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December 27, 2004

Amazon drops TV advertising
Interesting quote from Amazon's Jeff Bezos in January's Wired Magazine:
"About three months ago, we stopped doing TV advertising. We did a 15-month-long test of TV advertising in two markets -- Portland, OR and Minneapolis -- to see how much it drove our sales. And it worked, but not as much as the kind of price elasticity we knew we could get from taking those ad dollars and giving them back to consumers."
Bezos said they used the money to lower prices and offer free shipping -- a move that "significantly accelerated" the growth of Amazon.com. He says the balance is shifting toward spending more money on the customer experience and less on advertising -- then depending on word of mouth to generate sales.
Posted by yatta at 02:35 PM