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To: jach who wrote (31690)12/30/1998 4:30:00 AM
From: Dwight E. Karlsen  Respond to of 164684
 
So, the point is that Internet Advertising mkt is not even going to come any close to TV, and will eventually dwindle and die. All imo.

LOL. That's quite a prediction. I do think that you have a point though. My own view is that Internet advertising will continue to rise in volume and ubiquity, but that it will become cheaper and cheaper.

Rise in volume and ubiquity: The web is definitely growing, certainly the number of "pages" available online is growing at a frightening pace. And as long as eyeballs are looking at the screen, they may as well be forced to stare at a company's banner. I'm the chief number cruncher at a home building company ($40M annual sales), and we've had a web site for over a year, which is now being revamped, professionally maintained, and yes, advertised, though not with banners yet but as a listing in a City Guide (CitySearch service).

We don't expect, of course, that anyone is going to order a house online; nobody in their right mind would purchase a house that way. The web presense is simply to gain exposure and disseminate info about what we have to offer.

Cheaper and cheaper: When everyone is doing it, it becomes a much larger market. More buyers, but even more sellers. Everyone has a page to sell ads on. It's just a matter of do you want to drop a million dollars on a 15 second Superbowl TV ad or will a 5"x7" color ad in the Sunday paper provide a better return on the investment?

Advertising is nothing new, but when I see YHOO market cap touching $30 billion dollars, I think that YHOO is advertising tulips, and charging accordingly. That won't last.

I think YHOO is going to be the biggest disappointment of 1999. They simply don't have anything going for them except millions of people looking at stock quotes, and paying zilch, clicking on .04% of the banner ads. Holiday sales transaction fees? Yawn. I actually did search Yahoo's shopping service for telescopes, for my brother. Yahoo listed a grand total of twelve (12) different models from various merchants. None was what I was looking for, so I didn't even click on a merchant link. Not even Yahoo can keep pace with the volume of chaos that is called the web.