums).

These initial approaches revealed a direct-response mindset, and unrealistic expectations as to how perfectly measurable advertising would be on the Internet.  Not quite!  As click-through rates have dropped to infinitesimal numbers, online display has gone from marketing's Holy Grail to just billboards posted on the Information Superhighway.  Today's tools don't consistently measure page takeovers, road blocks and other customized placements.  As IAB president Randall Rothenberg said, "Different ad units, browsers, ad placements, vendors and measurement methodologies yield wildly different viewability numbers."  If you were expecting an accounting exercise that neatly reconciled everything, we don't have one.

The goal is "100% viewability" and at some point we'll get there.  In the meantime there will be some tough discussions among advertisers, agencies, media and researchers.  

Meanwhile, the irony is that an urban legend from 1957 is reality in 2015.