Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: memflyken2 who wrote (19028)	1/23/1999 10:31:00 PM
From: Impristine	Respond to of 27307

exchange2000.com

To: memflyken2 who wrote (19028)	1/23/1999 10:42:00 PM
From: oldcrow	Read Replies (2) \| Respond to of 27307

You have valid points. However, :) 1) The studies examining rates of effectiveness via web advertising are few and far between...furthermore, look at who conducted them...some of the same organizations that stand to lose billions if there is a sudden shift from traditional media to web based media. -not saying the results are not valid...just that there is a strong underlying bias to "protect" the traditional routes. Same principal exists with energy usage. We all know that the technology exists to run cars on anything from water to common garbage...yet we still burn gasoline. What for!!??? Easy...no more need for oil.... then no more need for ) oil prospectors ) drillers ) equipment companies who supply the drillers ) pipe layers (to transport) and of course the pipe layer crews ) refineries ) trucks to haul the oil/gas ) truckers to drive them ) gas stations (owners and attendents ...gone) and the list goes on...the financial implications are enormous and far reaching...oil needs to protected (or at least phased out gradually) Traditional forms of advertising also need protection in the same capacity... Although I cannot produce any statistics to back my claim...I suspect the rates for recall and retention between magazine ads, tv, and the web are no different in effectiveness...further, define effectiveness (so hard to do)... ...the shorts routinely indicate how they skip the ads (NEVER clicking on even one)...even buying software to prevent them from being loaded.... yet these same folks switch the radio station when the ads play...get up for a snack or go to bathroom when the ads show up on tv (even fast forward through them, if its a pre-recorded show...I believe this is called zipping? you sound like a marketing guy.) Web advertising is very viable and will continue to evolve exponentially...it's unstoppable...it scares the $hit out of the print and broadcast folks! 2) YHOO's largest source of revenue growth going forward is expected to be from e-commerce (as I understand it). Regards

To: memflyken2 who wrote (19028)	1/24/1999 1:38:00 AM
From: jpbrody	Respond to of 27307

Memfly, great point about the advertising age article. (It's online at adage.com for free, but you have to register.) The article says that P&G has mad an offer of $5 CPM take it or leave it, but that so far web sites aren't taking it. I'm with you on the argument that the CPM rate is going to have to fall. I believe the only thing keeping it up at the moment are internet companies who are advertising like mad to build traffic before their IPOs. It's all kind of funny money (I bet a good chunk of Yahoo's revenues are coming either from IPO money or VC money like softbank.) I won't be convinced that the price can hold until we see what the big advertisers (Coca Cola, Budweiser, P&G) will pay for it. And for those who thing that banner ads aren't the only income, you're right. But guess what, e-commerce deals pay even less. Amazon figured this out quickly. They curtailed their banner ads and started their associates program (where they pay a commission if a click-through leads to a sale.) If you run a web site, you can expect to earn less than 5 cents/clickthrough via amazon's program. For banner ads, clickthrough rates are less than 1%, so rather than spending the $50 cpm and getting 10 clickthroughs ($5 per clickthrough) like in the old days, amazon only pays 5 cents/clickthrough. Even better for amazon, is that the e-commerce deals are paid AFTER the sale. Banner ads are prepaid. Big difference. -- Jim