Re: ONLINE-ADS>> Zapata is nuts...

richard_at_tenagra.com
Wed, 15 Jul 1998 16:55:31 -0500 (CDT)

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Patrick McGovern <mcgovern_at_netjet.com> wrote:

>Well, if you want to be one of the 'big-boys' you need to blow tons of cash
>on promotion. Especially with the portals. There are a few exceptions to
>this, but the ability to build a 'Yahoo' out of a college dorm room is
>over. It takes dough.
>
>Here's examples of this....
>
>*Netgrocer just spent 75 million dollars to have a relationship with AOL.
>
>*Priceline recently spent 10 million dollars on a national radio campaign
>
>*Cybermeals has committed more than $50 million to secure exclusive
>placement on Excite, Yahoo, Lycos and America Online.

Pat,

Again, you cite companies that are not publishers. These guys are in the
service industry. It is no surprise that promotion - which is basically
aimed at recruiting customers - is their biggest expense.

Avie Glazer makes no claims to be a service company. He says he is a
publisher. I'm saying that my experience in **online publishing** is that
content creation is your greatest expense, not promotion.

richard

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