points by andriy_koval 14 hours ago | 0 comments
They can't juice, because advertisers are now good in calculating conversion rate, roas, cpa, etc, so they would shift budgets to other channels like overnight if see Google underperforming.
[–] mlmonkey 13 hours ago
[–] kevinwang 13 hours ago
(Doesn’t change the point of your comment, but doesn’t Google use first-price auctions now?)
[–] mlmonkey 13 hours ago
I don't think so. First price auctions are not truthful, and advertisers hate them. But there are 50 shades of gray between a second price auction and a first price auction.... if you get my drift.
[–] jcfrei 13 hours ago
Of course the big spenders on Google with the multi-million dollars advertising budgets won't just change their spending behaviour over night. That takes time - like anything in big corporations.
[–] andriy_koval 13 hours ago
Big spenders already do not bid on google directly, but balance budgets automatically between multiple platforms and channels base on performance
[–] disgruntledphd2 12 hours ago
Depends on the big spenders, tbh. Internet native brands are more likely to do this, but larger more staid companies will take a lot longer.
[–] andriy_koval 12 hours ago
> but larger more staid companies will take a lot longer.
I still believe large spenders already advertise on multiple channels and balance budgets based on performance.
[–] disgruntledphd2 1 hour ago
Sort of. It really does depend on the company and how they're set up. Like, brands using agencies or more non DR advertising only update on marketing mix models which are much slower.
[–] cyanydeez 14 hours ago
what channel actually provides most of these ad buys that would satisfy their ad dollars?
Google has been sued for being a monopoly, and it's not because they're just really good. It's because there's basically no other market that hits any of the dollar costs.
[–] andriy_koval 13 hours ago
> what channel actually provides most of these ad buys that would satisfy their ad dollars?
advertisers decide which channel justifies.
They still bring 250B ads dollars to google search, meaning it provides more than 250B value to them,
[–] morkalork 13 hours ago
What other channels? The alternative on search is Bing and it's a tiny market. Then there's display which is total dog shit.
[–] andriy_koval 13 hours ago
Ads is highly fragmented market, google has yt, display, mobile ads, there are tons of other platforms (meta, linkedin) where you can advertise.
That first price auction complain is bs, advertisers will just stop bidding $5 for top click and start bidding $1.1 in his example to hit their goals.
[–] fumar 12 hours ago
Ad tech started it's migration to first party auctions before 2020 including Google. This is old news in ad tech. Not sure about the correlations the X poster is making.
So (in theory) advertisers will lower their bids if they're not getting the desired value from the clicks; and over time some will migrate budgets to other channels (like "influencers"? shudder ...).