Drawing on my experience from working with an Ad-Tech: > Don’t most companies have budgets? Yes > Wouldn’t raising prices just cause companies to buy less?

Drawing on my experience from working with an Ad-Tech: > Don’t most companies have budgets? Yes > Wouldn’t raising prices just cause companies to buy less? Not necessarily, the "ad-spend" typically remains a fixed budget until a given ad-campaign is complete. The kicker is basically the cost per ad is increased, which means the budget for an ad-campaign is consumed more quickly. Thus, for example, rather than an ad-campaign lasting 4 weeks and generating X number of impressions, it lasts 80% of that time with 80% the impressions. Thus, even though the revenue is fixed per ad-campaign, Google would be able to cycle through more ad-campaigns > I feel like folks don’t just increase spend when prices go up, when it comes to ads. Depends on the company. In all probability the ad-spend would remain fixed and the companies just get less return on that spend (as an aside, the ROI for ads is highly debated to begin with)