Comment by tsunamifury
16 hours ago
It’s googles fault no one wants my product! It certainly can’t be the basics of demand!
- most SMBs I ever work with.
16 hours ago
It’s googles fault no one wants my product! It certainly can’t be the basics of demand!
- most SMBs I ever work with.
> the basics of demand
If you've been around longer than internet advertising you realize the basics of demand have changed pretty considerably.
Let's go back to 1980 and say that you have widget X that person A would absolutely buy if they saw/heard it advertised. They live in Podunk Minnesota that had coverage by 3 radio stations, 3 TV stations, and 2 newspapers. But you have no idea what media they actually consumed to target the right one.
Right now you're at the point you would have to contact at least 8 different media companies for ad spend if you wanted coverage. Most likely you'd cut it down to one of each, and maybe a billboard. This said, the cost for just this little area is going to be wildly expensive! Ads were huge money, and this is just for one little town.
These costs were slightly lower for large corporate buyers, but not that much because as you go back farther and farther you were typically dealing with more companies before consolidation. Being an SMB was great in this market in a local area because you weren't competing with the world.
Fast forward to now and you compete with the entire world at any given moment. In the West we've forgotten about competition and allowed a huge portion of our economic product to consolidate to a small number of companies. This is very apparent in advertising as the old media entities are dead or far more expensive than you'll ever recoup with the competition out there. Instead you're looking at Google/Reddit/Facebook style ads, but with that kind of ad you again, complete with the entire world. If your ad actually does good and drive business, then Google metrics will feedback to players watching the market and they will advertise products in the same space driving up competition and the base costs for ads. The supply from your competitors is practically unlimited which will drive your profits to almost zero unless you happen to have something very special.
Welcome to the K shaped economy, where the big get bigger and the small die.