A Dose of Gobbledygook

 

“Gobbledygook” has three syllables, making it a suitable candidate for the brand name for a drug since they often have names that length, names such as Cosentyx and Myrbetriq. “Gobbledygook” doesn’t have any rarely used consonants, however, consonants such as “x” and “q” and “z”. Marketers also like to end their invented words for products with a vowel such as “a” or “o”, a practice they have followed with automobiles as well as drugs, as in Elantra, Levitra, and Toronado and Lexapro. Are they cars? Are they drugs? Manufacturers and their marketers spend millions of dollars to persuade prospective customers to feel good about their products and to feel they are unique, but it all ends up muddled together as gobbledygook.

Inspector George Larrick and the "American Chamber of Horrors" Exhibit (FDA 110) (8228181026)
George Larrick was the last investigator to rise through the ranks to become Commissioner (1954-1965) of the Food and Drug Administration. Inspector Larrick assembled an exhibit of dubious and even dangerous food and drug products, dubbed by reporters an “American Chamber of Horrors”, which effectively documented the need for what became the 1938 Food, Drug, and Cosmetic Act. Photo from the Food and Drug Administration.

 

The pharmaceutical companies are under much greater restraints in product naming than the automobile manufacturers, who apparently invent their names merely from the results of market research and internal spitballing. All those names ending in vowels, a fairly rare occurrence in English, but more common in the Romance languages such as Spanish, may be intended by automobile marketers to make buyers feel they are getting something faintly exotic. Drug makers have to submit brand names of new products to the Food and Drug Administration (FDA), which has rules to ensure drug names are sufficiently distinct from one another to minimize the risk of confusion which, in the case of drugs, could lead to serious complications or death for patients if doctors or pharmacists mistakenly substitute prescriptions. There is no comparable risk involved in driving an Elantra instead of a Celica.

Using a drug’s scientific name is not an option the drug companies seriously consider because those names are often more polysyllabic and unpronounceable than the silly brand names they ultimately invent. In a very few instances, a shortened form of the scientific name becomes generally recognizable, as in ibuprofen or acetaminophen, but those can’t be trademarked. Therefore we have the option of buying Advil or generic ibuprofen, Tylenol or generic acetaminophen. It’s no accident, by the way, that both of those brand names are simpler and easier to pronounce than more recent drug brand names, since both of them were developed over thirty years ago, when competition in the pharmaceutical market hadn’t heated up to today’s incandescent level.

What has changed since then has been the increasing average age of the population and the consequent increase in demand for medicines to treat their growing health complaints. Drug manufacturers are also not above boosting demand with lengthy and frequently repeated television commercials urging prospective users to pressure their doctors into prescribing the advertised medicine. They cover the other end as well by sponsoring junkets and giveaways for doctors, nudging them toward prescribing the latest drug they have developed.

A most excellent reading by Irene Worth and John Gielgud in 1983 of T.S. Eliot’s Old Possum’s Book of Practical Cats. The entire book is presented in this video, but the part that concerns us here is the first poem, “The Naming of Cats”, which proceeds up to the 1:45 mark.

It’s a high stakes game for pharmaceutical companies that have spent millions of dollars on research and development for a drug, and then millions more on shepherding it through FDA approval, and finally marketing it. Notice how television drug ads are 60 seconds long instead of the usual 30 seconds, and how often they are repeated, particularly during the day when their target audience of older people are presumably at home watching. There’s gold in them thar hills of retirement, and pharmaceutical companies mean to get their share. Whether the residents of the golden hills are better off with the latest heavily advertised gobbledygook drug or something else, or with nothing at all, is up to them and not to marketers, no matter how warm and fuzzy the television ads portray their lives can be, to paraphrase the Rolling Stones “(I Can’t Get No) Satisfaction”, an old song the human targets of drug ads might still remember well.
— Ed.

 

You Get What You Pay For

 

Recently the news and commentary website Salon instituted a policy of not allowing visitors using advertisement blockers to access their website without either or turning the blockers off or allowing Salon to use the visitors’ computers to mine the cryptocurrency Monero. In other words, when a visitor with an active ad blocker arrives at the Salon website, Salon detects the ad blocker and immediately pops up a notice about its new policy, giving the visitor the options of turning off the ad blocker and continuing to the rest of the site and viewing it for free, but with ads, or, for a visitor who chooses not to turn off the ad blocker, then that visitor must grant Salon permission to use their computer to mine Monero, which replaces the revenue Salon would otherwise lose to that visitor who wants to read articles without viewing any ads. The third option for the visitor is to leave the website.

