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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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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An Economic and therefore Governmental Issue

While the digital divide might bring up the idea that enterprises will be able to sell more and more computers during the next years another truth looks as if there was no hope for a certain percentage of the population to get out of their marginalization, their position of being "have nots".

Studies show that the issue of different colors of skin play a role in this, but more than "racial" issues it is income, age and education that decides about the have and have nots.

There exist ~ 103 million households in the USA.
~6 million do not even have telephone access. Why should they care about computers?

The digital divide cuts the world into centers and peripheries, not into nations, as it runs through the boarder between the North and the South as well as through nations.

http://www.digitaldivide.gov/
http://www.digitaldividenetwork.org/
http://www.pbs.org/digitaldivide/
http://news.cnet.com/news/0-1005-200-344552.html
http://racerelations.about.com/newsissues/racerelations/msubdigdivide.htm
http://www.techweek.com/articles/11-1-99/divide.htm
http://www.ntia.doc.gov/ntiahome/net2/falling.html

The most different institutions with various interests in their background work in that field; not rarely paid by governments, which are interested in inhabitants, connected to the net and economy.
see also: http://www.washington.edu/wto/digital/

Searching information about the digital divide one will find informations saying that it is growing all the time whereas other studies suggest the contrary, like this one
http://news.cnet.com/news/0-1005-200-341054.html

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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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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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Economic structure; introduction



"Globalization is to no small extent based upon the rise of rapid global communication networks. Some even go so far as to argue that "information has replaced manufacturing as the foundation of the economy". Indeed, global media and communication are in some respects the advancing armies of global capitalism."

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

"Information flow is your lifeblood."

(Bill Gates, founder of Microsoft)

The usefulness of information and communication technologies increases with the number of people who use them. The more people form part of communication networks, the greater the amount of information that is produced. Microsoft founder Bill Gates dreams of "friction free capitalism", a new stage of capitalism in which perfect information becomes the basis for the perfection of the markets.

But exploitative practices have not disappeared. Instead, they have colonised the digital arena where effective protective regulation is still largely absent.

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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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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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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Definition

During the last 20 years the old Immanuel Wallerstein-paradigm of center - periphery and semi-periphery found a new costume: ICTs. After Colonialism, Neo-Colonialism and Neoliberalism a new method of marginalization is emerging: the digital divide.

"Digital divide" describes the fact that the world can be divided into people who
do and people who do not have access to (or the education to handle with) modern information technologies, e.g. cellular telephone, television, Internet. This digital divide is concerning people all over the world, but as usually most of all people in the formerly so called third world countries and in rural areas suffer; the poor and less-educated suffer from that divide.
More than 80% of all computers with access to the Internet are situated in larger cities.

"The cost of the information today consists not so much of the creation of content, which should be the real value, but of the storage and efficient delivery of information, that is in essence the cost of paper, printing, transporting, warehousing and other physical distribution means, plus the cost of the personnel manpower needed to run these `extra' services ....Realizing an autonomous distributed networked society, which is the real essence of the Internet, will be the most critical issue for the success of the information and communication revolution of the coming century of millennium."
(Izumi Aizi)

for more information see:
http://www.whatis.com/digital_divide.htm

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Telephone

The telephone was not invented by Alexander Graham Bell, as is widely held to be true, 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, no financial support for further development was provided to him.

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

INDEXCARD, 1/11
 
Bulletin Board Systems

A BBS (bulletin board system) is a computer that can be reached by computer modem dialing (you need to know the phone number) or, in some cases, by Telnet for the purpose of sharing or exchanging messages or other files. Some BBSs are devoted to specific interests; others offer a more general service. The definitive BBS List says that there are 40,000 BBSs worldwide.

Bulletin board systems originated and generally operate independently of the Internet.

Source: Whatis.com

INDEXCARD, 2/11
 
World Wide Web (WWW)

Probably the most significant Internet service, the World Wide Web is not the essence of the Internet, but a subset of it. It is constituted by documents that are linked together in a way you can switch from one document to another by simply clicking on the link connecting these documents. This is made possible by the Hypertext Mark-up Language (HTML), the authoring language used in creating World Wide Web-based documents. These so-called hypertexts can combine text documents, graphics, videos, sounds, and Java applets, so making multimedia content possible.

Especially on the World Wide Web, documents are often retrieved by entering keywords into so-called search engines, sets of programs that fetch documents from as many servers as possible and index the stored information. (For regularly updated lists of the 100 most popular words that people are entering into search engines, click here). No search engine can retrieve all information on the whole World Wide Web; every search engine covers just a small part of it.

