Actual Findings on Internet Advertising

Although Web advertising becomes a significant portion of marketing budgets, advertisers are still unsure on how to unlock the potential of the Internet. Current findings show that:

- Consumer brands spend only a fraction of their advertising budget on on-line advertising.

- Technology companies spend five times more on advertising in the WWW.

- While banner campaigns are still popular, there is no standardized solution for on-line advertising.

- Ad pricing is based on CPM (costs per 1.000 visitors), rather than on results.

- Personalized targeting has not yet taken hold. Instead advertisers mainly target on content.

At the moment three dominant models are used for Internet advertising:

Destination Sites: They use entertainment, high production values and information to pull users in and bring them back again.

Micro Sites: Content sites or networks host small clusters of brand pages.

Banner Campaigns: Those include other forms of Web advertising like sponsorships.

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Public Relations and the Advertising Industry

The public relations industry, the same as advertising, is concentrated in the hands of few dominant firms. Still, the striking element about corporate public relations is that PR firms are tightly related to advertising companies. Nine out of the ten biggest international PR agencies have close ties with the advertising industry. Also, looking at the largest acquisitions involving U.S. PR firms from 1997 to 1999 it is apparent that money coming from advertising agencies has played an important role.


Table: Top 10 PR Firms 1998


Rank 1998

PR Firm

Advertising Agency Related

1998 Net Fees (in U.S. $)

1997 - 1998 % Change

1

Burson-Marsteller

yes

258,417,000

4.2

2

Hill and Knowlton

yes

206,000,000

8.9

3

Porter Novelli Int.

yes

183,050,000

23.6

4

Shandwick

yes

170,300,000

7.3

5

Fleishman-Hillard

yes

160,692,000

19.1.

6

Edelman PR Worldwide

no

157,840,530

18.1

7

Ketchum

yes

125,248,000

29.6

8

BSMG Worldwide

yes

118,963,000

93.0

9

Weber PR Worldwide

yes

83,166,000

36.2

10

GCI/APCO

yes

79,667,957

28.4




With many PR agencies sold to advertising companies, the advertising industry's influence further increases; enabling them to offer their clients not only advertising services, but also know-how in marketing, public opinion, crisis and issues management and political lobbying.

Table: Acquisition of PR Agencies (1997 - 1999)

Acquired Company

Buyer

Buyers Industry

Estimated Purchase Price (in millions of U.S. $)

International PR

Interpublic Group of Cos.

Advertising

230

Fleishman-Hillard

Omicom Group

Advertising

85

Ketchum

Omnicom Group

Advertising

60

Dewe Rogerson

Incepta

Advertising

40

Financial Rel. Bd.

BSMG/TN

Public Relations

33

Weber PR

Interpublic Group of Cos.

Advertising

15

Alexander

WPP Group

Advertising

15

Charles Barker

BSMG/TN

Public Relations

15



Source: Odwyerpr.com.

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Implant technology

Kevin Warwick at the University of Reading works on implant technologies which could enhance or modify functions of the limbs and the brain, or bring back functionalities lost, for example, in an accident or as a consequence of a stroke. Implants are also used for identification in "intelligent buildings" where they serve to control "personnel flows". However, the real potential of electronic implants seems to lie in the field of electronic drugs. The basics of the brain computer interface are already explored, and there are now efforts to electronically modify the function of the mind. Large software and IT companies are sponsoring this research which could result in the commercialisation of electronic drugs, functioning as anti-depressants, pain killers and the like. Evidently, the same technologies can also be used as narcotic drugs or to modify people's behaviour. The functioning of body and mind can be adapted to pre-defined principles and ideals, their autonomous existence reduced and subjected to direct outside control.

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Public Relations and Propaganda

Public relations usually is associated with the influencing of public opinion. Therefore it has subsequently been linked with propaganda. Using one of the many definitions of propaganda "... the manipulation of symbols as a means of influencing attitudes on controversial matters" (Harold D. Lasswell), the terms propaganda and PR seem to be easily interchangeable.

Still many authors explicitly distinguish between public relations, advertising and propaganda. Unlike PR, which is often described as objective and extensive information of the public, advertising and propaganda are associated with manipulative activities. Nevertheless to treat public relations and propaganda as equivalents stands in the tradition of PR. Edward L. Bernays, one of the founders of public relations wrote "The only difference between propaganda and education, really, is the point of view. The advocacy of what we believe in is education. The advocacy of what we don't believe is propaganda."

Also institutions like the German Bundeswehr use the terms publics relations and propaganda synonymously. After a 1990 legislation of the former minister of defense Stoltenberg, the "psychological influence of the enemy" was ceased during peace time and the Academy for Psychological Defense renamed to Academy for Information and Communication, among other things responsible for scientific research in the field of public relations.

