Transparent customers. Direct marketing online
This process works even better on the Internet because of the latter's interactive nature. "The Internet is a dream to direct marketers", said Wil Lansing, CEO of the American retailer Fingerhut Companies. Many services require you to register online, requiring users to provide as much information about them as possible. And in addition, the Internet is fast, cheap and used by people who tend to be young and on the search for something interesting.
Many web sites also are equipped with user tracking technology that registers a users behaviour and preferences during a visit. For example, user tracking technology is capable of identifying the equipment and software employed by a user, as well as movements on the website, visit of links etc. Normally such information is anonymous, but can be personalised when it is coupled with online registration, or when personal identifcation has been obtained from other sources. Registration is often a prerequisite not just for obtaining a free web mail account, but also for other services, such as personalised start pages. Based on the information provided by user, the start page will then include advertisements and commercial offers that correspond to the users profile, or to the user's activity on the website.
One frequent way of obtaining such personal information of a user is by offering free web mail accounts offered by a great many companies, internet providers and web portals (e.g. Microsoft, Yahoo, Netscape and many others). In most cases, users get "free" accounts in return for submitting personal information and agreeing to receive marketing mails. Free web mail accounts are a simple and effective direct marketing and data capturing strategy which is, however, rarely understood as such. However, the alliances formed between direct advertising and marketing agencies on the one hand, and web mail providers on the other hand, such as the one between DoubleClick and Yahoo, show the common logic of data capturing and direct marketing. The alliance between DoubleClick and Yahoo eventually attracted the US largest direct marketing agency, Abacus Direct, who ended up buying DoubleClick.
However, the intention of collecting users personal data and create consumer profiles based on online behaviour can also take on more creative and playful forms. One such example is sixdegrees.com. This is a networking site based on the assumption that everybody on the planet is connected to everybody else by a chain of six people at most. The site offers users to get to know a lot of new people, the friends of their friends of their friends, for example, and if they try hard enough, eventually Warren Beatty or Claudia Schiffer. But of course, in order to make the whole game more useful for marketing purposes, users are encouraged to join groups which share common interests, which are identical with marketing categories ranging from arts and entertainment to travel and holiday. Evidently, the game becomes more interesting the more new people a user brings into the network. What seems to be fun for the 18 to 24 year old college student customer segment targeted by sixdegrees is, of course, real business. While users entertain themselves they are being carefully profiled. After all, data of young people who can be expected to be relatively affluent one day are worth more than money.
The particular way in which sites such as sixdegrees.com and others are structured mean that not only to users provide initial information about them, but also that this information is constantly updated and therefore becomes even more valuable. Consequently, many free online services or web mail providers cancel a user's account if it has not been uses for some time.
There are also other online services which offer free services in return for personal information which is then used for marketing purposes, e.g. Yahoo's Geocities, where users may maintain their own free websites, Bigfoot, where people are offered a free e-mail address for life, that acts as a relais whenever a customer's residence or e-mail address changes. In this way, of course, the marketers can identify friendship and other social networks, and turn this knowledge into a marketing advantage. People finders such as WhoWhere? operate along similar lines.
A further way of collecting consumer data that has recently become popular is by offering free PCs. Users are provided with a PC for free or for very little money, and in return commit themselves to using certain services rather than others (e.g. a particular internet provider), providing information about themselves, and agree to have their online behaviour monitored by the company providing the PC, so that accurate user profiles can be compiled. For example, the Free PC Network offers advertisers user profiles containing "over 60 individual demographics". There are literally thousands of variations of how a user's data are extracted and commercialised when online. Usually this happens quietly in the background.
A good inside view of the world of direct marketing can be gained at the website of the American Direct Marketing Association and the Federation of European Direct Marketing.
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The 19th Century: First Programmable Computing Devices
Until the 19th century "early computers", probably better described as calculating machines, were basically mechanical devices and operated by hand. Early calculators like the abacus worked with a system of sliding beads arranged on a rack and the centerpiece of Leibniz's multiplier was a stepped-drum gear design.
Therefore Charles Babbage's proposal of the Difference Engine (1822), which would have (it was never completed) a stored program and should perform calculations and print the results automatically, was a major breakthrough, as it for the first time suggested the automation of computers. The construction of the Difference Engine, which should perform differential equations, was inspired by Babbage's idea to apply the ability of machines to the needs of mathematics. Machines, he noted, were best at performing tasks repeatedly without mistakes, while mathematics often required the simple repetition of steps.
After working on the Difference Engine for ten years Babbage was inspired to build another machine, which he called Analytical Engine. Its invention was a major step towards the design of modern computers, as it was conceived the first general-purpose computer. Instrumental to the machine's design was his assistant, Augusta Ada King, Countess of Lovelace, the first female computer programmer.
The second major breakthrough in the design of computing machines in the 19th century may be attributed to the American inventor Herman Hollerith. He was concerned with finding a faster way to compute the U.S. census, which in 1880 had taken nearly seven years. Therefore Hollerith invented a method, which used cards to store data information which he fed into a machine that compiled the results automatically. The punch cards not only served as a storage method and helped reduce computational errors, but furthermore significantly increased speed.
Of extraordinary importance for the evolution of digital computers and artificial intelligence have furthermore been the contributions of the English mathematician and logician George Boole. In his postulates concerning the Laws of Thought (1854) he started to theorize about the true/false nature of binary numbers. His principles make up what today is known as Boolean algebra, the collection of logic concerning AND, OR, NOT operands, on which computer switching theory and procedures are grounded. Boole also assumed that the human mind works according to these laws, it performs logical operations that could be reasoned. Ninety years later Boole's principles were applied to circuits, the blueprint for electronic computers, by Claude Shannon.
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