> The targeting algorithm is often wrong, they just don't seem to know it be willing to admit it.
It doesn't matter if their targeting algorithm is wrong. It just has to be 1) better than random and 2) not significantly worse than anyone else's.
In fact, even that isn't necessary. It just has to be perceived as those two things by those who are willing to give Google or Amazon money to try to improve their chances of selling you stuff.
It's a continuum. Better targeted ads are worth more than less-well-targeted ads. They do the best they can, and they keep trying to get better. Their targeting may be lousy, but it's still good enough for them to get paid.
It doesn't matter if their targeting algorithm is wrong. It just has to be 1) better than random and 2) not significantly worse than anyone else's.
In fact, even that isn't necessary. It just has to be perceived as those two things by those who are willing to give Google or Amazon money to try to improve their chances of selling you stuff.