Google and Facebook are multi-billion dollar businesses based on advertising dollars. Snapchat's valuation is under-written by its advertising potential. It's obvious that advertising is big business, but why do advertisers have so much money?
Advertising doesn't produce products on its own, yet it dwarfs the scale of many industries that do. Conversely, advertising forms a fraction of the budgets of any of these industries, taken individually. How does advertising create such a disproportionate amount of value?
Advertising doesn't produce products on its own, yet it dwarfs the scale of many industries that do. Conversely, advertising forms a fraction of the budgets of any of these industries, taken individually. How does advertising create such a disproportionate amount of value?