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Thursday, April 24, 2003

Dotcoms try different advertising strategies via TV

While eBay has increased its advertising spending on TV significantly, Amazon decided to cut back and use those savings to improve customer experience by forgoing shipping fees etc. according to this Wall Street Journal story (subscription required):

Amazon has plowed the dollars once reserved for advertising into free shipping on orders of $25 or more, an offer Amazon put in place last year and has since credited with boosting sales. Last year, free shipping increased Amazon's direct losses from shipping to $40 million from $19 million the prior year. The company has said it expects to forego $100 million in shipping revenue this year because of free-shipping offers.

...Last year, the top dozen Internet companies spent about $181 million on TV advertising, a tiny sliver of the $51.9 billion in total TV advertising, CMR says.

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