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Well, it's the economy and not just food or travel sectors. Generally speaking, many buying decisions have been postponed both in B2B and B2C sectors. Essential
by JackPoach 6y ago
Well, it's the economy and not just food or travel sectors. Generally speaking, many buying decisions have been postponed both in B2B and B2C sectors. Essentially it means that doesn't really matter that viewership is going up or that rates are going down, what matters is that purchases are way down, so conversions are plummeting. Here's an example. Suppose, are sales averaged 10 billions a month and 10% (1 billion) was pure profit. Some of that money went toward buying ads. Now your sales went down 50% (5 billion) and let's say for the simplicity sake that profit margin stayed the same, even though that's not really true. So now your profit is only $500M. It doesn't really matter if views go up or down and how cheap advertising becomes. What REALLY matters is that your market is now half of what it used to be.