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US advertising CPMs for this type of placement will be 100x more valuable than Southeast Asia and 50x LATAM. The economics don’t work anywhere else. Even Europ
by celestialcheese 3y ago
US advertising CPMs for this type of placement will be 100x more valuable than Southeast Asia and 50x LATAM. The economics don’t work anywhere else. Even Europe
- Hamuko 3y agoI'm not entirely convinced that the economics work in the US either. It feels like it has the same problem as those iBuyer ("we'll buy your house with a price we'll calculate using an algorithm") products - the market you capture isn't a solid cross-section, but rather weighted. So iBuyers tended to attract people who might not be able to get the best value for their home on the open market. I think Zillow Offers flopped quite spectacularly. Similarly, the notion of a free ad-powered TV would be more attractive to people with less purchasing power. For a middle/high-income household, the cost of purchasing a 55-inch TV, even a high-end one, is not that steep. The Wirecutter LCD pick (Hisense U8H) is $648 and OLED pick (Samsung S95B) is $1300. There's also a budget option (TCL 5-Series) for $450. So if the target audience for the Telly is someone who can't justify spending ~$400 for a TV, I am not sure if they are an advertiser's dream. If this ad model truly works in the US, I imagine that it could economically also work in Europe. However, I imagine they would have issues with GDPR considering what a massive data harvesting and selling operation this is.