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Related: I think many companies can run their ads as pay for performance. eBay's ads are a fixed cost of the product sale - the higher you set it, the more oft
by ikeboy 9y ago
Related:
I think many companies can run their ads as pay for performance. eBay's ads are a fixed cost of the product sale - the higher you set it, the more often your ad shows but you only pay if it leads to a sale.
Platforms simply have so much data and scale they can do a much better job of targeting than their customers can. It's not efficient for lots of marketers to test out lots of ads, carefully track conversions, and decide what to spend on. Just let the platform maximize ads given a certain amount per sale, and the platform will naturally target based on what converts best (and since this is Amazon scale or Facebook scale, they can do these tests automatically for every campaign and get statistically significant results very quickly).
I wish Amazon would roll out eBay style ads. They have all the data and could do a much better job than sellers, and could capture a significant portion of the added value it would provide.