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Technology Stocks : America On-Line: will it survive ...?
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To: Brian K Crawford who wrote (1641)2/10/1997 3:11:00 PM
From: Todd Daniels   of 13594
 
>Humor me: Redo the last quarter with marketing expenses at 15% of
>revenues instead of 30+%. Pull out the non-recurring charges and make >the adjustment for excess marketing expenditures, and then let's
>correspond.

Unfortunately because they've suspended marketing though Q3, we
won't know until Q4 report in August. That's a loooong way away.

>And don't confuse today's ad blitz with tomorrow's much lower >maintenance advertising.

The 10K says that at least unit costs on marketing can be expected
to increase because the pool of qualified prospects has decreased,
and AOL has been sending mailings to larger percentage of less
qualified prospects.
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