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, introduction

Among the most striking development of the 1990s has been the emergence of a global commercial media market utilizing new technologies and the global trend toward deregulation.
This global commercial media market is a result of aggressive maneuvering by the dominant firms, new technologies that make global systems cost-efficient, and neoliberal economic policies encouraged by the World Bank, IMF, WTO, and the US government to break down regulatory barriers to a global commercial media and telecommunication market.

A global oligopolistic market that covers the spectrum of media is now crystallizing the very high barriers to entry."

(Robert McChesney, author of "Rich Media, Poor Democracy")

The network structure of information and communication technologies means that even deregulated markets are not "free". The functional logic of global networks only tolerates a small number of large players. Mergers, strategic alliances, partnerships and cooperations are therefore the daily routine of the ICT business. They bypass competition and create "virtual cartels".

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Implant technology

Kevin Warwick at the University of Reading works on implant technologies which could enhance or modify functions of the limbs and the brain, or bring back functionalities lost, for example, in an accident or as a consequence of a stroke. Implants are also used for identification in "intelligent buildings" where they serve to control "personnel flows". However, the real potential of electronic implants seems to lie in the field of electronic drugs. The basics of the brain computer interface are already explored, and there are now efforts to electronically modify the function of the mind. Large software and IT companies are sponsoring this research which could result in the commercialisation of electronic drugs, functioning as anti-depressants, pain killers and the like. Evidently, the same technologies can also be used as narcotic drugs or to modify people's behaviour. The functioning of body and mind can be adapted to pre-defined principles and ideals, their autonomous existence reduced and subjected to direct outside control.

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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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DES

The U.S. Data Encryption Standard (= DES) is the most widely used encryption algorithm, especially used for protection of financial transactions. It was developed by IBM in 1971. It is a symmetric-key cryptosystem. The DES algorithm uses a 56-bit encryption key, meaning that there are 72,057,594,037,927,936 possible keys.

for more information see:
http://www.britannica.com/bcom/eb/article/3/0,5716,117763+5,00.html
http://www.cryptography.com/des/

http://www.britannica.com/bcom/eb/article/3/0...
http://www.cryptography.com/des/
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Ron Rivest

Ronald L. Rivest is Webster Professor of Electrical Engineering and Computer Science in MIT's EECS Department. He was one of three persons in a team to invent the RSA public-key cryptosystem. The co-authors were Adi Shamir and Leonard M. Adleman.

INDEXCARD, 2/5
 
Clipper Chip

The Clipper Chip is a cryptographic device proposed by the U.S. government that purportedly intended to protect private communications while at the same time permitting government agents to obtain the "keys" upon presentation of what has been vaguely characterized as "legal authorization." The "keys" are held by two government "escrow agents" and would enable the government to access the encrypted private communication. While Clipper would be used to encrypt voice transmissions, a similar chip known as Capstone
would be used to encrypt data. The underlying cryptographic algorithm, known as Skipjack, was developed by the National Security Agency (NSA).

INDEXCARD, 3/5
 
blowfish encryption algorithm

Blowfish is a symmetric key block cipher that can vary its length.
The idea behind is a simple design to make the system faster than others.

http://www.counterpane.com/blowfish.html
http://www.counterpane.com/bfsverlag.html

http://www.counterpane.com/blowfish.html
http://www.counterpane.com/blowfish.html
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Economic rights

The economic rights (besides moral rights and in some cases also neighboring rights) granted to the owners of copyright usually include 1) copying or reproducing a work, 2) performing a work in public, 3) making a sound recording of a work, 4) making a motion picture of a work, 5) broadcasting a work, 6) translating a work and 7) adapting a work. Under certain national laws some of these rights are not exclusive rights of authorization but in specific cases, merely rights to remuneration.

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