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Advertising as a major source of human dissatisfaction (2019) [pdf]

https://www.andrewoswald.com/docs/AdvertisingMicheletal2019EasterlinVolume.pdf
108•anigbrowl•57m ago

Comments

mrdevlar•44m ago
Whenever I read anything like this, I am reminded that everyone should see Adam Curtis' "The Century of Self" (https://www.youtube.com/watch?v=EoMi95tfgP4) which is about how Sigmund Freud's nephew created the cancerous style of marketing that is ubiquitous in our society.
sharkweek•20m ago
Yes, this should be required viewing in high school imo.

As someone who used to think I was generally “immune” to advertising, I have come to realize the influence goes so much deeper than “see ad on TV, go buy product” and is instead a much, much darker sense of “the only way to get rid of this anxiety is to Buy More Stuff.”

His more recent Can’t Get You Out of My Head is also fantastic about how we got from There to Here from WWII to present day.

api•44m ago
I'd be in favor of significantly taxing advertising for the same reason that we levy "vice taxes" on booze, cigarettes, gambling, etc.

It would at the very least reduce the amount of it and select for advertising of a higher quality, cutting the noise a little.

MattGaiser•39m ago
Well, we have to balance that with advertising funding a ton of things that we otherwise value but would rather not pay for. Transit, free wifi, little leagues, etc.
HWR_14•32m ago
No, we don't. Transit is primarily funded by taxes, then fares and only then ads. Ad-free municipal wifi exists in a lot of places. Etc.
crote•32m ago
How about we just tax companies, and give those things government subsidies? Same outcome, but without the ugly ads.
ben_w•27m ago
Advertising either does or doesn't cause an increase in spending on whatever is advertised.

If it does increase spending on things being advertised, the absence leaves us with more money for all those other things that are currently ad-supported.

If it doesn't, it's a scam.

If those things supported by ads would be literally unaffordable by the consumers if not for those ads, because the consumers are so poor they have no money to spend, the fork is still true; it's just that if those ads work then they push those already-poor consumers into debt for things they'd otherwise not buy because they couldn't afford, making them even poorer.

morleytj•24m ago
The reason it pays for that is through redistribution though, right? If they weren't receiving a monetary benefit from advertising, they wouldn't run them, and the monetary benefit needs to be larger than the cost to fund those things, otherwise it wouldn't be cost-efficient to run it.

By definition it shows an issue where we have a process that tricks human minds into thinking they aren't paying for something, when as a collective, we pay more for a worse service than we would have if it existed in a alternate framework.

_factor•23m ago
Taxation shouldn't be used to curb habits, that's what laws are for.
kimbernator•14m ago
I worry that such a tax would create a self-reinforcing monopolistic effect by making it harder for smaller companies to do it, thus enriching those that can afford to do it. Even if there's a threshold under which it's not taxed, it still benefits big corporations.
JumpCrisscross•43m ago
Does anyone tax ad spend?
genericacct•42m ago
It is actually incentivized in some cases
HWR_14•39m ago
Ad spend is usually tax deductible
nickff•35m ago
The UK has a 'Digital Services Tax', which is effectively an internet ad tax: https://www.gov.uk/government/publications/introduction-of-t... You could also argue that corporate taxes do tax ads, as they're applied to advertising-based companies, though these taxes usually don't 'target' ad companies. Corporate taxes are passed on to customers, employees, suppliers, or investors; usually one of the first three (and most often the first one), as that list is in increasing order of 'captivity'.
arjie•9m ago
I assume you mean some percent of ad spend as a tax? Well, the cheapest ads to run are usually the most obnoxious ones. Taxing ad spend is a bit like taxing you more the nicer the building you build on a piece of land. You're directing the incentive in the wrong direction. A minimum fee per ad run perhaps would have an effect more in line with what you're thinking, I think, though I haven't thought about it much.
amelius•41m ago
This doesn't even address the disastrous effects of overconsumption that inevitability follow from advertising. Advertising is destroying the climate and our planet.
nathan_compton•39m ago
I maintain a healthy depression without ads, the old fashioned way.
karlgkk•36m ago
Between adblock, piracy, and generally avoiding services, and things that make me see ads…

it’s always really jarring when I visit my parents and I’m forced to watch cable TV. It’s like being assaulted.

