Really excellent breakdown of the take rate economics here. The comparison between ChatGPT's 4% and Google's effective 30% rate makes the value proposition crystal clear for merchantss who are drowning in customer acquisition costs. I've watched several ecommerce brands struggle with rising ad costs so this kind of shift in the economics could be transformtive. Dunno if Google will respond with lower rates but this feels like a major inflection point.
4% chatgpt charging for bringing traffic, i feel is great, given "take rate" from other channels
Just wondering how would chatgpt manage for 1000s of brands, when they can just show few options to a customer?
they will be incented to provide more content and context and the engine will find the best thing.
Really excellent breakdown of the take rate economics here. The comparison between ChatGPT's 4% and Google's effective 30% rate makes the value proposition crystal clear for merchantss who are drowning in customer acquisition costs. I've watched several ecommerce brands struggle with rising ad costs so this kind of shift in the economics could be transformtive. Dunno if Google will respond with lower rates but this feels like a major inflection point.