Hi Chuzzlewit, RE: AOL growth.
I read your post on the AOL thread regarding AOL growth. I just invested a portion of my portfolio in AOL, and I was not as concerned about growth as you when I invested, although I had many other considerations which convinced me to buy.
In my opinion, the one main reason that will continue to propel their growth is the same one that propels Wal-Mart- their customer base. AOL has 12 million names (I think that is the right number) and they know what these people have bought and what they like to discuss and when they can discuss it. It is like the Wal-Mart customer base strategy on steroids. Because of this, advertisers will increasingly put more and more ads on their site because the ads are more effective than the scatter shot ads you see on TV, print and billboards. In fact, they are better than ads, because one click on an AOL ad and the product can be purchased. In my opinion, AOL is at the very start of their advertising revenue. I expect in about 5 years, AOL will not charge anybody for access, because advertising revenue will be so great. Also, manufacturers will be driven to sell their goods via the internet and AOL too because it will reduce their costs and make them more competitive... just look at Dell as an example.
This is all just my opinion and not a recommendation to buy or sell.
Jon :) |
