Tuesday Report - December 12, 2000

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Bob Meyer

Beyond The Limits Of Cash or Credit

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December 12, 2000

Barter's Use Grows Online. . .To 19% Of Ad Revenue

Myers Reports publishes economic research reports for investment decisions related to the media industry. On December 4, the edition of their daily fax-newsletter indicated that online ad revenue from traditional media budgets is decreasing in share of total online spending, while ad revenue share coming from e-commerce is on the rise. In terms of ad format, banner advertising continues to rule the online mix, while sponsorships are dwindling as a source of online media buys.

Online revenue from traditional advertising budgets will represent 50% of total online ad revenue of $9.6 billion this year. In 1998, traditional advertising budgets represented 78% of total online commercial revenue. Net revenue from e-commerce, meanwhile, will garner a 31% share in 2000, up from 8% in 1998.

Inventory bartered for goods, services, equity or other inventory will comprise 19% of online ad revenue this year, up from 14% in 1998.

Global Sources Named World's 8th Largest B2B Marketplace

Global Sources Ltd., a global merchandise trade enabler, is the eighth largest net market in the world, according to the Ground Zero 25 list published recently by leading industry research and analysis company Net Market Makers, a subsidiary of Jupiter Media Metrix.

The list, based on third quarter online revenues, puts Global Sources among the elite of the estimated thousands of independent marketplaces now in existence. Other companies appearing in the top ten include FreeMarkets, VerticalNet, Ventro and Onvia.

Global Sources' online operations first became profitable in 1998, and the company is cash flow positive. It is the only online marketplace with an integrated cataloging, messaging and transaction solution...and an unbiased business model that gives equal consideration to the needs of buyers and suppliers.

Global Sources, www.globalsources.com, enables trade for an established, independently audited community of more than 219,000 merchandise buyers in over 230 countries, including many of the world's top 100 international trade buyers such as Dell and K-mart.

This community generates more than 2 million sales leads annually for more than 93,000 suppliers through Global Sources Online, serving 27 industry verticals and 12 geographic portals.

Scam Offer From Nigeria Moves To The Web!

In the current issue of BarterNews (#54, page 43) we reported about the fax letter going around the U.S. from a Prince Biodun Bakare, "I guess this letter may come to you as a surprise since I had no previous correspondence with you."

And then the letter continues, "you've been contacted because you're a reliable person, and the prince wants to transfer $30 million...and he doesn't have the necessary foreign account machinery to handle the transaction...if you are interested in assisting to move money to the U.S. send us your bank account number, etc. etc....and my colleagues will share the money giving you 30% for your efforts."

The latest scam offer comes via e-mail, from Idioma Adams of the Nigerian National Petroleum Corporation (NNPC). It's the same basic offer, i.e. help us move $28.6 million and we'll give you 30% of it. Beware...Santa Claus doesn't exist in these scam offers from Nigeria.

Here And There. . .

New England Trade, www.NewEnglandTrade.com, held their fourth Annual Barter Expo November 28 at the Montvale Plaza in Stoneham. Gary Oshry, co-owner of the company, a BarterNet affiliate, reported that over $200,000 in goods and services were moved on a 100% bartered basis.
Exchangemall.com has donated $20,000 trade dollars to four Los Angeles charities, (Kids with a Cause, Starlight Foundation, Union Rescue Mission, and Frontline Foundation). The trade dollars can be used to purchase toys, blankets, and other much-needed supplies and services from Exchangemall.com.
From last week... We had several e-mails regarding the Internet Barter Auction site re-opening, and people were not using the URL provided, which is: http://barterXpress.com (There is NO www in the address.)
Follow-up on last week's article, "The Biggest Parasites of the Dot.Com Industry," which according to Upside magazine are the advertising agencies and their placement of wasteful TV ad purchases. The numbers for e-commerce companies' spending on advertising last year totaled $2.7 billion, a 500% increase from the previous year, according to Competitive Media Reporting.
In our August 8th report we announced the merger talks taking place between ITEX Corporation, a barter company founded in 1982, and Maxx International. On December 6th ITEX disclosed that it had terminated its merger talks with Maxx International, determining that it's in the best interest of ITEX shareholders to look to ITEX's own core business, the ITEX retail trade exchange, for future profitability.

According to Collins Christensen, President of ITEX, "Our recent exploration of international opportunities for the expansion of the ITEX exchange leads us to believe that we will have greater flexibility exploiting those opportunities apart from Maxx."
The North American Barter Exchange Ltd. (NABEL) announced it has signed up a new franchisee, Foodtech International Inc. located in Toronto.
Our first ever "Holiday Special Offer" is listed on our home page...you can obtain a year's worth of back issues of BarterNews for just the cost of postage & handling. It's our way of letting newcomers get acquainted with the magazine. (We ship within 24-hours of when we receive your order.)

We welcome your comments, questions, and observations.

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