The rise of influencer capital
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The argument is simple: when important productivity improvements take place, say the invention of a new way of baking bread, they don't need advertising to gain mass use. Their benefits are so obvious that they don't need to be sold. Demand doesn't have to be created, because demand comes from human existence.
The existence of advertising, in contrast, shows that the thing being advertised probably isn't that important. Indeed, the item is so trivial as to require advertising to create demand for it. This then leads us to wonder what benefit is being served by both creating this product and the demand for it; Galbraith argues that we've essentially fetishized economic growth at all costs (a holdover, in his view, from the early days of econ which was concerned with our metaphorical bread making instead of our metaphorical advertised widget making). He then attacks planned obsolescence as the dumbest outcrop of this process, because now we're purposefully wasting materials on things which we hope to replace in the near future for no reason other than to keep making the things, things which we don't need anyway - as evidenced by the fact that they're advertised.
Anyway I think this fits in perfectly with the whole influencer economy phenomenon, because that's literally all they do. Their raison d'etre is to generate demand for items nobody needs or even previously knew about.
Recommendations are similar to ads in this regard as well. Maybe blurring the lines between the two depending on how the algo is designed. I'd personally be in favor of recommendation type approaches with combinations of human curation, and an adjustable spectrum of push/pull based results; and the ability to swap between these on a whim as needed.
I agree that sometimes it's true that people need marketing to discover solutions, but, in the vast majority of cases I've encountered, marketing is self-serving, manipulative crap. For a concrete example, see cigarette advertising, corporations funding climate change denial, or most political advertising.
How does that adage go?
> It Is Difficult to Get a Man to Understand Something When His Salary Depends Upon His Not Understanding It
Alternatively, I could have waited until someone noticed my advertisement to start to write the book or produce the product. Pull.
So where is push and where is pull better?
I see ads as purely a push based model; to the GP point, if it was worth looking for why wouldn't you already be looking for it via a pull based method. But you obviously don't know what you don't know. Either 100% push or 100% pull won't be optimal. This is where I see recommendations and being able to swap between a spectrum of XX% push and YY% pull algos is helpful.
For example physical music, i can walk into a record store and decide to buy a handful of records; the store owner can then see those records and recommend more that I could also enjoy and even ask me questions to make those more accurate. This isn't 100% push or pull and also has an element of human curation that inherently doesn't scale but is possibly the most effective approach. I can do the same thing online via discogs and get some automated recommendations. I have a choice between the two and depending if it's a genre I'm familiar with (human recommendation might give me something new) or a new one I'm trying to explore (most popular records recommended by discogs are a good starting point) i can choose one or the other.
I see solving this problem as a key one for the whole creator long-tail, 1k fans, etc... problem-space. Don't have the answers but those are some general ideas.
If you don't know how serious a danger is, you won't start doing research on it until it actually occurs, at which point it is too late. It doesn't do much good to remind someone they need to have smoke detectors and check them regularly after the house burns down, or that a vaccine is available after they're infected.
So it’s not advertising rather journalism which is required.
There are lots of things that exist that doctors are not aware of and advertising may fix that for a few projects, it's not going to fix it for more than a few.
There ARE other solutions, but those solutions involve peer review and journals and require doctors to consume the material.
And who says doctors are going to meaningfully consume advertising?
Now think of Coke and Pepsi ads from during the "cola wars" era, or beer ads from a wider era. It's all about cool people and beautiful women, and you're supposed to think that maybe you could be cool like that and have a girl like that if you drank that. It has nothing to do with the properties of what's being sold; it's all about image.
The first kind of advertising is what you see when things are scarce; the second you see when things are abundant.
I don't have a problem with the first kind of advertising.
What did change was the coverage of mass media.
Instead of relying on long and expensive genuine user feedback loops to generate positive buzz around a product, advertising manufactures that buzz directly. This is why is it everywhere, and influencers are just the latest innovation. Not because product quality/QoL reached a high point.
As someone who actively seeks tools, furniture and other consumer products from that period, I tend to disagree.
Let's take furniture. Mine was made during this period by Stickley in New York state. One cannot find commensurate quality today unless you wish to commission handmade pieces.
We have devolved to the point of disposable $5 extruded-plastic chairs, which may provide service for a time, knowing full well that the inevitable trip to the landfill is just around the corner. I reckon we're a ways past said zenith.
The subsequent decline in product quality was caused by advertising displacing genuine user feedback in creating demand for products, among other things (planned obsolescence).
You no longer needed to create a great product that people would buy and recommend because it is great. Simply skip the loop and go straight from A to B via advertising (fake buzz).
The Galbraith argument that advertising was a necessary technology that benefits consumers is a Big Lie. Advertising benefits large producers, while consumers suffer from losing their voice and declining product quality.
