3 ms·
> "What kind of rational system would ever incentivize spending rather than results (aka sales?). Sounds like the marketing equivalent of being paid by the line
by csmpltn 4y ago
> "What kind of rational system would ever incentivize spending rather than results (aka sales?). Sounds like the marketing equivalent of being paid by the line of code."
OP works for an advertising company. They get paid by clients to run advertising campaigns. Employees of the advertising company get bonuses for closing high-profile deals with clients. The employees are incentivized to continue bringing in more revenue streams and continue closing more high-profile deals.
The deals couldn't have been made in the first place without some form of trust between the parties. As long as the clients are seeing results (aka return-on-investment, ROI), the trust is maintained, and the deals are renewed. Different clients have different budgets, and have different ways of measuring their ROI (sales are one parameter, but there can be more). No one would be buying those advertising services if they wouldn't be seeing ROI.
It is generally acknowledged that "advertising works". In reality though, there are lots of factors at play.