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 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 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 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 1861 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Acessing the Internet The Net connections can be based on wire-line and wireless access technolgies.
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 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 Scheduled privatization of intergovernmental satellite consortia:
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
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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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In Search of Reliable Internet Measurement Data Newspapers and magazines frequently report growth rates of Internet usage, number of users, hosts, and domains that seem to be beyond all expectations. Growth rates are expected to accelerate exponentially. However, Internet measurement data are anything thant reliable and often quite fantastic constructs, that are nevertheless jumped upon by many media and decision makers because the technical difficulties in measuring Internet growth or usage are make reliable measurement techniques impossible. Equally, predictions that the Internet is about to collapse lack any foundation whatsoever. The researchers at the Size and Growth In fact, "today's Internet industry lacks any ability to evaluate trends, identity performance problems beyond the boundary of a single ISP (Internet service provider, M. S.), or prepare systematically for the growing expectations of its users. Historic or current data about traffic on the Internet infrastructure, maps depicting ... there is plenty of measurement occurring, albeit of questionable quality", says K. C. Claffy in his paper Internet measurement and data analysis: topology, workload, performance and routing statistics (http://www.caida.org/Papers/Nae/, Dec 6, 1999). Claffy is not an average researcher; he founded the well-known So his statement is a slap in the face of all market researchers stating otherwise. In a certain sense this is ridiculous, because since the inception of the So what are the reasons for this inability to evaluate trends, identity performance problems beyond the boundary of a single ISP? First, in early 1995, almost simultaneously with the worldwide introduction of the "There are many estimates of the size and growth rate of the Internet that are either implausible, or inconsistent, or even clearly wrong", K. G. Coffman and Andrew, both members of different departments of What is measured and what methods are used? Many studies are devoted to the number of users; others look at the number of computers connected to the Internet or count You get the clue of their focus when you bear in mind that the Internet is just one of many networks of networks; it is only a part of the universe of computer networks. Additionally, the Internet has public (unrestricted) and private (restricted) areas. Most studies consider only the public Internet, Coffman and Odlyzko consider the long-distance private line networks too: the corporate networks, the Hosts The Despite the small sample, this method has at least one flaw: Internet Weather Like daily weather, traffic on the Internet, the conditions for data flows, are monitored too, hence called Internet weather. One of the most famous Internet Hits, Page Views, Visits, and Users Let us take a look at how these hot lists of most visited Web sites may be compiled. I say, may be, because the methods used for data retrieval are mostly not fully disclosed. For some years it was seemingly common sense to report requested files from a Web site, so called "hits". A method not very useful, because a document can consist of several files: graphics, text, etc. Just compile a document from some text and some twenty flashy graphical files, put it on the Web and you get twenty-one hits per visit; the more graphics you add, the more hits and traffic (not automatically to your Web site) you generate. In the meantime page views, also called page impressions are preferred, which are said to avoid these flaws. But even page views are not reliable. Users might share computers and corresponding Especially the editors of some electronic journals (e-journals) rely on page views as a kind of ratings or circulation measure, Rick Marin reports in the More advanced, but just slightly better at best, is counting visits, the access of several pages of a Web site during one session. The problems already mentioned apply here too. To avoid them, newspapers, e.g., establish registration services, which require password authentication and therefore prove to be a kind of access obstacle. But there is a different reason for these services. For content providers users are virtual users, not unique persons, because, as already mentioned, computers and For If you like to play around with Internet statistics instead, you can use Robert Orenstein's Measuring the Density of Measuring the Density of Dodge and Shiode used data on the ownership of IP addresses from | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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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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. 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: 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Definition During the last 20 years the old "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: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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4000 - 1000 B.C. 4th millennium B.C. In Sumer Writing and calculating came into being at about the same time. The first pictographs carved into clay tablets were used for administrative purposes. As an instrument for the administrative bodies of early empires, which began to rely on the collection, storage, processing and transmission of data, the skill of writing was restricted to only very few. Being more or less separated tasks, writing and calculating converge in today's computers. Letters are invented so that we might be able to converse even with the absent, says Saint Augustine. The invention of writing made it possible to transmit and store information. No longer the ear predominates; face-to-face communication becomes more and more obsolete for administration and bureaucracy. Standardization and centralization become the constituents of high culture and vast empires as Sumer and China. 3200 B.C. In Sumer the seal is invented. About 3000 B.C. In Egypt papyrus scrolls and About 1350 B.C. In Assyria the cuneiform script is invented. 1200 B.C. According to Aeschylus, the conquest of the town of Troy was transmitted via torch signals. About 1100 B.C. Egyptians use homing pigeons to deliver military information. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Internet services The Internet can be used in in different ways: for distributing and retrieving information, for one-to-one, one-to-many and many-to-many communication, and for the access services. Accordingly, there are different services on offer. The most important of these are listed below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 Its members comprise companies, government agencies, foundations, corporations and individuals. The Internet Society is governed by elected trustees. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sun Microsystems Founded in 1982 and headquartered in Palo Alto, USA, Sun Microsystems manufactures computer workstations, For more detailed information see the Encyclopaedia Britannica: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Robot Robot relates to any automatically operated machine that replaces human effort, though it may not resemble human beings in appearance or perform functions in a humanlike manner. The term is derived from the Czech word robota, meaning "forced labor." Modern use of the term stems from the play R.U.R., written in 1920 by the Czech author Karel Capek, which depicts society as having become dependent on mechanical workers called robots that are capable of doing any kind of mental or physical work. Modern robot devices descend through two distinct lines of development--the early | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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First Monday An English language peer reviewed media studies journal based in Denmark. http://firstmonday.dk | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Wide Area Network (WAN) A Wide Area Network is a wide area proprietary network or a network of local area networks. Usually consisting of computers, it may consist of cellular phones, too. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Vinton Cerf Addressed as one of the fathers of the Internet, Vinton Cerf together with Robert Kahn developed the In 1992, he co-founded the Today, Vinton Cerf is Senior Vice President for Internet Architecture and Technology at Vinton Cerf's web site: http://www.wcom.com/about_the_company/cerfs_up/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Cookie A cookie is an information package assigned to a client program (mostly a Web browser) by a server. The cookie is saved on your hard disk and is sent back each time this server is accessed. The cookie can contain various information: preferences for site access, identifying authorized users, or tracking visits. In online advertising, cookies serve the purpose of changing advertising banners between visits, or identifying a particular Advertising banners can be permanently eliminated from the screen by filtering software as offered by Cookies are usually stored in a separate file of the browser, and can be erased or permanently deactivated, although many web sites require cookies to be active. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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