Whether internet advertising works depends heavily on who is running it, for what, and through which platform.
Key Takeaways
The question is not binary: direct-response campaigns (e-commerce, app installs, lead gen) show measurable ROAS; brand-building outcomes are far harder to attribute.
Google, Meta, and Amazon capture the majority of ad value as platforms, not advertisers.
Small advertisers can acquire early customers via paid channels, but sustainable unit economics require knowing your LTV and CAC before scaling.
Performance advertising works best for products with short purchase cycles and clear conversion events.
Hacker News Comment Review
Practitioners with skin in the game report real positive ROAS on Meta and Reddit for physical products and consumer apps, contradicting the “ads don’t work” narrative.
A sharp critique frames the ad exchange ecosystem as information-asymmetry arbitrage: platforms extract surplus from advertisers who lack the data or expertise to evaluate true returns.
Commenters draw a line between direct-response (measurable, works for those who know the mechanics) and brand creation (no commenter could name a brand built primarily through internet ads this century).
Notable Comments
@tikotus: Runs profitable Meta ads for a physical product business and grew a browser puzzle app via a single Reddit ad with strong metrics.
@dotcoma: “It does not and will not create brands” – challenges anyone to name a brand built by internet advertising in the current century.
@kimjune01: Calls ad exchanges “parasitic” – information asymmetry drains surplus from the middle, not the platforms.
