The thing is, the “consumers” of the ad space are the advertisers, not end-users. They’re the product
So monopolistic practices will harm the consumer (advertisers), but do they really harm end-users? Does a monopoly in farming harm the cows?
So monopolistic practices will harm the consumer (advertisers), but do they really harm end-users? Does a monopoly in farming harm the cows?
Businesses have somewhat standard target gross margins, customer acquisition costs (CAC), LTV:CAC ratio, etc. and will determine pricing based on multiples of these variables. Ad spend is often a huge component of CAC and this directly feeds into what companies need to charge their customers in order to use their products. The assumption that businesses will just eat a higher cost as sort of consumer benefactors is quite naive. I can assure you they won’t.