Of course it doesn't make sense, but if you have millions from a billion dollar pool to spent on lobbyist and all kinds of dirtbags that are in power, all of sudden rules that have sound people scratch their head, are norm.
> Either this whole internet advertising thing turns out to be a bubble after all
It is a bubble, indeed! The truth is that not enough people (businesses) have tried to find out on their own, so you have always fresh blood coming in!
I still get approached few times a month by a friend who own small business. The conversation goes something like this: "Wow Facebook has billion people in their database, and I can narrow them to age and interest. Oh I see 25 million people are my target audience wow if I get 1% of them purchasing my product, I will be filthy rich! And I'm talking about worst case scenario!" Then I go on into long explanation how people don't go to facebook to buy products but to watch silly cat movies their friends upload, I'm never being listened to. Until said friend drop in $150 as a test and get 80 clicks that got him one purchase for $20 worth of product. That's it. So this friend never advertise with Facebook again. But don't worry! There is probably half a billion others waiting to open the floods of business and riches for themselves by unlocking the doors to facebook advertising treasury chest.
Agencies and "those that know what they are doing" are not much better. They will tell you they help you advertise with good ROI, but in reality its the same as every advertising agency promising you first page of google. uhm, no. They all won't fit on the first page. Eventually once you burn $1k or few thousands with agency you realize there is a way to make some money but you would have to have budget in millions to break through with your product. So while Facebook is awesome for Coke and Pepsi to drop million buck before superbawl to fight for your mouth, the average person will usually lose money.