You know that chumbox of weird waste displayed at the bottom of most news sites, including this one? You know him! It’s called “Promoted Stories” or “On the Internet.” It has headlines like, “1 weird trick to lose weight,” “You don’t believe what [STAR NAME HERE] Looks like today! “And”Discard this vegetable!“There are two major players in the field – Taboola and Outbrain – and the Justice Department has that approved their merger.
Why are they called chumboxes? Well, friend is fishing bait – you throw decomposing fish, blood and bones into the water to lure other fish. A chumbox is like that, but for people online.
You will NOT BELIEVE why publishers use them
These chat boxes exist because they are more lucrative than other types of ads: you add them to your site – it’s free! – and then make money from the unwary souls who want to know “Is CBD good for my pet?” The money is, apparently, well: besides Vox Media, Bloomberg, Business insider, The Washington Post, CNN, and more these boxes contain at the bottom of their stories.
“This somehow works clearly,” said Eric Hadley, former marketing chief at Outbrain, told The New York Times last year. “You may be laughing at these ads, but people are clicking on them.”
But maybe the money is not good enough? When the merger was announced last year, TechCrunch described his purpose like increasing the number of customers and audience size to compete with Facebook and Google. According to TechCrunch, each company was “already freeing up $ 1 billion in revenue annually.”
[Gallery] The most celebrated chumbox providers
Outbrain shareholders will receive $ 250 million in cash and 30 percent of the shares in the combined company, which will be called Taboola, and will be led by Taboola CEO Adam Singolda.
When the merger was announced, the Justice Department “spent months examining corporate documents, interviewing top executives and speaking to both companies’ customers,” The Wall Street Journal reported. Ultimately, the DOJ pushed through the merger because “other companies got into the sponsored content game,” the log said. Those competitors include Gemini (owned by Verizon) and a new unnamed Google product, according to the WSJ.
Human-sized bird has a weird trick to dodging allegations of antitrust
The US antitrust investigation is not alone. The UK Competition and Markets Authority is investigating whether the merger will reduce competition in digital advertising. The acquisition is part of a larger wave of consolidation of the advertising industry which started in 2019 and may be accelerated by the creaking ad market in the pandemic. Advertising spend is expected to drop 10 percent this year, The economist reports.
Scale is important to compete with Facebook and Google in ads. Both companies are colossal and together they represent two thirds of the world’s digital advertising, The economist reports.
Surgeon unveils a simple method of joining chumboxes
Chumboxes have an advantage that Google and Facebook do not have: they are placed on the publisher’s own page. Facebook and Google, on the other hand, direct traffic to articles, but that traffic may not stick to clicking around. Have fun with the chumbox at the end of this article.