My Theory: Advertising is a lot like capitalism itself

My Theory: Advertising is a lot like capitalism itself.

Both ads and capitalism are messy and have some externalized harms, but are better than the alternatives.

In the “advertising led” model of customer discovery, businesses advertise to essentially tell the market that they exist and provide a service. They do so by paying for advertising space across various mediums. This includes everything from their store signage to Craigslist ads, to TV and sophisticated digital advertising.

Most modern advertising is an auction where businesses compete to serve their message to customers the algorithms think are most likely to be interested.

This function – of matching users that might be interested in products to businesses providing products – is at this point hugely scaled.

People who want to ban ads will usually give the alternative of a reviewed directory of products and services for each category. That, they say, would be the ideal method of product discovery, along with word of mouth.

However, that runs immediately into the same problem that communism has historically. Who actually controls these directories, which would be a huge source of power for society? I posit that that it is impossible to centralize this effectively, and that the most likely most effective method for idea and product dispersal is something close to modern marketing and advertising.

Comments URL: https://news.ycombinator.com/item?id=44714407

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