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Electronic Billboards on the Digital Superhighway
A Report of the Working Group on
Internet Advertising
The Coalition for Networked Information
March 18, 1994
With somewhere between 8 million and 20 million users (figures are
decidedly imprecise), the international information highway known as the
Internet is Madison Avenue's dream: easy (and cheap!) access to a
population that is literate (most information is in text form), moneyed
(they have computers and the necessary communications accessories),
intelligent (a large proportion are connected with universities or
research centers), and willing to reveal interests and desires by
joining "lists" and "newsgroups" that reflect passions from operating
systems to social systems.
Yet the Internet, born out of a people-to-people effort that has
its roots in barn raisings and volunteer fire departments, has
traditionally been anti-commercial. Even answers to questions posed on
lists like "fatfree" or in newsgroups like "alt.wedding" are often
preceded or followed by messages that proclaim the respondent's
independence -commonly known as the "Standard Disclaimer."
Several people have mentioned the Standard Disclaimer
(.e.g., "I have no connection with this company whose
products I am recommending") and described it as a
cultural tradition, and as a way of escaping criticism
for advertising.
[From: schull@merlin.cvs.rochester.edu (Jon Schull)
Date: Thu, 28 Oct 93 19:12:48 -0400]
Other forces are now at work on the Internet, forces that do not
come out of the volunteer tradition. They include:
>> Commercial services that provide Internet access to those not
connected with higher education or research
>> Businesses that provide commercial information via the Internet
>> Those who are trying to sell products using this new way of gaining
access to potential customers
Many Internet users are concerned about those new forces on the
Internet. Some have proposed banning advertising completely. Others have
proposed limiting or controlling advertising. Still others argue that
the free-speech rights that make possible much Internet discussion and
activities are inimical to a prohibition on advertising.
In the course of a one-month on-line discussion of advertising on
the Internet, sponsored by the Coalition for Networked Information (from
which all the quotes in this paper come), the consensus seemed to be
that some guidelines are important for Internet advertising, but that
they should be just guidelines, and not requirements. Few were willing
to take on the job of censor.
"...we all have to realize that we are in the dirty
business of defining what acceptable free speech is
on the Internet. While we are not necessarily going
to ban certain forms of free speech, we are
certainly looking to control it. So far the only
criterion or definition of what we are going to
control seems to be if it involves the crime of
someone making money off of it.
[From: Bob <bobk@bigbird.rad.washington.edu>
Date: Thu, 28 Oct 93 01:47:37 -0400]
More important was the growing conviction among participants that
advertising is as important an information source as many other
electronic publications on the Internet, and that advertising serves the
needs of Internetters as well as advertisers.
People want information about the products and services they buy;
they want to make intelligent choices based on solid information. They
want to know as much as they can about these products and services, and
they want that information quickly and easily when they need it.
That means a change for advertisers. Today's advertising tends not
to be information rich. The goal of print-based advertising, or
television or radio advertising, is to catch the attention of the
potential customer and leave a simple message that can be translated
into "buy me" when the time is appropriate. The cost of delivering a lot
of information to people who may not want ANY information is too high in
current mass media. The densest information -- the cautions, warnings,
and considerations that accompany advertisements for drugs in magazines
and newspapers -- is presented only because federal law requires it.
Pharmaceutical manufacturers know that only a tiny fraction of the
people who notice their ads read that small type. If they did not HAVE
to provide that information, they probably wouldn't.
However, advertisers are delighted to provide detailed information
for the potential customer who seeks it. That is why so many
advertisements encourage people to call 800 numbers or write for more
information. People who are interested in detailed information about a
product or service are people who are thinking about buying.
The advantage of advertising on the Internet is that the ability to
provide "layers" of information, giving netters a choice of how much
information to get on a product or service. The information is available
immediately (unlike products for which people must write), and can be as
current as the advertiser chooses to make it (unlike brochures that may
be out of date by the time they are printed).
For both advertisers and Internetters, this emphasis on
information, controlled by the reader, changes the nature of
advertising. As Tim O'Reilly writes on GNN:
"...what information a customer retrieves is
entirely under his or her control. We firmly
believe that people on the Net are interested
in solid, detailed information about commercial
products. They don't want unsolicited
advertising, but they do want to be able to
retrieve information that they are looking for
-- and that includes commercial information as
well as free information.
[http://nearnet.gnn.com/mkt/gnn/tim.letter.html]
For many years the debate centered on whether advertising should be
allowed on the Internet. The Internet, originally supported almost
entirely by federal funds, had rules about commercial participation that
could be summed up in two words: not allowed.
