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NONE: Re: ONLINE-ADS>> Marketing in the year 2010?

Re: ONLINE-ADS>> Marketing in the year 2010?

philip_at_spacelab.net
Fri, 21 Nov 1997 02:02:00 -0500

>Put those together: the advertiser might deliver
>a very different message based on the MIX of
>people in the household.

. . .

>The problem, of course, is the immense amount of data
>that would need to be managed and used, and the huge
>distributed network of nodes involved. That's a lot of
>infrastructure, both hardware and software. I doubt
>that these possibilities will be possible by 2010, but
>they might be possible in 2020.

Nope. How about 1998?

The answer is WebTV II

Advertisers will be able to present different 30 sec commercials to
different households in the middle of standard network broadcast shows like
"Seinfeld"

How?

They will be able to download, in the wee hours of the day of the show, as
much as 2 hours
of video to the WebTV hard drive. (120 different 30 sec spots) They can
download it from unused cable channels (remember they are doing it at 4am)
or even over the air.

Then they can encode a signal into Seinfeld during a commercial break,
saying "OK, WebTV box, go get one of your custom spots off the hard drive
and play it now"
All doctor's households see the Cardizem commercial; all households with
children would see the Disneyland commercial; etc.

And some advertiser will pay the base rate to reach everyone else,
including those people who don't have WebTV.

Advertisers will jump at the chance to reach a highly targetted segment,
and reach them with an effective tool like a television spot with full
motion video and sound.

Think about the economic possibilities here. [Extremely rough numbers].
Broadcast television costs $8 to $20 per thousand. Large circulation
magazines cost $20 to $30 per thousand, and targetted trade and business
magazines can cost $40 to $100 per thousand or more. Companies like Land's
End pay $500 to $1000 per thousand to get those catalogs to you. Television
broadcasters could begin to charge much higher rates for more qualified
audiences.

Now, how will WebTV know this is a doctor's household?

1) You will give your name and address (and credit card) when you sign up
for the service, and WebTV can proceed from there to the databases that
contain information about individual households.

2) A richer source of information will be the profiling that can be done
from what websites the household is using. WebTV will be able to do the
same sort of household profiling that AOL and others are working to create.

3) But I believe that even you rarely use WebTV to browse the net--as long
they can have the
WebTV box to phone home just once to headquarters, they can tell the box
where it is--in a doctor's house, in a lawyer's house-- to know
what categories of commercial to select into the viewing stream

WebTV is probably not a great way to experience the internet. But it is, if
you will forgive my hyperbole, a staggeringly brilliant set-top box.

Why do you think its owner is investing hundreds of millions of dollars in
cable systems?

Oh, I forgot one point -- the TV networks will need to collaborate in
making spots available for custom insertions. I believe they will, for the
increased revenue. If not, has anyone heard any rumors about the owner of
WebTV buying one of the networks?

Philip Denlinger

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