Coming from a relatively hardened mindset, it is startling to understand how impressionable people must be for modern advertising to be worth the cost.
There's a lot of question as to how much advertising is actually worth the cost, at least in terms of actual sales. I suspect that many companies could scale back their spending on marketing substantially and never notice any difference in sales.
Advertising does more than push sales though, it also manipulates consumer perspectives and our culture. It sets expectations. It tries to make you feel inadequate, insecure, and unfulfilled. It modifies how we act and the ways we express ourselves. It changes how we see ourselves and the world. Maybe that is what's really worth the money.
As part of his training he had to run an advertising campaign for a minor P&G shampoo brand. Training for a finance position, not a product management position! Why would you make somebody in finance handle marketing for a shampoo? Because they need to understand the fundamental mechanics that drive the business. There's no such thing as a good or a bad ad. The only thing that matters is that you flash the name of your product into peoples' primitive lizard brain over and over and over. Pantene, Pantene, Pantene, Pantene. People buy commodity products, and are willing to pay more, solely based on whether they recognize the name or not. Humans have no defense against this.
And for the record, the last one (sales) is what really matters. As another old saying goes, "Nothing happens until you get a purchase order."
Really aligning sales incentives with the company's goals is surprisingly rare, and seems much rarer now than it was 20 years ago becasue of digital media.
When you view ads through this lens, the number of ads for things that consumers do not even directly purchase — like prescription drugs, or oil - makes a lot more sense.
And nowadays they're mainly trying to convince us that these companies are green and part of the zero emissions/carbon negative solution
Established Titles doesn't make you a lord. Honey doesn't save you money. Brilliant doesn't help you learn things. Betterhelp doesn't connect you with real therapists. I forgot the others.
The VPN side - it feels more like a honeypot than anything else to me.
I'll sometimes use the VPN mode from Proton, but I wouldn't sign up for just a vpn - I simply assume they are selling my data the same as everyone else. The only way to convince me otherwise is an open-source non-profit vpn properly overnighted by the community.
So even the most hardcore nerds adapt their tastes to what other people like. It's not so hard, because hey, there are other good TV shows, there's other reasonable entertainment. It's hard to say objectively that a Star Trek convention is better than a Mongolian Chess tournament anyway.
But when advertising comes into the picture... It's not that you necessarily think the Marvel Cinematic Universe is the best thing ever. It's that you know everyone will be talking about it, everyone will be referencing it, so if you can find at least decently entertaining you should maybe prioritize getting into that over getting into Danish underground comics from the 90s.
If the company can afford to throw money at Frivolous Thing X, the money has to come from somewhere, which implies it comes from consumers who aren't actually getting a good deal on the product or service.
They are throwing many different strategies out there through many different avenues and banking one the one that just happens to pull in a new chunk of buyers. It’s like lower-stakes gambling.
This doesn't in the slightest replace ads though. Before modern internet advertising we had advertising in whatever else had your attention. Ads were meant as we way to simplify and ease distribution.
It's a horrible business in terms of user experience but it's purpose isn't user experience it's meant for businesses to be able to streamline their outreach for much cheaper than the alternatives, imagine cold calls, emails, door knocks, door to door sales has died for this very reason.
I am not trying to explain away the issues and societal problems but they have value of companies otherwise they wouldn't exist. However much people would like to pretend CEOs and founders aren't completely retared.
For initial distribution spikes Ads are the best possible solution, very expensive yes, but if your goal is growth Ads are the most efficient solution since they almost linearly convert spending into visibility in turn producing growth.
Horrible way to do stuff but it's what it is.
Despite lichess being better in every way except marketing, it's still #2.
It's very impressive word of mouth got it to #2, but marketing experts are marketing experts.
It's like why they use sharp points in the hazmat symbol, it just looks bad even if you don't know what it means.
The only companies that have made any real money have had to use Ads from the very start.
You can catch lightining in a bottle but exceptions here prove the rule.
It's absurd to think anyone will care about your product if you don't.
If I make let's say a children's toy, how am I supposed to let people know that this new type of toy even exists? That WHOLE process is advertising, no? Whether I give these toys away for free at a Santa Clause parade, pay department stores to put my toy in prominent shelves, or buy space on Cartoon Network.