In recent years, however, the nets that make up the Internet have
expanded, to include some strictly commercial cables and some nets that
are very comfortable selling access to businesses both for their own use
and to reach individuals on the Internet. Some of those businesses began
to advertise. Some of the advertising was effective, some just created
hostility. Now advertisers are beginning to ask: What works? What is the
"right" way to advertise on the Internet? (This is a question of
efficacy, not of morals.)
As an advertising presence has grown on the Internet, the goal for
many participants in the CNI discussion was to figure out HOW a business
might advertise, not to decide WHETHER to allow advertising.
And in general the conclusion most people reached was that
advertising on the Internet has to satisfy two prime rules:
1. It should be passive, rather than active, allowing the Internetter
to come to the advertiser rather than having the advertiser foist
his or her message on the Internetter.
2. It should offer solid information rather than hyperbole, letting
the Internetter unfold more and more details about products and
services as the need for information grows.
Madison Avenue has an opportunity to create a new form of
advertising, one that is almost as good as sending a salesperson to each
prospect's house, to sit at the dining-room table and answer questions,
give demonstrations, and make sure that this potential customer is sold.
That new form of advertising is being invented even as we write
this, by those who are trying different forms of Internet advertising
and identifying what works.
WHAT IS INTERNET ADVERTISING?
Internet advertising today falls into six categories:
o Endorsements -- Recommendations from users
o Billboards -- Postings on cognate lists or newsgroups
o Yellow Pages -- Searchable data bases of information from advertisers
o Penny Shoppers -- Product-focused or service-focused electronic lists
or e-mail subscriptions
o Newspapers -- Advertising that underwrites editorial content
o Junk Mail -- Direct (and unsolicited) to your mailbox
ENDORSEMENTS
Cher does not yet recommend her health club on the Internet, but
many others tell of their experiences with products and services -- both
positive and negative. As one participant on a list said:
There are a number of books and articles around which
describe this kind of marketing approach. The most
accessible one I've found is "The One to One Future"
by Peppers and Rogers. (Sorry for that blatantly
commercial message. Here's the standard disclaimer:
I have nothing whatsoever to gain from the sale of the
book. :-).
[From: brian@eit.COM (Brian Smithson)
Date: Thu, 28 Oct 93 00:22:21 -0400]
Endorsements might be exempted from the "advertising" category,
because they often come in the context of a question answered ("Does
anyone know where I can get...") or an experience shared ("My service
provider offers..."). Even when the endorsement comes from someone who
works for the company, the promotion is accepted when it is not
blatantly commercial and is a reasonable answer to a question posed by
someone else.
Endorsements also are among the most effective advertisements on
the Internet, because they are offered publicly in an interactive
medium. Anyone who disagrees can post her own opinions, and such
debates often form the best -and most unbiased -- analyses of products
and services. Advertisers whose products and services are discussed
positively by others gain customers and loyalty. And when an advertiser
participates in the debate, the power of the Internet really comes
through. Advertisers whose products are panned can learn first hand
about customers' problems -- and solve them and let others know that
those problems have been solved.
BILLBOARDS
Billboards are the signs on the road that tell about services on
or near the road -- in this case the Internet equivalents of hotels and
motels, tourist attractions, restaurants, and gas stations. They are
most acceptable when they appear in context, most reviled when they are
scattershot attempts to find audiences in unlikely spots.
A billboard might be a press release or product announcement on a
list or newsgroup devoted to a related topic. For instance, a list
devoted to public-access library catalogs might accept a posting from a
company that helps institutions computerize their card catalogs.
Some lists tend to get more billboards than others. On com-priv,
where participants discuss the commercialization and privatization of
the Internet, related advertising is viewed with equanimity:
To: com-priv@psi.com
Subject: Re: Internet Business Report and Internet
Letter Date: Mon, 15 Nov 93 23:27:22 EST
Attention Subscribers of Internet Business Report
or Internet Letter
Flushed with their continued international success,
the publishers of THE INTERNET BUSINESS JOURNAL are
presently offering you a free three month trial
subscription to THE INTERNET BUSINESS JOURNAL.
THE INTERNET BUSINESS JOURNAL's premiere issue in
June 1993 attracted the attention of sources such as
Business Week, Fortune, Wired, The Globe and Mail,
and since then continues to set the standard for
reporting on Internet business opportunities and
resources.