 

It remains to be seen how well visitors to the Salon website will accept the new policy and whether Salon will see a return to revenue levels they had before ad blockers became much more widely used in the past few years. It’s commendable that the owner of Salon is being open about taking this step and giving visitors options. Some websites use the computers of visitors to mine cryptocurrency without notifying them, a practice known as cryptojacking. Sometimes the website owner is not aware this is happening because their website has been hacked, and in that case it is the hacker who gets the revenue, and both the website owner and the visitor lose out. What the owner of Salon is doing is not cryptojacking, a sneaky and disreputable practice.

Garry Moore Tony the Tiger 1955
Image of television personality Garry Moore and Kellogg’s cereal character Tony the Tiger taken from a 1955 Kellogg’s advertisement. There have always been tacky ads for products of dubious worth.

There are other ways for website owners to cope with replacing revenue lost to ad blockers. The website for The Atlantic magazine stops a visitor at the door when it detects an ad blocker and advises the visitor to turn it off, or whitelist The Atlantic in the ad blocker, or leave. Simple and straightforward. Other websites, such as the one for The New York Times, give a visitor a certain number of free articles each month before the visitor reaches a paywall that requires the visitor buy a subscription to read more articles. More lenient on the front end, but with a harder line on the back end. These models work reasonably well for very popular websites that can afford to lose a small percentage of visitors who absolutely refuse either to not use an ad blocker or to pay for content on the internet. The owners of less well known websites would have a harder time adopting those models without alienating visitors they can ill afford to lose.

Joe dimaggio camel ad
Long before Joe DiMaggio plugged coffee makers, he did advertisements for cigarettes, as did many celebrities, including athletes like him.

The shame of it all is that ad blockers have increased in popularity because of the bad behavior of a few bad actors on the internet who push out ads that hide malware and trackers, or video ads that use autoplay, or ads with Flash Player code that makes them highly distracting, and because of that kind of activity internet users have quite reasonably installed ad blockers to avoid all that, and the effect has been to punish the good along with the bad. Unfortunately there are also too many internet users who think everything on the internet should be free, conveniently ignoring the obvious point that the producers of internet content have to eat and pay the rent just like anybody else.

Imagine picking up a newspaper from a kiosk, a newspaper from which someone has helpfully cut out every single advertisement, leaving only the articles. This would be a great boon to the reader, obviously, but how is the publisher supposed to pay the bills? The reader picked up the newspaper without paying for it, which is not a big deal because the selling price of a newspaper typically takes care of a small percentage of the cost of publishing it. Print newspapers, and now internet newspapers and other publications have always relied on the selling of advertising space for the greater part of their revenue. If readers can’t see the ads, why would advertisers continue to buy ad space?

In this early scene from the 1963 Stanley Kramer film It’s a Mad, Mad, Mad, Mad World, Jonathan Winters as Lennie Pike, third from the left, has some choice words for those who want something for free.

There’s plenty of blame to go around for the state of internet advertising, from publishers and ad producers who put out obnoxious ads that distract from the visitor’s experience, to visitors who seem to think that internet publishers should make their content available free, and even better as far as they are concerned would be free without any visible means of support in the form of advertisements. That’s the “Big Rock Candy Mountain” pipe dream. More reasonable would be a compromise among publishers, advertisers, and visitors that would ask advertisers and publishers to show respect to visitors by not pushing obnoxious ads on them, and visitors to acknowledge the need for publishers to eat and pay the rent like anybody else, and to satisfy those needs by showing ads to visitors. Simple really, particularly considering the alternatives of working in the mines or paying for what you get.
— Techly

 

Just Say No

 

As if the lack of trust hadn’t sunk low enough between internet users, advertisers, and the websites which host advertisements, along comes cryptojacking, a method for either honestly or dishonestly using the computing power and electricity of internet users to mine cryptocurrency. Last week, users of YouTube in some countries noticed that their antivirus and antimalware programs were alerting them to code hidden in ads on YouTube which were enlisting their computers for cryptomining without their permission. Google, which administers YouTube, claims to have fixed the problem. Unfortunately, there are many small websites that don’t have Google’s Information Technology (IT) resources and may have been hacked and had cryptojacking code installed without their knowledge.

