3 ms·
That's the wrong baseline to use. Their total profit for 2021 was $33B. Most of their sales revenue is going to be low margin, whereas ads will be very high mar
by wpietri 5y ago
That's the wrong baseline to use. Their total profit for 2021 was $33B. Most of their sales revenue is going to be low margin, whereas ads will be very high margin.
Moreover, it's not clear that the two revenue sources are in competition. Advertising generally boosts demand. So it's possible that they win twice with ads: once for getting you to click on it and once when you buy the product. And given that the purpose of ads is to distort normal market outcomes, maybe they get even more when you come back and buy the right thing.