3 ms·

I actually think it’s worse because it’s not as natural of a monopoly as it was for the payment network space. Google and Meta actively created a duopoly in the

by lvl102 3y ago

I actually think it’s worse because it’s not as natural of a monopoly as it was for the payment network space. Google and Meta actively created a duopoly in the ad space and at a global scale too.

pasttense01 3y ago
No. For many of us it irrelevant if there is duopoly in the ad space because we don't use Facebook and we use ad-blockers. But in the payment space VISA/MC charge high fees which are passed onto all consumers.
- Kbelicius 3y ago
  > For many of us it irrelevant if there is duopoly in the ad space because we don't use Facebook and we use ad-blockers. But in the payment space VISA/MC charge high fees which are passed onto all consumers. Products that you buy have their marketing priced in. Even if you don't see the adds you are still paying for them.
  - alephnerd 3y ago
    > Products that you buy have their marketing priced in. Even if you don't see the adds you are still paying for them Marketing costs are not included in Gross Profit Margin calculations, and don't have an impact on COGS. Marketing spend is primarily used to grow your TAM and channel customers to your product, but is very marginal spend wise.
- kaynelynn 3y ago
  Visa and MC only take .1% of the 2.9% you are thinking of. The rest goes to the banks on either side of the transaction (one for the merchant, one for the purchaser). They are however building more “solutions” to try and capture more of the transaction fees, but most people’s disdain for the payment rails would be better redirected at the banks in this case.
- lvl102 3y ago
  Well in the ad space, we are talking about ad buyers not so much consumers. I think a good analogy would be if ABC and NBC purchased all other broadcasters and cable channels in the 80s. And then they go and purchased all INTERNATIONAL broadcasters.

3 ms·

I actually think it’s worse because it’s not as natural of a monopoly as it was for the payment network space. Google and Meta actively created a duopoly in the

by lvl102 3y ago

pasttense01 3y ago
No. For many of us it irrelevant if there is duopoly in the ad space because we don't use Facebook and we use ad-blockers. But in the payment space VISA/MC charge high fees which are passed onto all consumers.
- Kbelicius 3y ago
  > For many of us it irrelevant if there is duopoly in the ad space because we don't use Facebook and we use ad-blockers. But in the payment space VISA/MC charge high fees which are passed onto all consumers. Products that you buy have their marketing priced in. Even if you don't see the adds you are still paying for them.
  - alephnerd 3y ago
    > Products that you buy have their marketing priced in. Even if you don't see the adds you are still paying for them Marketing costs are not included in Gross Profit Margin calculations, and don't have an impact on COGS. Marketing spend is primarily used to grow your TAM and channel customers to your product, but is very marginal spend wise.
- kaynelynn 3y ago
  Visa and MC only take .1% of the 2.9% you are thinking of. The rest goes to the banks on either side of the transaction (one for the merchant, one for the purchaser). They are however building more “solutions” to try and capture more of the transaction fees, but most people’s disdain for the payment rails would be better redirected at the banks in this case.
- lvl102 3y ago
  Well in the ad space, we are talking about ad buyers not so much consumers. I think a good analogy would be if ABC and NBC purchased all other broadcasters and cable channels in the 80s. And then they go and purchased all INTERNATIONAL broadcasters.