 

Cryptojacking sounds like it should be illegal, but oddly enough it is not. There can be repercussions such as blacklisting for hiding code in ads, and of course this sort of activity serves to push more people toward the use of ad blockers, which deplete the revenue of honest websites as well as dishonest ones. There are now outfits on the web, Coinhive being the most notable, which promote to website owners the idea of replacing ads altogether with a bit of JavaScript code on the website itself that will enlist the computers of visitors in mining Monero, a type of cryptocurrency that, unlike Bitcoin, doesn’t require high end equipment. Coinhive takes 30% of the resulting mining revenue, and the website owner gets 70%. Coinhive rather dubiously promotes this as a fair business model for the website owner in a time of declining revenue from ads, while not mentioning its relative fairness for the website visitor.

Cryptocurrency Mining Farm
A mining farm of Genesis Mining in Iceland. These are mainly Zeus scrypt miners. 2014 photo by Marco Krohn. No subterfuge involved in this cryptocurrency mining operation. Note that because the calculations required to create the currency generate a lot of heat, there are fans at the ends of all the units.

As originally set up by Coinhive, the JavaScript ran without the internet user’s knowledge or permission. If an internet user visited a website running Coinhive‘s JavaScript code, and the user’s security software did not alert the user or block the code from running, the only indication the user had of being legally cryptojacked was how unusually busy their computer was and, when the electric bill arrived, how unusually high it was. Savvy computer users might also check running processes monitored by the task manager on their computer. But it’s a good bet that most computer users have no idea about task manager or where to find it on their computer. Some users don’t run any security software at all, or if they do, they misuse it. Running Coinhive software without the knowledge or permission of website visitors is sneaky at best, and more likely just plain unethical, and any arguments from Coinhive or anyone else that it is a fair replacement for ads is mere sophistry.

After some amount of pushing from internet users, Coinhive started offering an above board, opt-in type of cryptomining code so that website visitors knew what was being asked of them. Naturally that version has not proved popular with the website owners who partner with Coinhive because advising visitors of cryptomining activity only leads to the great majority of them declining to participate. People who are not computer savvy, when confronted with an option which will in all likelihood confuse and frighten them, will resort to the safest option and just say no. More computer savvy visitors will likely decide it’s not worth their while to have their computer slowed down to a crawl and their electricity bill hiked by a few dollars a month just to visit a website. Only the most indispensable websites could get away with it, and they are apt to have access to many other less complicated sources of revenue. Coinhive, meanwhile, continues offering the original, surreptitious version of its software.

Naturalist David Attenborough discusses brood parasitism among birds in this BBC wildlife segment.

The arms race between website owners and advertisers on one side, and website visitors on the other side, began when internet service was incredibly slow and most consumers had data caps. Ads, particularly Flash ads that jumped up and down to attract the visitor’s attention, slowed down internet service even more and sucked up the visitor’s limited data. Enter ad blockers. The thing about ad blockers, however, is that even though most of them offer users the ability to whitelist websites, most users are either unaware of that option or don’t bother to use it unless prompted by the website. Ad blockers often act effectively as blunt instruments then, punishing honest websites which display discreet, reputable ads in an above board manner, along with dishonest or careless websites which display gaudy ads that may or may not harbor malicious code. Like many other areas of life, on the internet a few bad actors can spoil the honest efforts of the majority of website owners. The answer to declining revenue from the arms race between advertisers and advertising blockers is not for website owners to get sneaky, however, which erodes trust, but to develop trust with their visitors and exercise restraint on their advertisers.
— Techly

 

Name Your Price

 

Now that Christmas is past, shoppers will be out looking for bargains as retailers slash prices in an attempt to clear inventory off their books before the end of the year. That brings up the subject of pricing, which beyond the obvious need to cover costs and generate profits, leaves some leeway in the ongoing, never ending psychological games between sellers and buyers.

 

Why $9.99 instead of $10.00? What about the typesetting of that $9.99? Is $9.99 better? How about 9.99, dropping entirely the suggestion that the seller is asking for real money from the buyer? Gas stations price fuel at even finer increments, using tenths of a cent, such as $2.299/10 per gallon. These pricing systems seem like they have been around forever, and it’s surprising to learn they are no older than 150 years, and in the case of gasoline pricing no older than the 1920s or 1930s.

