alt Hacker NewsIt's partly true, but only if no-one advertises. If I don't advertise but a competitor does, then I start to lose market share. So although the cost may not justify itself independently, in the face of my competitors' marketing budget, it does.
It's partly true, but only if no-one advertises. If I don't advertise but a competitor does, then I start to lose market share. So although the cost may not justify itself independently, in the face of my competitors' marketing budget, it does.
That reminds me of one of my idiosyncratic policy wishes: An enormous pigouvian tax on any advertising beyond a spreadsheet listing quantitative technical data about the product. Companies don't lose anything, since the relative spend and impact remains the same; consumers gain a lot of information and public funding, and lose daily aggravation.