Consumer Magazine Report: Advertising - Eyes Wide Shut

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The clutter of last year’s dot.com advertising has given way to a more sane approach. Does that mean less profit for print?
Early on, Amazon led the way in building well-known Internet brands through offline advertising. But the retailing pioneer’s experience may also portend the next phase of the dot.com industry’s efforts to create, at warp speed, the kind of high profile forged over time by their more established bricks-and-mortar competitors. On Jan. 5, Amazon’s shares dropped 15 percent after the company said fourth-quarter sales would fall below some analysts’ projections, despite tripling of ad budgets.
If Amazon, with its considerable marketing prowess, is failing to turn ad dollars into consumer sales, what about the wave of unseasoned start-ups whose advertising expertise seems to lie largely in access to media dollars raised through IPOs? After an intoxicating year–in which dot.com




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