Why do advertisers pay so much?
Over the past 10 years, advertisers have had to pay incredible amounts of money to reach customers online. Why? Advertising auctions.
To buy advertising slots from companies like Google, Facebook, or Amazon, your favorite brands constantly participate in auctions against each other. Big Tech companies allow the highest bidder to display their ads. That competitive environment forces brands to outbid each other to win ad spots - making them pay more and more.
It’s taken decades for advertising costs to rise so much, but today, when your favorite brand sells a product for $50, they probably had to pay $10-20 on ads for Big Tech to find the customer to buy that product. That’s a whopping 20% to 40% of an item’s purchase price on ads just to get one single sale!
Big Tech has gotten richer, but shoppers – the people advertisers are trying to reach – haven’t seen any of that.
Why should you care?
The ad-auctions for clicks and views operated by Big Tech platforms make everything online more expensive.
With incentives to always bid higher than competitors in ad auctions, your favorite stores have had to find ways to pay more and more money to outbid each other. To keep paying those rising advertising costs they’ve had to raise their prices. You pay those needlessly higher prices, like a tax. That hidden digital tax contributes to cost-of-living/inflation crises.
Meanwhile, stores have been trapped, unable to do anything about the Big Tech advertising systems creating huge prices for your clicks and views.
Big Tech platforms that have the user bases to drive large sales volumes all use the same auction-based ad systems to maximize what they can charge companies.
ChaChing changes all that.
ChaChing gives the money back to you.