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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 236.68

-2.4%

Jan 14 3:59 PM EST

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To: llamaphlegm who wrote (11689)	7/24/1998 8:31:00 PM
From: Rob S.	Read Replies (2) of 164684

Not only have page hits to many popular sites decreased but ad banner hits and dwell times are going down, down, down . . .Could it be that this indicates that users of the Internet would rather have control of their experience and not be subjected to marketing as usual over broadcast type media? Could it be that inet users don't like the idea of the internet being turned into another coach potato experience? I think so. Amazon.com (along with other advertisers) is paying more and more for advertising and is seeing fewer and fewer results. This makes the marketing and promotion expenses very high (Amazon's are 23% of sales). Looking at it the way all of us consumers should look at it: "Everthing you buy contains the cost of selling it". Your mother or father probably told you that "Money doesn't grow on trees". This stuff is true for any merchant as well, whether on the inet or selling stuff out of a cart at the downtown street corner. We should think of e-tail this way, "How much am I paying to see that ad?", and "How much of what that book or computer product cost is advertising expense." Consumers pay the high cost of advertising even if we don't want to. I think we all have known that probably since we were kids but we just considered it that way things were. Sure we bitched about advertisements that interrupted our programs just when the action was at a peak or the kiss was about to lead to something more. what the heck, part of the territory. But that is not necessary with the internet. We need to look at advertising as something we pay for because we are in control of what we do on the internet, unlike being plastered to a channel on TV/cable. And users should demand that they get what they want from advertising. If it is obnoxious, don't go there, if a site has heavy advertising, delete their bookmark. If advertising informs and pays for worthwhile content, then OK. There are better ways to sell things on the internet - some people are working on them ;-).

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