How do you get even a single buyer without advertising?
The last thing a marketing company or media provider wants to admit is that any of their services are underperforming, or worse, turning off buyers.
It's true that advertising is a great way to promote a product, but its far from the only way. For many years now I've done what I can to cut all advertising out of my life and yet I still buy lots of things, including things I've never seen a single ad for.
I'm sure it's almost completely subconscious.
The mechanism of how advertising works seems to be not that. I think repeatedly brand exposure does something to the brain and decision making that we don’t fully understand.
Exposure breeds familiarity, which breeds desire, I think.
Even if all you hear is an occasional ad about the company, you might get curious and research them yourself.
That kind of stuff is absolutely worth the cost of ad spend online
But, even if there's a better equilibrium, isn't loading a website crammed with obtrusive ads still a coasean bargain between two parties? Simon P. Anderson and Stephen Coate studied this question in "Market Provision of Broadcasting: A Welfare Analysis" (2005). They identified unpriced externalities like the common-pool attention tragedy, as has been raised in other comments here, and asymmetric information & hold-up, which increase transaction costs.
Divide advertising spend into two components: Informative specs, and persuasive/obtrusive spend. The margial external cost is the sum of profits foregone by rival businesses, and aggregate viewer nuisance. A pigouvian tax with an exemption threshold for factual spreadsheets and apunitive rate on expenditure above that (or visual intrusion metrics) both prices the cognitive nuisance imposed on readers, and collapses the positional arms race between rival firms; transforming the industry from a high-waste prisoner's dilemma to a low-cost, high-information pareto optimum.
Obviously, you still have to watch out for firms goodharting the spreadsheet metric, but that's both a partially solvable problem, and a much better situation than the current nash equilibrium.
I did some web development work for an advertising guy about 20-odd years ago and he found my position on it baffling.
"But advertising works on everyone!" he cried, "everyone remembers their favourite adverts! Why do you buy oh for example the washing powder you buy?"
Well, I buy Persil, because it's what my mum buys, and I like how it smells. I tried other washing powders, but I didn't like how they smelled so much, and there are two brands I won't buy because they have annoying shouty adverts.
He just didn't get it at all.
Everyone is influenced by advertising even if it’s third hand: “oh I like that (thing) where did you get it, oh (person) saw an ad and bought one and I tried it too”
But I agree that if you inculcate a default position of rejecting things that are advertised you can avoid being pulled into wasting your energy on unnecessary things
I always try to avoid ads as much as possible and not having any social media really helps. But going to use this remark from now on.
Expanding on this.
"Wanna go eat somewhere? Like McDonald's or something?" -> McDonald's is suggested offhandedly[1], but that's only because it's already somewhere in the back of the person's mind, and it's already associated with "eating". It's only "already" there because the person is aware of it. And they're aware of it for whatever reason (one of which could be advertising, but who knows!).
The endgame for advertising is when people become blind to ads, either because they become used to them, or because they hate them so much they "ignore" them (or so they tell themselves). So in both those situations they completely block out the "ad" part of it, and "I saw an ad about a thing that..." becomes "Wasn't there a thing that...?").
[1]: Maybe even defensively, like "if we don't find anything better (or we're not in the mood for anything in particular) there's always this option as a last resort".
One doesn't need to be frugal or come from such environment, its more about basic human decency and mental hygiene. You try to manipulate me to buy your product, normalize its existence etc? Ok will make sure to avoid that, there is a lot of competition. Too pushy and seeing it everywhere? it means you over-invested on marketing manipulation and product has probably seen some dramatic cost-cutting to make it all together still financially viable. In any case, customer lost.
uBlock origin with Firefox on internet, including (especially!!!) on phone. Ads simply don't exist in my world under normal circumstances, not on general web, nor on youtube. When something bad happens and I see internet or youtube without those protections, its properly nauseating and outright insulting to me.
But - I've seen people en masse already conditioned to accept this, they watch it all, some of them even take hints for their shopping habits. When questioned, they don't see anything wrong, don't care about manipulation. Sometimes I feel like an alien. Luckily my wife sees it the same, I'll go to great lengths to protect my young kids from this cancerous soul garbage. 'Better' parents from our circles see it similarly, for now at least.