Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: Brooks Jackson who wrote (11907)	7/7/1998 7:05:00 PM
From: Downer	Read Replies (1) of 27307

Regarding ad banner costs, I can offer the following ...banners will eventually become a thing of the past. Click through rates continue to drop except for certain offers, and the Web is becoming more and more cluttered -- thats why CPMs (the amount advertisers are willing to pay for each impression) are falling. Advertisers are becoming more keen about how to measure the value of exposure (is it the impression, the click through, or the sale/conversion rate) and that is what is putting pressure on ad rates. As more data is collected on ad banner effectiveness, better payout analysis is able to be conducted. In the short term, the reality is that banners are a commodity. Once broadband access hits the masses (probably 5 years out) the ad model changes completely. But until then, we're stuck with banners. The revenue potential now is in commerce deals where booksellers, travel agents, CD hawkers, etc. give up a cut of the margin to the facilitator (in this case Yahoo!). Couldn't believe the run-up in recent days, and had to go dive in (in with Aug 175 puts)...it definitely will be an interesting week! Downer

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