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Households do spend >$1000 per month on consumer goods/services (food, clothes, personal care items, etc). Those companies do spend >10% on marketing. I'm not s
by dangrossman 9y ago
Households do spend >$1000 per month on consumer goods/services (food, clothes, personal care items, etc). Those companies do spend >10% on marketing. I'm not sure what portion of it is spent online, which is what you'd need the subscription to replace.
There's no implication that every dollar they spend on marketing directly translates into $10 of new spending "that they would otherwise not get at all".
Much of it is brand spending. Procter & Gamble is the world's largest advertiser, and the goal of their ads is to make sure you keep picking up Tide every time you're in the detergent aisle. Coca-Cola's ads aren't trying to get you to buy $10 more of soda than last week, just to keep soda on your shopping list every week. Those ad dollars would need to be replaced by the subscription if you're going to remove the ads but keep compensation for the websites the same.