this post was submitted on 15 Jul 2023
1130 points (97.2% liked)
Technology
59106 readers
4410 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
I'd expect there's an equilibrium to be found.
Even if you had the hypothetical "ultimate consumer" -- so stupid that they clicked every ad and bought everything they saw-- there would be a finite cap of ad revenue you could get out of them. There are only so many advertisers, and they're only willing to pay so much per ad, because their acquisition budgets are finite and they anticipate much more real world levels of conversion from view to click to sale.
Maybe an "optimal" real-world user is worth $30 per month in ad clicks. Maybe they're worth 30 cents. Either way, it's still a number where you can say "we can offer an ad-free experience for a price anywhere above that, lose no revenue, and provide a premium option."
I'm also surprised there isn't more concern from the investor world about anchoring more and more products and services to the advertising universe-- it's a brittle, finicky bubble that's based on everyone lying to everyone else and hoping nobody checks the books.