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The Economics Behind Commercials and Ads Explained in One Minute
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- Опубліковано 9 гру 2016
- Few people actually love watching commercials or being exposed to ads but let's face it, it would be impossible for people to produce quality content without the money generated by ads and/or commercials.
This channel, as all of you know, is ad-free but I have to somehow make money as well. I for one will be doing it by selling my book (it will be available for just $2.99 next week, subscribe to my OneMinuteEconomics.com newsletter and I'll send you an email as soon as it's available) and am definitely counting on your help when I launch it next week.
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you can allow advertisements to earn. I won't mind waiting for 5 seconds to watch a video.
I never understood how HBO worked all these years without putting any ad on their TV channel.
Pay to play :D
@@OneMinuteEconomics When I used to own a TV, we payed for cable and about 300 channels were included in the package. Only Animax & HBO didn't have ads all others have ads. I don't think it was pay to play.
Best guess is that HBO received a cut from the TV service provider. Most likely a negotiated rate but nonetheless, I believe HBO has to get paid in one way or another. Either by viewers directly or as a part of a deal they negotiate with providers. Not 100% sure though.
nice
I'm still skeptical if advertising really works, and what kind of science there is to it.
For example seeing an ad about a car, will it really increase my odds of buying this one if I need one? Also, why do popular brand keep advertising about products or brands everybody already knows about?
The problem with advertising is that the % of percent who will buy among those who will see the ad is so minuscule, so most of the ads people see are just for things they don't need. Ultimately, nobody really learns about new brands or products because established brands can already buy out most of the advertising space, reinforcing their brand presence.
Targeted advertising is a good alternative, but if advertisers already knew who need their product, there would no point in trying to convince a buyer.