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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Randy Ellingson who wrote (3781)	12/7/2000 4:38:02 PM
From: Bill Harmond	Read Replies (2) \| Respond to of 57684

There are all sorts of considerations. Advertising on Yahoo is sold at prices ranging from a few dollars per thousand to over $100 per thousand depending on where, whether the deals are exclusive, etc. "Going for the gross" (that's what temporarily commoditizing all available inventory at current market demand) can be damaging. Yahoo could cause itself lasting damage that would be far worse than managing through a slump. Yahoo's available inventory has grown so much faster than advertising demand over the past couple years that they could pull out all the stops and damage the industry, too, by sucking up everything in sight. I imagine Yahoo has to deliberately pass on business to lose the order. Most importantly Internet advertising doesn't exist in a vacuum. Match-book covers (not to mention more mainstream mass media) can be more expensive these days than banner ads on the Internet! That's just plain stupid. It's a matter of developing the market. To an advertiser it all comes down to unduplicated reach and effectiveness. If it takes more frequency to accomplish that effectiveness relative to other choices of media, then the Internet advertising market's costs will seek that level, and Yahoo will prosper anyway because it has the reach and the page-view avails to sell at whatever level the market adjusts to without suffering. Yahoo and AOL are highest on the food chain, followed by the DoubleClick Network.