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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: MikeyT who wrote (77652)	2/8/2000 8:58:00 AM
From: MeDroogies	Read Replies (1) \| Respond to of 97611

"What does Compaq have to gain by offering $400 rebate with its PC bundles? Does Compaq actually make money for offer this or does it help to "make the sell"?" From your original post. Are you telling me you aren't making a comment about the rebate costing CPQ money? If so, then I guess I'm wrong. But you should improve your grammar if that's the case. As for NetZero....can you tell me what advertising they are getting and increasing? I doubt it. In fact, most of their "advertising" is BS barter. Many online companies push the envelope with this. It's not a good thing to list barter as revenue, but virtually all of them do. Barter is not real money and is usually something that loses value over time at a pretty rapid rate. On top of that, NetZero's click throughs are abysmal (I know from speaking to clients). While impressions are the selling metric, clickthroughs are the determinant of whether to increase/continue advertising. On top of that, NetZero faces the problem of having to run WAY too many impressions to get the money back for paying for the connection. As a result, their advertising is FREQUENCY (how many times you see the ad) as opposed to REACH (how many people actually see it) based. Advertisers pay about $1-$5 per thousand impressions for frequency, as opposed to $20-$80 per thousand for reach. In addition, advertisers like contextually based advertising. Given that NetZero doesn't deliver ads contextually....that's another strike. Hence, that article I posted. These guys are facing severe problems already. It is doubtful the model will continue much more than another year.