There’s benefits and drawbacks to this. Imagine being the ads team and being told “you must run these ads for free. Oh, by the way, your revenue targets are th

There’s benefits and drawbacks to this. Imagine being the ads team and being told “you must run these ads for free. Oh, by the way, your revenue targets are the same.” You’d be upset to say the least! Reduce revenue targets? By how much? That sounds like a complicated way to get the same result. Also, paying for intra company services simplifies RoI calculations. Instead of having to work out “how much ad revenue could I have made?” and trying to guess the opportunity cost, you have clear numbers. Stadia spent X on marketing and made Y revenue. Your ad team process is unchanged and Stadia have the freedom to market the product however they please. Where things get dicey can be when you’re forced to use your own company. A real life example is a company that sells parts and also has a repair division. The repair division MUST buy from distribution at market rates and MUST add a markup on. The result is the customer gets double markup charged on a part AND pays for labour on top. You can guess how competitive this company is on bids where alternative suppliers can offer parts cheaper.