3 ms·

Are these types of structurings common in the ad industry?

manigandham 5y ago
Yes, there are usually minimum spend requirements and other agreements for larger ad campaigns and ongoing relationships, especially with closed platforms like social networks that own the audience and platform. Contracts also include termination terms but upfront deposits like these are more rare.
est31 5y ago
As an outsider, what is very common is conversion tracking, aka knowing whether people actually click your ad and buy your products, because that's the ultimate metric to optimize for. Most of the ad tracking we see in the web is actually not needed for the targeting part, but for the conversion tracking part. This product lacks conversion tracking, so I wonder if people with large enough budgets find it justified to run ads on the platform. As a user, I find it great that my privacy is not impinged upon. I hope it will work for them!
- ackbar03 5y ago
  How do they optimize clicks if they don't impinge on your privacy? I didn't read the page in detail so maybe I'm missing something
  - cuu508 5y ago
    They do not allow external links so there are no clicks.
    - dotancohen 5y ago
      This was actually a genius decision. It also represents a real sacrifice on Telegram's part (sacrificing dollars) to protect user privacy, because advertisers are not going to pay as much for this as they will for other (more invasive) platforms. Be sure to leave feedback with companies to let them know that you found them through Telegram.
- oefrha 5y ago
  Although no external links are allowed, you can still track conversion with good old promo codes.
- iamacyborg 5y ago
  > Most of the ad tracking we see in the web is actually not needed for the targeting part That’s because the ad and the auction that precedes it, collects data for further targeting.
dfadsadsf 5y ago
Instagram started ads similarly though minimums were lower at around 300k or so. Essentially Telegram wants small number of big advertisers and is willing to accept lower CPM rate to make it worthwhile for those businesses. Telegram ad product and infra are probably not ready to scale right now so they decided to go with manual process. Probably already arranged a few big accounts prior to announcement.
- bedobi 5y ago
  how is this not anti-competetive behavior? it basically means small businesses have no chance, absolutely no chance at all, to advertise on the platforms
  - namdnay 5y ago
    You go through the agencies that have bought in bulk. In the same way that you don’t go to a Black&Decker office to buy a drill, you get it from one of their distributors, who buy in bulk
  - distances 5y ago
    That's not what anticompetitive means. Being priced out is not an unfair disadvantage. Not all companies can afford TV or Superbowl ads either.
  - na85 5y ago
    There's no blanket ban on "anti competitive behavior", and similarly no rule that says small businesses are owed a leg up. The FTC breaks down anti competition regulation into monopoly-related conduct, which this is obviously not because telegram is a complete non-factor in the messaging space, and horizontal conduct, which this is not because telegram has no near-peer companies with whom they agree not to compete.
vmception 5y ago
TikTok's are similar

Yes, there are usually minimum spend requirements and other agreements for larger ad campaigns and ongoing relationships, especially with closed platforms like social networks that own the audience and platform. Contracts also include termination terms but upfront deposits like these are more rare.

est31 5y ago

As an outsider, what is very common is conversion tracking, aka knowing whether people actually click your ad and buy your products, because that's the ultimate metric to optimize for. Most of the ad tracking we see in the web is actually not needed for the targeting part, but for the conversion tracking part. This product lacks conversion tracking, so I wonder if people with large enough budgets find it justified to run ads on the platform. As a user, I find it great that my privacy is not impinged upon. I hope it will work for them!

ackbar03 5y ago
How do they optimize clicks if they don't impinge on your privacy? I didn't read the page in detail so maybe I'm missing something
- cuu508 5y ago
  They do not allow external links so there are no clicks.
  - dotancohen 5y ago
    This was actually a genius decision. It also represents a real sacrifice on Telegram's part (sacrificing dollars) to protect user privacy, because advertisers are not going to pay as much for this as they will for other (more invasive) platforms. Be sure to leave feedback with companies to let them know that you found them through Telegram.
oefrha 5y ago
Although no external links are allowed, you can still track conversion with good old promo codes.
iamacyborg 5y ago
> Most of the ad tracking we see in the web is actually not needed for the targeting part That’s because the ad and the auction that precedes it, collects data for further targeting.

dfadsadsf 5y ago

Instagram started ads similarly though minimums were lower at around 300k or so. Essentially Telegram wants small number of big advertisers and is willing to accept lower CPM rate to make it worthwhile for those businesses. Telegram ad product and infra are probably not ready to scale right now so they decided to go with manual process. Probably already arranged a few big accounts prior to announcement.

bedobi 5y ago
how is this not anti-competetive behavior? it basically means small businesses have no chance, absolutely no chance at all, to advertise on the platforms
- namdnay 5y ago
  You go through the agencies that have bought in bulk. In the same way that you don’t go to a Black&Decker office to buy a drill, you get it from one of their distributors, who buy in bulk
- distances 5y ago
  That's not what anticompetitive means. Being priced out is not an unfair disadvantage. Not all companies can afford TV or Superbowl ads either.
- na85 5y ago
  There's no blanket ban on "anti competitive behavior", and similarly no rule that says small businesses are owed a leg up. The FTC breaks down anti competition regulation into monopoly-related conduct, which this is obviously not because telegram is a complete non-factor in the messaging space, and horizontal conduct, which this is not because telegram has no near-peer companies with whom they agree not to compete.

vmception 5y ago

TikTok's are similar