the "correct" way in that picture looks like he's spraying lube all over the tyre, plus he'll only be able to oil one side of the chain.
The description is right in that you need to get the oil between the plates and to the pins. But I think you're better off spraying the oil on the upper surface of the lower chain run, just a bit in front of the tyre.
I just use cheap non-o-ring chains and they've lasted ok for me so far. I just oil it when the chain is starting to look a bit dry (I'd guess that probably works out to every 300-500km or so).
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