1894 - Koch & Shankweiler Newspaper Ad2 Allentown PA
An 1894 newspaper advertisement for Koch & Shankweiler clothiers in Allentown, Pennsylvania. The fractional pricing is almost all in quarter dollar increments.

Retailers started pricing items at fractions of a dollar rather than rounding the price to the nearest dollar in the late nineteenth century partly in response to inflation which raised their costs past one dollar for many things, and partly to convey to shoppers that they were getting a bargain. When inflation raised the cost of most items in a department store past a dollar, some retailers responded by rounding up the price to the consumer to the next dollar, while others retained fractions in their pricing. Eventually the retailers who retained fractions found they sold more than the retailers who rounded up, and the same principle applied to items within their own stores where they tried the different tactics. For reasons that psychologists and sellers dispute to this day, buyers like fractions of a dollar in pricing, and they respond by purchasing those items over the ones that are priced at rounded dollars, even though those prices may be only one cent higher.

Vintage Radio Advertising - Crosley Radio, "Crosely Again Lowers Prices", "Big Reduction in Famous Trirdyn and Other Radios", From the Literary Digest, January 17, 1925 (9700961943)
A Crosley Radio advertisement in a 1925 edition of The Literary Digest. Prices were at whole dollars or at half dollar fractions, underscoring how even in the early twentieth century fractional pricing was uncommon. Photo from Flickr user Joe Haupt.

At first retailers thought fractional pricing attracted bargain shoppers, and therefore they used the tactic principally for sale items. By the 1920s, however, fractional pricing became commonplace throughout retail marketing, regardless of whether items were on sale or not. The one area where sellers rarely use fractional pricing is for high profile, luxury items, presumably because those shoppers look down on bargain hunting, and because at a certain high dollar amount adding a fraction to the end of the price becomes ludicrous. The only aspect that needed fine tuning was the exact fraction that worked best as a compromise for sellers and buyers. It appears that fractions in the ninetieth percentile have worked best, which is why prices at half dollar fractions, which were once popular, are rarer now than they once were.

As for gas stations’ pricing fuel down to tenths of a cent, that practice dates to the 1920s and 1930s when government entities first started taxing gasoline to raise money for road building and maintenance. The government taxed the fuel sellers, and the sellers passed the cost on to consumers. When gasoline cost ten or fifteen cents per gallon as it did in those times, it made sense to fine tune fractional pricing down to tenths of a cent. The business of selling gasoline retail has always run on slim margins, which is why those businesses have always diversified, first by offering automobile mechanical services, and now more commonly by selling convenience items at a high markup. Gasoline retailers have learned that consumers will drive a mile down the road to save a penny a gallon on fuel, and since the gasoline on offer is essentially a loss leader for the higher priced items the retailer sells, it makes sense even in these times of fuel prices in the range of dollars for retailers to retain the tenth of a cent fractional pricing that could make the difference in their profitability from month to month.

The 1980 comedy Used Cars, directed by Robert Zemeckis, included this television advertisement for one way of dealing with high prices. Note that the Mercedes luxury car price is rounded to $24,000. Warning: foul language.

The latest development in the continuing tug of war between sellers and buyers that deserves mention is the one in which grocers have challenged the math skills of shoppers beyond simply rounding fractions off to the nearest dollar by posing more complicated division skills, such as 4/10.00, 5/12.50, or 10/16.90. These are not terribly difficult math problems, and many people would not need a calculator to figure them out. This pricing ploy is instead an attempt by the retailer to get the consumer to buy more of the item not only by suggesting it is a great value, but also by confusion over what the price is per unit.

Particularly when the consumer has to compare one item priced in such a manner to a similar item priced in the same way, the laziness and confusion of the shopper works to the advantage of the retailer. In that case, even buyers who do not have a calculator with them should take comfort in understanding that by law in most places they do not have to pick up the suggested amount in order to take advantage of the advertised price. A “Buy one, bet one free” promotion, for example, does not necessarily require the shopper to pick up two items in order to receive the benefit of buying only one item at half price. As always, however, caveat emptor – buyer beware – and check with the store manager to be sure of the applicable policy.
― Vita

 

How About That Free Lunch Now

 

The great thing about the internet is that it is interactive; interactivity is also one of the bad things about the internet. When people read paper newspapers, way back when, they were exposed to advertisements paid for by commercial establishments in the news and features sections, and to classified advertisements paid for mostly by individuals or small businesses in a section of their own. Paper newspaper advertisements were interactive only in the sense that the reader could choose to ignore them. This was reasonably easy for the reader because the ads themselves did not hop up and down, yell and scream for attention, obfuscate the actual content of the newspaper for a period, or otherwise make a nuisance of themselves and detract from the peaceful enjoyment of the newspaper by the person who had paid a dime or a quarter for it.

