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Technology Stocks : GoTo.com, promising Internet search engine
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To: ChinuSFO who wrote (156)7/2/1999 10:13:00 AM
From: Mike Fredericks   of 977
 
Goto doesn't have a William Shatner, nor do they have the catchy "Ask Jeeves commercials." In fact, yesterday when I said that ASKJ was in the 70's and GOTO only in the mid 30's, my wife said that this made perfect sense because ASKJ was more popular. But I ask you, how much do those commercials cost? Willy boy doesn't do commercials for gratis. TV spots are not cheap to produce and then cost serious bucks to get on the air.

Goto did some print advertising to get the word out, then used the affiliate program very effectively to get traffic. You may question whether or not the advertising program works, but just look at the usage stats. 10 million unique users in May, compared to 4.2 million unique users in 10/98 (both numbers from press releases). That's more than a doubling of unique users in 8 months. Sounds like effective advertising to me. Plus, what is ASKJ's revenue stream? Traditional banner advertising? Doesn't cut it with me. Goto's model allows an unlimited number of advertisers and a constanly increasing ad rate, whereas banner ads are limited because they are not very effective and there are so many impressions to be sold that you have to stay within what the market is charging.

-MIke
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