You're missing a critical part: there's additional information we can communicate. And that's what this is all about, what information is being communicated. The inefficiency is lack of perfect information.
If you indiscriminately watch or block that is a signal. Watch communicates potentially more because there's a secondary effect of some of those people buy the product. But by indiscriminately watching or not watching, we provide information about an interpolation along what was binary before. It is more complex to read, but now we can communicate that we don't dislike this add more than our willingness to support the channel. And on top of that, again our conversion rate. In a way, the discriminating information tells us something about the likely conversion rate. This is just more information, though that doesn't mean we are good at measuring it.
> The market is for "high quality" (i.e. profitable) viewers, not high quality videos.
Yes, but profits aren't the only thing people care about. At least not all people. Money is still a proxy for something more abstract.
To make it clearer, there are in fact ads that I do enjoy. This is true for all of us because an ad is so vaguely defined. During a political campaign I appreciate some ads because I want to know the candidates positions, when they are debating, and so on. Too much of it pisses me off, but that's different.
I also like ads that make me aware of certain things that provide utility to my life, but maybe not yours and this can be based on timing.
So stop rejecting this and recognize that these are all attempts at communicating these other factors. It's another variable in a system of equations.
If you indiscriminately watch or block that is a signal. Watch communicates potentially more because there's a secondary effect of some of those people buy the product. But by indiscriminately watching or not watching, we provide information about an interpolation along what was binary before. It is more complex to read, but now we can communicate that we don't dislike this add more than our willingness to support the channel. And on top of that, again our conversion rate. In a way, the discriminating information tells us something about the likely conversion rate. This is just more information, though that doesn't mean we are good at measuring it.
Yes, but profits aren't the only thing people care about. At least not all people. Money is still a proxy for something more abstract.To make it clearer, there are in fact ads that I do enjoy. This is true for all of us because an ad is so vaguely defined. During a political campaign I appreciate some ads because I want to know the candidates positions, when they are debating, and so on. Too much of it pisses me off, but that's different.
I also like ads that make me aware of certain things that provide utility to my life, but maybe not yours and this can be based on timing.
So stop rejecting this and recognize that these are all attempts at communicating these other factors. It's another variable in a system of equations.