If you do your SEO right and use advertising to build up some brand recognition, you reach the point where your web site appears on the first page of search results alongside your paid ad for your web site.
However, Google has designed their search results to encourage clicking on the ads, so many users who actually find you with search will click the ad you are paying for instead of the search result for your site.
The author presents empirical evidence that not paying for ads doesn't reduce traffic, because users will click the site in the search results, instead of clicking the ad.
That is very much a point, and one that can save people a lot of money if they test it and find their site adn advertising have the same dynamics.
Or do you literally mean your competitors buying ads that deceive the public into thinking they're clicking on your ad which will lead to your site, but it actually goes to their site?
Those are two very different scenarios.
I suspect it's not actually as bad as people may think (if someone searches "Dominos" are they looking for any pizza place, or that particular one), but it does happen.
First one is more common. Second one depends on your industry and who your competitor is (sleaziness)
Whilst most of HN is employed by advertising companies and their offshoots ...
But the author's point is that once you reach that critical mass, advertising may begin to cannibalize your organic search results because users click on your ad instead of clicking on your site in the search results.
I own a copy of "Ogilvy on Advertising" I bought in the 1980s. In it, David Ogilvy basically says, "test, test, test." That's the message here. Test. The advertising you're doing could be useless.
I'm not sure I agree that when you reach a certain point, ALL advertising is useless. Maybe when you reach the point where most of your advertising has no ROI and is cannibalizing your organic SEO, you need to change your spend and try to find ways to get your ads onto search results that don't feature your site.
If you find that works, you can then adjust your SEO and see if you can make that advertising go to zero ROI too. Lather, rinse, repeat.
If a man knowingly supports a cause that is against his financial interest, thats worth paying attention to
Facebook and Twitter will adjust who you see content from to increase your likelihood of interacting with advertisement. As more and more social interaction happens online, this can influence who your friends are if you're not careful.
I see no reason to deride someone trying to wrest back some control.
I was spending time optimising the 'bid' in automated advertising system, trying to get the best bang for buck.
Why was I doing it? Everyone else seemed to be doing it.
This was a terrible reason to do it.
No doubt, but this is as far away from scientific as it can get.
"I stopped advertising. My sales rose at the same time. Advertising doesn't work" is basically the thesis, but his only "evidence" is an unreasoned assumption that the two things are casually linked instead of just correlated by the timing.