alt Hacker NewsWould ads still be worth enough if they were targeted based on things like what you watch/read/follow/subscribe to on that platform and your general location?
Or can instagram only be free if ads are targeted to detailed profiles of individuals built over decades as they are tracked across the whole internet?
Replies
troupo • last Tuesday at 6:51 AM
> Would ads still be worth enough if they were targeted based on things like what you watch/read/follow/subscribe to on that platform and your general location?
Yes. Targeted ads need to be 100% to 700% more efficient than regular ads to be as profitable: https://news.ycombinator.com/item?id=43996623
The heavily profiled ads cost a lot more money for the advertiser to run compared to traditional ads, if those platforms turn to contextual ads they do not have their special expensive profiled ads product to sell anymore.
So it's not about the perceived effectiveness of advertisements that you feel as a user, it's about the rather more unique product that they sell to advertisers that really raises their revenue.