This is a result of capitalism with unlimited credit-based money supply.
Modern interment businesses rely on the equation CAC < LTV, that is, “is the cost of acquiring a customer less than the lifetime value?” If so, they’ll spend money on advertising and this support an attention-based feed.
The fact that advertising now leads to increased revenues, which can be used as a basis for credit, completes the feedback loop.
With money creation coming from credit, interest rates can be unreasonably low. Bond yields, even for dismal companies, have been ludicrously low by historical standards. Advertising being a tool to turn money into revenue streams, anything that produces an emotional response will be monetized to the extreme.
A company can raise case by borrowing at essentially zero cost, use this cash to buy ads, and increase the demand for attention.
With fixed money supply, the interest rates wouldn’t get nearly so low. That would reduce demand for advertising because the cost of borrowing the money to acquire a user might exceed the LTV of the user.
Modern interment businesses rely on the equation CAC < LTV, that is, “is the cost of acquiring a customer less than the lifetime value?” If so, they’ll spend money on advertising and this support an attention-based feed.
The fact that advertising now leads to increased revenues, which can be used as a basis for credit, completes the feedback loop.
With money creation coming from credit, interest rates can be unreasonably low. Bond yields, even for dismal companies, have been ludicrously low by historical standards. Advertising being a tool to turn money into revenue streams, anything that produces an emotional response will be monetized to the extreme.
A company can raise case by borrowing at essentially zero cost, use this cash to buy ads, and increase the demand for attention.
With fixed money supply, the interest rates wouldn’t get nearly so low. That would reduce demand for advertising because the cost of borrowing the money to acquire a user might exceed the LTV of the user.