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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Security Measures?

The more so-called security measures are taken the more control and the less freedom is granted. Whereas criminals are flexible in their computer work/digital existence, the average person cannot be. So it is her/him who gets punished with an increase of control.
Of course security can be in favor of the population as well - and this is the case if cryptography is legal so that everyone has access to it to protect his/her data. This one needs for e-commerce, secure payments and transmission of private data, mostly e-mails or access to websites where one needs a password. E-mails are nothing else than postcards, letters without envelopes. Without encryption they are easy to open, read and trace back, even without knowing the password. Rumors that Echelon works with a list of key-words, controlling any e-mail in the world and reacting to words of that list, led to actions like the Jam Eschelon Day, last time held on October 21st, 1999, to confuse the espionage system.

for more information on Jam Eschelon Day see:
http://www.hacktivism.org
http://www.echelon.wiretapped.net/
http://www.heise.de/tp/deutsch/inhalt/te/5358/1.html

But the respect for privacy stands for an essential values in democratic societies.
So, how can it be regarded a governmental risk?

At a conference:
"How many people here fear a greater risk
from government abuses of power
than from criminal activity?"
The majority raised their hands,
one participant shouted "What's the difference?"
(anonymous)

If governments really care for the people and want to fight against cybercriminality they should rather support the work on the latest technologies for encryption than to restrict their access. Or even better: they should not intervene at all - to make sure they do not build in any trapdoors. Though it is already too late for discussion like this one as the trapdoors are already part of most of the key-systems. Rumors about PGP and trapdoors do not help the confidence in cryptology.

for information about the risks of cryptography see:
http://www.cdt.org/crypto/risks98/

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0 - 1400 A.D.

150
A smoke signals network covers the Roman Empire

The Roman smoke signals network consisted of towers within a visible range of each other and had a total length of about 4500 kilometers. It was used for military signaling.
For a similar telegraph network in ancient Greece see Aeneas Tacitus' optical communication system.

About 750
In Japan block printing is used for the first time.

868
In China the world's first dated book, the Diamond Sutra, is printed.

1041-1048
In China moveable types made from clay are invented.

1088
First European medieval university is established in Bologna.

The first of the great medieval universities was established in Bologna. At the beginning universities predominantly offered a kind of do-it-yourself publishing service.

Books still had to be copied by hand and were so rare that a copy of a widely desired book qualified for being invited to a university. Holding a lecture equaled to reading a book aloud, like a priest read from the Bible during services. Attending a lecture equaled to copy a lecture word by word, so that you had your own copy of a book, thus enabling you to hold a lecture, too.

For further details see History of the Idea of a University, http://quarles.unbc.edu/ideas/net/history/history.html

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1980s: Artificial Intelligence (AI) - From Lab to Life

Following the commercial success of expert systems, which started in the 1970s, also other AI technologies began to make their way into the marketplace. In 1986, U.S. sales of AI-related hardware and software rose to U.S.$ 425 million. Especially expert systems, because of their efficiency, were still in demand. Yet also other fields of AI turned out to be successful in the corporate world.

Machine vision systems for example were used for the cameras and computers on assembly lines to perform quality control. By 1985 over a hundred companies offered machine vision systems in the U.S., and sales totaled U.S.$ 80 million. Although there was a breakdown in the market for AI-systems in 1986 - 1987, which led to a cut back in funding, the industry slowly recovered.

New technologies were being invented in Japan. Fuzzy logic pioneered in the U.S. and also neural networks were being reconsidered for achieving artificial intelligence. The probably most important development of the 1980s was, that it showed that AI technology had real life uses. AI applications like voice and character recognition systems or steadying camcorders using fuzzy logic were not only made available to business and industry, but also to the average customer.

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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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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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Private data bunkers

On the other hand are the data bunkers of the private sector, whose position is different. Although these are fast-growing engines of data collection with a much greater degree of dynamism, they may not have the same privileged position - although one has to differentiate among the general historical and social conditions into which a data bunker is embedded. For example, it can safely be assumed that the databases of a large credit card company or bank are more protected than the bureaucracies of small developing countries.

Private data bunkers include

    Banks

    Building societies

    Credit bureaus

    Credit card companies

    Direct marketing companies

    Insurance companies

    Telecom service providers

    Mail order stores

    Online stores


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Biometrics applications: physical access

This is the largest area of application of biometric technologies, and the most direct lineage to the feudal gate keeping system. Initially mainly used in military and other "high security" territories, physical access control by biometric technology is spreading into a much wider field of application. Biometric access control technologies are already being used in schools, supermarkets, hospitals and commercial centres, where the are used to manage the flow of personnel.

Biometric technologies are also used to control access to political territory, as in immigration (airports, Mexico-USA border crossing). In this case, they can be coupled with camera surveillance systems and artificial intelligence in order to identify potential suspects at unmanned border crossings. Examples of such uses in remote video inspection systems can be found at http://www.eds-ms.com/acsd/RVIS.htm

A gate keeping system for airports relying on digital fingerprint and hand geometry is described at http://www.eds-ms.com/acsd/INSPASS.htm. This is another technology which allows separating "low risk" travellers from "other" travellers.

An electronic reconstruction of feudal gate keeping capable of singling out high-risk travellers from the rest is already applied at various border crossing points in the USA. "All enrolees are compared against national lookout databases on a daily basis to ensure that individuals remain low risk". As a side benefit, the economy of time generated by the inspection system has meant that "drug seizures ... have increased since Inspectors are able to spend more time evaluating higher risk vehicles".

However, biometric access control can not only prevent people from gaining access on to a territory or building, they can also prevent them from getting out of buildings, as in the case of prisons.

