Q wrote:
I get very sick of people complaining about Neopets not needing more money. Until you have some facts and figures to present, what's the point?
Ask and ye shall recieve, I have no problems finding the data to verify my stance on the issue.
Q wrote:
What I haven't seen anybody mention here is the fact that internet advertising died shortly after Neopets was founded.
Internet advertising NEVER died. If it did, we wouldn't be pestered with as much ads as we do these days. Where are your figures on that? It went up simply because, as the internet became more popular, more people became online and had home computers and internet access.
In the beginning:
Internet Advertising generated $1.92 billion in 1998, double the 1997 figure. (Internet Advertising Bureau)
Now:
"NEW YORK, NY (November 15, 2004) Today, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that Internet advertising totaled approximately $2.43 billion in the third quarter of 2004 - the
eighth consecutive quarterly increase for the industry and the fourth record-setting quarter. Q3 2004 represents a 35.3% increase over Q3 2003 ($1.79 billion) and a 2.4% increase over Q2 2004 ($2.37 billion.) The IAB sponsors the Internet Ad Revenue Report, which is conducted independently by PwC."
Internet ads never died....they GREW.
Q wrote:
Yes ads are annoying. Blah blah blah. But they're here. 'Ol Dougiebuckets is very forward thinking.
Indeed. He's a business savvy man. And a business savvy guy knows that the average demographic age range of neopets players (Gen Y Internet users (ages 8-22)) are also the ones with the shortest attention span. Keeping the site popular has been well an issue about future measures. Most companies invested in that demographic usually use the pump and dump economic technique. Why? Because that demographic loses intrest so quickly, the best way to make a profit is by taking what you can while the popularity is at it's peak. Normally, through advanced massive marketing techniques. It starts as a small fad...but then the merchandise comes next, and usually the kiss of death is a movie. At the peak time a movie is released, the most public awareness of said item and merchandise hits max, and then....death. Have you ever noticed the biggest trends always get marketed out the wazoo when a film tie in is released, and then suddenly, within 6 months after the film the intrest is lost, and the fad is no more? That's the case for this demographic. Need examples of history?
80's:
Alvin and the Chipmunks: Movie + Mass Merchandising = Death.
Transformers: Movie + Mass Merchandising = Death. (resurrected later, but never hit the figures and popularity as prior.)
He-Man: Movie + Mass Merchandising = Death.
90's-00's:
Pokemon. Movie + Mass Merchandising = Death.
Yu-Gi-Oh=Movie + Mass Merchandising = Death.
I could list a thousand more...but hey...let's try not to make this post too long, shall we?
And here's your Neopets tie in:
"Neopets chairman and CEO Doug Dohring said he is considering a movie next. "Our view is that if we do a Pixar-quality film with Neopets -- and we're in no rush to do that because we're already highly profitable -- we believe that will provide the right positioning and umbrella as to who we really are and what our content is like," he said." *source=hollywood reporter interviewTranslation: "Our view is if we do a film, we'll be in the best position to sell merchandise since public awareness will be at it's peak."
Q wrote:
They're lining up all these advertisers. These advertisers see what a huge site Neo is and will probably find it a great place to advertise. Therefore when ad rates increase as internet advertising continues to be more viable, Neo can charget them more and they won't want to run away.
The advertisors have always been there. Neo is rated one of the "stickiest" site for it's age demographic. To an advertisor, that's music to their ears. The longer the ads are seen=the more affect they have on the consumer. There is a GOOD reason cereal boxes for chidren are on the lower shelves at the grocery store and the adult cereal on the top shelves.
Advertisors aren't dumb. Take a look at this quote:
Doug Dohring:
"Miramax came to us and wanted us to promote 'Spy Kids,' the movie. It was about 10 days from coming out in theaters. So we created what we called the 'Spy Kids' Theater. And our users could go into the 'Spy Kids' Theater and they could click through a trailer of the movie. If the users want to go there, they go there. It's not forced on the user in any way. So we integrate the advertiser's product into the content."Yep, Mirimax came to THEM. Not the other way around. Advertisors aren't running away...not at all.
Q wrote:
For Neo it ends up being like finding free Omelettes and Jellies at every turn. They already stated in their 'bleh' page that this revenue is going to be pumped into the site. If they didn't do this it would be like throwing free money away. Companies that stagnate die. I would rather see Neopets grow than wither and die.
With a pump-and-dump technique that I currently suspect and have been pointing out, this is what the advertising rush is actually doing, killing the site. Your Neopets Movie will be the kiss of death.
History always repeats itself.
Q wrote:
I get very sick of people complaining about Neopets not needing more money.
I never said there was a problem with them needing MORE money. It's just a different technique. Pumping and Dumping is bleeding a company for it's value via marketing in a swift manner, to create one large lump sum in a short amount of time, and then tossing the dead company aside for the next venture...the other option is to retain good public relations and providing your clients and advertisors with a product that will last and generate revenue steadier for longer periods of time. It's not the money I'm arguing...it's the technique. Neo has been a good cash cow according to Mr. Dohrings press releases. That's not the issue.
"Backed by an A-list of advertisers including Coca-Cola, Proctor & Gamble, and Kraft, plus a brand new marketing agreement with Viacom, NeoPets CEO Doug Dohring says his 65-person company has been profitable since last summer."- source Businessweek online
"The privately held Neopets was officially incorporated in April 2000 and was profitable within three months, according to Dohring."-source Hollywood Reporter
Q wrote:
There's no point in making stuff up just because you think it is a certain way.
I make nothing up. My views are normally always based on fact and research I have done on the subject matter at hand from the past. I rarely try and enter a debate without being prepared.
Q wrote:
Are you going to close down your shop when other players accuse you of being too rich? Will you start giving away pieces of your gallery because someone thinks you have too much? Yeah yeah, np vs. real money...but you get my point. You want the site to get better, but you don't want them to have more money. But you can't state exactly where their money goes, how much they have left over, and how much is allocated to futre projects, etc.
Who said I want them to give away their profits? Don't be jaded into thinking that 100% of their profits are going to be funneled into expanding the site however. This is about making money...not about pleasing customers. If public relations was on the company's agenda, you wouldn't be hearing the complaints you do now. Poor customer service, no customer relations, lack of communications, discrimination between players, thoughtless icings...etc, etc. Don't be fooled into thinking this advertising is being used to make money to make the site better and to make you happy...it's not.
Q wrote:
Adam's been more than nice, coming in here and letting us know what's going on and dropping hints that we could block the ads by using Firefox. It doesn't matter if we do, how they assess the performance of ads is not based entirely on the CTR (click through rate). It sure must be hard for him to see his baby changing like this :-/
Adam is a gem. But he's not CEO. I don't think I'd see Adam pumping and dumping at all if it was his call. I have zero problem with Adam, from what I see he's a good guy, with good intentions, and a heck of a good walking PR poster.
Q wrote:
You're all clever and smart, why not go dig up some news articles about internet advertising in 2004 and the future to back up your claims one way or the other?
And there you have it. *points above* Hope you enjoyed it.
I await your rebuttal.