Also, when new, a lot of old furniture was quite expensive and families would save up for pieces. We get the benefit of that being used and transmitted now (though obviously particularly striking pieces will not have a reduction in value.)
While I certainly appreciate older, sturdy furniture (especially solid wood furniture as someone with some cabinetry background), I prefer modern lightweight materials, even if they last less long. They still last most of my lifetime which is enough for me. Marketing is not the issue, sustainable materials usage is.
The things today won't survive, that's the point.
There's clearly a cost-benefit spectrum between artisanal craftsmanship & throwaway consumerism. Balance is probably the best approach. It's time for the pendulum to swing back toward fewer, better items with a longer product life.
That and the shift toward psychological advertising in the wake of Bernays. Closing the quality/opinion loop only makes sense if quality is really a concern. Post-Bernays the gig switched to manufacturing desire by attacking the self-esteem of the "consumer". The product itself became largely irrelevant.
So something like a bread toaster probably suffers from planned obsolescence; LCDs (or generic display technology) likely benefit from planned obsolescence.
Before Telecommunications deregulation everyone had pretty much the same telephone that was leased from the phone co. It was electromechanical with sizeable transformers and magnets in there. Compare that to the sets that were available after deregulation with miniaturized components.
Basically it's not always cut and dried and there is nuance especially when it comes to energy efficiency. On the other hand, it's really annoying to buy kitchen appliances that are poorly manufactured.
To whom? We now have floating islands of plastic from obsolescent devices. That plastic blender I bought 3 years ago is now in the trash heap. My mother's blender she bought 40 years ago is still going. Obsolescence is terrible for the environment in the entire lifecycle of a product. In my opinion, obsolescence are rarely good for the society, never good for the customer. It is only good for the manufacturer.
> Before Telecommunications deregulation everyone had pretty much the same telephone that was leased from the phone co. It was electromechanical with sizeable transformers and magnets in there. Compare that to the sets that were available after deregulation with miniaturized components.
Just to be clear, are you suggesting that deregulation brought in the "not always bad" obsolescence? I know it brought innovation and customer choice, but can you unpack further how it brought obsolescence?
Imagine designing a very high quality metal chain. However, some of the links need to be made of an inferior strength plastic, perhaps to stop them corroding. It's therefore not worth designing the rest of the chain to a higher tensile quality than the weakest links. To do so would actually be very wasteful.
One must distinguish genuine design efficiency, which is a kind of designed obsolescence, from strategic sabotage. That's what most digital goods contain; remote kill switches, countdown timers, deliberate weak fuses, remote updates that remove features, embedded DRM and all manner of user-hostile shitfuckery that amounts to no more than vandalism.
Adjusted for purchasing power, how much did the former cost and how much did the latter cost?
I can find hand mixers online from $13 to $238 (amzn). Let's agree that today's mixer will last 5 years. Also, let's pick the price "average" at $50. That would put the total cost at $400. If we go with $13, it is still $104, and unlikely we could get 5 years out of it.
So, to a customer no it is not an improvement. For the environment, no it is not an improvement. Correct me if I am wrong
Why? Your entire analysis is based around this completely unfounded assertion. My cheap plastic kitchen appliances are lasting much longer than 5 years.
And, I cross referenced it with other sites from a search "life expectancy of small home appliances". they were mostly manufacturers, and insurance companies.
Since this is not scientific research, but simply my opinion, I am open for you to suggest an alternate time frame and source for your data that contradicts.
5 years is quite a long time for modern devices. It’s sad, but I rarely see something last as long as 3 year; 2.5 ish seems to be the norm.
As an aside, my MBP16in 1st gen has had two motherboards die, each in less than two years. The tech blamed dirty power and said because the customer next to me had a 2012 that was still working it was my fault… he’s right, this was my fault for buying apple.
I routinely find products with obvious faults. My JBL smart speaker had an obvious mechanical problem, that killed it. Same for my acer, which had faulty connectors on two laptops almost a decade apart. I could tell as soon as it was plugged in that it was gonna die.
Sorry, I should've been more explicit in my first post. My bad.
The telephone is an example of a good that improved and was kickstarted with deregulation before that it was WE500 types.
I mean, to look at your example again, in the United States, where technology gets adopted the quickest, 99% of bread sold is utterly disgusting (and expensive) and would be illegal to sell in many countries. A $100-150 automated bread maker fixes this, and yet they do not have mass adoption. Everything is marketing driven.
[0] Which is undoubtedly made by an automated bread maker, so I don't think using a machine "fixes" bread.
I remember having two really clear thoughts.
1) CES is mostly a megachurch dedicated to buying crap we don't need with money we don't have.
2) It's a special kind of existential debasing that goes into being a person who has to tend one of those booths and stand there pretending like your hot pink camouflage backpacks are so much better than the ones that look exactly like them in the booth next to yours.