The editor of THE INTERNET BUSINESS JOURNAL, Michael
Strangelove, explains the reasoning behind this bold
free offer, "We have a product that is guaranteed to
be simply the best, and therefore dare to invite
comparison. When it comes to price, focus, content,
and quality, we continue to set the standard. Success
is always imitated, but why should you settle for
smaller, more expensive products?
Subscribers may take advantage of this offer by
sending proof of subscription to THE INTERNET
BUSINESS JOURNAL, Subscription Manager, 208-A
Somerset Street East, Ottawa, Ontario, CANADA
K1N 6V2. (Tel: 613-747-6106 / FAX: 613-564-6641).
THE INTERNET BUSINESS JOURNAL:
Commercial Opportunities in the Networking Age
Published by Strangelove Internet Enterprises Inc.
Purveyors of Fine Internet Publications
Mstrange@Fonorola.Net
[From: mstrange@fonorola.net (Strangelove Press)
Date: Mon. 15 Nov 93 23:27:22 EST]
Alt-wedding, a Usenet discussion group important to those who are
planning weddings, is not comfortable with advertising, and participants
gently make their feelings known when advertisers invade their space:
From: Brown@underground.irhe.upenn.edu (Teisa Brown)
Newsgroups: alt.wedding
Subject: Wedding Coordinator
Date: 6 Jan 94 19:46:06 GMT
Followup-To: alt.wedding
Organization: IRHE
Lines: 25
Hello Everyone:
I am so happy that so many are going to be married
soon. Wedded Bliss!
Nothing like it.
My name is Teisa Brown and I live in Philadelphia,
Pennsylvania. I wanted to let you all know that I
am a professional wedding coordinator and would be
happy to extend my services to you. I can work with
you even if you do not live the Philadelphia area.
I specialize in wedding budgets $5,000 and under.
I can reached via e-mail or phone at ....
during the day. Should you want additional
information, please do not hesitate to contact me.
My mailing address is as follows:
....[name and address deleted]...
Look forward to hearing from you soon.
* * *
From: Brown@underground.irhe.upenn.edu (Teisa Brown)
Newsgroups: alt.wedding
Subject: APOLOGIES FOR AD
Followup-To: alt.wedding
Date: Mon, 10 Jan 1994 10:00:39 -0500
Organization: IRHE
Lines: 8
In response to the ad I placed about a wedding
coordinator, I want to apologize for sending my ad
through this forum. I have offended a few and they
have let me know.
Never again will I make that mistake.
Teisa Brown
University of Pennsylvania
The participants in alt.wedding, who are more interested in the
flames of passion than in flaming, probably treated Ms. Brown gently.
Billboards for products unrelated to the subject under discussion on
lists and newsgroups may very well engender unprintable words and
threats -- the practice known as "flaming."
But where such advertising is allowed, it is often most welcome,
because the participants in these lists and newsgroups have joined to
get the kind of information advertisers can provide.
For advertisers, billboards on lists and newsgroups that allow it
are opportunities to reach people who have already expressed an interest
in the kinds of products and services offered. These people are, in
marketing terms, "pre-qualified": they care about these products and
services.
YELLOW PAGES
Participants in the CNI discussion were most enthusiastic about the
Yellow Pages approach, in which advertisements from a variety of sources
are collected into a searchable data base. They felt that a Yellow Pages
service fits most comfortably into the Internet culture -- and takes
best advantage of the tools developed for the Internet. Searching and
presentation tools like Gopher, Archie, WAIS, and lately Mosaic make
organizing and delivering advertisers' information relatively easy, and
allow Internetters to find that information relatively painlessly.
Gopher is currently the most useful and friendly of the
net-searching protocols. A Gopher "burrow" containing a
wide selection of products and services, including
options for requesting updated information and
containing levels of background information on the
product's features and the company's history, maybe even
offering graphics files, would allow Internet users to
"shop", as in the Yellow Pages, and browse and compare
products.
[From: fig@path.net (Cliff Figallo)
Date: Tue, 26 Oct 93 11:25:00 -0400]
On the other hand, the Yellow Pages works only when someone is
looking for information, and not when advertisers are trying to interest
people who may never have heard of their company or their product. In
addition, the Yellow Pages service itself must be advertised heavily in
order to get Internetters to use it, which leads to "intrusive"
advertising being used to trumpet the availability of "non-intrusive"
advertising.