kachapopopow•28m ago
I got assulted with a youtube ad recently I couldn't believe how bad it made me feel and I don't really know why. At least the ads on twitter are generally amusing in a way where it's some ai furries that look like kids or some outright scam, but having an ad pretend to be my friend / relate to me felt so offputting that it doesn't even make sense.
ben_w•16m ago
> At least the ads on twitter are generally amusing in a way where it's some ai furries that look like kids or some outright scam

Ironic, as most of the furries I know hate GenAI with a passion.

nilamo•10m ago
They're very annoying all around on YouTube. Hit skip, wait five seconds, hit skip again... and if you don't, there's a several minute ad??!
WD-42•26m ago
The parent's cable is so bad. First of all, the ratio is way off. Like 60% content to 40% advertisements, and I'm being generous. Then it's SO LOUD. Maybe the decibels aren't actually higher (I think that was outlawed?) but these ad firms employ some top notch sound designers that make their ads almost impossible to tune out.

I have no idea how this is still a viable product. Coasting off Boomer's 50+ year old habits I guess?

littlestymaar•20m ago
Coming from Europe, US TV is really something dystopian. There's this constant stream of interruption to put as much ads as possible in your face, it's disgusting.
Forgeties79•17m ago
Unfortunately it is very easy to get around dB rules with aggressive loudness mixing
Forgeties79•20m ago
IIRC the wide use of adblockers in the US constitutes the largest consumer boycott in the world. Obviously there are some caveats that come with that statement, such as how you can simply download a specific browser and you're technically participating, but still interesting to me nonetheless.
allears•35m ago
Capitalism (at least our form of it) requires consumerism. Consumerism requires advertising. You may think it's just an annoyance, but it's the foundation of our economy. A dissatisfied consumer wants more; a satisfied consumer doesn't.

Making as much money as possible off consumers is considered the highest business goal. Of course that leads to developing expertise in manipulating them.

kelseyfrog•27m ago
So you saying that capitalism's current form is incompatible with an ad-free world? What's the downside?
allears•8m ago
We're living in the "downside," if you want to call it that. I was just trying to point out that advertising is pervasive for a very good reason, because our society has created strong incentives and few barriers for it. And it's required to support our economy, otherwise all that stuff wouldn't get consumed.
FrankWilhoit•34m ago
Advertising is, quite simply, a form of abuse. It is psychic violence that leaves no outward mark but diminishes its target by attempting to replace their perceptions, judgments, intentions with its own. A society with a pragmatic regard for its own survival would ban it outright.
SoftTalker•27m ago
By what other means would people with a product or service to provide reach other people who are interested in obtaining that product or service?
fruitworks•26m ago
classifieds, directories, that sort of thing
LadyCailin•26m ago
Organic searches and word of mouth.
kelseyfrog•24m ago
They wouldn't. That's the beauty of the plan; it's a feature not a bug.
mzajc•24m ago
Certainly not through conventional advertising. There's heaps of billboards where I live, and I'd have a very hard time finding one for a shop/service/political party/business that hasn't been around for years.
pennomi•24m ago
Search. If they are interested, they will look for your thing.
Forgeties79•24m ago
We can argue back and forth about the specifics but there is no denying we are way too far in the wrong direction currently. Buy a car? The dealership slaps their name on it. Every screen at every stage bombards you. Radio, music streaming, ads everywhere. Billboards, benches, bus stops, it never stops. I still occasionally see those tacky trucks with bright ads displayed on them just driving around.

A cursory search shows that the average person is exposed to ~5000 ads a day in the US. Everyone is screaming for your attention. It's not healthy.

harrigan•24m ago
We replace push advertising (unsolicited messages) with pull systems (discoverability on demand).
nickff•15m ago
Discoverability is a very difficult challenge, especially for small niches. Many customers contact my employer, saying that they didn't know our products existed (and many products have existed in some form for >10 years). If you can find a way to improve discoverability, you would be a hero to many niche businesses.
tweakimp•23m ago
They can put their information where it can be found easily by people who are interested-
NickM•22m ago
Have you really never bought a product or service for some other reason than that you saw an ad for it?

