Advertising

“Albert Lasker is the person that made the most money in advertising ever.”

“We must never judge humanity by ourselves. The things we want, the things we like, may appeal to a small minority. The losses occasioned in advertising by venturing on personal preference would easily pay the national debt. There are divided opinions, and so i…”

“So will AI's build an amazing sort of profile of you based off of all the personal data and then use that for ads? Most certainly.”

“The business model of the last 28 years, which largely advertising based doesn't work because bots don't click on ads.”

“And so the chat interface doesn't capture that user intent, that user behavior right now, which is why it was never a great fit for advertising. And it also fundamentally corrupts the trust that people have when they go into a product and they want the accurat…”

“Advertising is a trillion dollars and retail is 25 trillion dollars.”

“Customer support is like, one percent of global GDP. It's the same market size as advertising.”

“Advertising is undefeated as a business model. What you end up finding is that the average revenue per user is just much, much higher than you can get from a premium subscription.”

“If they didn't, we wouldn't be spending, like, a billion dollars here on advertising, so I want to admit that advertising does influence us more than we realize.”

“I think the future of advertising is going to be almost purely all AI.”

“Where are they making most of their profit on the retail side? Or shall I say all their profit on the retail side? It's advertising. And that goes away. If you, even if you're able to do this well, if one click fulfillment, that's the least Profitable part of …”

“This is what's weird about working in advertising, by the way, and I think it's probably similar to theoretical physics, and it's probably similar to entrepreneurialism, ok, which is what's unusual about those fields, is that rationality is the bronze standard…”

“Because this is an attention play, where you're leveraging attention, you are creating a product that is inherently viral and shareable, what's going to happen is that the amount of attention that you get for this tool is going to far outweigh the people who a…”

“Yeah, there, there's a lot of parallels, really, to what happened in the nineties with advertising and the growth of the internet and what we're seeing with AI.”

“It will reinvent itself in the chat world.”

“Advertising is going to remain, is today, and will remain the predominant way through which we monetize on behalf of creators”

“The feeds for a long time were trying to split you into as many cultures as it possibly could, right? Because you can, like, that makes sense from an advertising perspective, right? Like you want people to have as many thin cultures. You want to have a very la…”

“You can do all the display ads you want. You could do video there all you want. But if it's in the response that comes back from the model, boy, you're gonna have lots of problems.”

“I kind of think of ads as like a last resort for us for a business model.”

“If, you know, if you take some principle stand against ads, I think you unfortunately are also taking a stand against, against, against broad access, just in the way the world works today.”

“I do think that they will eventually go down that path, but I also chalk that up to the fact that, again, I think that if they go down that path and if it's meaningful to them, it will look different than what sort of search advertising has historically looked…”

“ChatGPT, you know, ChatGPT, by the way, like, and Anthropic, like, they're making a lot of money, but they're not making enough money to fund the capital that they're raising. And so they have to turn to advertising sooner or later.”

“Their CFO is out there saying advertising is going to be a part of our business model publicly.”

“There's a reason to believe that both of those types of disciplines will find their way into our new interfaces.”

“I still think of advertising as a tax on an unremarkable product. And the better you get the product, the packaging, and something that creates that immediate connection, then marketing is really just gravy and jet fuel to be able to accelerate that.”

“Basically we all know what's happening and we have history to say that people are going to pull out and advertising should get cheaper.”

“However, if we are spending money only on advertising to existing consumers, By definition, we are not getting new consumers and our business will go into a death spiral and we will efficient ourselves right out of business.”

“I've come to regard advertising as part of the product to be treated as a production cost, not a selling cost. It follows that it should not be cut back when times are hard any more than you would stint on any other essential ingredient in your product, assumi…”

“Like us, inherently, we, we've never done ads, and I don't mean in like one, two years, but I'm talking about like, 1516 years.”

“So the reason that ads are the best business model for media is cause you get the widest possible reach, right?”

“Amazon has a three, has a fifty-five billion dollar ad business.”

“Almost all of Instacart's profits come from advertising.”

“And that's what advertising does brilliantly. It shows us one thing that we really need, and it ties it up with something that we might desire, but probably don't need at all. And therefore sets us on the wrong track”

“The higher quality of the content, the more ads you can jam in it, and if you have a media product and you can't put a lot of ads in it usually is just not that great of a product.”

