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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: mr.mark who wrote (8437)	4/24/1998 10:26:00 AM
From: LastShadow	Read Replies (1) \| Respond to of 120523

Actually, what makes SI worth $33 million to go2net isn't the few million to be had in subscriptions, but the advertising revenue stream that can be generated with 1 million visitors and 150k customers. Resturcturing the place to allow for ad banners on every page, at say $5000 per 50,000 impressions (less than a couple hours worth of traffic) is worth conservatively over $3 million a month at full up. Once they get near that point, the cost of a banner goes higher. That's why search engine companies rocketed in price. They have the most traffic and if they are looking at improved revenue for the next quarter it says a lot about electronic commerce. Thats why places like Netscape are going to offer free email services - to generate traffic to see the coming advertising banners to generate revenue for them which will improve share price... ls