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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

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Nov 6 4:00 PM EST

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To: William Chaney who wrote (26308)	1/12/2001 8:05:26 PM
From: Bill Fischofer	Read Replies (2) of 27307

Re: Ad models Once again the Internet is leading the way. The problem is not that ads don't work on the net but somehow are wildly successful elsewhere. The problem is that intrusive advertising only "works" when the consumer is forced to view them. Unfortunately for Madison Avenue, technology is empowering the consumer and this is undermining the very foundation of traditional media business models. Consider today's announcements of layoff's at NBC (see dailynews.yahoo.com for details). Note particularly this quote: The news comes amid reports of layoffs at other major television companies in the wake of a softer advertising market. Why is this, one might ask. The answer is twofold. First, the Internet is increasingly winning the competition for after-dinner time in the typical household. With only so many hours in the day, the more hours consumers spend online the less they spend parked in front of a TV passively exposed to intrusive advertising. Beyond this, new technology in the form of personal video recorders (PVRs) is increasingly enabling consumers to avoid broadcast commercials entirely. Advertising is already easily avoided online and now the same is becoming true in the world of television. The situation is simply spiraling out of Madison Avenue's control and traditional media businesses are in deep denial, but the fact is that the era of broadcast advertising is rapidly drawing to a close. So the real issue isn't how can YHOO become more TV-like to get back on the ad gravy train. The real issue is how soon will it be before traditional broadcasters wake up to the same advertising reality that is now being faced by online companies like YHOO.

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