Among other things that is the reason why the World Wide Web is not simply a very huge database, as is sometimes said, because it lacks consistency. There is virtually almost infinite storage capacity on the Internet, that is true, a capacity, which might become an almost everlasting too, a prospect, which is sometimes consoling, but threatening too.

According to the Internet domain survey of the Internet Software Consortium the number of Internet host computers is growing rapidly. In October 1969 the first two computers were connected; this number grows to 376.000 in January 1991 and 72,398.092 in January 2000.

World Wide Web History Project, http://www.webhistory.org/home.html

http://www.searchwords.com/
http://www.islandnet.com/deathnet/
http://www.salonmagazine.com/21st/feature/199...
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Punch card, 1801

Invented by Joseph Marie Jacquard, an engineer and architect in Lyon, France, the 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 for processing statistical data retrieved from the US census in 1890, thus speeding up data analysis from eight to three years. His application of Jacquard's invention was also used for programming computers and data processing until electronic data processing was introduced in the 1960's. - As with writing and calculating, administrative purposes 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 applied them as a medium for the preparation, storage, and transmission of data for the first time. By their means, telegraph messages could be prepared off-line, sent ten times quicker (up to 400 words per minute), and stored. Later similar paper tapes were used for programming computers.

INDEXCARD, 4/11
 
Satellites

Communications satellites are relay stations for radio signals and provide reliable and distance-independent high-speed connections even at remote locations without high-bandwidth infrastructure.

On point-to-point transmission, the transmission method originally employed on, satellites face increasing competition from fiber optic cables, so point-to-multipoint transmission increasingly becomes the ruling satellite technology. Point-to-multipoint transmission enables the quick implementation of private networks consisting of very small aperture terminals (VSAT). Such networks are independent and make mobile access possible.

In the future, satellites will become stronger, cheaper and their orbits will be lower; their services might become as common as satellite TV is today.

For more information about satellites, see How Satellites Work (http://octopus.gma.org/surfing/satellites) and the Tech Museum's satellite site (http://www.thetech.org/hyper/satellite).

http://www.whatis.com/vsat.htm
http://octopus.gma.org/surfing/satellites
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Terrestrial antennas

Microwave transmission systems based on terrestrial antennas are similar to satellite transmission system. Providing reliable high-speed access, they are used for cellular phone networks.

The implementation of the Wide Application Protocol (WAP) makes the wireless access to Internet services as E-Mail and even the World Wide Web via cellular phones convenient. Therefore microwave transmission systems become increasingly important.

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Hieroglyphs

Hieroglyphs are pictures, used for writing in ancient Egypt. First of all those pictures were used for the names of kings, later more and more signs were added, until a number of 750 pictures

INDEXCARD, 7/11
 
Gopher

Gopher is a menu system with hierarchically structured list of files that predates the World Wide Web.

Today Gopher is of diminishing importance and mostly replaced by the World Wide Web.

INDEXCARD, 8/11
 
Internet Exchanges

Internet exchanges are intersecting points between major networks.

List of the World's Public Internet exchanges (http://www.ep.net)

http://www.ep.net/
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Bandwidth

The bandwidth of a transmitted communications signal is a measure of the range of frequencies the signal occupies. The term is also used in reference to the frequency-response characteristics of a communications receiving system. All transmitted signals, whether analog or digital, have a certain bandwidth. The same is true of receiving systems.

Generally speaking, bandwidth is directly proportional to the amount of data transmitted or received per unit time. In a qualitative sense, bandwidth is proportional to the complexity of the data for a given level of system performance. For example, it takes more bandwidth to download a photograph in one second than it takes to download a page of text in one second. Large sound files, computer programs, and animated videos require still more bandwidth for acceptable system performance. Virtual reality (VR) and full-length three-dimensional audio/visual presentations require the most bandwidth of all.

In digital systems, bandwidth is data speed in bits per second (bps).

Source: Whatis.com

INDEXCARD, 10/11
 
Immanuel Wallerstein

Immanuel Wallerstein (* 1930) is director of the Fernand Braudel Center for the Study of Economies, Historical Systems, and Civilizations. He is one of the most famous sociologists in the Western World. With his book The Modern World-System: Capitalist Agriculture and the Origins of the European World-Economy in the Sixteenth Century (1976), which led to the expression World-System Theory about centers, peripheries and semi-peripheries in the capitalist world system, he did not only influence a whole generation of scientists, but this theory seems to get popular again, due to globalization.

INDEXCARD, 11/11