NONE: Re: ONLINE-ADS>> Zapata is nuts...
Re: ONLINE-ADS>> Zapata is nuts...
GWIN (markm_at_gwin.net)
Mon, 20 Jul 1998 10:12:30 -0500 (CDT)
I don't think Zapata is nuts, I think they are
seeking to tap into demand in a public investment
market that they already have access to. Clearly
investors want more choice in Net related stocks.
Would we, do we plan on doing it differently?
Yes, but consolidation, network efficiencies, and
access to capital are all critically important in any
serious new media effort. Zapata no doubt was
swamped with interested parties. I contacted them
about one of ours that may have matched better
for their network than the one we are building.
Regarding the cost of promotion vs content, I've
had the opportunity to look at a number of Net
only businesses and they are all a bit different.
Older, well established sites don't need to invest
nearly as much in promotions as new. You can
have the best content in the world but if no one
knows it's out there in cyberspace it's pretty lonely.
You will never hear me argue that product quality
should not be the priority but any time you have a
supply and demand ratio like we have of web sites
to web surfers, promotions are a challenge. Some
people earn every step, others get lucky, and a
few get tens of millions in ink due to who owns them.
Clearly the majority would like to improve on there
ROI for content creation.
Publicity is very interesting given the players and
competition. I probably personally track as many
publications on the Web in business related topics
as anyone, and I can assure you that many valuable
content sites go unnoticed while others that are
repeated over and over again are not all that great.
I wish we didn't need to spend money and time on
promotions, that was one of the things many of us
had hoped the net would improve upon, but word of
mouth has always been a highly creative and not
always there when we need it. That's why advertising
was born, but right now webvertising seems to serve higher
profit traditional products than new media products,
at least in terms of cash flow.
Mark Montgomery
CEO/ GWIN LLC
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