*By Conor White* Digital technologies have transformed media, and the disruption of the advertising business will fundamentally alter the way Americans listen, read, and watch media in the future, according to the writer and media critic Ken Auletta. "I was writing about the media for years, both in books and The New Yorker," Auletta said. "But if you follow the money, as is the old Watergate adage, advertising is supplying all the money." In his new book, "Frenemies: The Epic Disruption Of The Ad Business (And Everything Else)," Auletta details how that money is drying up, and with it, the futures of advertising and ad-supported businesses like magazines and newspapers. Some of the culprits were easy to identify: programmatic ads courtesy of Google and Facebook. In an interview Wednesday with Cheddar's CEO Jon Steinberg, Auletta said the tech companies' efforts to collect all the available data on their users is the foundation of their business and the reason their efforts have raised alarm, including the European Union's new General Data Protection Rule. "They've been selling the argument for many years, which I follow in the book, the more we know about you, the more we can target ads at you and give you ads that don't feel interruptive, but feel like a service," Auletta said. But it's a trade off. "As targeting goes up, privacy protection goes down," he added. "As privacy protection goes up, targeting goes down." Though programmatic ads have severely wounded the traditional advertising business, Auletta said advertising isn't dead, and the industries that rely on ad dollars to survive ー including social media ー will have to adapt as the ad market shifts. "If advertising dies, newspapers die, magazines die, much of television dies," Auletta warned. "Google and Facebook, which are almost totally dependent, die." For the full interview, [click here](https://cheddar.com/videos/keep-your-frenemies-close).

Share:
More In Business
Stretching Your Dollar: How to Cope With Financial Stress
Financial stress can take a mental toll on people. Dr. Regine Muradian, clinical psychologist and member of the National Debt Relief Financial Wellness Board, joined Cheddar News to discuss strategies to ease those worries over money.
Facebook Users: Aug. 25th Is Your Last Day to Apply for Part of This $725M Settlement
Anyone in the U.S. who had an account at any time between May 24, 2007, and December 22, 2022, is eligible to receive a payment. The 2022 settlement resolves a lawsuit alleging that Facebook allowed millions of its users’ personal information to be fed to Cambridge Analytica, a firm that supported Donald Trump’s 2016 presidential campaign.
Load More