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Google's business model for the last decade has been to pitch people who want advertising against each other, bidding ever higher for top placements. It's up t
by antisthenes 5y ago
Google's business model for the last decade has been to pitch people who want advertising against each other, bidding ever higher for top placements.
It's up to you to decide whether that's a zero-sum game (personally I don't think it is by a strict definition), but Google is certainly responsible for more and more companies allocating an ever growing part of their budget to advertising.
It isn't immediately obvious whether that results in more business. Some of these companies may be spending more and more just to keep the same amount of sales due to bid prices increasing.
This effect is somewhat masked in a vibrant and growing economy, so it's not that easy to distill.
- tonyedgecombe 5y agoI suppose in theory people only have so much to spend but on the other hand growing the economy grows that disposable income. What I found was indirect competitors with deep VC funded pockets were bidding rates high enough that it wasn't viable for me. I say indirect as they didn't compete against my product but did bid on the same keywords. I wonder if there is some upper limit on how much advertisers can extract from the economy before they start to weaken it.