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ndriscoll 5 hours ago

You take the money you would've spent on ads and instead offer a lower price than the current leader to make up for the buyer's uncertainty toward your product. This lets a search algorithm organically decide that you are among the top (risk-neutral) value contenders. Once that uncertainty disappears, you will have a higher value product and can therefore command a higher price.

Put another way, the buyer uncertainty about your product actually, concretely makes your product worse. They don't know whether your thing will fail. The don't know whether you will go out of business if they need support. All else equal, either your product is not the best product, or you need to offer a lower price. Ads are a way to instead just pay someone to straight up lie (i.e. defraud) and say it's recommended when it's not.

paytonjjones 5 hours ago | parent [-]

It's a nice idea and I can see it working in some cases.

I'll be the first to admit I don't know the specifics, but I imagine in some cases, it's economically prohibitive to lower the price by such an amount that it makes up for the uncertainty in a typical search algorithm.

ndriscoll 5 hours ago | parent [-]

Then your product is actually worse for the customer. It's nice that you want it to be better, but it's not in a meaningful way that you can't just handwave away. Risk carries a cost.

Another possibility would be for the marketplace to be better able to load information about your product so you could provide some more information and reduce that uncertainty. E.g. that you use different (better) materials in your construction. Or you could work with the marketplace to purchase or demonstrate some kind of insurance policy to mitigate support concerns. Basically allow those unknown pieces of information to be discoverable by search engines and the customer. If the market has more knowledge, then if you have a better product, it should organically rank better. Either way, ads do literally nothing to benefit the buyer since they provide zero information (actually they provide a negative piece of information: someone paid for you to see something, so you can assume it's not in your interest to see it).