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To: Randy Ellingson who wrote (67246)	7/12/1999 12:24:00 PM
From: Eric Wells	Read Replies (1) \| Respond to of 164684

>>It remains to be seen how well retailers can keep their customers, >>but everybody and their uncle.com wants customers today, and trying >>to take them away will be game most easily lost by the newcomer... Don't lose sight of the fact that customer switching costs on the net are much lower than they are for bricks & mortar commerce. A competitor is only one or two mouse clicks away. I don't believe anyone yet knows what impact "easy switching" will have on the ability of internet companies to retain customers. -Eric Wells

To: Randy Ellingson who wrote (67246)	7/12/1999 12:30:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 164684

<You think advertisers won't pay up big for the premium advertising spots? They already are. Ad spending's not going to drop.> I agree that ad spending is not going to drop but will decline in growth. Ad agencies and the companies they buy for aren't dumb - they will pay for results and as the novelty of the web wears off, they will stop paying a premium just to be "seen on the exciting new media". At this point it is a trophy symbol to advertise on the net and that prestige factor is paying off for Yahoo! and others. But as the web gets past it's initial growth phase, which will last another one to two years IMO (growth rates are already in decline but are still well over 100%), advertisers will demand the same metered pay-backs that they do with traditional ad purchases. The golden days of web euphoria will subside into the routine.