Archived Blog Post: January 9, 2005
The Zen of Jeff Bezos: "About three years ago we stopped doing television advertising. We did a 15-month-long test of TV advertising in two markets - Portland, Oregon, 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. So we put all that money into lower product prices and free shipping. That has significantly accelerated the growth of our business."