A lot of people get really excited to go to CES. I've had to go for work several times, and it always just makes me depressed.
Tech wise one of the biggest drawbacks to no longer living in the Bay Area is that lack of exposure to what most consider the unimportant stuff. I used to go to all kinds of meetup style events and learned as much just from watching people work and seeing the tools they used and ways they used them I never thought of versus the main point of the meetup. That almost made the drive over 17 worth it.
Better advertising would have killed that niche for me, instead it was left to the unaffordability of healthcare when you are self insured at have a family to do me in.
But, if I look at my parents, who were raised in "average" middle-class families in the US, there are many ways today's families' "standard of living" is worse, despite the fact that they can buy a lot more shit. 2 simple examples:
1. There is a ton more obesity today, and it has a disastrous effect on standard of living.
2. There is a ton more anxiety about maintaining a standard of living. My grandfather worked for "Ma Bell" for 47 years and raised 4 kids on that single salary. They ate dinner together as a family every night. Today your "average" middle-class family has both parents working and still with a constant undercurrent of economic anxiety.
Look, I'm in no way arguing the 50s were some idyllic "Leave it to Beaver" utopia, but I am arguing that once you get to a "comfortable" middle class existence that focusing on "ability to buy more stuff" as the primary driver of "standard of living" is a mistake.
#2 was unique to the US. The rest of the world was either in shambles from colonialism or from WW2. Factories were destroyed and the US produced much of the world's manufacturing output. This temporarily gave a huge boost to American industry. As other countries recovered, competition became stiffer. Moreover the US labor market at the time was compromised almost completely of white men, so there was a lot less labor competition. The story was very different for others.
> The promoters want our attention more than our cash.
Try to avoid mass media, minimize exposure to advertising, question externally imposed values. Our human status-seeking rat race is real, but individual degree of participation optional.
(I say "optional" but it may be in the same category as "simply choose to stop shooting heroin", for some psychological profiles, I realize.)
Even here on HN I see comments celebrating that culture of demand-generation driven innovations, apparently the staple of progress in our society. Without which value discovery would collapse overnight. As if inventing a car was on the same level as producing a bottle of Clooney's Casamigo. Which is what the OP is really about, it's a lengthy but fairly focused article.
https://wcsa.world/news/world-almanac-event-academy/wcsa-on-...
Yet, at the huge risk of getting downvoted into oblivion isn't rejecting "wants" as a legitimate source of growth a bit Marxist? If the economy only served needs and not wants we would be living in a very bleak and oppressive world.
You have to keep the guy in the factory slaving away making widgets so he can afford the Mercedes that the ad promised would make him happier so that the girl in the lab will slave away on the cure for cancer to pay for the widgets the guy in the factory made that the ad told her would make her happier.
The above sure sounds sad to me, and I can imagine another system might be better for many people in many ways, but I think it's at least an argument worth acknowledging that there is still meaningful progress to be made, and economic growth might contribute to it.
I'd agree with you if your statement was more along the lines of, "people may not know that widget X exists and solves their problem well." But that's wholly different from understanding the value of things.
Besides all of this, the cognitive load of being aware of every possible new behavior, activity and product in the world would be overwhelming.
I’m not advocating for more advertising (i live somewhat of an ascetic lifestyle myself), nor soft or hard paternalism. But assuming people will be able to discover and adopt high value behaviors without advertising (or other outside influence) is preposterous.
There was genuine skepticism over the horseless carriage when it was first becoming available. Vaccines wouldn't be in widespread today use if significant money and resources weren't spent convincing people of their safety. Lots and lot of useful technological innovations requires advertising before people were convinced to use them.
It seems to me that once people know that something exists, which is possible through way more methods than the constant cognitive assault of our advertising-based culture, then they can do just fine at figuring out if the thing is useful to them.
But yeah, keep gloating about how dumb people are for not just wanting a better version of what works.
If horses are more "pro-social" than cars, it's because the only people who could afford them are the very wealthy and people who made their living riding horses like cowboys and taxi drivers. Cars are "worse" than horses because they're too superior, which means the middle class all own personal cars and have stopped financing public transit and pedestrian-friendly city layout that the lower classes would coincidentally benefit from.
You're only saying this because you don't know how much labor it takes to keep a horse in working shape.
Given the choice between a horse and a Model T it's a no brainer.
Oh and plenty of people died or suffered life altering injuries from riding horses or riding in carriages and nobody ever got maimed because they surprised a car.
You may be the exception in preferring horses (although you should note, some states don't look kindly to drunk driving horses), but when people had the choice they chose cars.
Fortunately, we have had a parallel universe, called the Soviet Union, where advertising was more limited (but still present, of course), and as anyone who lived there will tell you, nobody there needed to be convinced by advertising that they wanted a car, or a fridge, or a color television.
