Earlier quoted context omitted.
While I dislike advertising a lot ... > Ads suppress customer choice, along with innovations. Can you recall any recent innovative carbonated drink? Marketing budgets of pepsi/coca cola make competition and innovation impossible. ...I don't think this is actually reasonable to ascribe to advertising . This is a problem with hyperconsolidation . Competition is driven by having many players in the market who are all wi…
> Once consolidation shrinks the number of players down to a handful or less, that's when competition and innovation are stifled. Yeah, and ads is the main mechanism why. Ban ads of carbonated drinks, and pepsi/coca cola will become no different from any other manufacturer of that stuff. They do have economy of scale for their advantage, but I don’t think it will help them much. The price/weight ratio of their produc…
...Nnno. Mergers and acquisitions are how you consolidate. It doesn't matter if you show 10 million more ads than your nearest competitor; you're not going to somehow end up owning them unless you buy them out somehow.
The laws and regulations surrounding M&A were loosened several decades ago, and that has, very clearly and directly, led to the level of consolidation we have today.
The effects of ads and the effects of this on ads are both byproducts.