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To: Bill Harmond who wrote (80422)	10/13/1999 12:19:00 AM
From: Randy Ellingson	Read Replies (2) \| Respond to of 164684

>>You have to wonder if they are ever going to improve upon it. The interface is designed for simplicity and especially speed. So far it's not a liability. Just the opposite, I'd say. People, especially those accessing via <= 56 kbps, can't help but feel subconsciously positive when a web site is fast and simple to use. I say Yahoo deserves praise for their functionality and simplicity. Randy

To: Bill Harmond who wrote (80422)	10/13/1999 5:08:00 AM
From: GST	Read Replies (4) \| Respond to of 164684

William <Over-valued, no. Over-bought, yes.> define sex -g-

To: Bill Harmond who wrote (80422)	10/13/1999 9:38:00 AM
From: Wizard	Read Replies (1) \| Respond to of 164684

Hi William, I have a vague question for ya given your experience in advertising. Doubleclick says big advertisers like a Ford will likely divide their internet advertising spending pie in the following way: 1/3 big-reach sites like YHOO and AOL 1/3 specialty sites (for Ford, specialty auto websites) 1/3 'network-based' like DCLK (for 'run of network' advertising based on a quick analysis of who might be interested in a Ford ad) Any thoughts on this 1/3, 1/3, 1/3? ---------- By the way, did you see the stats TK put up at the YHOO lunch: Current ad spending per household: Newspapers $738 Broadcast TV $395 Radio $149 Internet $30 Looks like there is some upside, huh?

To: Bill Harmond who wrote (80422)	10/13/1999 12:09:00 PM
From: Eric Wells	Read Replies (2) \| Respond to of 164684

>>1/4 Commerce William - where did you obtain the revenue breakout for Yahoo? I've searched high and low for a revenue breakout of the latest earnings report and the only thing I was able to find was an article in the Wall Street Journal that stated that a Yahoo spokesperson informed the Journal that e-commerce companies had made approximately $100 million in revenues in selling through Yahoo's site during the most recent quarter. Of course, the question is: how much of this did Yahoo realize in revenue? 10%? 5%? 2%? Even if you take the 10% number (which I believe is high), that's $10 million which is about 6.66% of Yahoo's revenue. If you've obtained a 25% number elsewhere, it would be great if you could share the source. Regarding web advertising - I realize that with your past experience in advertising that you may be in a much better position to comment on the viability of Yahoo's advertising revenue model than I am. But I see web advertising as being a much different animal from television advertising. The advantage of television advertising in the past was that there was a limited number of television channels - if you advertised on one of the major networks, you were bound to get a large number of viewers - as viewers had limited choice on what channels to watch, and while advertisements were running, viewers had to view them, as there was nothing else on the screen (provided a viewer did not change channels). The web is much different. There are millions of web sites. True, the major protals have obtained and have retained large audiences. But the low customer switching costs made possible by the net combined with the ability for competing web sites to implement new technologies make Yahoo's ability to retain customers via a strong brand more risky than if Yahoo were a television network. Throw in the fact that ads are much more easily avoidable on the web than on TV - and well, these two facts form the basis for my lack of exuberance in Yahoo's reliance on advertising for revenue. It's odd in that a lot of other web sites have been beaten up lately because of their reliance on advertising - but not Yahoo. I think there is a very good chance this could change in the future however. Regarding the layout and appearance of Yahoo's site - you say it is not a liability - I view it as a lack of creativity and user-interface design experience on Yahoo's part in not being able to improve upon it. Thanks, -Eric