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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Virtual body and data body



The result of this informatisation is the creation of a virtual body which is the exterior of a man or woman's social existence. It plays the same role that the physical body, except located in virtual space (it has no real location). The virtual body holds a certain emancipatory potential. It allows us to go to places and to do things which in the physical world would be impossible. It does not have the weight of the physical body, and is less conditioned by physical laws. It therefore allows one to create an identity of one's own, with much less restrictions than would apply in the physical world.

But this new freedom has a price. In the shadow of virtualisation, the data body has emerged. The data body is a virtual body which is composed of the files connected to an individual. As the Critical Art Ensemble observe in their book Flesh Machine, the data body is the "fascist sibling" of the virtual body; it is " a much more highly developed virtual form, and one that exists in complete service to the corporate and police state."

The virtual character of the data body means that social regulation that applies to the real body is absent. While there are limits to the manipulation and exploitation of the real body (even if these limits are not respected everywhere), there is little regulation concerning the manipulation and exploitation of the data body, although the manipulation of the data body is much easier to perform than that of the real body. The seizure of the data body from outside the concerned individual is often undetected as it has become part of the basic structure of an informatised society. But data bodies serve as raw material for the "New Economy". Both business and governments claim access to data bodies. Power can be exercised, and democratic decision-taking procedures bypassed by seizing data bodies. This totalitarian potential of the data body makes the data body a deeply problematic phenomenon that calls for an understanding of data as social construction rather than as something representative of an objective reality. How data bodies are generated, what happens to them and who has control over them is therefore a highly relevant political question.

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Basics: Protected Persons

Generally copyright vests in the author of the work. Certain national laws provide for exceptions and, for example, regard the employer as the original owner of a copyright if the author was, when the work was created, an employee and employed for the purpose of creating that work. In the case of some types of creations, particularly audiovisual works, several national laws provide for different solutions to the question that should be the first holder of copyright in such works.

Many countries allow copyright to be assigned, which means that the owner of the copyright transfers it to another person or entity, which then becomes its holder. When the national law does not permit assignment it usually provides the possibility to license the work to someone else. Then the owner of the copyright remains the holder, but authorizes another person or entity to exercise all or some of his rights subject to possible limitations. Yet in any case the "moral rights" always belong to the author of the work, whoever may be the owner of the copyright (and therefore of the "economic rights").


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Intellectual Property: A Definition

Intellectual property, very generally, relates to the output, which result from intellectual activity in the industrial, scientific, literary and artistic fields. Traditionally intellectual property is divided into two branches:

1) Industrial Property

a) Inventions
b) Marks (trademarks and service marks)
c) Industrial designs
d) Unfair competition (trade secrets)
e) Geographical indications (indications of source and appellations of origin)

2) Copyright

The protection of intellectual property is guaranteed through a variety of laws, which grant the creators of intellectual goods, and services certain time-limited rights to control the use made of their products. Those rights apply to the intellectual creation as such, and not to the physical object in which the work may be embodied.

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Caching

Caching is a mechanism that attempts to decrease the time it takes to retrieve data by storing a copy at a closer location.

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Intranet

As a local area network (LAN), an Intranet is a secured network of computers based on the IP protocol and with restricted access.

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ARPAnet

ARPAnet was the small network of individual computers connected by leased lines that marked the beginning of today's global data networks. Being an experimental network mainly serving the purpose to test the feasibility of wide area networks, the possibility of remote computing, it was created for resource sharing between research institutions, not for messaging services like E-mail. Although research was sponsored by US military, ARPAnet was not designed for directly martial use but to support military-related research.

In 1969 ARPANET went online and links the first two computers, one of them located at the University of California, Los Angeles, the other at the Stanford Research Institute.

But ARPAnet has not become widely accepted before it was demonstrated in action to a public of computer experts at the First International Conference on Computers and Communication in Washington, D. C. in 1972.

Before it was decommissioned in 1990, NSFnet, a network of scientific and academic computers funded by the National Science Foundation, and a separate new military network went online in 1986. In 1988 the first private Internet service providers offered a general public access to NSFnet. Beginning in 1995, after having become the backbone of the Internet in the USA, NSFnet was turned over to a consortium of commercial backbone providers. This and the launch of the World Wide Web added to the success of the global data network we call the Net.

In the USA commercial users already outnumbered military and academic users in 1994.

Despite the rapid growth of the Net, most computers linked to it are still located in the United States.

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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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Internet Architecture Board

On behalf of the Internet Society, the Internet Architecture Board oversees the evolution of the architecture, the standards and the protocols of the Net.

Internet Society: http://www.isoc.org/iab

http://www.isoc.org/
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National Science Foundation (NSF)

Established in 1950, the National Science Foundation is an independent agency of the U.S. government dedicated to the funding in basic research and education in a wide range of sciences and in mathematics and engineering. Today, the NSF supplies about one quarter of total federal support of basic scientific research at academic institutions.

http://www.nsf.gov

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/0/0,5716,2450+1+2440,00.html

http://www.nsf.gov/
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User tracking

User tracking is a generic term that covers all the techniques of monitoring the movements of a user on a web site. User tracking has become an essential component in online commerce, where no personal contact to customers is established, leaving companies with the predicament of not knowing who they are talking to. Some companies, such as Red Eye, Cyber Dialogue, and SAS offer complete technology packages for user tracking and data analysis to online businesses. Technologies include software solutions such as e-mine, e-discovery, or WebHound

Whenever user tracking is performed without the explicit agreement of the user, or without laying open which data are collected and what is done with them, considerable privacy concerns have been raised.

http://www.redeye.co.uk/
http://www.cyberdialogue.com/
http://www.sas.com/
http://www.spss.com/emine/
http://www.sas.com/solutions/e-discovery/inde...
http://www.sas.com/products/webhound/index.ht...
http://www.linuxcare.com.au/mbp/meantime/
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