4 ms·
> why do you think Facebook won't simply sell the ad space to the highest bidder, whether it is AcmeShop or a Marketplace seller? Depends on which placement yo
by dgroshev 2y ago
> why do you think Facebook won't simply sell the ad space to the highest bidder, whether it is AcmeShop or a Marketplace seller?
Depends on which placement you mean.
"Boosted listings" in Facebook Marketplace? AcmeShop can't bid on that.
In-Marketplace ads like [0]? They are similarly in-Marketplace, I don't think it's technically possible to bid on them.
In-feed Marketplace ads like [1]? They are specifically Marketplace, I have no evidence that they enter the same bidding pool, and it seems improbable.
In-feed generic auto-placed ads like [2]? Maybe, maybe not.
> Remember, Facebook doesn't even make money if you sell something locally and pay in cash.
Facebook doesn't just make money from boosted listings, they also benefit from people just using Facebook. Even if Facebook didn't make any money directly from Marketplace, it'd still be worth it for them and it'd still be anti-competitive. If they can make themselves the main marketplace, it creates a large captive audience scrolling through their ads.
> But I think it has to be shown that Facebook is actually engaging in that kind of anti-competitive behavior. We can't just assume it.
Aren't we commenting under an article about a fine for anti-competitive behaviour?
[0]: https://storage.googleapis.com/website-production/uploads/2019/12/facebook-marketplace-sponsored-example.png https://storage.googleapis.com/website-production/uploads/20...
[1]: https://newsfeed.org/wp-content/uploads/Marketplace_boosted_listing.png https://newsfeed.org/wp-content/uploads/Marketplace_boosted_...
[2]: https://storage.googleapis.com/website-production/uploads/2019/12/facebook-marketplace-ashley-instagram-example.png https://storage.googleapis.com/website-production/uploads/20...
- crazygringo 2y agoThanks for all the extra information. I think we've reached the point where it really does hinge on exact details which we don't really know the answers to. And while yes, we are commenting on an article about supposed anti-competitive behavior, the article doesn't actually describe the specifics at all, and courts get things wrong all the time (and overturned on appeal). I mean, AcmeShop is free to list their items on Marketplace as well and compete with boosted ads in cases [0] and [1], and like you say, "maybe, maybe not" their ads compete on bids for [2] -- I would assume they would if Facebook is maximizing profit. I don't see any evidence that Facebook is obviously or necessarily abusing its position, but it's not like I could rule it out either, specifically in the case of [2] -- it seems like it depends on the exact ad selection algorithm they use. In any case, I can't keep the conversation going any further, but it's been very informative having this exchange. It's been a great back-and-forth, so thank you!