Comment by somenameforme
6 days ago
Once again GDP has nothing to do with anything here. Whether it was higher, lesser, or whatever else does not matter. Advertising spending increased exponentially only because exponentially more money was being spent on advertising. How exactly that relates to GDP has no relevance, whatsoever.
In 1980 (this study didn't even cover 1970), there were something like 1750 newspapers for something like 60 million readers. So the subscribers per paper was already (relatively) very low. And with classifieds you get a very tiny subset of that that opt-in to reading the classifieds, and further opt-in to the section you are listed in. It should be beyond obvious that this has basically no relationship whatsoever to modern advertising.
> How exactly that relates to GDP has no relevance, whatsoever.
You are claiming that the increased spending on advertising is due to the internet. The relationship between GDP and ad spending pretty clearly indicates that the internet was not the cause of increased ad spend, except in as much as it increased GDP.
If the internet has any effect on ad spend growth, you would have seen the growth rates of GDP and ad spend diverge with the birth of the internet.
To see how clearly wrong you are consider this, part of GDP growth is population growth. You are claiming that population growth is irrelevant to ad spend growth?
> It should be beyond obvious that this has basically no relationship whatsoever to modern advertising.
Even your own numbers pretty clearly indicate that the pricing can be equivalent, which was my point.
GDP is an abstract measurement of other things that, itself, has no causal effect on anything. Yes, population can increase while GDP decreases. And spending on things also does not just naturally increase. It increases if, and only if, there is more spending on it. And no, classifieds are not like modern advertising and you clinging onto this reflects that you are not arguing in good faith.