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Advertising and the Media System

Media systems (especially broadcasting) can be classified in two different types:

Public Media Systems: Government control over broadcasting through ownership, regulation, and partial funding of public broadcasting services.

Private Media System: Ownership and control lies in the hands of private companies and shareholders.

Both systems can exist in various forms, according to the degree of control by governments and private companies, with mixed systems (public and private) as the third main kind.

Whereas public media systems are usually at least partially funded by governments, private broadcasting solely relies on advertising revenue. Still also public media systems cannot exclude advertising as a source of revenue. Therefore both types are to a certain degree dependent on money coming in by advertisers.

And this implies consequences on the content provided by the media. As the attraction of advertisers becomes critically important, interests of the advertising industry frequently play a dominant role concerning the structure of content and the creation of environments favorable for advertising goods and services within the media becomes more and more common.

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Znet

ZNet provides forum facilities for online discussion and chatting on various topics ranging from culture and ecology to international relations and economics. ZNet also publishes daily commentaries and maintains a Web-zine, which addresses current news and events as well as many other topics, trying to be provocative, informative and inspiring to its readers.

Strategies and Policies

Daily Commentaries: Znet's commentaries address current news and events, cultural happenings, and organizing efforts, providing context, critique, vision, and analysis, but also references to or reviews of broader ideas, new books, activism, the Internet, and other topics that strike the diverse participating authors as worthy of attention.

Forum System: Znet provides a private (and soon also a public) forum system. The fora are among others concerned with topics such as: activism, cultural, community/race/religion/ethnicity, ecology, economics/class, gender/kinship/sexuality, government/polity, international relations, ParEcon, vision/strategy and popular culture. Each forum has a set of threaded discussions, also the fora hosted by commentary writers like Chomsky, Ehrenreich, Cagan, Peters and Wise.

ZNet Daily WebZine: ZNet Daily WebZine offers commentaries in web format.

Z Education Online (planned): The Z Education Online site will provide instructionals and courses of diverse types as well as other university-like, education-aimed features.

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MIRALab

MIRALab is a research laboratory attached to the University of Geneva. Its motto is "where research meets creativity". MIRAlab's objective is to model human functionalities, such as movement or facial expression, in a realistic way.

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IIPA

The International Intellectual Property Alliance formed in 1984 is a private sector coalition and represents the U.S. copyright-based industries. It is comprised of seven trade associations: Association of American Publishers, AFMA, Business Software Alliance, Interactive Digital Software Association, Motion Picture Association of America, National Music Publishers' Association and Recording Industry Association of America. IIPA and its member's track copyright legislative and enforcement developments in over 80 countries and aim at a legal and enforcement regime for copyright that deters piracy. On a national level IIPA cooperates with the U.S. Trade Representative and on the multilateral level has been involved in the development of the TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement of the WTO (World Trade Organization) and also participates in the copyright discussion of the WIPO (World Intellectual Property Organization).

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The Rocky Horror Picture Show

The story of Frank-N-furter, Brad and Janet ... Don't dream it, be it!

http://www.rockyhorrorpictureshow.com/

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Scientology

Official name Church Of Scientology, religio-scientific movement developed in the United States in the 1950s by the author L. Ron Hubbard (1911-86). The Church of Scientology was formally established in the United States in 1954 and was later incorporated in Great Britain and other countries. The scientific basis claimed by the church for its diagnostic and therapeutic practice is disputed, and the church has been criticized for the financial demands that it makes on its followers. From the 1960s the church and various of its officials or former officials faced government prosecutions as well as private lawsuits on charges of fraud, tax evasion, financial mismanagement, and conspiring to steal government documents, while the church on the other hand claimed it was being persecuted by government agencies and by established medical organizations. Some former Scientology officials have charged that Hubbard used the tax-exempt status of the church to build a profitable business empire.

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cryptology

also called "the study of code". It includes both, cryptography and cryptoanalysis

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SOA

The U.S.-Army School of Americas (= SOA) is based in Fort Benning (Georgia); it trains Latin American and U.S. soldiers in the working-field of counter-insurgency. Some of the nearly 60.000 SOA-Graduates have been responsible for many of the worst human rights abuses and crimes in Latin America. The list of famous dictators and murderers who went through the education of that institution is tremendous. In 1996 the U.S.-Government that always tried to deny the tasks of SOA, had to admit its work - but never closed it.

For more information see the website of SOA-Watch: http://www.soaw.org

http://www.soaw.org/
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Binary number system

In mathematics, the term binary number system refers to a positional numeral system employing 2 as the base and requiring only two different symbols, 0 and 1. The importance of the binary system to information theory and computer technology derives mainly from the compact and reliable manner in which data can be represented in electromechanical devices with two states--such as "on-off," "open-closed," or "go-no go."

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Censorship of Online Content in China

During the Tian-an men massacre reports and photos transmitted by fax machines gave notice of what was happening only with a short delay. The Chinese government has learned his lesson well and "regulated" Internet access from the beginning. All Internet traffic to and out of China passes through a few gateways, a few entry-points, thus making censorship a relatively easy task. Screened out are web sites of organizations and media which express dissident viewpoints: Taiwan's Democratic Progress Party and Independence Party, The New York Times, CNN, and sites dealing with Tibetan independence and human rights issues.

Users are expected not to "harm" China's national interests and therefore have to apply for permission of Internet access; Web pages have to be approved before being published on the Net. For the development of measures to monitor and control Chinese content providers, China's state police has joined forces with the MIT.

For further information on Internet censorship, see Human Rights Watch, World Report 1999.

http://www.dpp.org/
http://www.nytimes.com/
http://www.hrw.org/worldreport99/special/inte...
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