The big internet companies like Google or Facebook are literally Advertising companies.

Things worked great at the start: The first-ever banner ad must have had a click-through rate of something close to 100%: When you see an online ad for the first time, you’re likely to click on it just out of curiosity.

But when you see a banner ad today, very unlikely you are going to click on it.

For Web2 giants like Facebook and Google, offsetting the lower click-through rates has meant serving you more ads which quickly degrades the user’s experience.

This is why Meta announced it will be spending $69 billion of capex over the next two years, most of which will go towards AI-driven data centers intended to make its content more addictive and its ads more relevant.

That $69 billion is the ever-spiraling cost of catching your attention.

It’s also why Zuck is betting on the metaverse, where the surface area for ads will be much greater.

Source:iSquare​