Internet Content Providers Perspective

As within the traditional media landscape, Internet content providers have two primary means of generating revenue: Direct sales or subscriptions, and advertising. Especially as charging Internet users for access to content - with all the free material available - has proven problematic, advertising is seen as the best solution for creating revenues in the short term. Therefore intense competition has started among Internet content providers and access services to attract advertising money.

Table: Web-Sites Seeking Advertising


Period

Number of Web-Sites

June 1999

2111

July 1999

2174

August 1999

2311

September 1999

2560



Source: Adknowledge eAnalytics. Online Advertising Report

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Hill & Knowlton

Although it is generally hard to distinguish between public relations and propaganda, Hill & Knowlton, the worlds leading PR agency, represents an extraordinary example for the manipulation of public opinion with public relations activities. Hill & Knowlton did not only lobby for countries, accused of the abuse of human rights, like China, Peru, Israel, Egypt and Indonesia, but also represented the repressive Duvalier regime in Haiti.

It furthermore played a central role in the Gulf War. On behalf of the Kuwaiti government it presented a 15-year-old girl to testify before Congress about human rights violations in a Kuwaiti hospital. The girl, later found out to be the daughter of Kuwait's ambassador to the U.S., and its testimony then became the centerpiece of a finely tuned PR campaign orchestrated by Hill & Knowlton and co-ordinated with the White House on behalf of the government of Kuwait an the Citizens for a Free Kuwait group. Inflaming public opinion against Iraq and bringing the U.S. Congress in favor of war in the Gulf, this probably was one of the largest and most effective public relations campaigns in history.

Running campaigns against abortion for the Catholic Church and representing the Church of Scientology, large PR firms like Hill & Knowlton, scarcely hesitate to manipulate public and congressional opinion and government policy through media campaigns, congressional hearings, and lobbying, when necessary. Also co-operation with intelligence agencies seems to be not unknown to Hill & Knowlton.

Accused of pursuing potentially illegal proxy spying operation for intelligence agencies, Richard Cheney, head of Hill & Knowltons New York office, denied this allegations, but said that "... in such a large organization you never know if there's not some sneak operation going on." On the other hand former CIA official Robert T. Crowley acknowledged, that "Hill & Knowlton's overseas offices were perfect 'cover` for the ever-expanding CIA. Unlike other cover jobs, being a public relations specialist did not require technical training for CIA officers." Furthermore the CIA, Crowley admitted, used its Hill & Knowlton connections to "... put out press releases and make media contacts to further its positions. ... Hill & Knowlton employees at the small Washington office and elsewhere distributed this material through CIA assets working in the United States news media."

(Source: Carlisle, Johan: Public Relationships: Hill & Knowlton, Robert Gray, and the CIA. http://mediafilter.org/caq/)

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On-line Advertising Revenues

Although Internet advertising only really started in 1994, revenues showed a steady and fast growth. In 1997 US$ 906.5 million were spent on on-line advertising. Compared with advertising revenue for the television industry in equivalent dollars for its third year, the Internet was slightly ahead, at US$ 907 million compared to television's US$ 834 million. 1998 on-line advertising grew by 112 percent to US$ 1.92 billion in revenues, and is on track to hit US$ 4 billion in 1999, which would put Internet advertising at about 2 percent of the U.S. ad market.

Table: Spending on On-Line Advertising by Category

(first quarter 1999)

Category

Percent

Consumer-related

27 %

Financial services

21 %

Computing

20 %

Retail/mail order

13 %

New media

8 %



Table: Types of On-Line Advertising

(first quarter 1999)

Type of Advertising

Percent

Banners

58 %

Sponsorships

29 %

Interstitials

6 %

E-mail

1 %

Others

6 %



Source: Internet Advertising Bureau (IAB).

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Timeline 1900-1970 AD

1913 the wheel cipher gets re-invented as a strip

1917 William Frederick Friedman starts working as a cryptoanalyst at Riverbank Laboratories, which also works for the U.S. Government. Later he creates a school for military cryptoanalysis

- an AT&T-employee, Gilbert S. Vernam, invents a polyalphabetic cipher machine that works with random-keys

1918 the Germans start using the ADFGVX-system, that later gets later by the French Georges Painvin

- Arthur Scherbius patents a ciphering machine and tries to sell it to the German Military, but is rejected

1919 Hugo Alexander Koch invents a rotor cipher machine

1921 the Hebern Electric Code, a company producing electro-mechanical cipher machines, is founded

1923 Arthur Scherbius founds an enterprise to construct and finally sell his Enigma machine for the German Military

late 1920's/30's more and more it is criminals who use cryptology for their purposes (e.g. for smuggling). Elizabeth Smith Friedman deciphers the codes of rum-smugglers during prohibition regularly

1929 Lester S. Hill publishes his book Cryptography in an Algebraic Alphabet, which contains enciphered parts

1933-1945 the Germans make the Enigma machine its cryptographic main-tool, which is broken by the Poles Marian Rejewski, Gordon Welchman and Alan Turing's team at Bletchley Park in England in 1939

1937 the Japanese invent their so called Purple machine with the help of Herbert O. Yardley. The machine works with telephone stepping relays. It is broken by a team of William Frederick Friedman. As the Japanese were unable to break the US codes, they imagined their own codes to be unbreakable as well - and were not careful enough.

1930's the Sigaba machine is invented in the USA, either by W.F. Friedman or his colleague Frank Rowlett

- at the same time the British develop the Typex machine, similar to the German Enigma machine

1943 Colossus, a code breaking computer is put into action at Bletchley Park

1943-1980 the cryptographic Venona Project, done by the NSA, is taking place for a longer period than any other program of that type

1948 Shannon, one of the first modern cryptographers bringing mathematics into cryptography, publishes his book A Communications Theory of Secrecy Systems

1960's the Communications-Electronics Security Group (= CESG) is founded as a section of Government Communications Headquarters (= GCHQ)

late 1960's the IBM Watson Research Lab develops the Lucifer cipher

1969 James Ellis develops a system of separate public-keys and private-keys

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Fleishman-Hillard

Fleishman-Hillard, headquartered in St. Louis, Missouri, is the world's fifth largest public relations agency, with offices throughout North America, Europe and Asia, and affiliates in Latin America. Its 1998 net fees accounted for US$ 160,692,000.

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Amazon.Com

Amazon.Com was one of the first online bookstores. With thousands of books, CDs and videos ordered via the Internet every year, Amazon.Com probably is the most successful Internet bookstore.

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