3 ms·
I can't argue with the logic of the talk show guest, (who seems very good at her job!) They are dealing with economy of scale. If facebook+google have 90% ad p
by wernerb 10y ago
I can't argue with the logic of the talk show guest, (who seems very good at her job!)
They are dealing with economy of scale. If facebook+google have 90% ad penetration then snap must displace facebook.
- gwern 10y agoSo might function as a useful hedge on FB and Google stock.
- rqebmm 10y agoI hadn't thought of that, but it would explain the runaway valuation more than any other theory I've heard.
- ucaetano 10y agoDisplacing might not be the actual word. You could, for example, say that the digital ad market will double in 5 years, and Snapchat will capture all of that additional revenue, becoming bigger than FB and Google combined. It wouldn't be displacing them per se, they'd still sell the same $ to the same companies. Will that happen? My guess would be on no. I don't think there's room for a 3rd large player in the digital ads world, Twitter tried to be it, but failed. But hey, maybe Snap is able to do it (but I doubt it).
- crazypyro 10y agoIt displaces them in the relevant metric (ad penetration), so I think it still fits fine in this context. It would be different if the original commentator was arguing that Snap is going to displace FB/Google's current revenue.