Making Markets
Episode 49 A Primer on Digital Advertising
Making Markets

Episode 49: A Primer on Digital Advertising

Making Markets

Episode 49

A Primer on Digital Advertising

Eric Seufert is the creator of Mobile Dev Memo and an investor at Heracles Capital. We cover Meta's recovery from Apple's ATT changes, advertising on the open web, and the current state of the ecosystem.

Show Notes

(00:00:00) Welcome to Making Markets

(00:00:32) Historical Paradigms in Digital Advertising

(00:01:01) Impact of Apple's ATT Policy

(00:02:01) The Hub and Spoke Model

(00:04:35) Post-ATT Advertising Landscape

(00:07:35) Apple's Competitive Strategy

(00:12:48) Meta's Adaptation and Recovery

(00:19:17) Rise of Retail Media Networks

(00:23:56) Twitter's Advertising Challenges

(00:26:47) Customer Base and Engagement Models

(00:27:44) Meta's Resilience to Advertiser Boycotts

(00:28:18) Understanding Cookies and Their Role in Advertising

(00:31:23) Apple's Impact on Third-Party Cookies

(00:33:44) Google's Approach to Cookie Deprecation

(00:38:06) The Future of Digital Advertising

(00:49:28) The Role of AI in Ad Creative Production

A Primer on Digital Advertising

Introduction

Eric G
My guest this week is Eric Seufert. In the words of Ben Thompson from Stratechery, Eric is arguably the best writer and commentator on digital advertising, and today he gives us a masterclass on the subject. We start by talking about Apple's App Tracking Transparency (ATT) framework, Meta's recovery, and what the current ecosystem looks like. We also discuss Twitter, now X's offerings, advertising on the open web, common misconceptions about targeted advertising, and more. Please enjoy this conversation with Eric Seufert.

Eric G
Eric, in preparation for this interview, I don't think I realized how little I knew about the digital ad space. I think I had some awful assumptions of how it works, so I'm excited to have you on today. I thought an interesting spot to begin would be how digital advertising worked before the ATT was implemented by Apple—the idea that privacy and transparency was an idea, and then maybe what happened and how that all came to be.

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