Re:The math’s not pretty on digital advertising’s future rev...
by manigandham on Saturday December 29, 2018 @08:32PM
(#18786801)
That's just business mechanics. If your customer acquisition costs are equal to your sales then you're reached breakeven and the next steps are to either reduce your costs or increase your sale price to continue growth. Nothing is static and you have to keep working on the math to optimize the business at that moment.
I don't see what this has to do with Google taking your profit.
Re:The math’s not pretty on digital advertising’s future rev...
by max76 on Saturday December 29, 2018 @08:08PM
(#18786715)
> It's really brutal. Google can effectively capture all profit margin from every web business in the world. That's what is happening.
Lots of companies make a lot of money on the web. Google doesn't have a monopoly of profit.
In theory yes but not in practice.
Many companies run ads as strict losses, until they stop spending or die, then another company will eventually the spot.
The revenue equilibrium is about where Google is paid all revenues from the customers it brought. The company gets more customer but makes neither a profit nor a loss. It's very close to that in practice.
It's really brutal. Google can effectively capture all profit margin from every web business in the world. That's what is happening.