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Yes - advertising is very profitable. Increasing the cost would lead to a short term reduction in spend by advertisers, which would squeeze the adtech industry.
by soared 2y ago
Yes - advertising is very profitable. Increasing the cost would lead to a short term reduction in spend by advertisers, which would squeeze the adtech industry. They’d respond with improvements to their specs which reduce bandwidth and return levels closer to normal. Totally fixable problem with the correct incentives.
Interesting note, the privacy sandbox apis that google (was) is pushing were extremely bad for bandwidth to the point that in early tests our servers often did not respond in time to successfully bid in an auction. This occurred in many steps different steps of the auction (ssps as well). Google of course kind of moved away from this set up before fixes were implemented. (If the time between a user loading a page and the result of a programmatic auction is too long, ads may not be served)