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0 pointsmartin-t7mo ago0 comments

They'd still be exposed to other options, through friends, reviewers, comparisons websites, etc.

Ads mean the brand with more money wins. It is completely orthogonal to value/cost.

You can in theory get investors to fund ads for a new brand but it just increases the upfront cost. Organic growth is no longer possible. And who benefits most are the already rich.

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charcircuit7mo ago

Popular options will have more words of mouth, more reviews, appear on more comparison websites, etc. The incubants have a massive advantage through those paths.

>Ads mean the brand with more money wins. It is completely orthogonal to value/cost.

Why? A better product will be able to achieve a better ROI on ad spend. This means that they can afford to spend more per ad than their competitors meaning they will win all of the ad auctions compared to the brand with the most money.

ndriscoll7mo ago

A product with higher price-input cost spread will be able to achieve a better ROI on ad spend. i.e. they can displace products with higher quality, lower price, or both.

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