When newspapers and writers of other content moved to the internet, they still needed to make a living, of course, and naturally they turned to advertisers to help fund their efforts. Since there was no pay model for the internet, such as had been the case in the days of paper newspapers when readers either subscribed for home delivery or paid directly at street corner kiosks, publishers relied even more heavily on advertisers for income. For some reason, people had gotten the notion that internet content should be free, and rightly or wrongly that’s the way things developed. Here is where the interactive part kicked in and started an internet arms race.

Bob Dylan performs his song “Mr. Tambourine Man” at the 1964 Newport Folk Festival. Dylan’s guitar and harmonica rig is much like the getup buskers used then and today to make a few dollars for their efforts. All that’s missing here is the hat or guitar case for collecting money tossed in by passers by. Many small websites, like this one, have to either pass the hat by posting a “Donate” button, or hope for the best from advertising revenue, or both.

Advertisers realized that since the internet was interactive and didn’t just lie there waiting to wrap fish after it was published like the old paper newspapers did, they could do things to jazz up their ads and, they thought, readers would pay closer attention and the advertisers would see higher returns. Great! Not all advertisers, just the ones who lacked any restraint, got their ads to hop up and down, to yell and scream for attention, to obfuscate for a period the content the reader was actually there to see, and to otherwise make a nuisance of themselves in order to draw attention. It turns out people did not like that, particularly the ones with slow internet connections or limited bandwidth, which the sparkly new advertisements ate into, much to the hapless reader’s dismay. Enter software engineers with a retaliatory response.

The software engineers had some experience in combating opponents in the advertising field after having worked to swat away the pop up army of advertisements that plagued internet users in the early days. One thing many advertisers have never been known for is restraint. Now here they were again, but instead of pop ups they were employing twitchy, sparkly, pushy advertisements. The software engineers working on behalf of browser makers and internet users came up with ad blockers. Now all ads were blocked. Hah hah! Internet users had the option of whitelisting – or permitting – ads on a website in the options menu of their ad blocker, but who would ever bother to do that? Publishers noticed, however, that their internet ad revenue plummeted.

An emotionally fraught rendition of “Silver Springs” in a 1997 concert by Fleetwood Mac, which demonstrates why they continued to draw large crowds well after their heyday. The song, written and sung by Stevie Nicks, who as a songwriter ranks in the top echelon of 1970s and 1980s pop and soft rock, is a deeply personal revelation. Fleetwood Mac had by 1997 long passed their peak of popularity for album sales, but concert ticket prices for such an established group with an extensive catalog of hits remained high, from $20 to $50 for the cheap seats, to over $100 for the best seats. The internet works similarly, with an enormous underclass of websites barely making it, and several well established websites with large followings dominating the market.

Enter Google in the spring of 2017 with the Funding Choices program and their own ad blocker built into their Chrome browser, which in the past year has overtaken Microsoft’s Internet Explorer as the world’s most popular browser. But since Google makes the lion’s share of its revenue selling ads and marketing user information, why would Google then be against ads? Because the obnoxious ads that prompted the development of ad blockers have poisoned the well for everybody, and Google, with its dominant market position, can dictate which ads will fly and which ones won’t.

The Funding Choices program is geared toward internet users, telling them they can pay to subscribe to a publisher’s content and go ad free, or view the content free on condition they allow ads, which Google assures them they have vetted for good behavior. Google’s ad blocker built into its Chrome browser is geared toward advertisers, telling them essentially that unless they allow Google to vet their ads for good behavior, they will not see the light of day on the world’s most popular browser. All of this would seem a boon to both internet users and publishers. But that depends on how much they trust “Don’t Be Evil” Google. Rather than turn over yet more power to Google, a company which has already surpassed Microsoft in ways not only financial but morally suspect, perhaps the time has come for internet users to seek alternatives not only for search but for the multitude of other applications which Google has used to ingratiate itself as the public’s servant, the servant whose ear is always at the door. This website, for one, will seek alternatives to displaying Google ads. Oh, you weren’t even aware there were Google ads on this website?
― Techly