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

To: Bill Harmond who wrote (5467)	2/28/2001 1:17:35 AM
From: Robert Rose	Read Replies (1) \| Respond to of 57684

your problem is that you choose to consistently ignore the financial impact that a bear market might have on real folks' lives. i consider personally that that is quite a diservice to us all.

To: Bill Harmond who wrote (5467)	2/28/2001 9:23:11 AM
From: Glenn D. Rudolph	Respond to of 57684

Bill, I agree with this assessment although national advertising is not my area of expertise. Would you agree? Thank you. Glenn Recent channel checks suggest that Yahoo! (YHOO, D-1-1-9, $25), AOL (AOL, C-1-1-9, $44), Microsoft (MSFT, C-2-2-9, $59) and DoubleClick (DCLK, D-2-1- 9, $14) are all devoting significant resources to courting the traditional ad agency executives. We continue to believe that the current weakness in online advertising is the result of 6 factors, all of which we view as temporary: 1) the disappearance of about 50% of spending, as dotcoms fail or slash spending, 2) a loss of urgency among traditional advertisers, who no longer worry that they are going to get “Amazoned,” 3) a lack of innovation in products and services, as a result of the industry having it too easy for too long, 4) demand-driven pricing that was (and, in some cases, still is) too high to allow for a compelling ROI, 5) the proliferation of irrational competition, and 6) economic weakness. We believe that by the end of this year, most of these factors will be on their way to working themselves out, setting the stage for several years of at least 20%-30% market growth. The surviving companies, moreover, should be in a much stronger competitive position. (H. Blodget/K. Campbell/E. Glatt)