...let's admit that non-intrusive advertising is almost
an oxymoron. The word "advertising" comes from the
Latin word meaning "call attention to," and to call
someone's attention to something you have to intrude on
that person's attention. And so, if you have a new
product (or whole new type of product, which doesn't
even fit into existing yellow pages categories!), you
will certainly need to "intrude" -- i.e., to ADVERTISE.
You will also need to intrude on people's consciousness
if you have a new cause, a new politician (talk about
oxymorons!), a new idea, etc.
[From: gehl@ivory.educom.edu (John Gehl)
Date: Wed, 13 Oct 93 18:52:37 -0400]
Advertisers like having their product and service information in an
expected spot. It means that those who go out looking for such
information have an easy time finding it. But Yellow Pages advertising
lacks the serendipitous quality of advertisements designed to entice
readers who may not at that moment be actively seeking information about
a product or service.
PENNY SHOPPERS
Penny Shoppers are the four-page to 20-page tabloid-size
agglomerations of classified and display ads that are left in the handle
of front doors around the country. They contain nothing but advertising,
mostly from mom-and-pop pizzerias, dry cleaners, and full-service gas
stations in the neighborhood. They are a low-tech version of the coupon
packages that are becoming popular in upscale areas.
The Internet has its own version of Penny Shoppers, the
"misc.forsale" newsgroups that seem to be attached to major metropolitan
areas, and the lists sponsored by purveyors of products -- often
computers and software -- that include as many new product announcements
as answers to users' queries. Those who subscribe to such newsgroups and
lists know what they are getting, just as Penny Shopper readers
recognize their blatantly commercial nature. But sometimes people really
want to know what is for sale and on sale. That's valuable information.
As a result, the proliferation of product-focused or sale-focused
lists and newsgroups continues. It's effective advertising because the
customer chooses it.
I note that Sun has a press release mailing list
(sunflash) which many people *voluntarily* subscribe
to. In fact, some people archive it!
[From: Christopher Davis <ckd@eff.org>
Date: Mon, 22 Feb 1993 17:27:12 -0500]
The Sun list is run by Sun and limited to Sun products. Other
newsgroups and lists modeled after Penny Shoppers may be open to anyone,
and many have advertised and sold everything from computer chips to
houses on the Internet. Note all the different newsgroups the following
ad appeared on:
From: death@nmt.edu (That's Mr. Death)
Newsgroups: misc.forsale.computers.mac
misc.forsale.computers
misc.forsale misc.forsale.computers.workstation
comp.sys.next.marketplace
Subject: SIMM MEMORY - 4, 4Mb 30 pin for SALE
Date: 9 Nov 93 12:45:09 GMT
Sender: death@black.nmt.edu
Followup-To: death@black.nmt.edu
Organization: New Mexico Tech
Lines: 9
I have 4, 4Mb 30 pin SIMMS for sale. 1 * 8 I believe.
They work great in NeXTStations and NeXT Cubes, and in
most (if not all) Mac's. Not sure about what else uses
them.
Best offer takes them. I may sell them 1 at a time as
long as I sell all four. Hey - make me an offer, you
may get a great deal...
thanks,
death@black.nmt.edu
From the advertiser's point of view, these lists and newsgroups
are golden. People who use them are not only "pre-qualified" because
they are interested in the subject, they actually are actively seeking
the products being offered. As Rob Raisch, president of the Internet
Company, said in Mary Cronin's recent book: "On the Internet the
customers come to you."
[Doing Business on the Internet, by Mary J. Cronin, Van Nostrand
Reinhold, 1994. Page 129.]
NEWSPAPERS
In the newspaper model, advertising underwrites editorial copy. The
cost of collecting, organizing, and disseminating the information is
passed on to the advertisers in return for giving them space to reach
the people who want that editorial material. Newspapers receive some 80
per cent of their income from advertisers; subscriptions and newsstand
sales make up the rest.
On the Internet, advertising can underwrite the provision of
valuable information in a similar way, making it possible for
Internetters to see articles or use resources that otherwise might be
out of their price range -- or might not be offered on the Internet at
all because of the information-owner's fear of wholesale copying.
For information providers, the newspaper model means that costs are
covered up front. For advertisers, it means that people who might not
otherwise find out about products and services have been drawn in by the
lure of free or low-cost information. For Internetters, the opportunity
to get access to certain resources at little or no cost makes up for the
advertising that must accompany it.
And often the advertising itself is a lure, as it is with ACADEME
THIS WEEK, the Internet glimpse at the information in The Chronicle of
Higher Education.
