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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST
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To: Keith J who wrote (7471)2/18/1998 4:53:00 PM
From: Bill Harmond  Read Replies (2) of 27307
 
>>Someone want to tell me again that YHOO is going to quickly surpass AOL in advertising revenue based on the 67 million page views YHOO gets a day?

I'm the one that said Yahoo will surpass AOL in ad revenue. I didn't say quickly; I said its only a matter of time.

AOL's reach is limited by its membership. Yahoo doesn't have that limitation, already has many more different users (about double AOL's), and Yahoo is growing faster because it benefits from the growth in web users which is much faster than AOL's membership growth.

Then there's the global thing. With its national editions Yahoo has better a better global footprint.

AOL has far more page views than Yahoo, but they generate frequency with the same member base. Advertising on AOL reaches only AOL's members. There aren't enough online advertisers yet to maximize that model because advertisers generally figure too much frequency is waste.

There are desirability issues with the AOL users vs Yahoo users as well. AOL members at least have modems and are online so that defines a certain level of sophistication, but Yahoo users are pure netizens, a more sophisticated lot still, more desirable to advertisers. Yahoo, for example, has a much larger business-user base than AOL.

The big y/y growth in Web hits is due to AOL's change to unlimited use last year. Expect Web hits to grow faster than AOL content hits over time. Content is growing faster on the Web.

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