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Timeline 1970-2000 AD

1971 IBM's work on the Lucifer cipher and the work of the NSA lead to the U.S. Data Encryption Standard (= DES)

1976 Whitfield Diffie and Martin Hellman publish their book New Directions in Cryptography, playing with the idea of public key cryptography

1977/78 the RSA algorithm is developed by Ron Rivest, Adi Shamir and Leonard M. Adleman and is published

1984 Congress passes Comprehensive Crime Control Act

- The Hacker Quarterly is founded

1986 Computer Fraud and Abuse Act is passed in the USA

- Electronic Communications Privacy Act

1987 Chicago prosecutors found Computer Fraud and Abuse Task Force

1988 U.S. Secret Service covertly videotapes a hacker convention

1989 NuPrometheus League distributes Apple Computer software

1990 - IDEA, using a 128-bit key, is supposed to replace DES

- Charles H. Bennett and Gilles Brassard publish their work on Quantum Cryptography

- Martin Luther King Day Crash strikes AT&T long-distance network nationwide


1991 PGP (= Pretty Good Privacy) is released as freeware on the Internet, soon becoming worldwide state of the art; its creator is Phil Zimmermann

- one of the first conferences for Computers, Freedom and Privacy takes place in San Francisco

- AT&T phone crash; New York City and various airports get affected

1993 the U.S. government announces to introduce the Clipper Chip, an idea that provokes many political discussions during the following years

1994 Ron Rivest releases another algorithm, the RC5, on the Internet

- the blowfish encryption algorithm, a 64-bit block cipher with a key-length up to 448 bits, is designed by Bruce Schneier

1990s work on quantum computer and quantum cryptography

- work on biometrics for authentication (finger prints, the iris, smells, etc.)

1996 France liberates its cryptography law: one now can use cryptography if registered

- OECD issues Cryptography Policy Guidelines; a paper calling for encryption exports-standards and unrestricted access to encryption products

1997 April European Commission issues Electronic Commerce Initiative, in favor of strong encryption

1997 June PGP 5.0 Freeware widely available for non-commercial use

1997 June 56-bit DES code cracked by a network of 14,000 computers

1997 August U.S. judge assesses encryption export regulations as violation of the First Amendment

1998 February foundation of Americans for Computer Privacy, a broad coalition in opposition to the U.S. cryptography policy

1998 March PGP announces plans to sell encryption products outside the USA

1998 April NSA issues a report about the risks of key recovery systems

1998 July DES code cracked in 56 hours by researchers in Silicon Valley

1998 October Finnish government agrees to unrestricted export of strong encryption

1999 January RSA Data Security, establishes worldwide distribution of encryption product outside the USA

- National Institute of Standards and Technologies announces that 56-bit DES is not safe compared to Triple DES

- 56-bit DES code is cracked in 22 hours and 15 minutes

1999 May 27 United Kingdom speaks out against key recovery

1999 Sept: the USA announce to stop the restriction of cryptography-exports

2000 as the German government wants to elaborate a cryptography-law, different organizations start a campaign against that law

- computer hackers do no longer only visit websites and change little details there but cause breakdowns of entire systems, producing big economic losses

for further information about the history of cryptography see:
http://www.clark.net/pub/cme/html/timeline.html
http://www.math.nmsu.edu/~crypto/Timeline.html
http://fly.hiwaay.net/~paul/cryptology/history.html
http://www.achiever.com/freehmpg/cryptology/hocryp.html
http://all.net/books/ip/Chap2-1.html
http://cryptome.org/ukpk-alt.htm
http://www.iwm.org.uk/online/enigma/eni-intro.htm
http://www.achiever.com/freehmpg/cryptology/cryptofr.html
http://www.cdt.org/crypto/milestones.shtml

for information about hacker's history see:
http://www.farcaster.com/sterling/chronology.htm:

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Martin Hellman

Martin Hellman was Whitfield Diffie's collegue in creating pubylic key cryptography in the 1970s.

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cryptology

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

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IBM

IBM (International Business Machines Corporation) manufactures and develops cumputer hardware equipment, application and sysem software, and related equipment.

IBM produced the first PC (Personal Computer), and its decision to make Microsoft DOS the standard operating system initiated Microsoft's rise to global dominance in PC software.

Business indicators:

1999 Sales: $ 86,548 (+ 7,2 % from 1998)

Market capitalization: $ 181 bn

Employees: approx. 291,000

Corporate website: www.ibm.com

http://www.ibm.com/
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America Online

Founded in 1985, America Online is the world's biggest Internet service provider serving almost every second user. Additionally, America Online operates CompuServe, the Netscape Netcenter and several AOL.com portals. As the owner of Netscape, Inc. America Online plays also an important role in the Web browser market. In January 2000 America Online merged with Time Warner, the worlds leading media conglomerate, in a US$ 243,3 billion deal, making America Online the senior partner with 55 percent in the new company.

http://www.aol.com

http://www.aol.com/
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