How Marketers Keep Pouring Money Into a System Where the House Always Wins
Let’s get one thing out of the way: paid ads work.
Sort of.
Until they don’t.
What started as a straightforward way to buy attention has slowly evolved into something that looks suspiciously like a Ponzi scheme.
Not in the criminal sense — but in the systemic sense: unsustainable returns, over-reliance on new capital (i.e. ad budgets), and a growing pile of players who profit off the addiction rather than the outcomes.
We need to talk about the Paid Ads Ponzi Scheme — how we got here, who’s getting rich, and how you can get out before your business becomes the next bag-holder.
The mechanics are simple:
Let’s not pretend everyone loses. Plenty of people are doing just fine:
Perhaps the most diabolical part of the Ponzi scheme is attribution.
Marketers cling to dashboards showing beautiful ROAS numbers. But attribution is increasingly broken:
The Paid Ads Ponzi works until it doesn’t. The breakdown usually happens here:
Why do brands stay on this treadmill? A few reasons:
Paid media isn’t inherently evil. But it cannot be your only channel. If you're ready to escape, here's your game plan:
Let’s be clear: paid media has its place. It’s a powerful accelerant. But accelerants aren’t foundations.
You should treat paid ads like a faucet — something you can turn on and off, not something that controls your entire water supply.
If your business dies when the ads turn off, you don’t have a business — you have a leveraged position.
The ad platforms will keep tweaking algorithms. Agencies will keep proposing "new creative tests." Your CAC will keep rising. And unless you build something outside of the ad platforms’ walled gardens, you’re just the next mark in the Paid Ads Ponzi Scheme.
Build real marketing assets.
Diversify your acquisition portfolio.
And above all: stop thinking of paid media as growth — it's rented revenue.
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How Marketers Keep Pouring Money Into a System Where the House Always Wins
Let’s get one thing out of the way: paid ads work.
Sort of.
Until they don’t.
What started as a straightforward way to buy attention has slowly evolved into something that looks suspiciously like a Ponzi scheme.
Not in the criminal sense — but in the systemic sense: unsustainable returns, over-reliance on new capital (i.e. ad budgets), and a growing pile of players who profit off the addiction rather than the outcomes.
We need to talk about the Paid Ads Ponzi Scheme — how we got here, who’s getting rich, and how you can get out before your business becomes the next bag-holder.
The mechanics are simple:
Let’s not pretend everyone loses. Plenty of people are doing just fine:
Perhaps the most diabolical part of the Ponzi scheme is attribution.
Marketers cling to dashboards showing beautiful ROAS numbers. But attribution is increasingly broken:
The Paid Ads Ponzi works until it doesn’t. The breakdown usually happens here:
Why do brands stay on this treadmill? A few reasons:
Paid media isn’t inherently evil. But it cannot be your only channel. If you're ready to escape, here's your game plan:
Let’s be clear: paid media has its place. It’s a powerful accelerant. But accelerants aren’t foundations.
You should treat paid ads like a faucet — something you can turn on and off, not something that controls your entire water supply.
If your business dies when the ads turn off, you don’t have a business — you have a leveraged position.
The ad platforms will keep tweaking algorithms. Agencies will keep proposing "new creative tests." Your CAC will keep rising. And unless you build something outside of the ad platforms’ walled gardens, you’re just the next mark in the Paid Ads Ponzi Scheme.
Build real marketing assets.
Diversify your acquisition portfolio.
And above all: stop thinking of paid media as growth — it's rented revenue.
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