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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?


To: Sigmund who wrote (2567)12/14/1997 10:48:00 PM
From: Wildman262  Read Replies (1) | Respond to of 14266
 
I never wrote that advertising did not pay. I responded to a post saying that Thq's games get lost on the shelf. Best Buy, CompUSA, ToysRUs all stock their games in alphabetical order. We are at the mercy of the alphabet to determine WHERE we are located on the shelf. I believe that advertising can pay, but I do not believe the ROI is very good. To spend the big money on radio/TV/or print requires "x" amount of games to be sold for it to be a "good spend". Why should THQ blow big ad money on NWO, Pax and others? This adds a lot more risk to the equation. And we all know how THQ feels about undue risk. THQ likes the sure bet and the sure profit.

THQ has certainly demonstrated that they support retailer ads. We have seen numerous ads for NWO, VS, Ghost, WCW vs. the World and GameBoy titles in the last month. These have been featured at Best Buy, CompUSA, Target and KayBee that I am aware of.

I am offering an example from the food industry ( I am a food broker). I would guess that my following comments could easily translate to THQ and their customers. Sometimes the return on retailer ads may not even pay for the cost of running them. However, they do show support and goodwill toward the retailer. (the MAJORITY of retailer print ads are profit centers. They sell the space to their vendors) Obviously this is critical when the retailer asks what are you going to do make sure this product turns off my shelf??