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Yeah, can get to a situation where an ad platform would be making more out of a market segment than the retailers in that segment. If I have a $20 margin, I am
by robryan 8y ago
Yeah, can get to a situation where an ad platform would be making more out of a market segment than the retailers in that segment.
If I have a $20 margin, I am better off giving Google $15 and getting an incremental $5 profit than not advertising. Even worse if my customers have a lifetime value of $50 it may make sense to give Google $45 and not see a return from my spend until years down the road while Google gets the $45 right now.