Why do Youtube ads all Look Like Scams?

How the algorithm shows us exactly what we want: the good, the bad and the ugly

Post-pandemic, I couldn’t get out of bed at the idea of going back to the office. The soulless cubicle, the obligatory conversations about sports by the coffee machine, and the realization that my presence was solely for a paycheck left me yearning for an alternative.

Every day I searched the internet for a possible alternative to my tie at the office. Then, I noticed how many times I sat through 60-second ads before my favorite videos on Youtube, intrigued enough to click and learn more. It made me question the ethics of Google, the owner of Youtube and Adsense, as to why they relentlessly showed me scams with no regard for my well-being.

Every single video on YouTube comes with one or two advertisements preceding it. AdSense, the largest advertising platform globally, raked in a staggering 147 billion dollars from online advertising in 2020.

These website banners, such as the one viewed before a video, serve as a profitable business model, funding the Google-operated services that we tend to overlook as free, like g-mail for example.

Unfortunately, there is a problem with these ads that is very different from what you might see on traditional television or on the radio or in a newspaper.

The ads on YouTube just seem to be full of scams

The nature of YouTube ads is highly dubious, whether it’s some hustler promising to teach you how to make a million dollars per month or a mobile game ad depicting gameplay that is vastly different from the actual game.

The advertising process on Google platforms, including YouTube, is regulated by AdSense, advertisers can design and launch their ads to target a particular demographic on these platforms.

Whenever a video is clicked on, the YouTube algorithm springs into action, and I’m not referring to the algorithm that operates for regular videos, but rather the one for advertisements.

The algorithm’s sole aim is to make as much money as possible. Essentially the AdSense algorithm initiates an auction, with companies competing to have their ads displayed on the video for a specific viewer. Some auctions will yield higher prices if the viewer fits into a demographic that is more likely to buy the advertiser’s product. For example, if they are a young professional watching a finance video.

On YouTube, advertisers do not pay for their ads until the viewer has watched at least 30 seconds of the ad or clicked on the ad link. If the viewer hits the skip button as soon as it appears, the advertiser will not be charged for the portion of the ad that was viewed.

As an online advertiser, one might consider creating a powerful 20-second ad followed by 10 minutes of excruciating screeching sound to entice viewers to press the skip button, allowing you to promote your product without paying for it since it did not satisfy any of the criteria mentioned earlier. But this trickery will not work since the second part of the YouTube ad algorithm kicks in, and the highest bidder that the viewer is likely to watch long enough to get paid is selected.

Advertisers care just as much about the average watch time as YouTubers do since if viewers constantly skip ads, the algorithm will stop displaying them.

The majority of video ads you come across are designed to captivate your attention with a person in front of a Lamborghini, making big promises in rapid succession, or a peculiar gameplay video that bears little resemblance to the actual application they’re advertising. The goal is to keep you engaged in the ad long enough for it to count and display it more frequently, increasing the likelihood of finding more customers.

This doesn’t explain why these ads are all full of scams?

The rise of online advertising platforms has opened the door to scams, not because these companies want to promote bad stuff, but because it’s the only option that some advertisers have. Unlike TV, where ad space is expensive and there can only be one thing playing at a time, online advertising is more affordable and can target specific audiences. However, this means that smaller operators promoting niche products like day trading seminars may not be able to afford TV ads. Even if they did, there’s no guarantee that the ad would reach their target audience.

While Google and other companies have review processes in place, some ads slip through the cracks, and some are not technically illegal. Advertising online courses or mobile games is not illegal or unethical, as long as they provide fair value for their price and the game is similar to what’s shown in the ad. However, automated systems can’t make these decisions, so many ads are approved.

The specific reason that you get fed an endless barrage of these ads is because you are the prime target of these questionable advertisers.

The reason behind the influx of crypto and fast money scheme ads on YouTube is due to the platform’s target audience. The majority of viewers are working adults with a keen interest in finance. Advertisers know that this group is more likely to purchase courses on starting an online business, so they specifically target them. I know you all just skip the ads that you see as soon as the option becomes available, those who pay attention may notice a concerning pattern. The get-rich-quick style of ads promising you a path to quit your 9–5 job only gets played during weekday morning commute hours, lunch breaks, and the hours following the working day.

This is how you get scammed. I remember being hopeless trying to hold on to any alternative other than going back to work in an office, I can attest that nobody who makes promises with an Italian car in the background will actually help you. I personally found success in creating subtitles for YouTube and translating medical and scientific research, and there are legitimate ways to make a living outside of the traditional office setting. Be careful and don’t get scammed!