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661 points anotherhue | 1 comments | | HN request time: 0.228s | source
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voidUpdate ◴[] No.41243350[source]
I still don't understand a lot of youtube advertising. Like for me, if I'm being advertised something, I instinctively don't trust it, because they're having to pay people to say good things about it rather than people who have used it telling me it's a good thing. And there are still so many sponsorships from places like BetterHelp, which has been known to be a scam for a while now, and Raid Shadow Legends, which is just a crappy mobile game that is about as "mobile game" as you can get. The only reason I use onshape is because a friend recommended it to me, and I was very skeptical about it initially
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dkarras ◴[] No.41243454[source]
you're not the target. advertisements work. the people managing ads are very meticulous about their spend vs. return. if you are seeing an ad of something for any noticeable duration of time, that means it works. by that I mean they get positive return from showing the world their ad. if it generates negative returns, it will be pulled pretty quickly. they are humans just like you and me, we don't like losing money.

also one should always be skeptical about the extent they believe they are not influenced by ads. that runs pretty deep. you say you instinctively don't trust it. but when the time comes to buy something, you won't automatically steer yourself towards a product that you have never heard before just because you have not seen an ad for it. having some names in your mind, even them showing up when you do research creates influence.

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sidewndr46 ◴[] No.41246077[source]
This is the same myths that everyone in advertising propagates.

Such a belief purports that the effect of all advertising is measurable. It clearly is not. For example, someone sees your ad and decides your company is reprehensible. They were not a customer and they decide to never interact with your company. It's not possible to measure this. Anyone claiming it is holds what amounts to a religious belief.

The "generates negative returns" is the next myth in this. Whether or not advertising generates positive returns is not relevant. You can't measure the return of advertising in the first place. Even if you could measure it, you should be comparing it to the opportunity cost of not doing something more productive with that money. Which you also can't measure. No one rationally proposes that someone spends a hundred dollars on advertising to generate $100.10 in revenue is somehow a good use of money.

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1. owjofwjeofm ◴[] No.41253128[source]
much of it is measurable, and the measurable part gets acted on. that's part of why they give the sponsorship a special link or code with a discount, if people sign up with that link they track it, and probably attribute the revenue/profit from that sign up to that advertising campaign. If more profit is generated from that link than it costs the company for the sponsorship (including the cost for the time of the employees working in marketing), the company continues that advertising campaign. it doesn't measure everything though yes, but is enough to seem likely to me that online advertising campaigns do work

also i would propose that you should spend $100 on advertising (including cost of time reaching out to people etc) to generate $100.10 in profit(not revenue) if the return comes fast enough. you can estimate the opportunity cost of spending that money by seeing what interest rate somebody would loan you money for, if that .10% ROI is more than the interest rate on the money, then it's worth doing, even though it's only $0.10. then if you do need to do something else with the money you can take out that loan. I guess it might be harder to calculate opportunity cost of your employees time since it might take a while to hire more employees, but you can estimate that based on their hourly salary. also hard to calculate opportunity cost of your brand reputation from doing more advertising. and yeah hard to calculate opportunity cost of your own time but you can just estimate a hourly rate and good enough. most of the math is clear though and companies go on that. (disclaimer: i am not an expert on any of this)