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Can you share any numbers ie roughly how different the spend is? SMB spends $1k on ads but grandes spend $1M or something? Idk how it works.
by bix6 10mo ago
Can you share any numbers ie roughly how different the spend is? SMB spends $1k on ads but grandes spend $1M or something? Idk how it works.
- tsunamifury 10mo agoSMBs broadly spend 200-400 dollars a month on ads and see marginal to negative returns against 10 million in spend for large clients. Even 1000-5000 see marginal returns at best unless the target small demo high return (local premium services). They lack the budgets for learning and optimization let alone optimal price per placement. This combined with SMBs targeting everyday joes with increasing less demand availability for anything it leaves them crushed on both sides.
- bix6 10mo agoWow so 10,000-100,000x spend difference. That is a wide K. Do you think there’s any hope for SMB? Eg I’ve seen some companies tout AI advertising optimization for SMB but when I looked into one for investment the numbers weren’t very compelling.
- tuesdaynight 10mo agoWhat is the proportion of spend of SMBs vs large clients? Would you say that large clients are responsible for most of the advertising revenue? I always assumed that would be something like a 50/50 split, but these numbers made me question that assumption.
- x0x0 10mo agoI have a colleague who runs growth for a big consumer company driving value through their apps. They spend over $100m/year on install ads. And the fact they price smbs out should be unsurprising: they're better at making money from a user; users are worth more to them; so they pay more.