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Advertising creates revenue, but does it create value? Imagine Coca-Cola pays Google a bunch of money to run ads. You are thirsty and go to a store and decide b

• jvalencia 4y ago
  I would argue that they create a secondary item. The same way lumber is created from wood, and then picture frames from lumber. Value is added, and this creates revenue. Here, the value is virtual, but it's still value -> the market says so. I could argue this is just a service, but if that were true it would be worth less and the market would correct.
• chrisco255 4y ago
  Of course advertising creates value. It connects buyers and sellers. It generates demand for products that are built and created by other people. You can disdain advertising all you want, but occasionally an ad connects with you and presents you with what you're looking for. In aggregate, that has tremendous value.
  • wooque 4y ago
    Advertising would create value if it would only serve to connect buyers and sellers, but instead modern advertising serves to "generate demand", as you mentioned. That means making you, artificially, usually using emotions and psychological tricks, spend money on something that you wouldn't and shouldn't spend money. We can thank Edward Bernays for single-handledly ruining the world.