The Logic of Google Ads

谷歌广告的逻辑

作者: Aaron Swartz | 来源: aaronsw.com | 时间: 2009-11-03

When should you buy ads? Let’s assume your goal is for people to click on the ads and give you money. (Reasons this may not be true: persuasion, brand-building, budget-maximizing.) The return from a block of ads is thus revenue - marginal_costs - ad_costs. Ads are an investment like any other; you keep buying them until your return on investment (revenue - marginal_costs / ad_costs) equals your cost of capital (usually the interest rate).

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