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Technology Stocks : America On-Line: will it survive ...?
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To: Brad Rogers who wrote (2112)3/4/1997 4:14:00 PM
From: Todd Daniels   of 13594
 
>every adman hi and lo on madison avenue will be chasing this
>chat room demographic

Are you in the ad business?

I'm not, but have checked with a few on the new media side.
They're a bit wary. And they note that because the ads wouldn't
be in the areas themselves, but in the ante rooms, the rate will
have to be a lot less than the $0.01 per impression upon which AOL's
$500m claim of inventory value is based. They say it's more like outdoor billboards than normal online ad banners.

And they aren't wild about the demographic -- which is mainly teens
and hugely sub-teens. They aren't the ones with the credit cards to
which the accounts are billed.

Also to be determined is the effectiveness of ads in the chat
ante rooms. Nobody really knows. Could be the cyber-equivalent
of matchbook covers.

The market is counting these chickies (and those of Tel-Save deal)
before they're hatched. If the history of back of envelope projections
about AOL advertising is a guide, the current estimates are way hi.
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