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>> Market failure: not the "best" product wins, but the one with the biggest advertisement budget behind it I think this is the most important point. It change
by jondubois 9y ago
>> Market failure: not the "best" product wins, but the one with the biggest advertisement budget behind it
I think this is the most important point.
It changes the competitive landscape from being quality-based to being awareness-based.
By driving attention towards their own products, big companies are shifting attention away from more deserving competing products which have a smaller marketing budget.
I think this explains why big companies are so inefficient and yet still maintain their market share.
Advertising allows companies to substitute real quality with perceived quality in order to increase profit margins.
- JumpCrisscross 9y ago> By driving attention towards their own products, big companies are shifting attention away from more deserving competing products which have a smaller marketing budget You think small companies would benefit from an advertising ban?
- amelius 9y agoYou think not? Remember that products can still be found through search. If there are no ads, there will probably be better "product discovery" websites to fill the gap if necessary. And of course there are the regular channels, i.e., recommendations by friends, forums, review sites, etc.