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Technology Stocks : Cyberian Outpost (Symbol: COOL) -- Ignore unavailable to you. Want to Upgrade?


To: Leo Francis who wrote (377)12/2/1998 7:49:00 PM
From: Elroy  Read Replies (1) | Respond to of 1932
 
Are the ads running on any station other than CNBC?



To: Leo Francis who wrote (377)12/2/1998 9:48:00 PM
From: Tim McGee  Respond to of 1932
 
I'm not sure you succeeded in pointing out where i am mistaken

Your facts...
<<<Also, over 40% of American households have a PC, albeit only about 25-30 of Americans are currently online. Ads like these promote the company, (Outpost.com), AND the desire to "be online". TV is actually a great medium for COOL.>>>

of these online americans, only 7% of these folks are willing to buy online now as opposed to 4% last year. This is good in that it is showing good signs of growth. And it shows a large future market which potentially COOL can play a part in. But for now, it is the definition of a narrow audience - TV is not good for that.

I understand the strategy being employed by COOL, I just question the ability of COOL to sustain this strategy - leading to your stated goal of perpetuity. I believe other companies in this biz are creating a better foundation by acquiring customers through low prices and links to heavily travelled sites. These companies are much bigger than COOL right now. If they also chose to advertise on TV, they could squeeze COOL out.

My point in these posts has been to question effectiveness of the strategy of TV advertising. If you look at the current leaders in technology (MSFT, INTC, CISCO etc), many did not do TV advertising for most of the years they were in business - msft and intc have been doing tv for only 4-6 years and they are 20 yr old companies.

The only thing i would say in favor of your TV ad campaign strategy is that you have better control nowadays over the costs and audiences b/c cable tv is widespread.
Remember this when you throw the branding word around.. "Great products make great brands, great brands do not make great Products" by Guy Kawasaki.

Tim