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Those YouTube ads everyone hates made $10.4 billion in just three months
(www.pcgamer.com)
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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.
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.
Companies wouldn't buy the ads if they didn't work.
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.