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

Patrick McGovern (mcgovern_at_netjet.com)
Wed, 15 Jul 1998 16:55:35 -0500 (CDT)

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richard hoy wrote:

>I've been in this business going on four years now. In my experience is
>that the biggest expense is content creation, not promotion.

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.

* The list goes on and on. Many of the deals are in the 10's of millions of
dollars.

Here's a good article by Bill Gurly of Hummer Winblad.

http://www.news.com/Perspectives/Column/0,176,221,00.html?st.ne.per.gif.a

Of course I hope all of this is not true because I'm trying to build a
number of sites with very little promotional dollars. (blatant pitch:
Latest one is http://www.my-mug.com)

Pat-

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Patrick McGovern Email: mcgovern_at_netjet.com

President Fax: 415-538-3378
NetJet Communications Phone: 415-538-3373
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