Karen Lundegaard, (2000), "Volvo Plans Online Ad Campaign for Latest Launch," Wall Street Journal (September 25) p. B1, abstract by: Lacey Bendixsen.

Summary:

Volvo Cars of North America is launching its latest car, the S60, completely online, with no other form of advertisement. This risky move will only cost Volvo $10 million, as opposed to the $20 million standard cost for launching vehicles offline. Volvo will offer up to $2,100 worth of free options on a vehicle and trip giveaways to AOL subscribers in exchange for space on AOL's welcome page. URL: http://www.revolvolution.com

Interesting:

-Analysts call the move both a risk for Volvo and a boost for Web advertising.
-If Volvo does not do well with Web advertising on the S60, it could deter future companies from advertising on the web.
-Because AOL is involved in Volvo's product launch, it could mean that in the future ISP's would have some control over what is advertised on the Internet.

Connection:

-This is a great validation of the medium.
-Volvo is finding a new way to market to its customers. If it succeeds, the way we advertise and approach advertising will be changed forever.
-This could be a great idea for Generation Xers but not everyone.
-Volvo is alienating other demographics (computer illiterate, people leery about purchasing on the web, etc.).

Question:

-If this launch on the Internet works for Volvo, will other car manufacturers and businesses do the same? What kind of impact will this have on the way products are advertised? Will we get rid of commercials altogether?
-Also, what will happen to individuals who are not connected to the Internet? Will they not be targeted in the advertising scheme?