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Right. There's also a very very "fat head" in front of the long tail of what customers pay FB et al for their ads. https://www.wordstream.com/articles/most-ex
by bigiain 9y ago
Right.
There's also a very very "fat head" in front of the long tail of what customers pay FB et al for their ads.
https://www.wordstream.com/articles/most-expensive-keywords https://www.wordstream.com/articles/most-expensive-keywords
Suggests the 10 most expensive categories to advertise in are dominated by insurance, financial, and legal services.
I suspect when that curve is overlaid with the similar long tail curve of the disposable income of FB's 2 billion users - I suspect it'd be obvious that the vast majority of FBs income comes from super expensive PPC ads shown to people with a (globally) super high disposable income.
If you let the bay area tech crowd who're struggling to find a place to rent on their own because they're "only" making $160k all opt out of getting profiles and shown advertising for $25 or $50 per month, you'd probably make a existential dent in FB's profitability - much more so than if they just turned advertising off altogether for the lowest earning billion and a half people on their platform.