Advertisements follow you everywhere. From social media to online shopping, we see more and more websites using online advertisements to generate revenue from businesses who are trying to reach the ever-growing online audience. They can track your history to great lengths to provide you with 'what you want to see'. Social networking giants tapped into the profit-churning machine long ago, an example being Facebook in 2012. It obtained a total revenue of over $12 billion in 2015, most of which was derived from advertising. More recently, Snapchat introduced adverts - now almost half its revenue is derived from it. People have long found pop-ups and adverts a pain, yet more companies (such as Reddit) are following suit in implementing them. Therefore, I have come to ask a question: is advertising beneficial for all online websites?
I realised the question can be answered using game theory. If you are not yet familiar with the concept of game theory, don’t worry – A Rational Econ is working on a guide to it. For now, just see if you can follow. The payoff matrix below is used to illustrate the options of two large players in the social media industry - Firm A (player 1) and Firm B (player 2). Each box shows the revenue players get when they choose a particular strategy, with the first number (top right) indicating the payoff to player 1 and the second number (bottom left) the payoff player 2 would receive. Let’s assume that for these two businesses advertising increases revenue; therefore, when both players advertise, the total payoff is higher than when only one or neither advertise. Although adverts go against consumer’s best interest, there is high demand for it on social media from businesses as they have the ability to reach a massive audience. Thus, as soon as either form of social media starts using adverts, businesses will pay money to promote on the platform.
The exchange rate at time of posting: 1 GBP (British Pound) = 5.53 MYR (Malaysian Ringgit).
We are all aware of the growing tourist industry. South-east Asia is aware of it. Malaysia is emerging as an international tourism destination, attracting tourists from various cultures, backgrounds and companies. I, myself, visited Malaysia and neighbouring Borneo as part of a World Challenge  expedition; the goal being to explore and live within the confines of a developing society. Travel and tourism (T&T), in 2016, generated a total contribution of MYR 167.5bn to Malaysia’s GDP, composing 13.7% of it. This contribution is due to rise to approximately MYR 174.6bn by year end (2017). Further into this article, we explore the real causes of this growth.
It is important to note that tourism (in total) contributed 12.0% of total employment, 1,700,500 jobs, in 2016. Not only is this forecast to rise by 1.8% in 2017, but investment in T&T is due to rise by 8.2%, also. These rises are just between the last two years – and there has only been one fall in total contribution (between 2007 and 2008) – but it has been on the rise since then. If you take a look at the graph  (below), you can see that, since 2008, the total contribution of travel and tourism to GDP has been on the consistent rise; notice the projected rise by 2027, to almost a 300-billion-ringgit contribution to GDP.