
The new dot com bubble is here: it’s called online advertising - raleighm
https://thecorrespondent.com/100/the-new-dot-com-bubble-is-here-its-called-online-advertising/13238920200-5fcd64b8?pk_campaign=sneak-peek&pk_kwd=jesse
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DuskStar
Posted a few days ago with 350 comments:
[https://news.ycombinator.com/item?id=21465873](https://news.ycombinator.com/item?id=21465873)

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anovikov
If it's really only $280B worldwide and world has circa 80T of nominal GDP or
probably about 55T of consumer spending, it makes only 0.5%. It's seriously
VERY hard to believe it's not an efficient spend of money. For many people,
online ads (or at least if you include SMM, for sure), even if you never click
on them, is a serious driver of consumer behavior.

I don't have any social media accounts, too old for most consumer target
groups, and i am as underrepresented online as possible, and yet i am sure i
am making way more than 0.5% of my consumer choices that way.

Can't see it as a bubble.

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rolltiide
What exactly are you extrapolating here? You just described yourself as the
least qualified person to make that conclusion all while seeming to use your
behavior as reference that other people behave as an amplified version of
consumer you.

And that all seems to be a distraction: a “bubble” bursting doesn’t mean the
behavior stops, it means less money is poured into the industry of supporting
the bubble. It means the current size and market behavior is an inefficient
consolidation of capital and productivity.

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cryptica
The part about cause and effect was very interesting.

So possibly Facebook knows if a user is likely to buy something from a
specific company and it will show an ad to them in order to boost their
conversion numbers to fool the advertiser about the effectiveness of the ads.
But the ad has no effect other than to artificially boost conversions. It
doesn't achieve what it was paid to do; to convince users.

It reminds me of the old saying that merely finding a way to measure a trend
has the side effect that it allows people to game that trend.

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ivanjaros
[https://www.youtube.com/watch?v=Z_VxHvwgMVE](https://www.youtube.com/watch?v=Z_VxHvwgMVE)

