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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Saban Kurucay who wrote (9875)	5/6/1998 11:21:00 PM
From: shag007	Respond to of 13594

"Frankly my stomach turns when analysts try to explain valuations with number of eyeballs and hits and god knows what else.." These are the numbers these companies use to charge for their advertising....very important. FDA

To: Saban Kurucay who wrote (9875)	5/7/1998 1:24:00 AM
From: Mike C	Respond to of 13594

Yes Sabin they do have 30 times the number of eyeballs and- Get anywhere from $40,000 to $1 million (major sporting events)/min. per commercial. Have a "captured" audience where the ad is shown full screen (no flashing Banner that can be ignored) * Schedule and price ad to fit audience sophistication / income level (Mercedes on evening news, Corn Flakes on kids shows) Have an audience level that increase approximately linearly with population but is, however, diluted by explosion in # of channels. Granted advertisers are scrambling for a spot on AOL but its only a matter of time before- Other web competition takes its toll on the number of new AOL viewers. (it sure seems like it been around 12 million for a while) * Advertisers realize ad response is not what they expected for the price. * The assumption that anyone rich enough and smart enough to use a computer and be on the web must be an excellent and opportune target may not be true for AOL per se. The high stock price, thus has built in the assumption that ad's and new viewers will grow to TV like proportions yet this may not be the case. 600,000 viewers on line at one time! Wow! How does this compare to Roots,(80 million) The Tonight Show, the Super Bowl >100 million world wide. Mike C