how far internet advertisement strategy works good? does it serve or make all of us suffer ?

have we wondered, till the time when we started surfing and until today we have been seeing on an average 100-300 ads per day through our mail, search result page and social networking sites. and now think how many ads we have clicked and now how many ads motivates us to buy a product. it is weird fact that success rate between display and hits is less than even 1% and even conversion of hits to buy online products is still less than 1%, so overall less than .001% , so it means company is paying for display of 100000 ads approx to get less than 100 hits and just 1-2 purchase. so do you think this is efficient way of placing ads , ultimately these adverstisement sites are going to charge a considerable amount of money . where does this money come from ultimately through product cost. and it s we who are gonna to pay. In our surfing life span we may hit some ads and buy,and someone else will do the same, but the point to note here is that the product of some particuler range or type category i am not at all interested, and i am viewing that, and indirectly the persons who are interested in those products are being charged for the ads which i am seeing and for me that product make no sense useless. so this way we all are paying considerable extra amounts on our products of interest as a product price for incurred cost of advertisement shown to untargeted audience or users for them that product may not be useful. generally these advertisement shows to customer as ur products has got so many hits, but what is the effectiveness of that hits, how many user who has clicked has gone through teh feaure and other details, does these ads create a market value and recognition among the common user why can not we avoid that. an ineffective advertisemnt is going to suck the money from one consumer to some comapny who do provide ads media. why can not we place the ads in much efficient way based of age gender occupation area of interests and needs. where just out of 100 display 50 hits and 2-3 successful buyouts. in this way the product cost will be a little less. this is one of the basic problem why few product lines cost contains upto 50% advertisement and brand promotion strategy. lets see how long these ineficient myths and strategy can go? even print and television media have been proven more efficient on this . so are u able to figure out what are major reasons and myths created by search engine and social neworking giants so can you suggest any improvements ?