___________________________________________________________
Internet Gopher Client [v1.12]
ACADEME THIS WEEK: The Chronicle of Higher Education
1. NEW IN "ACADEME THIS WEEK".
2. INTERNET ALERT: a new hacker attack/
3. INFORMATION from the February 9 Chronicle: a Guide/
4. EVENTS IN ACADEME: February 8 to February 21/
5. BEST-SELLING BOOKS on campuses.
6. ALMANAC: facts and figures on U.S. higher education.
->7. JOB OPENINGS in Academe from the February 9 Chronicle/
8. ABOUT THE CHRONICLE: subscriptions, advertising, copyright.
9. ABOUT "ACADEME THIS WEEK": search tips and more/
___________________________________________________________
Internet Gopher Client [v1.12]
JOB OPENINGS in Academe from the February 9 Chronicle
->1. SEARCH using The Chronicle's list of job titles/
2. SEARCH using any word or words of your choosing/
___________________________________________________________
[ACADEME THIS WEEK, from The Chronicle of Higher Education.
chronicle.merit.edu, Gopher port 70; or look under All the Gopher
Servers in the World.]
The Chronicle of Higher Education's Gopher, ACADEME THIS WEEK, has
been available on the Internet since April, 1993, and has posted
between 700 and 1,200 job ads each week -- without a single complaint
from Internet users. (When there is a comment, it is most typically
appreciation.)
JUNK MAIL
The issue of advertising on the Internet is really an issue of
"junk e-mail," an electronic version of the tons of paper sent to the
eponymous "resident." A mailbox full of promotions one neither chooses
nor wants engenders fear and loathing in the hearts of Internetters, and
leads to the most vicious flaming.
While the very openness of the Internet makes it possible to flood
e-mail addresses with electronic flyers, the culture of the Internet
stands squarely against it. Internetters see themselves as part of a
great experiment, all sharing their knowledge freely without imposing on
their fellow netters.
And for some Internetters, junk mail creates an unwanted expense as
well as an annoyance. Some people pay usage fees based on time on line,
or storage charges for mailboxes. Those people really are paying to
receive mail they do not want. Even the Post Office charges the mailer,
not the recipient, for direct mail.
Even so, some advertisers will try sending junk mail to lists of e-
mail addresses gained openly or covertly. These advertisers believe that
even if most of the recipients throw away the message (and hate the
advertiser), those few Internetters who are induced to buy will more
than make up for papering the net with unwanted mail.
Surprisingly to some, junk mail had its defenders in the
discussion:
If advertising is to be available over the net,
either you must reach out for it or it must come
to you unrequested. The former is a possibility
for established products, but new products must
necessarily reach out to you.
I see only three ways that this can be done. There
could be a registry where you indicate the types
of products you wish to hear about; there could be
commercially sold name lists that have much the
same effect; or each company could reach out to
individuals as best it can, respecting any
personal objections to such advertising.
The clearinghouse model doesn't exist yet, although
it's a good idea. (Incidentally, the clearing house
for direct-mail advertising reports that four
times as many people ask for _more_ advertising as
ask for less.)
The brokered lists also do not exist yet,
although they are also a good idea. A few
email lists may be available from professional
societies, but I would guess that such use is
severely restricted.
So, there really is no choice but for
low-margin companies to send you unsolicited
advertising. As they do so, they are to be
commended if they keep the messages short (with
more details on request), infrequent (but often
enough to help you if you need the product),
and customized in whatever way you request.
Announcements in mass-distribution lists should
be especially infrequent since they can't be
customized. (I would favor having a moderator
screen the ads.) Ads to individuals are better
as long as the company keeps track of any
requests that you make -- e.g., to be removed
entirely, or not to have your name sold. This
is called "relationship marketing," and is
often quite popular with the customers. It
hasn't been feasible at the national level
until just recently, but it is certainly
feasible on the net.
[From: Ken Laws <LAWS@ai.sri.com>
Date: Sun 21 Feb 93 15:17:44-PST]
CONCLUSION
The Internet is too good a market: There are too many people using
it, with too many "interest" groups, for advertisers to stay away. With
the pressure for advertising comes a need for guidelines if the Internet
culture is to be maintained.
These guidelines can be created, and they will be welcomed by
advertisers and users alike.
Here are our suggestions for guidelines for Internet advertising:
1. Provide information.
2. Don't impose.
Simple. Easy to remember. Effective.
Like good advertising.
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