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Something revealed in the recent court filings was how Bytedance spent over $1 billion in advertising on Facebook/Instagram, YouTube, and Snapchat. Apparently
by DLay 6y ago
Something revealed in the recent court filings was how Bytedance spent over $1 billion in advertising on Facebook/Instagram, YouTube, and Snapchat.
Apparently they were spending $10-$30 to acquire an active user and expecting to generate $5 of revenue per user in the US, implying a revenue payback period of 2-6 years.
Some ugly unit economics.
- philliphaydon 6y agoThink it involves TV adverts too.
- senkora 6y agoThat’s probably fine for a growth product. They’ll increase monetization once the network effect is well-established.
- bduerst 6y agoYeah, a $30 CPA isn't anything suspicious when there's upsell to a $20/mo subscription.
- bagacrap 6y agoon what planet do millionsn of teens have $20/mo to spend on tiktok
- bduerst 6y agoIn which comment did I say millions of people upsell to subscription? A 2 yr product lifecycle would be a $240 CLV meaning you just need 12% conversion rate to break even, which you don't even care about in growth mode. $30 CPA is more than reasonable.
- dicomdan 6y agoIt's a tool of the government, not a company. It's not meant to make money.
- Cthulhu_ 6y agoAre you going to cite your sources or are you just echoing others? At least we know what Facebook et al are up to (wrt the US government) thanks to the Snowden leaks.
- alacombe 6y ago> Some ugly unit economics. Cash coming from the CCP is pretty much infinite, especially given the massive US trade deficit.
- deleted 6y ago[deleted]
- radu_floricica 6y agoUgly how? 2-6 years is not unreasonable at all.