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That's not really how ads are priced, though. Google and FB will be reluctant to see the price of ads go down. They also control the supply of how many ads they
by onlyrealcuzzo 7y ago
That's not really how ads are priced, though. Google and FB will be reluctant to see the price of ads go down. They also control the supply of how many ads they put on the page. They make sure the supply of ads for keywords is always less than the demand to fit an optimal price/revenue curve.
It's more like OPEC, and less like a free market.
- Spivak 7y agoSure but they aren’t immune to the fact that absolute revenue for both them and the sites hosting the ads falls in proportion which is the point even if they keep price/ad fixed.