News for hackers. Stuff that matters.

A comment on Google winning 98% ad spots it auctions off, after order to treat others equally. Parent comment

Re:Google winning 98% ad spots it auctions off, after order ... by jayd16 on Tuesday January 30, 2018 @05:38PM (#16269745)
It just comes down to Google gets to pay cost for ads and everyone else has to pay market price. The important factor here is any profit that could have been made between cost and market price for those ads is lost to Google as well.

At best, Google is just cheating revenue out of its ad division. I'm not sure this would actually be a huge advantage in the long run unless integration led to Google ads being cheaper to implemented than ads for others.

[ Parent | on HN ]
Re:Google winning 98% ad spots it auctions off, after order ... by aoeusnth1 on Wednesday January 31, 2018 @08:40AM (#16273712)
Exactly. They pay cost for ads PLUS opportunity cost of selling the ads. If you assign the opportunity cost and revenue of selling the ad to the Ads department and the revenue of the camera business to the Shopping department, it seems obvious that it’s not unfair.
[ Parent | on HN ]