People have plenty of other ways of finding out about useful products and services. You can talk to your friends and family, or go to a store and talk to a salesperson, or look up product reviews online, or even pay for something like a Consumer Reports subscription.

morleytj•20m ago
Currently I think it is difficult to argue that advertising in its most visible forms have any serious benefit to people looking to obtain a service.

How often does an actual random advertisement shown on a billboard or a preroll youtube ad actually lead to a quality product? I think it is fairly common for people who are acquiring the best versions of things to do so primarily through research in forums or reviews, which is coming from the user looking from the product, rather than the product forcing itself into the mind of a given user to convince them to consume it.

jgeada•19m ago
Word of mouth. If you make happy customers, they'll readily tell others.

But the truth is most modern products aren't good enough to earn word of mouth.

A good example of how to work it right is Steam: while it is not perfect, most discussions give them benefit of doubt because most of the time they do work for the best interest of their customers, not just themselves.

inetknght•18m ago
> By what other means would people with a product or service to provide reach other people who are interested in obtaining that product or service?

In my opinion, it would take quite a lack of imagination to ask such a question.

There's many many ways to reach people who want your product. Industry-relevant news publishers and conferences, professional/personal anecdotes (eg, blogs and recommendations), demonstrations and training offers, etc.

A different question would be: by what other means would businesses force their products on people who don't want them? Hopefully the answer is: none.

vkou•18m ago
Maybe these means should be employed in more moderation?

Certainly we wouldn't be better off if advertising were beamed 24/7 at full blast into your ears and eyes the second you step out into any public space.

About 5% of its current proliferation would be a nice target to aim for - maybe a maximum of 200 ads a day[1] - but if that still proves to be an issue, we could always go lower.

---

[1] With maybe five rising to the level of notice.

eitau_1•17m ago
Catalogues
nilamo•12m ago
Free samples or in-store demonstrations like we used to.
chistev•8m ago
Why is this getting down voted?
popalchemist•9m ago
The conclusion that every government came to after Bernays' "Crystallizing Public Opinion" is that the society who can be arbitrarily manipulated by propaganda is better because it's something like adding a rudder to a rudderless ship.
cm2012•9m ago
A touch dramatic, chap.
happytoexplain•7m ago
I strongly disagree.
alexashka•8m ago
> A society with a pragmatic regard for its own survival would ban it outright

Western society would cease to exist if it didn't continue its diabolical lies, falsehoods and abuse. The lies are not optional.

It is because of pragmatic regard for survival of the status quo that the lies do continue. That word 'pragmatic' is what keeps diabolical people from seeing themselves for what they are.

AnimalMuppet•5m ago
There are two kinds of advertising. I will call them "scarcity advertising" and "abundance advertising".

Scarcity advertising is, for example, "Joe's grocery now has cantaloupes" (back in the day when cantaloupes were not available all year). It's information - something is now available that wasn't available before.

Abundance advertising is, for example, "The Chevrolet SomeHotCar will give you an exciting life like the people in this ad. Don't you want that?" As someone put it (wish I remember who, I would give credit): "[This kind of] advertising attempts to make the person you are envy the person you could be with their product. In other words, it attempts to steal your satisfaction and then offers to sell it back to you."

The first kind of advertising is useful. The second is abusive.

RustySwarf•33m ago
As Charlie Munger pointed out, our economy does not run on greed, it runs on envy. Why? Because advertising discovered insecurity as the most effective crowbar. Advertising is the bedrock of the consumer value system, which has been the basis for the US economy since the end of World War II.

What can we as individuals do about it? Recognize advertising as hostile and banish it. Most of us, instead, are trying to assemble a worldview out of mismatched pieces of advertising, which is not working out very well. When we write and think, we are often thinking in units of advertising, which is a horrifying realization.

Even the fact that this discussion is being framed in terms of Happiness and Satisfaction is downstream of those qualities being centered by the consumer value system. Previous societies might have considered integrity or duty primary.

marssaxman•29m ago
It should not be surprising that advertising is a source of dissatisfaction, since that is literally the point: inducing a feeling of unfulfilled desire is the mechanism by which ads generate sales. It would be more surprising if advertising were found not to be a major source of dissatisfaction, since we would have trouble explaining why businesses spend so much money on it.
apengwin•29m ago
"what is happiness? It’s a moment before you need more happiness. You don't want most of it, you want all of it" - Churchill
CGMthrowaway•20m ago
Interesting finding from the paper:

