New ads jar some YouTube fans

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Your are very wrong!

Bringing in billions of what? Sure, it brings in $B to companies that sell advertising. But is the cost of the advertising really effective in generating sales. As an extreme example, companies like Nike spend tens (hundreds) of millions on endoresement contracts. Does it really generate that much in sales? And what about product quality. Let's take a look at those $300 sneakers that people get suckered into buying:

Manufacturing costs $5.00 (and I am being way conservative)
That leaves $295 for advertising and profit.

Given the cost of advertising, I would say most of that $295 goes to marketing costs.

If you take a look at most products I think you will find the same thing.

Regarding clicking on ads, big deal. Does it generate a sale?

Posted by: 7mgte   Posted on: 08/23/07 You are currently: a Guest | Members login | Terms of Use

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