3 ms·
I think the theory the article puts forward is that the cost of advertising has been bid up by venture-backed advertising companies. If this is true, all adver
by lsc 11y ago
I think the theory the article puts forward is that the cost of advertising has been bid up by venture-backed advertising companies.
If this is true, all advertising companies will suffer; a drop in the price of advertising probably won't sink the big players, sure, but it will probably cause them to cut some of their fat.
- jacquesm 11y ago> I think the theory the article puts forward is that the cost of advertising has been bid up by venture-backed advertising companies. I don't think that's the path the money takes. The path the money takes is that maybe some venture backed companies buy advertising to advertise their products. If that capital dries up then that particular segment will diminish but it will certainly not cause the industry to implode (though it definitely has challenges to deal with all its own).
- lsc 11y agoI don't see how what you wrote conflicts with what I wrote. "bid up" and "buy" are synonyms in this context. If you take buyers out of the market the price for whatever it is they buy is going to come down. If the buyers who are taken out were the least price-sensitive buyers, (the theory being that people who aren't venture-backed generally have to spend what they earn) prices are going to come down a lot.