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CPA pricing removes the burn Not true. There is limited ad space which all advertisers compete for. No matter which model, CPC or CPA, the advertiser who pays
by ArtTimeInvestor 1y ago
CPA pricing removes the burn
Not true. There is limited ad space which all advertisers compete for. No matter which model, CPC or CPA, the advertiser who pays most gets the ad placement.
Its similar to SEO. Nobody says "Oh my god, advertising via SEO is free, what a blessing!". It's still a competition. It's still a zero sum game.
- ajb 1y agoHe's not saying advertisers don't compete. He's saying it changes from advertising being a massive risk as well as a cost, to just a cost. So the auction is won by the company with the biggest instantaneous profit margin on a SKU, instead of the one with the biggest war chest that can afford to risk on that massive prime time slot. This change in incentive favours shitty products.