this post was submitted on 08 Feb 2025
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Ads didn’t make 10 billion, Google charged advertisers 10 billion. IMO ads have gone so pervasive they’ve hit a point of diminishing returns. They’re everywhere, we hate them, and those 10 billion spent would have to bring many more billions in sales to be an attractive service.
I can’t wait for the ad bubble to burst, as advertisers understand they’re just giving money away to megaadvertisers for paltry conversions.
I'm an admin in Google Ad Manager for a few hundred sites. Saying that to say I've read a lot of their documentation. They have a great graph showing this very concept. Less ads, less money, happy users. More ads, more money, unhappy users. They're aware. They aren't pouring the poison. They're designing the pitcher and selling different size cups.
How does it feel to work in that kind of field? Sounds soul crushing
I feel like the can opener in the Flintstones.
Can I dm you a question about google ad spending?
Edit: ok jesus no ad questions 🤣, how do y'all think people promote their small businesses. I don't advertise much but we're all forced to live in this capitalist bullshit and while word of mouth helps if you have a tucked away location you need to pop up on google maps.
So they are aware of how terrible ads are and they intentionally want to keep it this way, so that they can sell advertisers "better ads" for higher premium as a form of product and price diversification, with those "better" products they offer eventually end up being terrible and make the ads situation as a whole worse, so they can keep introducing new kinds of "better ads" product to have a "justified" way of asking even more money from advertisers?
Companies wouldn't buy the ads if they didn't work.
Sadly I still see that ads benefit a lot of my clients. The more advertising they do the more revenue they get, but this is only for small to medium sized companies. However if every company in the world spends 100k on adverts on platforms like Google we would easily surpass the 10b.
Dropshippers are the best example of this. No ads means no revenue.
There was a true golden age where the technology for ads was so shitty and the companies didn't even know what they were worth somewhere between 2006-2010. I remember those days where no one was selling me shit besides my dealer.
Competition. It's all about competition between companies. In highly saturated markets ads serve to build brand recognition and are seen as long term investment to gain market share. Good example is TikTok. The social media market is very much saturated and competition very high, so TikTok's strategy was to buy every ad they could to create brand recognition, which in turn helped gaining market share.
So I don't think the ad business is a bubble at all, it's just that the usefulness and function depends on the market a company competes within.
Influencer sponsorships, especially for beauty influencers, have already been declining. Companies realize that these influencers are just posting ads now and people don't believe their "honest opinion" anymore. So it's a mystery to me why companies still pay so much money for regular online ads.
Control over the finalized product. You can easily shape an ad to have your exact message reach the right people, and have that ad be more attractive. With an influencer sponsorship you do not have as much control over the final product or the audience.