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$800M to support small businesses and crisis response

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Re: $800M to support small businesses and crisis response

#51

Post by izacus »

dessant wrote: post #47

I think Google could afford to spend a couple billions more to fund the manufacturing and distribution of masks and ventillators, instead of announcing a support package with the bulk in ad credits. Also, Google employs some of the best marketers on the planet, they should be showing ads for how to wear masks correctly and for practical safety guidelines, and leverage everything they've learned about human psychology…

Did you miss the last bullet point?

> Direct financial support and expertise to help increase the production capacity for personal protective equipment (PPE) and lifesaving medical devices. We’re working with our longtime supplier and partner Magid Glove & Safety, with the goal of ramping up production of 2-3 million face masks in the coming weeks that will be provided to the CDC Foundation. Additionally, employees from across Alphabet, including Google, Verily and X, are bringing engineering, supply chain and healthcare expertise to facilitate increased production of ventilators, working with equipment manufacturers, distributors and the government in this effort.

Re: $800M to support small businesses and crisis response

#53

Post by compiler-guy »

Donald wrote: post #49

I assume the free ad credits are to stave off cratering their own CPM market's bid prices? Conflating that funding with grants for assisting with COVID-19 responses is extremely disingenuous.

Except that they aren't conflating the two. They call out each individually.

Re: $800M to support small businesses and crisis response

#54

Post by heinrichhartman »

onlyrealcuzzo wrote: post #24
heinrichhartman wrote: post #20

This is NOT funding : - $250 million in ad grants ... - $340 million in Google Ads credits ... - A pool of $20 million in Google Cloud credits ... A company that has a Bazillion $ in the bank, has means to really make a difference. This is not. Edit/Clarification: The original title was: "$800M funding and grants to support ..". Now they changed it. I take issue with the claim of providing funding, and all they offer…

Why does a company with a Bazillion dollars in the bank need to be a charity? If we agree that's the case, we should tax companies more. If not, what's the problem?

They don't have to. There is no problem. I am glad they are doing something.

However, if you come forward and pledge to provide "800 Million funding and grants" and all you get is Google Ad credits, that's disingenuous.

Re: $800M to support small businesses and crisis response

#55

Post by quirmian »

neiman wrote: post #45

Lol they offer free ads because there's a financial crisis, they probably lost of customers and they're trying to attract new ones. Fine. I offer free ads for 3 months worth 1B$ in my website, can I use it now for PR as well?:-)

Of course you can. Does your website get the kind of traffic google does?

Re: $800M to support small businesses and crisis response

#56

Post by guacamole4 »

neiman wrote: post #45

Lol they offer free ads because there's a financial crisis, they probably lost of customers and they're trying to attract new ones. Fine. I offer free ads for 3 months worth 1B$ in my website, can I use it now for PR as well?:-)

Do you actually currently make $1B in ads over 3 months then and will be giving away that revenue, or are you lying to score points online?

Re: $800M to support small businesses and crisis response

#57

Post by compiler-guy »

neiman wrote: post #45

Lol they offer free ads because there's a financial crisis, they probably lost of customers and they're trying to attract new ones. Fine. I offer free ads for 3 months worth 1B$ in my website, can I use it now for PR as well?:-)

This offer only goes to accounts that have been active in the past year, so it is not a play for new accounts.

Re: $800M to support small businesses and crisis response

#59

Post by onlyrealcuzzo »

treyfitty wrote: post #44
judge2020 wrote: post #35

Earlier quoted context omitted.

They're still losing revenue in that, when these ad credits are spent, they're not receiving any actual money from advertisements that would have shown up in place of these free ads.

I’m not an accountant, but I do know that gift cards should be recognized as revenue at the time of services rendered, not at the time of a sale of a gift card. Are grants similar in that a “gift card” is being granted and the revenue can be realized at a later date?

I'm not an accountant, but I believe that's revenue recognition.

I sell you a $10 gift card today. I can't recognize the revenue until you spend the $10.

However, if I know you're going to spend $10 less at my business this year, I can GIVE you a $10 gift card. Then, hopefully, you'll come to my business as usual. When you spend the $10, I can record that as revenue, and then I can record a $10 expense for the cost of sale.

Top line doesn't change. I think. But I'm not an accountant. I don't know.

Re: $800M to support small businesses and crisis response

#60

Post by onlyrealcuzzo »

judge2020 wrote: post #35
onlyrealcuzzo wrote: post #27

Earlier quoted context omitted.

Any accountants here? Isn't this just an accounting trick? They're going to lose revenue. But can't they now issue this "grant", and then pretend they aren't losing revenue -- they're just issuing a grant? Or is that not how it works? I don't know, but would like to know.

They're still losing revenue in that, when these ad credits are spent, they're not receiving any actual money from advertisements that would have shown up in place of these free ads.

Technically, yes. My question is if this is an accounting trick to mask that.

If people spend $10 grant money, I believe you can record $10 revenue and $10 expenses. Top line is artificially $10 higher. Bottom line is unchanged.

Again -- this is how I think it works. But I don't know.

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