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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Don Savage who wrote (10761)	12/29/1998 4:17:00 PM
From: MeDroogies	Read Replies (1) \| Respond to of 25711

No. These sites make advertising money based on page views. If they are discounted, then they "owe" their advertiser page views. This essentially removes saleable advertising inventory. That creates an artificial squeeze on inventory. However, since inventory is static, not fluid, it isn't possible to translate that into higher prices. It is an old media problem. I dealt with it daily at ABC, CNBC and all the other networks I spent time working. I have learned methods of dealing with it, but it is a difficult art. You'd be surprised how few people really understand how this stuff works. When you consider the average age of sales management on the internet........there isn't much experience. They are making mistakes other media made 25 years ago. So much for watching and learning.