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Aachenlast Tuesday at 6:03 PM2 repliesview on HN

> ads make available a huge amount of media and services to people who would otherwise be unable to afford it.

They don't. Follow the money: why do ads power free services? The advertiser needs to expect to make more money in the scenario where they run the ad as compared to where they don't. The viewer must be spending more money in response to having seen it

If the viewer doesn't have the money to pay the first party fair and straight (say, a video website), they also don't have money to splurge on that fancy vacuum cleaner in addition to the website and advertisement broker getting paid, no matter how many ads you throw at them

Ads are useful for honest products, like if I were to start a company and believe that I've made a vacuum cleaner that's genuinely better (more or better cleaning at a lower or equal cost) but nobody knows about it yet. However, I don't see the point in money redirection schemes where affluent people inefficiently pay for public services (if they're indistinguishable and the company shows ads to both, thereby funding the poor people's usage). Let's do that through taxes please


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simpliciolast Wednesday at 3:49 AM

"They don't. Follow the money: why do ads power free services? The advertiser needs to expect to make more money in the scenario where they run the ad as compared to where they don't. The viewer must be spending more money in response to having seen it"

The first part is true, the second part pretty obviously isn't. Advertizers expect to net $ from ad buys, but most advertising isn't trying to increase a consumers total spending, its trying to drive that spending towards the companies products.

To give the most obvious example, the largest category of advertising is for food and beverage products. But no one thinks that if those ads all suddenly disappeared, people would stop buying food.

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thfuranlast Tuesday at 6:14 PM

>The advertiser needs to expect to make more money in the scenario where they run the ad as compared to where they don't

They don’t necessarily make more money from every user though.

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