[mistercow]

The problem with this kind of analysis is that it's to short-sighted. The main benefit of advertising has never been direct conversions. Rather, the main benefit is keeping the brand in people's minds, so that they'll be more likely to come to you in the future.

When Coke buys a commercial slot on a TV network, do they expect someone to say "Holy crap, I need to drink a Coke right now!", turn off their TV, and drive to the grocery store? Of course not. They're playing a longer game than that.

This is also why the PPC model for internet advertising is totally broken.

[wildwood]

The PPC model is essentially the same model as Direct Response Marketing, just more fine-grained.

Both of these, if used properly, can make insane amounts of money for a company. And, if used improperly, they are little more than a money sink.