There’s an annoying reason advertising works - users don’t feel cost pressure as the company is forced to grow forever. Plus, people buy things, and ads work.
LinkedIn Premium struggles because it’s expensive as shit, and people will not pay that much for a social network most of the time, unless they have a dedicated reason to (job seeking, recruiting, etc.). We can say this is wrong and bad and it makes us the product, which is mostly true, but also it means we pay less for things with more utility.
Look at Netflix. Their ads tier is doing gangbusters. They keep increasing the amount of shows that are on that tier because it makes them more money, without users getting mad at price increases.
Now’s the hardest trick in the book is to provide high quality, contextual advertising in a way that doesn’t overwhelm your users but also creates value for your advertisers. Truthfully, nobody is better at this than Instagram.
If we actually want to solve this problem, the minimum wage needs to be radically reset, wages need to grow as fast or faster than inflation, and companies need to be incentivized by the market not to grow without bounds, but to reduce profit margins and find a healthy state where they throw off a solid amount of cash.
LinkedIn Premium struggles because it’s expensive as shit, and people will not pay that much for a social network most of the time, unless they have a dedicated reason to (job seeking, recruiting, etc.). We can say this is wrong and bad and it makes us the product, which is mostly true, but also it means we pay less for things with more utility.
Look at Netflix. Their ads tier is doing gangbusters. They keep increasing the amount of shows that are on that tier because it makes them more money, without users getting mad at price increases.
Now’s the hardest trick in the book is to provide high quality, contextual advertising in a way that doesn’t overwhelm your users but also creates value for your advertisers. Truthfully, nobody is better at this than Instagram.
If we actually want to solve this problem, the minimum wage needs to be radically reset, wages need to grow as fast or faster than inflation, and companies need to be incentivized by the market not to grow without bounds, but to reduce profit margins and find a healthy state where they throw off a solid amount of cash.