this post was submitted on 29 Aug 2023
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It is a great example of how an industry can survive with only self-reported effectiveness. I remember a freakonomics episode where it was shown that very infrequently do companies get a positive return on marketing spending. It will be very interesting if that industry ever collapses.
They know. The fact that targeted ads leveraging so-called "big data" are not more effective than standard advertising is now known to the public. We can bet Google knew this years in advance. But they can't abandon their whole business model since that would freak the stock market and investors out. So, they need to squeeze as much as they can before the entire model becomes unworkable and they'll be forced to switch to something else or disappear.
Oh definitely. Its essentially a massive case of 'it's difficult to get someone to understand something when their salary depends on not understanding it.'
Multinational scam artists
Advertising is about creating trends, and catching some impulse buyers. Effectiveness is likely overstated, but on the other hand it's difficult to quantify the effectiveness of a trend. I don't think it's likely to ever collapse, people will always want to believe they can influence others more than they actually can.