Date: Tue, 2 Aug 1994 13:38:43 -0700
From: Phil Agre <pagre@weber.ucsd.edu>
Subject: the future of advertising

I've enclosed a message from Jeremy Allaire on the online-news mailing list.
For information about online-news, send a message that looks like:

  To: rre-request@weber.ucsd.edu
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[...]

Forwarded message:
Date: Sun, 31 Jul 94 22:49:08 -0500
From: Jeremy D. Allaire <jallaire@skypoint.net>
Subject: "Do-it yourself Papers"

The commentary on the advantages and disadvantages of a "filter" or
"preference" based news service prompted me to recall the events from a
conference I recently attended.  It may shed some light on how the major
Cable/Telco folks are thinking about bringing this into your home.

Essentially, the conference was about how to leverage new interactive
technologies for marketing and advertising.  Folks from Time-Warner, TCI,
US West, Prodigy, and others were there.  The basic thrust was that
Interactive forms of information posed the threat of breaking the
reader/viewer away from the advertisement, because the cold stark fact was
that the majority of people prefer the entertainment/information over the
advertisements.  And, in a world where more control is offered to the user,
that could cause some problems.

Besides the frequently referenced and revolting notion of turning
advertisements into interactive game shows where you win what are
essentially coupons, there were several points made about new strategies
for controlling the reader/viewer in the interactive age.  The upshot was
this -- while computers (e.g. set tops or PCs) do allow for refined choices
by the consumer, they also allow for refined choices by the advertisers.
Major Telco/Cable folks are dying to make deals with credit card companies
and banks to get purchasing behavior data with which they may "program" (oh
my Orwell) your set-top box or PC data flow.

So, one example was this.  You go to the store and buy toothpaste, it gets
registered in a database, it gets referenced by another database (here, the
Cable/Telco company) which performs an operation (e.g. the average time to
use a roll of toothpaste equals 2 months) and then programs your set-top to
give you a toothpaste add 2 months down the line.

The idea is to refine and control the incoming data to meet the advertisers
needs.  Sound like freedom?

IMHO, the bottom line is that all of this technology will continue to be
advertiser driven, and, hence, the advertiser will shape the contents of
your box more than you shape the contents of your box.

We're obviously talking about a different phenomena than todays PC/Online
Newspaper service, but that is what is being built by the Bells and Cable
folks, and they are working with their traditional sponsors.

Just a thought.


Jeremy Allaire

612.672.9653


"I will be the Set-Top Box"

*** END FWD ****


[This is just an informational forward, and does not represent official EFF
positions or statements in any way.]



-- 
<A HREF="http://www.eff.org/~mech/mech.html">       Stanton McCandlish
</A><HR><A HREF="mailto:mech@eff.org">              mech@eff.org
</A><P><A HREF="http://www.eff.org/">               Electronic Frontier Fndtn.
</A><P><A HREF="http://www.eff.org/~mech/a.html">   Online Activist       </A>


