It’s all well and good to claim that PPC offers little to no incremental benefit to brands like Airbnb and Williams Sonoma. But the gaping hole in this argument has to do with small brands. If you wanted to found a new cast iron skillet company you’d be damned pleased to be able to promote your wares directly to high intent purchasers who — so far — are only aware of the Williams Sonoma option. I’m quite certain that incremental benefits of PPC decrease as you scale and become a household name brand, but MOST brands aren’t.
I’ve been in growth for years and while I dislike PPC and find it boring and obfuscatory (FB and Google will both happily claim credit for the same purchase), there’s no denying that in many cases it works. I’ve been at early stage ecomm co’s where we’d pause the spend to see what happened and — what do ya know? — sales would plummet. Brands relying on it for discovery often benefit substantially.
I’d argue that most of the benefits of PPC accrue to smaller businesses (and the platforms, obv). The error in our collective framing is to hate on advertising because we think of it as coming from big brands. But these days it enables vastly more entrepreneurship and competition than I think many on here realize.
And to everyone cheering on Apple’s recent changes that make FB ad tracking impossible — who do you think suffers as a result? Big brands like LEGO can just redirect funds to a Hollywood film or some other high-visibility activation, because they already have their customers’ attention. It’s the small brands paying the price.