Newspapers & magazines drive the negative link. TV/radio/film ads show no clear effect

doctorpangloss•18m ago
this isn't a "credibility revolution" paper, it doesn't show causality, it doesn't use randomization anywhere, and it is very much a post hoc ergo proctor hoc sort of thing

some evidence of the contrary: DTC pharmaceutical ads about Zoloft, a depression medication, cause better health outcomes

https://www.journals.uchicago.edu/doi/abs/10.1086/695475

not merely correlation but causation. the approach used here was part of a family of approaches that won the Nobel in 2012

another good one: advertising caused increases in treatment and adherence to medicine

https://pubmed.ncbi.nlm.nih.gov/37275770/

there is also a great paper that scary lawyer ads about statins CAUSE lower adherence to statins, so negative advertising causes negative outcomes. unsurprising.

i'm not saying that these two papers generalize to the whole of digital advertising. it is as difficult to generalize about global digital advertising at it is to generalize about the US defense budget - they are comparable in size (about $800b/y both) and complexity of missions. it does feel good though. i'm glad this comment will get downvoted by people who are not interested in actually discussing the merits of the paper versus their vibes.

instead you could look at it as a victory for the FDA, it has done a great job at regulating drugs (at least since 1965 when the SSA created medicare and the regulations started to matter) such that advertising them is mostly a good thing. You can extrapolate from there to say, well we should regulate what you can advertise instead of delegating it out to upvotes and downvotes on Facebook, which is really how bad and good ads are controlled.

ctoth•11m ago
Pharma reps (advertising) consume physician time --> doctors have less time per patient --> patients don't get properly evaluated --> DTC ads "help" by telling patients what their doctor didn't have time to ---> study shows DTC ads improve outcomes --> this is cited as evidence advertising is good
xriddle•18m ago
Yet how many of our jobs wouldn't exist without advertising ... I'm not saying it's right or wrong just a fact. Advertising is foundational to many modern industries, especially digital ones. Social platforms, media companies, search engines, news, free apps, podcasts, streaming tiers. A ton of your daily internet exists because ads bankroll the whole mess. Without advertising, half the tech economy collapses into subscription-only fiefdoms. Unfortunately if advertising vanished tomorrow, lots of companies would die, tons of jobs would evaporate, and the economy would contort into something unrecognizable.
ben_w•9m ago
With GenAI, I suspect a lot that could be ad-supported will evaporate anyway.

How can you get a reputation for a high-quality well-researched podcast(/youtuber) when your voice(/face) can be cloned by the advertiser who buys a slot somewhere in your podcast(/video) to sell some snakeoil?

Are those your friends you're seeing on social media enjoying ${brand} or supporting ${politician}? Or did your friends all leave the site years ago, and these are just fakes, legally licenced by the advertisers from the social media firm thanks to a clause in the TOS that's hard for non-lawyers to comprehend the consequences of?

yoavm•9m ago
You're saying that like it was a bad thing...
morleytj•6m ago
If advertising is no longer financially rewarding, is there not an argument that labor could transition into a different sector of the economy?

Companies based around advertising would die, yes, but they only exist in the first place because of how lucrative the activity is. Nobody is sitting around dreaming of how they could sell ads better than anyone else while not thinking of the financial compensation. At least I hope they aren't.

If someone was saying "many people have jobs in running offshore internet sports betting companies, if we put regulations on offshore internet sports betting, it would remove jobs" wouldn't the natural question be whether those industries are actually productive to have people employed in, or if it's a harmful industry overall? Generally in my view its somewhat sad that the system as a whole optimizes for advertising work rather than orienting in a way that everyone could be putting their work towards something they see as more fulfilling.

There is certainly more need for product discoverability broadly than something like online gambling, but I think the more relevant conversation is if the current advertising model is more like a local minima preventing progress towards a more economically viable method of handling product discoverability.

codywashere•16m ago
paid digital advertisement should be banned
arjie•13m ago
Advertising for content-creators is just a tool to capture value provided to people. The vast majority of people would rather pay in advertising than pay in dollars. In fact, if you use hn.algolia.com and look around you'll see that paywall complaints are far more common than advertising ones. This also applies on Reddit and Instagram and so on.

