Comment by tsunamifury
20 hours ago
SMBs broadly spend 200-400 dollars a month on ads and see marginal to negative returns against 10 million in spend for large clients. Even 1000-5000 see marginal returns at best unless the target small demo high return (local premium services). They lack the budgets for learning and optimization let alone optimal price per placement.
This combined with SMBs targeting everyday joes with increasing less demand availability for anything it leaves them crushed on both sides.
Wow so 10,000-100,000x spend difference. That is a wide K.
Do you think there’s any hope for SMB? Eg I’ve seen some companies tout AI advertising optimization for SMB but when I looked into one for investment the numbers weren’t very compelling.
What is the proportion of spend of SMBs vs large clients? Would you say that large clients are responsible for most of the advertising revenue? I always assumed that would be something like a 50/50 split, but these numbers made me question that assumption.