DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT ___________________________________________________________________________ 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 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 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 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. ___________________________________________________________________________ DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT