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A guy doing marketing for a travel company once told me they had to spend an enormous amount of money on Google, for their own brand. People would search "brand
by matsemann 5y ago
A guy doing marketing for a travel company once told me they had to spend an enormous amount of money on Google, for their own brand. People would search "brand cityA cityB", but a competitor would buy the top spot. How much were the competitor willing to spend? Basically their whole margin for that sale, as it was still better than nothing. So this company had to match that.
So in the end Google makes more profit per ticket than the companies delivering the service itself.
- solumos 5y agoYou pay less than your competitors for your branded ads via quality score. But yeah, it gets competitive. You should see how much PI lawyers pay for AdWords - it's bonkers. Hundreds of dollars per click.
- ryandrake 5y agoThe Slate Star Codex guy calls this a multipolar trap [1]. A market is in some equilibrium. Then, one person does something "expensive" to gain an edge on everyone else. Eventually, in order to remain competitive, everyone has to do that expensive thing, and the market settles on a new equilibrium where we're back to nobody having the edge but now everyone is paying. 1: https://slatestarcodex.com/2014/07/30/meditations-on-moloch/ https://slatestarcodex.com/2014/07/30/meditations-on-moloch/