So far there are a few known theoretical approaches to reward content-creators:

* subscriptions/paywalls

* advertising

* micro-transactions

Paywalls work if you have a high brand value with a relatively fixed audience that will accept a steady stream of content. The WSJ, NYT, etc. can command these. Even Slow Boring et al. can do that. But the majority of smaller brand value content creators face the terrible fact that brands have a Pareto property: the top few ones occupy almost all of customers' minds and then you're battling for a tiny portion of their attention. The subscription revenue is similar to a patronage model, and information in general has to be like this because replicating it is zero cost but obtaining it is high-cost. This means that you can easily be out-competed by the guy who just copies your stuff and posts it. You have to somehow convince your audience that it's worth paying for your next stuff.

Micro-transactions are the weakest model. They are infeasible and socially unacceptable because consumers expect the full range of financial protection they have on 'macro'-transactions - and that cannot come for free. This sets a floor on micro-transactions and the overhead makes that not worth it. To make it worse, a micro-transaction-based economy has the problem that you don't really incentivize the content creator. You incentivize the guy who can best capture your attention. Either SEO or submarine Word-of-Mouth or native advertising. It doesn't matter which. That guy can always undercut the creator because he's not producing the thing he's selling. It's worse for information-things like Slow Boring etc. Matt Yglesias cannot stop someone from copy-pasting his stuff.

For the vast majority of content creators, advertising is a fantastic thing. It allows this massive three-sided marketplace between consumers, content creators, and brands. It lowers the marketing effort so more creators can participate. It allows consumers to pay for content by getting things they want. It allows brands to reach consumers they want.

To be honest, I think Internet Advertising and especially the real-time bidding approach is as good as one can imagine for the vast majority of people to be able to consume all the content they want. It's led to this absolute explosion of services and information that no one could ever have imagined.

And the low barrier on running targeted ads has meant that even small indie bands can survive with a good marketing effort. Gone are the days when only the big multinationals were taste-makers. Now you have micro-audiences that smaller creators can reach and for whom it's worth them producing content for.

Honestly, it's fantastic to see. I'm a huge fan of advertising for what it's enabled. I prefer to use YouTube Premium, and I have my subscriptions, but when I didn't have as much money it was much nicer to be able to trade by allowing brands to be seen by me. So yes, there are the shady football streaming sites that will shove porno into your face, but you know the game going there. For the rest of the world, I think the websites are correctly on the frontier of value vs. annoyance.

Also, is it just me or are the results mostly statistically insignificant here? It seems like a grand claim with very weak evidence.

fpauser•10m ago
When I realized how much ads manipulate me and my thinking, I stopped consuming radio/TV stations that send ads. This was >= 25 years ago. Additionally, I never surf without ad blocking and use DNS based ad blocking on all my devices + in our home router (nextdns). Besides this, I like to pay for the content I am interested in - which helps against ads. This is my personal mostly ad free bubble, I couldn't stand it any different.
Aurornis•8m ago
Nobody in the comment section is apparently reading the paper, because the only subcategory that reached p<0.05 significance was newspaper advertising expenditure.

When they stretch the p-value threshold for significance to p<0.1, they claim magazine advertising expenditure reached that threshold.

TV, Radio, and Cinema advertising did not reach significance even at the expanded p<0.1 threshold.

The methodology of the paper is also not great at all. They looked at changes in advertising expenditure and changes in happiness measures and then tried to correlate the two.

Jolliness7501•4m ago
Thats why I singed out from ads everywhere I could. Adblocking everywhere it's possible, no legacy radio or tv - only add-free subscriptions or free alternatives, alt-apps for youtube, no social-media like f...book, twitter or (Thor forbid) tictok. I always reject any discounts, special offers when it require to agree to "marketing cominication". I block all robocalls and if any pass throu I chase down the company behind it and file complain to authorities (in my country it's illegal to contact anyone without him/her agree for it). Not everything works of course and only ads I cannot block are OOH like billboards. I support creators directly where it's worth and pay or donate for all sites/services/apps I use frequently (if applicable).
zkmon•3m ago
There is a basic correlation which doesn't need data or research. Advertising is about gaining people's attention and creating familiarity for a product. People's satisfaction is about gap between their expectation and actuals. Since advertising tends to increase expectations, it would lead to more dissatisfaction. This is a direct consequence.

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