If a geeky movie studio pays X to show an ad to people of your profile, while a car manufacturer pays X*2, Google is better off showing you the car, even if they are internally 100% sure you'd buy the movie instead.

Even if you pay-per-view of an ad, a company selling tampons will not pay as much for 1 thousand views of their ads on a youtube channel for construction workers, as on a youtube channel for girl's fashion. Because the former drives no clicks/revenue, and the latter does.

So yes relevance is extremely relevant to make money.

No it doesn't. Google is highly restrained when it comes to using what it knows about you to serve you ads. Way more restrained than for example Meta or the newer Chinese apps like TikTok.

Target is a fun example - they had cases where they revealed pregnancies through targeted ads. Now, they'll put an ad of a lawnmower (untargeted) next to the bassinet (targeted) and customers are less creeped out

My XP at an ad-tech is that there is only so many targeted ads, and the advertisers cap how many times they want to show you an ad. When it comes time to bid to show you an ad, all of the targeted ads might have exhausted their campaigns (shown you the ad X times already, or the campaign ran out of spend). In this case, all the advertisers that would bid a _lot_ in auction are sitting out. There are still other bidders, but these are less targeted and are bidding less money. Because the highly targetted ads are exhausted, these lower targeted ads might look random. Their targeting might be instead of based on gender, city, income, the targeting might be based on just geography. The fewer targeting parameters, the lower the bid.

In effect, once all the highpy targeted campaigns are done with you, they stop bidding, and the ads with less targeting which have cheaper bids are now the auction winners. If those are exhausted too, then there is a very large pool of low rent ads which have even less targetting.

https://medium.com/@colin.fraser/target-didnt-figure-out-a-t...

For one thing, if you're suddenly in the market for a truck, you'll see the brand that was in an ad a long time ago and you think "Oh yeah I've heard of Ford, never heard of Isuzu, let's look at the Ford much closer.". Even a tiny nudge that the ad did helps, when selling to millions. Obviously a truck is a big purchase, and you individually probably would do more research, but the nudge applied to millions might move the needle in the heads of a few dozen people.

Well, yeah. Those companies will pay to send their ad to all middle aged men. Those companies could slice and dice more to get better demographics, but they don't think it's worth it.

Google's business isn't to slice and dice the demographics to show you better ads. It's to slice and dice the demographics in any way that the advertisers will pay for.

Because the people who are willing to pay money are, ultimately, the customers.

There is zero situation where this technology doesn’t get co-opted by adverse interests to make your life measurably worse.

Better to keep them dumb and then grow a regulatory spine to put a stop to the endless proliferation of ads. It was done for advertising on other media.