Without even realizing it, we started to live with Chinese applications on our phones. Well, how did this happen? The campaigns carried out by Meta and Tiktok in the Art Plan have radically changed the entire application ecosystem.
Mustafa Vardalı, the founder of Teknation, drew attention to the 10 %reimbursement system presented by Meta to Chinese advertisers. Compared to Vardalı, this system eliminates fair competition in digital advertising. Moreover, not only disrupts competition; Thanks to these refunds, Chinese companies can indirectly convert the budget of their competitors to their own advantages.
10 %refund changed the direction of the market: stability in global advertising broke down
The reimbursement incentives offered by the platforms such as Meta, Tiktok and such as Chinese agencies have created a significant imbalance in the digital advertising world. While developers often try to make a profit in the middle of 10-20 %, Chinese advertisers can take back 10 %of their expenditures. This naturally makes the job of other companies trying to survive in the market.
Meta’s incentives presented in the Chinese agencies not only in their own countries, but also to add advertisers in other countries to their portfolios said. Although this medical activity is prohibited compared to official rules, it was suggested that Meta did not intervene in this situation. Thanks to this structure, Chinese agencies rapidly enlarged advertising campaigns and forced local companies to withdraw from the market.
Vardalı, in the article written in this privileged structure not only ethical, but also specific issues in terms of specific issues, he said. The European Union reminded that the US antitröst articles and US antitröst articles prohibit unilateral incentive systems. He brought to the language that the reimbursement model, which was implemented specifically for Chinese agencies, paved the way for monopolization in the global advertising market.
Meta’s repayment incentives offered to Chinese agencies did not only give advantage to these agencies, indicating that the sources, this situation pushed many advertisers out of the competition in the global market. If this imbalance in the section continues, most of the advertising market will be under the control of Chinese -based agencies in the near future.
