Actual Findings on Internet Advertising

Although Web advertising becomes a significant portion of marketing budgets, advertisers are still unsure on how to unlock the potential of the Internet. Current findings show that:

- Consumer brands spend only a fraction of their advertising budget on on-line advertising.

- Technology companies spend five times more on advertising in the WWW.

- While banner campaigns are still popular, there is no standardized solution for on-line advertising.

- Ad pricing is based on CPM (costs per 1.000 visitors), rather than on results.

- Personalized targeting has not yet taken hold. Instead advertisers mainly target on content.

At the moment three dominant models are used for Internet advertising:

Destination Sites: They use entertainment, high production values and information to pull users in and bring them back again.

Micro Sites: Content sites or networks host small clusters of brand pages.

Banner Campaigns: Those include other forms of Web advertising like sponsorships.

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Virtual cartels, oligopolistic structures

Global networks require global technical standards ensuring the compatibility of systems. Being able to define such standards makes a corporation extremely powerful. And it requires the suspension of competitive practices. Competition is relegated to the symbolic realm. Diversity and pluralism become the victims of the globalisation of baroque sameness.

The ICT market is dominated by incomplete competition aimed at short-term market domination. In a very short time, new ideas can turn into best-selling technologies. Innovation cycles are extremely short. But today's state-of-the-art products are embryonic trash.

    According to the Computer and Communications Industry Association, Microsoft is trying to aggressively take over the network market. This would mean that AT&T would control 70 % of all long distance phone calls and 60 % of cable connections.



    AOL and Yahoo are lone leaders in the provider market. AOL has 21 million subscribers in 100 countries. In a single month, AOL registers 94 million visits. Two thirds of all US internet users visited Yahoo in December 1999.



    The world's 13 biggest internet providers are all American.



    AOL and Microsoft have concluded a strategic cross-promotion deal. In the US, the AOL icon is installed on every Windows desktop. AOL has also concluded a strategic alliance with Coca Cola.


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1970s: Computer-Integrated Manufacturing (CIM)

Since the 1970s there had been a growing trend towards the use of computer programs in manufacturing companies. Especially functions related to design and production, but also business functions should be facilitated through the use of computers.

Accordingly the CAD/CAM technology, related to the use of computer systems for design and production, was developed. CAD (computer-aided design) was created to assist in the creation, modification, analysis, and optimization of design. CAM (computer-aided manufacturing) was designed to help with the planning, control, and management of production operations. CAD/CAM technology, since the 1970s, has been applied in many industries, including machined components, electronics products, equipment design and fabrication for chemical processing.

To enable a more comprehensive use of computers in firms the CIM (computer-integrated manufacturing) technology, which also includes applications concerning the business functions of companies, was created. CIM systems can handle order entry, cost accounting, customer billing and employee time records and payroll. The scope of CIM technology includes all activities that are concerned with production. Therefore in many ways CIM represents the highest level of automation in manufacturing.

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Public Relations and the Advertising Industry

The public relations industry, the same as advertising, is concentrated in the hands of few dominant firms. Still, the striking element about corporate public relations is that PR firms are tightly related to advertising companies. Nine out of the ten biggest international PR agencies have close ties with the advertising industry. Also, looking at the largest acquisitions involving U.S. PR firms from 1997 to 1999 it is apparent that money coming from advertising agencies has played an important role.


Table: Top 10 PR Firms 1998


Rank 1998

PR Firm

Advertising Agency Related

1998 Net Fees (in U.S. $)

1997 - 1998 % Change

1

Burson-Marsteller

yes

258,417,000

4.2

2

Hill and Knowlton

yes

206,000,000

8.9

3

Porter Novelli Int.

yes

183,050,000

23.6

4

Shandwick

yes

170,300,000

7.3

5

Fleishman-Hillard

yes

160,692,000

19.1.

6

Edelman PR Worldwide

no

157,840,530

18.1

7

Ketchum

yes

125,248,000

29.6

8

BSMG Worldwide

yes

118,963,000

93.0

9

Weber PR Worldwide

yes

83,166,000

36.2

10

GCI/APCO

yes

79,667,957

28.4




With many PR agencies sold to advertising companies, the advertising industry's influence further increases; enabling them to offer their clients not only advertising services, but also know-how in marketing, public opinion, crisis and issues management and political lobbying.

Table: Acquisition of PR Agencies (1997 - 1999)

Acquired Company

Buyer

Buyers Industry

Estimated Purchase Price (in millions of U.S. $)

International PR

Interpublic Group of Cos.

Advertising

230

Fleishman-Hillard

Omicom Group

Advertising

85

Ketchum

Omnicom Group

Advertising

60

Dewe Rogerson

Incepta

Advertising

40

Financial Rel. Bd.

BSMG/TN

Public Relations

33

Weber PR

Interpublic Group of Cos.

Advertising

15

Alexander

WPP Group

Advertising

15

Charles Barker

BSMG/TN

Public Relations

15



Source: Odwyerpr.com.

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Enigma Machine

The Enigma Encryption Machine was famous for its insecurities as for the security that it gave to German ciphers. It was broken, first by the Poles in the 1930s, then by the British in World War II.

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Optical communication system by Aeneas Tacitus, 4th century B.C.

Aeneas Tacitus, a Greek military scientist and cryptographer, invented an optical communication system that combines water and beacon telegraphy. Torches indicated the beginnings and the ends of message transmissions while water jars were used to transmit the messages. These jars had a plugged standard-size hole drilled on the bottom side and were filled with water. As those who sent and those who received the message unplugged the jars simultaneously, the water drained out. Because the transmitted messages corresponded to water levels, the sender indicated by torch signal that the appropriate water level has been reached. It is a disadvantage that the possible messages are restricted to a given code, but as this system was mainly used for military purposes, this was offset by the advantage that it was almost impossible for outsiders to understand these messages unless they possessed the codebook.

With communication separated from transportation, the distant became near.

Tacitus' telegraph system was very fast and not excelled until the end of the 18th century.

For further information see Joanne Chang & Anna Soellner, Decoding Device, http://www.smith.edu/hsc/museum/ancient_inventions/decoder2.html

http://www.smith.edu/hsc/museum/ancient_inven...
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