“And so at the end of the campaign, you start to see the end of the, you know, right before election day, you start to see campaigns making decisions that are driven less by efficient, like overall efficiency and more by basically where can we very quickly pars…”

“Ad creative targeting, like these are the places that LLMs have by far the most leverage in the moment we're in.”

“AWS Growing 19, 20% with 33% margins. You have advertising growing up low double digits with 50% margins, and collectively those two businesses are, right now, they are about 24% of total revenue. That's gonna get to 31% by the end of this decade”

“And so if you're going to do a consumer startup, it can't be based on advertising. It's just too expensive. Advertising cannot clear the inference cost even with it with inference costs declining.”

“Attempts to evaluate advertising on short term transactional metrics will always grotesquely undervalue The contribution of that activity to your ultimate business success.”

“The first thing that I think it needs is it needs a little bit of cringiness. I think with ads, we be like, this needs to be cool. Like it needs to be a little bit overly cringe. That's the second thing that you have to have is it has to be incredibly repetiti…”

“No, we want to see produced work. Which I think is a flaw in the way they evaluated creativity. It doesn't mean someone doesn't have a lot of talent if the client just doesn't want good stuff.”

“Consumer studies of those recessions have showed That the companies that didn't cut their ads had in recovery captured the most market share.”

“I would predict it'll be advertising. If we crack it, yes, it'll be advertising. If we don't crack it, if we are not, if we don't, if we haven't grown to that level in user basin, or if we grew and didn't figure out how to advertise really well, I think it'll …”

“Which is that content creators are the modern form of demand generation for whatever else it is that you're going to consume. And I think it replaces advertising and I think it displaces traditional content.”

“You are not advertising to a standing army. You are advertising to a moving parade. Three million customers get married every year. The advertisements which sold a refrigerator to a new married couple last year will work just as successful to those who get mar…”

“What we quickly learn is that actually people want to use software directly, but they also want to have lots of support because advertising is, is a complex topic. We realized that Actually, we need to mix services with software in a way that clients still use…”

“Because when you're small, And you're competing against companies that have hundreds of employees. It's not wise to try to compete on might because you're not going to win. You're just not. They can throw orders of magnitude, more dollars at advertising and th…”

“However, over time, you realize that there is a pretty significant cap to this model. You're primarily dependent on advertising, which can be, you know, volatile and fluctuate. You'll have really, really good months. You're going to have bad months. It's hard …”

“It's really the product experience and the advertising just amplifies.”

“Obvious places where content is generated actually, ironically, is going to be advertising. I can see how personalized advertising actually plays a pretty big role, especially when it gets to be multimodal.”

“This is what Ogilvy said. Ogilvy's like, if you need advertising to sell your product, it's not a marketing expense, it's a production cost. It's a pro, it's actual cost of manufacturing your product.”

“We believe that you couldn't be solely dependent on advertising, and to be a really big, durable company, Roy and I were super confident that you needed this subscription leg of the business.”

“Yeah, you know, we've never spent one dollar in advertising in Tarte ever.”

“Really only three percent of the top 100 YC companies use an advertising business model as their primary way to make money.”

“And we, you know, and again, it's all relative to a seventy million dollar ad business. So if you sell half a million dollars of swag a year and that's your cap, the question's like, well, you know, it's nice, but it's not going to move the needle.”

“And so look, as they start to work together, I think we'll see them, you know, completely rewrite some of these verticals, like movie production, or music production, right, or advertising, or we're seeing it now with video and creative arts, with, you know, s…”

“You could even have ads being optimized, like AI could be writing the copy and showing and generating image and then all of a sudden it'll swap and change a few things and it'll see what that CTI was much better. Let's go with this one. And then they just opti…”

“Prior to starting Cocoon, Alex and I had both worked at Facebook for a number of years and had worked on effectively the same problem of helping people share more with their friends and family and had all these ideas for what An idealized experience might look…”

“I think advertising is one of the great evils of the world, because it gets in your brain no matter what, and the metrics they use are basically what has made media what it is today, like really shallow, fast cadence”

“Any web platform of sufficient scale can layer on for free a second business of advertising because they just have the traffic and they can put stuff in front of people and they can prioritize it however they see fit.”