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Technically, all advertising is arbitrage between the value of the eyeballs and the cost to reach those eyeballs...Adwords and Facebook were swamped with arbitr
by davemel37 10y ago
Technically, all advertising is arbitrage between the value of the eyeballs and the cost to reach those eyeballs...Adwords and Facebook were swamped with arbitrage advertisers until they got better at relevancy.
Arbitrage by definition will stop working eventually. you are exploiting information assymetry and a market inefficiency.
Once better targeting is in place and mainstream advertisers crack the native cookie youll see the arbitrage die out like it did with Shopping comparison engines in adwords.
- malchow 10y agoTotally fair. I meant ad arbitrage. I.e., the advertisers are themselves running ad-supported sites.
- davemel37 10y agoEven ad arbitrage can be a net win. If Foxnews buys a native ad on drudge report for a timely article, thats probably a net win for users... but technically, since Fox is supported by ads, its ad arbitrage. The "viral" and "slideshow forced pageview" sites will never be a net win in my opinion... but a quality publishers who is ad supported running arbitrage with native can be a net win. (Although, I would quicker call that audience building than straight arbitrage.) but, I agree. These single click ad arbitrage sites are pure evil and should be kicked off the native networks.