NONE: Re: ONLINE-ADS>> The end of Mass Market Branding?

Re: ONLINE-ADS>> The end of Mass Market Branding?

Mon, 06 Jul 1998 13:29:43 +0000

Kim Andersen <> wrote:

>At first sight, one might think that the web would be the
>first technological leap towards organizing transactions
>in a perfect market. And certainly the application of
>intelligent agents will speed up the decision process and
>pave the way for transparency when delivering access to
>large bases of comparable offers.
>Nevertheless, my interpretation of the emerging trade
>structure tells me, that the market development on the web
>is going to follow the predictable path of the
>I/0-paradigm. The irony being that the independent network
>philosophy of the web is ultimately going to be secondary
>to inefficient market structures, where parallel
>networks/communities strive to build barriers against each
>other in the search for above-normal profits.

This is very well said Kim and a point we don't see
often enough in E-commerce, but strikes at the heart
of any self-sustaining economic model. There needs to
be more distinction between efficiencies in technology
and efficiencies in markets, they are not the same.
Hyper-competition online is the direct result of too many
chasing too few in a low cost of entry (NOT low cost of
success) medium.

One barrier that has been established is the high cost
of promotion online, which based on the fact that AOL
"partners" are willing to part with not only $5 to $100 million,
but also in some cases a % of Gross and a % of equity,
says something about the real cost of promotion online!

No doubt comparison shopping agents will be very popular
until such time that the Compaqs and Dells eat each other
alive price-wise and can no longer deliver products that work,
or only one is left standing, whichever comes first. This is not
a new lesson for business, but perhaps the Web is the most
extreme case, one that will likely require society to redefine
global capitalism, consumers to visit once again the cost of
"free", and certainly society's views on "unfettered free
markets", aka capital warfare in the Network economy.

Barriers are being built but they might better be described as
havens that protect not only those on the inside but those
who are not yet "in" that will spend themselves into bankruptcy
quickly without similar scale protection. Therefore these havens
ultimately protect the consumer who has a nasty case history
of not being willing or able to protect themselves in the mid to
long term.

Independence is a description that must also be redefined
within the reality of "united", or "network", if to be used in
conjunction with survival online, unless we want a single
entity surviving in each industry, or worse, a few surviving
super-conglomerates that own several industries each.
My book online in the Convergence Zone points to three
distinct possibilities, depending on individual's collectively
act, or don't:

Mark Montgomery
Founder, GWIN LLC
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