Eric Feng
1 min readJul 17, 2018

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Well said Mike! Totally agree that DR help introduce a transactional element to advertising, that’s lacking in brands. But ads are still fundamentally an attention business and there will always be a cap on attention (given there’s a finite amount of time in a day). So even with highly variable pricing in DR, it’s hard to scale monetization per user in a power law way. At Hulu (which was entirely brand advertising), RPU between cohorts was largely linear, which isn’t the case for transaction based businesses where you can capture 100x more value from your best users. I’m betting even Facebook cohorts differed mostly linearly, and that leaves a lot of money on the table.

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Eric Feng
Eric Feng

Written by Eric Feng

Current: Co-founder of @cymbalxyz, Co-founder of @GoldHouseCo Ventures. Past: @Meta (via Packagd), GP at @KleinerPerkins, and CTO of @Hulu and @Flipboard.

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