Marketing economics
Thoughts around media and marketing for economically driven marketers
- Indexed issues, last 90 days
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- Sep 13, 2026
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- Jul 21, 2026
Latest issues
M&C’s collapse, or why the full service model is officially facing ‘FeePocalypse’ (opens the original)
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M&C Saatchi’s Australian collapse is a case study in what happens when an agency’s cost base and the market for its work move in different directions. My view is that rising labour costs, weakening pricing power and competition from businesses with better economics left too little room to recover when clients departed.On 9 September, the group announced that its proposed Australian and New Zealand management buyout would not proceed. Its advertising agency business is due to cease operating befo
The Math Isn’t Mathing: Open AI’s $100bn Ad Inventory Problem (opens the original)
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In January, I wrote about what OpenAI’s ad announcement would probably cost advertisers, before a single dollar had actually changed hands. It was a speculative piece, built on burn rate and prompt volume, because that was all there was to build on at the time. OpenAI hadn’t priced anything yet.Six months on, the guesswork is over. ChatGPT ads launched on February 9th (almcorp.com), priced, sold, and measured. We now have an actual CPM, an actual fill rate, an actual advertiser count, and more u
The $22 trillion short: why China gives away frontier AI for free (opens the original)
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On 27 January 2025, a free Chinese model wiped $589 billion off Nvidia in a single trading day. It remains the largest one-day loss of market value in American history, and it was triggered by a hedge fund side project from Hangzhou releasing its model weights on the internet for nothing.Most of the commentary since has treated the China/US AI war as a capability story. Can China catch up? Are the benchmarks real? Did they distil GPT-4? That’s the boring version, and it
Why does Advertising Targeting suck? (opens the original)
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One of the big findings in marketing over the last decade is that targeting doesn’t really work.You’ve seen the evidence even if you haven’t read the papers. Holdout tests that come back flat. Brands switching off retargeting and watching sales not move. The big platforms quietly revising their own attribution numbers downward (hello, Meta and Google). There’s a lot of statistical smoke here, and I think basically every marketer now knows hyper-targeting often does nothing to move sales.But almo
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