> ad revenue is the new shrink-flation without it prices will rise.
replySome prices rise, some prices go down.
Ads aren't free money, the advertisers are paying for them (I know, seems obvious) but where do the advertisers get the money to advertise? Well, it's baked into the cost of the goods they advertise. That makes everything that advertises more expensive.
And yet advertising raises demand, which in intern causes people to offer to meet that demand which means competition, which lowers prices.
replyLots of examples of this cycle you can search for.
That only works for smaller and unestablished brands. There are diminishing returns to the economy of scale.
replyCoca-cola, for example, isn't going to lower their prices in response to increased demand from their $4 billion marketing budget.