Re:What if performance advertising is just an analytics scam?
by disgruntledphd2 on Thursday October 14, 2021 @05:44AM
(#28862169)
> Why would FB ever tell me to spend less?
There's literally a team at Facebook (Marketing Science), part of who's job is to tell advertisers what actually works and often, this can lead to them telling advertisers to spend less.
And this is an incredibly smart business strategy in that FB know (from experiments et al) that their platform works, and if they can show incrementality, then advertisers will invest more in the platform.
In game theory terms, it's a good strategy for a repeated game, which advertising definitely is.
There's literally a team at Facebook (Marketing Science), part of who's job is to tell advertisers what actually works and often, this can lead to them telling advertisers to spend less.
And this is an incredibly smart business strategy in that FB know (from experiments et al) that their platform works, and if they can show incrementality, then advertisers will invest more in the platform.
In game theory terms, it's a good strategy for a repeated game, which advertising definitely is.