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So I’ve seen this argument before, and I kind of get it but… shouldn’t there be some dollar value that equals the expected value of the ads, above which they’d
by 542458 5y ago
So I’ve seen this argument before, and I kind of get it but… shouldn’t there be some dollar value that equals the expected value of the ads, above which they’d be better off accepting payment instead of ads? I get that it might be somewhat higher than we’d expect, but surely that number can’t be all that high?
- lotsofpulp 5y agoIt would not be feasible to figure that out for each and every person, so the only practical way is to break the audience into various groups that advertisers pay to reach. Theoretically, you could break down these groups and offer no ads, then some ads, then some more ads, etc, but the more complicated you make it, the more people you turn away at the same time. Hence the most optimal solution for the seller is to sell a product/service to both customers and advertisers. However, technology gives sellers better opportunity to group people in various tranches and sell differently, so maybe we will see a more accurate price point develop.