At first internet advertising was a no-brainer. Agree to host ads, get revenue to keep your site afloat, make a profit, expand. Fine. But now we're inundated with ads to the point people are turning off. Hell, there are ads I'd be happy to see, but I never will because I've blocked them with a Pihole and Ublock. The vast majority of people aren't doing that, but are they actually buying the advertised products and services?
Guess I can't get my head around the logistics. Seems like all the money in the world is available for advertising, but are these companies actually seeing a return on that investment? Reddit's basically bots advertising to bots, and the stock market rewards them handsomely. Nobody involved is stupid, they know this is happening, yet companies are still throwing money around. (Someone will relate this to the AI bubble, but it's not really the same thing.)
There was a great article posted here about how 40% (?) of ad views are bots. (If someone can find it, that would be great!) The issue came up to the author because he was tasked with finding out why the advertising spend wasn't getting expected sales. The number of clicks didn't jive with sales results. The advertiser was seeing some ludicrous clicks vs. sales that was 1/10th of what it should be.
And companies are paying for these dismal results?! Think of a time where you were responsible for results at a company. If your spent $X on a thing, and didn't get at least $X dollars back, you would back off that spend or your boss would pull the plug. (Sure, marketing often takes time to get a foothold, I get that.) That's how capitalism fucking works. And for all the bitching about capitalism, the players don't seem to be doing that thing. I feel like I'm taking crazy pills.
Is internet advertising a sort of bubble? Doesn't seem to be as it just keeps going.
Advertising creates a presence. They don't think any one ad is going to convince you to buy it, and they know that after watching the ad enough times, it's not going to get any more convincing, but when you are in need of their services, you'll be looking at their brand and a competitor, and odds are, if price and everything else are the same, you'll buy the brand you recognize.
Psychological safety in play ^^ humans are animals, we trust what we know, fear what we don't. All of marketing is geared to that simple fact
Well, there's reasonable animal fear in terms of dangers and potential dangers, but when you're talking about products? I'd think that curiosity is more common in such scenarios. Then again, maybe I'm once again overestimating sapiens.
Fear may be better said as "the unfamiliar", but unfortunately I'm confident in this point haha. Did a psych degree, and basically our reptilian brain (fight/flight/flee centre) makes those snap decisions based on previous experience (familiar: friend or unfamiliar: foe/unknown). We can relatively easily override it (e.g. curiosity about the newest swiffer), but if we don't know to do that, our brains default to "oh I've heard of that one before, is friend"
Well, I don't know what you're doing with that spinach over there, but yeah, makes sense to me. We have a natural bias towards the familiar & repulsion towards the unfamiliar, even in trivially-important matters, no doubt much like other advanced life on the planet. #2 on Maslow’s Hierarchy, I guess.
And a new ad for the thing you've already bought can reassure you that you've made the right choice. Going forward, you're more likely to stick to that brand and for adjacent products.
IIRC that's the whole point of luxury car commercials during half-time breaks. 99% of watchers can't afford one, but the ad is there to remind the owners of that very fact.