I understand it's appealing, oh let's hate on the influencers. We DO see influencers advertise pharmaceuticals / health adjacent products, like with public health campaigns, that is a regulatory distinction and not a substantive one. When asked what was the one thing he wanted, Dr. Fauci said, 'Leonardo DiCaprio to encourage people to advocate for COVID measures.' They use ad inventory, they use ad techniques to reach their audience, they ARE ADS. Seemingly regulators have figured out a process for them.
Video games are really interesting too. For some people, they are medicine! For some people, they substitute alcohol!
Oh? What ideological indoctrination does it provide?
> In it, he argues that, at the time of writing (late 50s), the industrialized West has largely solved what had previously been the main preoccupation of economics - improved standard of living. As evidence, Galbraith points to advertising.
Oh right, taking the stated goals of an established field which has been central in the shaping of modern nation states at face value—its advertising.
It’s not social science but I find the narrative of The Century of the Self to be convincing. It makes a lot more sense to sell things by way of manipulation than it does by just stating facts.
But then you ask, why manipulate instead of just selling things that people more or less organically want? Because the economy has to grow. Into infinity. Is this a controversial point to make? And further, what is the current iteration of capitalism called? Consumer capitalism. It is not merely a culture of consumption since the system itself is built on consumption.
Planned obsolescence is an economic myth. There is very little evidence that it actually exists in the real world, unless you are really willing to stretch the definition. It's just not possible to successfully pull it off in a competitive market.
Do people really prefer cheaper things? Often people can only afford cheaper things, and don't prefer them over well-built things. I buy cheap things and often would prefer a more expensive thing.
I can further unravel the logic of my two statements if you prefer, but it's probably annoying.
You're also assuming that the critical mass of people have enough money to choose.
A large enough cohort of consumers to influence manufacturers aren't doing so, unfortunately.
Case example: acceptable cell phones could be produced today that would last for 20 years using the same internal structure, with decent audio/video capabilities and memory storage, if they were designed to be easily repairable, i.e. if the components that are likely to wear out could be easily replaced (battery, touchscreen, etc.). The operating systems could be locked-in to a standard format, or OS upgrades could be made backwards-compatible.
Major phone manufacturers really are not interested in making such devices, because new sales would fall:
https://www.vice.com/en/article/zmd9a5/tim-cook-to-investors...
Where is the competitive market providing the long-lived alternatives?
And with influencer marketing, its like celebs decades ago harping about the health benefits of eating a placenta... Are you eating placentas to maintain health? All those vitamins and minerals... Yummy :/
https://www.mayoclinic.org/healthy-lifestyle/labor-and-deliv...
Just because they invented it/said it, doesn't make it a good idea/product.
Product evolution is already well documented. The 1767 invention of carbonated water/soda water did not make large strides until 1886 and did not get HFCS until 1981-1984.
https://www.thoughtco.com/18th-century-timeline-1992474
https://thepopularlist.com/inventions-of-the-19th-century/
https://www.motherjones.com/food/2019/07/the-secret-history-...
https://en.wikipedia.org/wiki/Phoebus_cartel
PS "not possible to pull it off in a competitive market" is not a meaningful statement. The fact that it is possible to pull off implies it's not a competitive market already.
TL;DR: It happened. They did it on purpose, that purpose being to make more money.
No, it's not. It's also a pretty elitist/condescending view of the American people, as if they are passive victims incapable of discerning what's good for them. Might as well do away with democracy while we're at it.
Planned obsolescence would be setting a timer on the phone that disables it after two years.
> Where are you even getting this from?
From basic economics 101 theory and empirical observation.
I had a personal frustration with the moniker "influencer", because I am pretending I am not influenced. Harrumph.
But, indeed they influence and if I take step back, it is the most appropriate name for these marketers. Whatever they push, be it shampoo, bourbon, or politics, they are just advertisements; fancy billboards; placard (sandwich board) man; and now the "influencer".
Obviously, what is considered "worthwhile" is entirely subjective - people wouldn't be following, say, Kylie Jenner on social media if they didn't see some sort of value in it. Also I'm pretty sure a lot of people just don't care about being advertised to, or even enjoy it, if it's in a niche that they follow.
To me, it feels more insidious, especially when the line blurs between what is and ad and what is not. I hate being marketed to in such a way that it is so interleaved with the "actual" content - it starts making me question the validity of the content. By example, I used to browse Pinterest every now and again (mostly as a time waster) - it was interesting to search certain keywords and save things that looked interesting or sparked my curiosity. There were ads spaced every several tiles, but in general they seemed more or less separated from user-submitted content. Now, there are ads seemingly every third or fourth tile, and many "normal" tiles are ads as well, submitted by corporate accounts. I've pretty much stopped using it entirely.
Here is what people have been asking for. Instead of tracking people and invading their privacy, real life becomes ads. Better?
Ad companies: "¿Por qué no los dos?"