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>>> What matters is getting a positive return. In theory yes but not in practice. Many companies run ads as strict losses, until they stop spending or die, th
by user5994461 8y ago
>>> What matters is getting a positive return.
In theory yes but not in practice.
Many companies run ads as strict losses, until they stop spending or die, then another company will eventually the spot.
The revenue equilibrium is about where Google is paid all revenues from the customers it brought. The company gets more customer but makes neither a profit nor a loss. It's very close to that in practice.
It's really brutal. Google can effectively capture all profit margin from every web business in the world. That's what is happening.
- max76 8y ago> It's really brutal. Google can effectively capture all profit margin from every web business in the world. That's what is happening. Lots of companies make a lot of money on the web. Google doesn't have a monopoly of profit.
- manigandham 8y agoThat's just business mechanics. If your customer acquisition costs are equal to your sales then you're reached breakeven and the next steps are to either reduce your costs or increase your sale price to continue growth. Nothing is static and you have to keep working on the math to optimize the business at that moment. I don't see what this has to do with Google taking your profit.