Advertisers and Marketers Perspective

With the rapid growth of the Internet and its audience advertisers now have a new medium at their disposal. The placement of the first banner ads in 1994 marks the birth of Internet advertising. Although the advertising industry at first hesitated to adopt the new medium, two facts brushed away their doubts:

Migrating Television Audiences: The increased use of the Internet led people to redistribute their time budget. Whereas some cut down on eating and sleeping, more than a third reduced watching television and instead uses the WWW.

Interesting Internet Demographics: While methodologies and approaches of research organizations studying the demographic composition of the Internet vary, the findings are relatively consistent: Internet users are young, well educated and earn high incomes.

Considering those findings, the Internet in the first place seems to become inevitable to be included in media planning, as part of the audience shifts from TV to the WWW, and secondly, because demographics of the Internet user population are irresistible for marketers.

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Internet Advertising

The advertising industry has always relied on media to transport their messages and disseminate them to the public. Depending on the product or service advertised and the audience targeted different media are used. Besides cinema and outdoor advertising (posters etc.) the huge majority of ads is placed within the classical media landscape, which includes TV, newspapers, magazines and radio.

Whereas in most cases only a relatively small fraction of advertising budgets is spent on cinema, outdoor and radio advertising, newspapers, magazines and TV account for more than two thirds of the money spent on ads. Still with the growing popularity of new media advertisers and marketers have recently also discovered digital networks and especially the Internet for their purposes.

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Economic structure; transparent customers

Following the dynamics of informatised economies, the consumption habits and lifestyles if customers are of great interest. New technologies make it possible to store and combine collected data of an enormous amount of people.

User profiling helps companies understand what potential customers might want. Often enough, such data collecting takes place without the customer's knowledge and amounts to spying.

"Much of the information collection that occurs on the Internet is invisible to the consumer, which raises serious questions of fairness and informed consent."

(David Sobel, Electronic Privacy Information Center)

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1800 - 1900 A.D.

1801
Invention of the punch card

Invented by Joseph Marie Jacquard, an engineer and architect in Lyon, France, punch cards laid the ground for automatic information processing. For the first time information was stored in binary format on perforated cardboard cards. In 1890 Hermann Hollerith used Joseph-Marie Jacquard's punch card technology to process statistical data collected during the US census in 1890, thus speeding up US census data analysis from eight to three years. Hollerith's application of Jacquard's invention was used for programming computers and data processing until electronic data processing was introduced in the 1960's. - As with writing and calculating, administrative applications account for the beginning of modern automatic data processing.

Paper tapes are a medium similar to Jacquard's punch cards. In 1857 Sir Charles Wheatstone used them for the preparation, storage, and transmission of data for the first time. Through paper tapes telegraph messages could be stored, prepared off-line and sent ten times quicker (up to 400 words per minute). Later similar paper tapes were used for programming computers.

1809
Invention of the electrical telegraph

With Samuel Thomas Soemmering's invention of the electrical telegraph the telegraphic transmission of messages was no longer tied to visibility, as it was the case with smoke and light signals networks. Economical and reliable, the electric telegraph became the state-of-the-art communication system for fast data transmissions, even over long distances.

Click here for an image of Soemmering's electric telegraph.

1861
Invention of the telephone

The telephone was not invented by Alexander Graham Bell, as is widely held, but by Philipp Reiss, a German teacher. When he demonstrated his invention to important German professors in 1861, it was not enthusiastically greeted. Because of this dismissal, he was not given any financial support for further development.

And here Bell comes in: In 1876 he successfully filed a patent for the telephone. Soon afterwards he established the first telephone company.

1866
First functional underwater telegraph cable is laid across the Atlantic

1895
Invention of the wireless telegraph

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Individualized Audience Targeting

New opportunities for online advertisers arise with the possibility of one-to-one Web applications. Software agents for example promise to "register, recognize and manage end-user profiles; create personalized communities on-line; deliver personalized content to end-users and serve highly targeted advertisements". The probably ultimate tool for advertisers. Although not yet widely used, companies like Amazon.Com have already started to exploit individualized audience targeting for their purposes.

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Acessing the Internet

The Net connections can be based on wire-line and wireless access technolgies.

Wire-line access

Wire-less access

copper wires

Satellites

coaxial cables

mobile terrestrial antennas

electric power lines

fixed terrestrial antennas

fiber-optic cables







Usually several kinds of network connections are employed at once. Generally speaking, when an E-mail message is sent it travels from the user's computer via copper wires or coaxial cables ISDN lines, etc., to an Internet Service Provider, from there, via fibre-optic cables, to the nearest Internet exchange, and on into a backbone network, tunneling across the continent und diving through submarine fibre-optic cables across the Atlantic to another Internet exchange, from there, via another backbone network and across another regional network to the Internet Service Provider of the supposed message recipient, from there via cables and wires of different bandwidth arriving at its destination, a workstation permanently connected to the Internet. Finally a sound or flashing icon informs your virtual neighbor that a new message has arrived.

Satellite communication

Although facing competition from fiber-optic cables as cost-effective solutions for broadband data transmission services, the space industry is gaining increasing importance in global communications. As computing, telephony, and audiovisual technologies converge, new wireless technologies are rapidly deployed occupying an increasing market share and accelerating the construction of high-speed networks.

