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With only one seller ;-) That’s usually kind of what you call a monopoly. A bit like just a single entity selling oil and then arguing “oh this is a free market
by looping__lui 4y ago
With only one seller ;-) That’s usually kind of what you call a monopoly. A bit like just a single entity selling oil and then arguing “oh this is a free market because we auction of the oil…”
- MichaelZuo 4y agoNo? Alphabet, Facebook, Microsoft, Apple, Tencent, Alibaba, Baidu, Bytedance, Yandex each have more than 1% of digital ad spend marketshare, and none of them have 50% of total marketshare. They compete in many areas too. I think there are credible Indian competitors growing too.
- looping__lui 4y agoTheres OPEC, theres Russia, theres Iraq, … These companies have margins >>20% whereas the advertisers barely break even.
- MichaelZuo 4y ago> Theres OPEC, theres Russia, theres Iraq, … These companies have margins >>20% whereas the advertisers barely break even. How is oil & gas relevant to digital ads?
- looping__lui 4y agoI was relating an example from oil oligopolies with the Ads market. Social media making $$$ whereas the companies buying Ads barely breaking even is not equal to an “open efficient and free market” as the initial thread suggested.
- MichaelZuo 4y agoThere can exist different market dynamics in different sectors? I'm not really sure why your trying to compare oil & gas with digital ads, it doesn't make any sense. You can't extrapolate conclusions based on the market dynamics of one to the other.
- looping__lui 4y agoI don’t agree with how you measure market share in order to try and argue that we do not see an abuse in negotiation power by Meta et al. Here is another oil&gas comparison: OPEC countries aren’t distorting the market in their favor, because oil is just a fraction of the total energy market (e.g., nuclear, wind, solar,…)
- xapata 4y ago> just a fraction 1/1 is a fraction. What fraction is oil of the total energy market?
- MichaelZuo 4y agoI still don't see how this is relevant.