4 ms·
worth a lot more ... than free users Why? I'm not sure about that, either way. I feel like I've seen cases where this is true, and cases where it isn't. For
by tiffanyg 3y ago
worth a lot more ... than free users
Why?
I'm not sure about that, either way. I feel like I've seen cases where this is true, and cases where it isn't.
For YouTube, for example, I'd guess this could be true, now. It depends on hours and type of content watched, yes? While the charge to advertisers per ad impression is very low, and low enough for click-throughs / other categories that might be considered 'hits' in advertisers' search for customers*, it is presumably carefully metered to ensure solidly net positive "monies"** to Google. YouTube premium is billed at a flat rate - hence, its worth likely varies rather inversely by "hours watched" as compared to ad-supported viewing, right? I.e., the best "premium" customer, strictly from the POV of max direct revenue / profit should be one who pays and doesn't watch even a second of YouTube content in a given month.
Obviously, I'm simplifying all of this a bit, and, also, not really getting to the point efficiently - Sunday morning blah blah. So, to wrap, it's all about distributions. Oftentimes, when companies introduce plans like "premium", the heaviest users immediately sign up. The distribution is often heavily skewed, initially. Over time, "non-addicts" and such do accrete ... distribution shifts a bit. That's basically why it's not so clear to me - on the one hand, YT premium charges quite a lot, AFAIK, compared to $ / ad ... but, at some number of hours viewed, that stat flips. I.e., YT makes less money (directly, at least) from Premium. Now, that's probably a quite high # of hours. But, I just have no sense of what it might be and what the metrics look like.
And, ultimately, this ended up also being a long-winded way of saying my brain still isn't fully online and I'm too dull / lazy to try and pull up Google's / Alphabet's 10-Ks etc. ... but not too dull / lazy to let the world read a big ol' pile of words! Ugh... Almost as bad as drunk texting.....
* I.e., "more money" - https://youtu.be/aN8wxQDqfRk https://youtu.be/aN8wxQDqfRk
** https://youtu.be/5I_B5mdLry4?t=6m40s https://youtu.be/5I_B5mdLry4?t=6m40s