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fsckboytoday at 1:16 AM1 replyview on HN

>lower margins (more middlemen taking fees)

middlemen taking fees is not the measure for comparison, the question is whether you could run your own ad business for your own platform and keep your costs lower than established players who sell on all platforms. the answer is generally "no"

look how much money coca cola makes, and they sell it cheaper than water and still pay for advertising!! we should all make our own coke and not advertise it...


Replies

crowcrofttoday at 2:32 AM

Established players aren't selling on all platforms. Any platform doing more than $1bn in ad revenue operated their own ad sales platform.

The only players that sell through third parties are sub-scale publishers, and that is a shit business to be in. If that's what OpenAI is aiming for then they will never be able to compete with Google.

I'm not really sure what you're analogy about Coke is meant to mean here...