alt Hacker NewsSurprised to see this upvoted because the takeaway is completely incorrect, and based on the anecdotal evidence of one advertiser.
As someone who spends seven figures every month on Google ads, what’s much more likely to be happening here is that the individual advertiser is either getting outcompeted or they’re executing ads poorly.
Google ads revenue in the US continues to grow every quarter. And, since advertisers will generally invest in ads until the last dollar is break even, it’s likely that the total value advertisers unlock through Google ads is growing as well. Whether that’s true or not, the notion that value generated for advertisers is “dead” is absurd.
Replies
Your experience is 100% compatible with the linked article: the seven-figure spender is presumably running a much higher margin business and can scale narrowly profitable ads much more effectively. The natural equilibrium for a perfect ad market is for the ad spend to be exactly equal to increase in revenue: a perfectly efficient market with no profit for the advertiser. Google (and Meta et al) are so good that for many SMBs they are completely cornered at the zero-point: spend as much as you can just to stay in the same place financially.
I run a small software business and I know various other people who run small software businesses. We are all pretty much agreed that that Google Ads have been less and less profitable, year or year. Most of us have now given up on PPC ads.
He's been using AdWords for 10 years, so I wouldn't assume incompetence there.
It's just as likely that people are simply spending less on entertainment due to high cost of living.
> and based on the anecdotal evidence of one advertiser
The author admits as much.
> seven figures every month on Google ads
What are you advertising?
> As someone who spends seven figures every month on Google ads, what’s much more likely to be happening here is that the individual advertiser is either getting outcompeted or they’re executing ads poorly.
Outcompeted by who??? He's a performer offering local entertainment. I highly doubt that people searching for "entertainer in durban" are getting ads for Cirque du Soleile.
His ad is probably on the first page for that search term; the problem is more likely that no one is looking at that first page anymore.
> Surprised to see this upvoted because the takeaway is completely incorrect
It's the standard actually. Hot takes get more votes and hot takes are usually wrong. Experts have non-controversial opinions, which are boring (so no impulse to upvote), and there are 1000x more non-experts with blogs. Add to that HN culture which values contrarian-ness. So HN front page blog posts are almost entirely incorrect, but spicy
I just Googled "kids magic show in Durban" and his ad showed up in the top slot (sorry if this post has swamped your ad bill); and as a bonus, the Gemini AI blurb also touted him: "For kids' magic shows in Durban, look for local entertainers like Big Top Entertainment..."
Doesn't seem like the issue is he's being outbid by international conglomerates with million dollar budgets. Maybe the kids magic show market has cooled in South Africa? Or users have left Google? Curious what we are to conclude here.