Earlier quoted context omitted.
Except they do. They help connect buyers with needs/wants to sellers with solutions. I know this breaks HNs brain so I don't expect to win this one however. Can ads encourage people to buy stuff they don't need? Yes. Like most things (including humans), they aren't perfectly rational.
> They help connect buyers with needs/wants to sellers with solutions. You know what else does this but in a non-creepy, non-tracking way that doesn't try to artificially create needs/wants in people? Accurate search results. If I want something I can search for it and find it. SEO and advertising and sponsored results are the way companies try to skew search results (usually by making them less accurate and useful f…
A bidding-based advertising system ultimately results in the most valuable solution winning, since the ad spend will be marginally bid up as close to the value the consumer is willing to pay for the product/service minus producer input costs.
The most successful companies ultimately have the most to spend on ads. Again, this does not result in perfectly rational outcomes all the time (because humans are irrational), but comes damn close.
Now, whether we should let one company take the profits off of that ad bidding system (since it inherently trends to monopoly) is another question.