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2007 was the year that the first real‐time bidding (RTB) by Right Media occurred that “allowed advertisers to know in advance exactly whom they are presenting to and on exactly which site it will appear and at what time.”24 The ability to address specific individuals rather than broad audiences created the rapid growth of programmatic trading that has irrevocably changed media buying and selling practices (See Chapter 17: Programmatic Marketing and Advertising for more detailed information about RTB, programmatic, and automation). Furthermore, in 2007 Facebook shifted its focus from appealing just to college students to letting everyone join its popular social media platform, which gave its growth an atomic blast upwards to eventually become the second largest advertising platform.

      Aggregation theory

      In 2015 Ben Thompson in his “Stratechery” newsletter articulated aggregation theory, a concept that explained the phenomenal success of digital‐era companies such as Google, Facebook, Amazon, Netflix, Snapchat, Uber, and Airbnb. Thompson wrote:

      First, the Internet has made distribution (of digital goods) free, neutralizing the advantage that pre‐Internet distributors leveraged to integrate with suppliers. Secondly, the Internet has made transaction costs zero, making it viable for a distributor to integrate forward with end users/consumers at scale.

      You have been reading about “customers” and “consumers,” and the two terms seem to have been used almost interchangeably. It is time to clear up any confusion and accurately define the terms: a customer buys a product; a consumer uses a product. Consumers on the Internet are often referred to as users. Sometimes a customer and a consumer are the same person, for example, when a man buys an electric shaver for himself and uses it. Sometimes they are different people, for example, when a teenager says she wants an iPhone and her mother buys it for her. Proctor and Gamble (P&G) year after year is the world’s largest advertiser; P&G’s customers are retailers such as Walmart and their consumers are people who buy Crest. By advertising to consumers and creating demand for Crest, P&G pulls the product through the distribution system. Some manufacturers do not advertise their products but sell them to wholesalers who then sell the product to retailers and, thus, push products through the distribution system. In the media business, the customer is the advertiser and the consumer is the user, viewer, reader, or listener.

      In today’s marketing ecosystem, many companies, such as Facebook, are referring to customers as partners, and this trend toward partnership selling will be discussed more thoroughly in Chapter 2.

      You will also find a more detailed discussion of marketing in Chapter 15 and of advertising in Chapter 16 because media salespeople must have a deeper understanding of marketing and advertising than is provided here in this introductory section in order to be effective problem‐solvers and solutions sellers for the media.

      Levitt defended advertising against critics who would constrain advertising’s creativity, who want less fluff and more fact in advertising. Many critics of advertising come from: (1) high‐income brackets in business and government whose affluence was generated in industries that either create advertising (advertising agencies) or distribute it (the media), (2) industries that have grown through the use of effective advertising, or (3) by using advertising to promote themselves (politicians). Thus, advertising’s critics must look carefully at their own glass houses when throwing stones at advertising.

      In the digital era Google extended the definition of advertising to include search, or keyword, advertising, and Google’s search advertising is primarily

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