7th
Volume Premiums in Advertising
From a good Facebook advertising platform analysis on Forbes, it seems like there is a premium on reach, rather than on precise targeting.
Generally, the promise of online advertising is targeting pitches at the precise group for your particular product. But all that precision doesn’t make Facebook much more profitable. In fact, typi
The approximately 2,300 U.S.-based Facebook users with a Harvard degree in economics fetch a meager 3 to 13 cents per click. But if you aim to advertise to all 29,000 U.S.-based Harvard graduates, Facebook will suggest a bid of 54 to 71 cents.
That’s precisely why TV advertising is still kicking. Advertisers need to reach vast audiences and niche targeting is not necessarily what they are aiming for. I am pretty sure that even Google struggles to monetize searches with lower volumes.
Instead of volume discounts, advertising commands volume premiums.
