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With the auction model, the spoils go to whoever has the highest margin, and in my industry it is people doing reverse billing scams. I am not willing to adver

With the auction model, the spoils go to whoever has the highest margin, and in my industry it is people doing reverse billing scams. I am not willing to advertise a price of $9.95, and then charge people's credit cards $130 every month after that, based on an agreement that is in low contrast and 11px font.[1] You are right, that an auction model doesn't make it a scam, but it does invite scams, and Google should be extra vigilant at policing the scams. [1] https://www.pimsleurapproach.com/special-offer/ https://www.pimsleurapproach.com/special-offer/

AJ007 15y ago
As long as it is an auction process, there is intense pressure on all involved to extract as much value as possible from every customer.
- anon808 15y ago
  Agreed, that's the incentive. Now, whats you're opinion of that incentive? Do you think its something you'd personally like to see more or less of?
  - AJ007 15y ago
    My opinion is that it sucks, and there is not much you can do about it if your business's marketplace pressures require extracting value rather than giving it away. Hypothetically, insurance is an extraction business -- pay out as little as possible so you have more money than your competitors to pay out commissions and advertise. Commodity product manufacturing works the opposite direction, make and price your product for as little as possible so companies purchase from you (and arguably, you are extracting that value instead from your employees in terms of pay and safety.)
- anamax 15y ago
  > As long as it is an auction process, there is intense pressure on all involved to extract as much value as possible from every customer. When I walk into a physical store, there's not a google ad in sight, yet they're trying to extract as much value from me as possible. That's why I doubt that advertisers would behave differently under a different ad pricing system.

AJ007 15y ago

As long as it is an auction process, there is intense pressure on all involved to extract as much value as possible from every customer.

anon808 15y ago
Agreed, that's the incentive. Now, whats you're opinion of that incentive? Do you think its something you'd personally like to see more or less of?
- AJ007 15y ago
  My opinion is that it sucks, and there is not much you can do about it if your business's marketplace pressures require extracting value rather than giving it away. Hypothetically, insurance is an extraction business -- pay out as little as possible so you have more money than your competitors to pay out commissions and advertise. Commodity product manufacturing works the opposite direction, make and price your product for as little as possible so companies purchase from you (and arguably, you are extracting that value instead from your employees in terms of pay and safety.)
anamax 15y ago
> As long as it is an auction process, there is intense pressure on all involved to extract as much value as possible from every customer. When I walk into a physical store, there's not a google ad in sight, yet they're trying to extract as much value from me as possible. That's why I doubt that advertisers would behave differently under a different ad pricing system.