Privatization of satellite communication

Until recently transnational satellite communication was provided exclusively by intergovernmental organizations as Intelsat, Intersputnik and Inmarsat.

Scheduled privatization of intergovernmental satellite consortia:

Satellite consortia

Year of foundation

Members

Scheduled date for privatization

Intelsat

1964

200 nations under the leadership of the USA

2001

Intersputnik

1971

23 nations under the leadership of Russia

?

Inmarsat

1979

158 nations (all members of the International Maritime Organization)

privatized since 1999

Eutelsat

1985

Nearly 50 European nations

2001



When Intelsat began to accumulate losses because of management failures and the increasing market share of fiber-optic cables, this organizational scheme came under attack. Lead by the USA, the Western industrialized countries successfully pressed for the privatization of all satellite consortia they are members of and for competition by private carriers.

As of February 2000, there are 2680 satellites in service. Within the next four years a few hundred will be added by the new private satellite systems. Most of these systems will be so-called Low Earth Orbit satellite systems, which are capable of providing global mobile data services on a high-speed level at low cost.

Because of such technological improvements and increasing competition, experts expect satellite-based broadband communication to be as common, cheap, and ubiquitous as satellite TV today within the next five or ten years.

Major satellite communication projects

Project name

Main investors

Expected cost

Number of satellites

Date of service start-up

Astrolink

Lockheed Martin, TRW, Telespazio, Liberty Media Group

US$ 3.6 billion

9

2003

Globalstar

13 investors including Loral Space & Communications, Qualcomm, Hyundai, Alcatel, France Telecom, China Telecom, Daimler Benz and Vodafone/Airtouch

US$ 3.26 billion

48

1998

ICO

57 investors including British Telecom, Deutsche Telecom, Inmarsat, TRW and Telefonica

US$ 4.5 billion

10

2001

Skybridge

9 investors including Alcatel Space, Loral Space & Communications, Toshiba, Mitsubishi and Sharp

US$ 6.7 billion

80

2002

Teledesic

Bill Gates, Craig McCaw, Prince Alwaleed Bin Talal Bin Abdul Aziz Alsaud, Abu Dhabi Investment Company

US$ 9 billion

288

2004


Source: Analysys Satellite Communications Database

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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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Transistor

A transistor is a solid-state device for amplifying, controlling, and generating electrical signals. Transistors are used in a wide array of electronic equipment, ranging from pocket calculators and radios to industrial robots and communications satellites.

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Internet Society

Founded in 1992, the Internet Society is an umbrella organization of several mostly self-organized organizations dedicated to address the social, political, and technical issues, which arise as a result of the evolution and the growth of the Net. Its most important subsidiary organizations are the Internet Architecture Board, the Internet Engineering Steering Group, the Internet Engineering Task Force, the Internet Research Task Force, and the Internet Societal Task Force.

Its members comprise companies, government agencies, foundations, corporations and individuals. The Internet Society is governed by elected trustees.

http://www.isoc.org

http://www.isoc.org/
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Cooperative Association of Internet Data Analysis (CAIDA)

Based at the University of California's San Diego Supercomputer Center, CAIDA supports cooperative efforts among the commercial, government and research communities aimed at promoting a scalable, robust Internet infrastructure. It is sponsored by the Defense Advanced Research Project Agency (DARPA) through its Next Generation Internet program, by the National Science Foundation, Cisco, Inc., and Above.net.

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Transmission Control Protocol/Internet Protocol (TCP/IP)

TCP and IP are the two most important protocols and communication standards. TCP provides reliable message-transmission service; IP is the key protocol for specifying how packets are routed around the Internet.

More detailed information can be found here

http://www.anu.edu/people/Roger.Clarke/II/Pri...
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Virtual Private Networks

Virtual Private Networks provide secured connections to a corporate site over a public network as the Internet. Data transmitted through secure connections are encrypted and therefore have to be encrypted before they can be read.
These networks are called virtual because connections are provided only when you connect to a corporate site; they do not rely on dedicated lines and support mobile use.

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Next Generation Internet Program

A research and development program funded by the US government. Goal is the development of advanced networking technologies and applications requiring advanced networking with capabilities that are 100 to 1,000 times faster end-to-end than today's Internet.

http://www.ngi.gov

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Internet Protocol Number (IP Number)

Every computer using TCP/IP has a 32 bit-Internet address, an IP number. This number consists of a network identifier and of a host identifier. The network identifier is registered at and allocated by a Network Information Center (NIC), the host identifier is allocated by the local network administration.

IP numbers are divided into three classes. Class A is restricted for big-sized organizations, Class B to medium-sized ones as universities, and Class C is dedicated to small networks.

Because of the increasing number of networks worldwide, networks belonging together, as LANs forming a corporate network, are allocated a single IP number.

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Samuel Thomas Soemmering's electric telegraph, 1809

With Samuel Thomas Soemmering's invention of the electrical telegraph the telegraphic transmission of messages is no longer tied to visibility, as it is the case with smoke and light signals networks. Economical and reliable, the electric telegraph became the state-of-the-art communication system for fast data transmissions, even over long distances.

Click here for an image of Soemmering's electric telegraph.

http://www.heise.de/tp/deutsch/inhalt/co/2335...
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