Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bill Harmond who wrote (3787)	12/7/2000 7:09:34 PM
From: Randy Ellingson	Read Replies (2) \| Respond to of 57684

Thanks very much for your reply. I asked about Yahoo's advertising business in part because I would love to be able to purchase a very small amount of ad CPMs, but anticipate the smallest orders would end up paying at least $10 CPM(talking, for example, 100,000 CPM or perhaps even less). Whether or not meaningful results could even be obtained for a small business with such a tiny ad effort is another question of course. I don't know much about it, nor just whom to ask. I suppose a usenet news group exists on advertising, and I could start there. Randy

To: Bill Harmond who wrote (3787)	12/7/2000 10:45:11 PM
From: Doug Fowler	Read Replies (2) \| Respond to of 57684

William: The one aspect that NOBODY seems to be talking about is exactly WHAT return on investment Yahoo's customers get for the money they spend on banner advertising. Even using the lower rates commonly charged these days, it is not uncommon to see only 10 cents in sales being generated for a dollar spent on net ads. The fact that dot-coms have less money to spend on net advertising is only a small part of the equation. The fundamental change has been that these dot-coms are no longer rewarded for turning a dollar into a dime. Yahoo (and the whole group) formerly benefited from that crazed mentality. Now that reality has set in, it is going to get far worse before it gets better - because Yahoo and everyone else will have to lower their rates until their customers AT LEAST have a chance of breaking even on their banner investment. Of course, before Yahoo stoops to those levels, it will try to create new ways to monetize those eyeballs - of course, new ways that have no history and for which the new dot-coms will trip over themselves to declare the new holy grail. (Yahoo is getting down there - another 50 percent will be just about right.) --Doug Fowler