“It seemed obvious that the big advertising companies were not going to assume that cost. But rather they were going to pass it on to their clients,” Ismael El-Qudsi. CEO of Socialpubli and Internet República, tells MarketingDirecto.
“There are people who think it’s good that the big brands pay for it. But you have to take into account that companies like Google or Facebook have thousands of clients. Who are SMEs or freelancers “, he recalls. But anyone who advertises with them is going to see that their advertising is 2% more expensive than a week ago.”
Google and Facebook Have the Most Margin
“It seems that again the small entrepreneur, or the self-employed or the slightly smaller company, is harmed,” says El-Qudsi. Google and Facebook have the most margin and ad revenue. So if they do it, it’s likely that everyone else will follow suit. In the case of Amazon (e-commerce), the professional recalls, the margins are not as large as in advertising, so it is assumed that they will pass it on to their customers even more. “My feeling is that all American companies are going to come together to make similar decisions,” El-Qudsi tells us.
For the CEO of Socialpubli and Internet República, the problem lies in not having common European legislation in all countries. “They are playing by the rules of the game that the European Commission is leaving them,” he adds. Google and Facebook in Spain bill almost 1,000 million euros between the two. Their responsibility as a company is to make as much money as possible. They have made the most logical decision considering that they currently have a monopoly on online advertising.”
What this shows, according to El-Qudsi, is that “you cannot put doors on the field” and that ” if you do not have common legislation or there will always be a loophole through which they can sneak “. “And even more so in the digital world, where everything is relocated, that the same ad can be served from Ireland, the United States or Spain. As they do not have a personnel structure tied to one country, they can even dismantle the company in your country and continue operating from another”.