Last few weeks I was thinking, If most people don’t make enough money in India, then how are companies making money? I started researching, and then I was curious to learn about revenue breakups in different businesses. Then I got the “AHA” moment as I spent more time on this by talking to a few people from different industries and investors - the insight became stronger. The “AHA” moment was - The business of advertisements. Before we deep dive in, understand that advertisements are not limited to Google ads, Youtube ads, or redirection to any websites - it’s much more than that. When you can’t make revenue from the consumer’s money, you will have to make money from the consumer’s time. The above is much more likely to happen in 3rd world countries or in places where time is not valued. People in India don’t mind advertisements, they are happy to watch ads for 10 minutes for 30 minutes of serial or listen to ads between every 4 songs. The advertisement business isn’t an exposure business, it’s a business of hope. I remember Kunal Shah saying, that every company will be a fintech company. Adding to that every tech company will be an Ad-tech company, they will have the business of ads involved - it will be a feature.
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