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Not quite true (well, for most advertisers; I obviously can't speak for you directly). Total return is also important. Especially when you consider that there a
by will_critchlow 16y ago
Not quite true (well, for most advertisers; I obviously can't speak for you directly). Total return is also important. Especially when you consider that there are non-zero time costs to running advertising on yet another platform.
Would you rather make $ 1 from a $.1 investment or $ 10 k from a $ 2k investment (assuming the former isn't scalable because there are no more users to advertise to)? If there is a non trivial time cost in setting up management, billing etc, you might not even bother with the former.
- jaf656s 16y agoYou make a valid point, but would you not factor that into your ROI calculation?
- will_critchlow 16y agoYes, in theory. In practice it can be very hard to include switching costs, complexity costs etc into the equation. Most business people I know take a much more pragmatic view of calculating ROI on direct costs and putting a finger in the air about whether it's worthwhile. Also, if total return is small and capped, it may not even be worth the time to calculate ROI.