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Right now Google takes a 20% cut of every auction price. What if you were willing to take just 10%? You could give ad sellers a slightly higher CPM — they’d gla
by byrneseyeview 17y ago
Right now Google takes a 20% cut of every auction price. What if you were willing to take just 10%? You could give ad sellers a slightly higher CPM — they’d gladly run your ads when they paid more and Google’s the rest of the time. Then you can offer ad buyers a slightly lower CPC. As long as the money people made was more than the cost of setting things up, they’d switch. I’m actually not sure why this hasn’t happened.
"You've never heard of me, but I'm 10% cheaper than the best company in the business. Why not trust me with the task of introducing your brand name to thousands of potential customers?"
That's why.
- wlievens 17y agoHe's 50% percent cheaper, no? But your point stands, obviously.
- byrneseyeview 17y agoHis commission is 10% lower, but in principle your customer doesn't care about commission, just total cost. If a stockbroker charges .2% rather than .1%, that's a .1% lower cost, not a 50% lower cost.