This episode of Freakonomics Radio dives into the world of online advertising, questioning the widely held belief that it delivers substantial returns. It highlights research from eBay, which reveals that disabling brand keyword ads had almost no effect on sales, suggesting that their importance may be greatly exaggerated. Additionally, the podcast discusses how much of online ad spending is misdirected, due in part to poor targeting and the fact that many ads go unseen. It wraps up by contemplating the possibility of a "digital advertising bubble" and emphasizes the need for independent studies to truly evaluate the effectiveness of online advertising.
