Advertising is a unique service business. When limited to the Internet, platform operators gather users and allow them to access the platform for free in exchange for viewing advertisements. In reality, users are not accessing the platform for free; instead, the advertiser pays for it. In other words, users do not fulfill any obligations regarding platform use, while the advertiser assumes those obligations and gains profit by notifying and exposing themselves to the user. The platform operator fulfills its obligation by providing the advertising medium to the advertiser, but does not guarantee the advertisement’s success and is not accountable for the outcomes of the business. Advertising represents one of the few unique transaction structures in the world that satisfies the utility of each party without necessarily attributing benefits to the counterparty meant to receive them. Such an unusual transaction structure has been rare throughout human history. Although the advertising indu...
If a New Zealand fisherman catches a seabream in New Zealand, he makes a profit of $9 per kilogram, but if a tourist catches it, $88 goes back to New Zealand. This is because to fish a seabream, the tourist has to spend money on flights, hotels, and all sorts of rentals. The opportunity cost and value-added will change as B2B becomes B2C. - Joseph's "just my thoughts"