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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: fyodor_ who wrote (40617)5/20/2001 3:03:06 PM
From: dougSF30Respond to of 275872
 
Fyo, I think I agree with Dale on advertising bucks.

The most effective use of AMD bucks in this regard would be to help its OEMs secure more (& more prominent) shelf space in retail stores.

Even if the customer doesn't care about the processor, such a 'campaign' would boost AMD sales.

Doug



To: fyodor_ who wrote (40617)5/20/2001 3:44:25 PM
From: John EvansRead Replies (3) | Respond to of 275872
 
>AMD is actually rather active in the latter. Everything from soccer matches to platform conferences over (PC) gaming leagues.

The soccer banners would be a form of TV advertising.

"TV advertising, on the other hand, is an extremely effective medium at bringing such detailed awareness to the viewer"

Uh, huh. Like the Blue Man Group. Perhaps AMD should run out dancing Umpa-Lumpas... "Umpa-Lumpa, Doodley-Do, I have another riddle for you... What do you get when a company's fat?..Overpriced products performing like crap..." Seriously, wouldn't it be print and radio that provide a "detailed awareness"? Television is good for branding -- separating Brand X of deodorant from Brand Y, even though they are essentially the same.

A TV campaign is a drop in the bucket for Intel, but for AMD it is a significant expenditure. AMD has to spend its capital wisely because the competition is fierce. Look at the size of Intel's R&D budget. Instead of image, AMD has chosen to compete on price and performance. Advertising makes sense only when there's a clear return. And as long as Intel is bent on keeping ASP's low, TV is not cost effective.