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AM: Marketing Musings

To:     "ad-market" <>
Subject:     AM: Marketing Musings
From:     "Mitch Arnowitz" <>
Date:     Mon, 8 Dec 1997 08:56:56 -0500

                                           Marketing Musings

                    Visit and join the Netpreneur Program at

                                                                                               Mitch Arnowitz

In This Issue

- Quote of the Week
- News
- Links, Resources
- Sitings
- Trends
- List News
- This & That
- Subscription Info.

Quote of the Week

*Hey, I couldn't find one this week. Seen a worthwhile
quote?? Send it in to


Treknology - Non-Boring Technology; by Paul Boutin

Presidents, prime ministers, and corporate executives are always
proposing new programs to encourage young people to study science
and engineering. They want to instill in the young an interest in technology
and the future, to make genetic research more appealing than gangsta rap.
They offer a three-word proposal guaranteed to succeed: More Star Trek

for the rest of the story:
Two Makers of Ad Software Merge- Focalink, ClickOver pool their assets
in bid to stay in game

Focalink Communications Inc., a maker of ad-management software,
and ClickOver Inc., a maker of ad-serving software, will announce a
merger this week. The partners describe the marriage as an effort to
offer products for both buyers and sellers of Internet advertising.
Focalink's primary product is MarketMatch, a media planning tool that
profiles more than 1,000 Web sites and is used by more than 70
advertising agencies.

ClickOver's flagship product is ClickWise, Java-based ad serving
software that can generate performance reports in real time. ClickOver
claims there are more than 150 active ClickWise servers worldwide,
but in terms of revenue, the company is a distant third behind market
leaders NetGravity Inc. and Accipiter Inc.
*Holiday shopping news-- Mindspring is an ISP & "community" that
has gotten a fair amount of attention recently. As Janet and I have decided
to do lots of online shopping again this year, I checked out the deals in
Mindspring's new shopping area (see story below).

PC Flowers is a good company (Bill Tobin has a patent pending and has
done a nice job with his company's affinity/co-branded program). The 15%
discount for PC Flowers looks attractive but I wonder how it stacks up
against other national coupons in the well known Entertainment Discount
Coupon Book? For information and ordering:


ATLANTA--(BUSINESS WIRE)--Nov. 26, 1997--MindSpring Enterprises, Inc.
(Nasdaq/NM: MSPG) today announced it has created a new Shopping
section of the MindSpring web site in time for the holiday shopping season.
"The MindSpring Express Lane" includes special offers for MindSpring
subscribers from some of the best online shopping sites.

In addition, MindSpring will present "All Wrapped Up," a Feature Page
detailing how to shop online safely. The initial vendors participating in The
Express Lane include, PC Flowers, Cyberian Outpost,
Garden Escape, Crucial Technology, Virtual Vineyards and Kidtools. Examples
of the customer offers for December include 15% off any purchase from PC
Flowers, a rebate on Disney software from Cyberian Outpost, and 20% off
any purchase from Garden Escape.

The MindSpring Express Lane can be reached from MindSpring's "Shopping"
page or directly at: .
from InfoBeat

N2K makes ad, sales deals

N2K Inc. announced deals aimed at expanding revenues from both advertising
and merchandise sales. N2K agreed to an exclusive one-year agreement
with Black Voices ( ), an online resource for African
Americans. Under the agreement, N2K's Music Boulevard ( )
will be the exclusive online music retailer on Black Voices. Concerning advertising
sales, N2K said AdNet Strategies will sell advertising for the company's music sites.
The agreement between N2K and AdNet covers advertising sales for the West
Coast. AdNet sells advertising for some of the leading sites on the Internet,
including Big Yellow, 10OHot, Travelocity and MPlayer.
POOF Products  Finds a New Way for Small to Medium
Companies to Go Public Without an Underwriter; Use the Internet and Become a
Public Company Almost Overnight

PLYMOUTH, Mich., Nov. 20 /PRNewswire/ -- Ray Dallavecchia Jr., President
of POOF Products, indicated today that his company expects to have completed
its Direct Public Offering to the public prior to January 1. Mr. Dallavecchia filed a
Regulation A Public Offering for one million shares at $5.00 per share.

But what is unique about POOF Products and what Mr. Dallavecchia did is
that he is selling the stock without an underwriter directly to the public.
POOF Products created a web page which allows viewers around the world to
obtain a copy of the POOF prospectus and where legally appropriate print out a
copy of that prospectus and purchase shares.
* Good news here as Discovery chooses local netpreneur to develop site:

from ad age:

Discovery picks Magnet for new site-

Discovery Networks has selected Magnet Interactive Communications
to build a new business-to-business Web site for its cable distribution
partners. The site will provide online access to program grids, promotions
and audience research for cable affiliates and local ad sales partners.
Affiliate Partnership/Revenue Share Program news:

1. *Check out these percentages! This is the highest payout I've seen yet for an
affiliate program, much higher then's 7.5%. Hmmm I wonder
what kind of traffic eToys drives??

from ad age daily:

eToys launches affiliates program

Online toystore eToys on Dec. 2 launched an affiliate program, whereby referring
sites will receive 12% of sales revenue generated by links from their site to the
eToys site. eToys has signed up 10 affiliate partners so far, including Mindspring,
TalkCity and others.

2. *Can you imagine the payout here? It will take Ed McMahon to drop off the
1st check to GeoCities! Doesn't GeoCities have something like 500,000 members?
More interesting will be response rates once Amazon begins targeting GC
communities. "Excuuuse me" (as Steve Martin was fond of saying), but isn't getting the word out to GC homesteaders for practically nothing?!#*

from Infobeat and GeoCities announced an agreement naming
the exclusive bookseller on GeoCities. GeoCities will incorporate
throughout its 39 themed communities, offering GeoCities members and visitors
new book features and services based on their areas of interest

3. 1-800-FLOWERS introduces affiliate partners

1-800-FLOWERS is pairing up with partner sites to boost its traffic. Calling
its referral program Fresh Sites, the florist site has lined up EarthLink Network,
New Century Network, Switchboard and Preview Travel, to name a few. Sites
already participating in 1-800-FLOWERS' revenue sharing program include
AT&T WorldNet, Microsoft Network and America's Choice Mall.

Copyright December 1997, Crain Communications Inc.
Bell Atlantic Offers Microsoft FrontPage 98 Users 90 Days Free Web Hosting;
Promotion Includes $200 Off Normal Installation Fees

RESTON, Va., Dec. 2 /PRNewswire/ -- Bell Atlantic Internet Solutions
offers 90 free days of its Shared Web Hosting solution and $200 off the normal
installation fee to users of FrontPage 98, the latest version of Microsoft's
(Nasdaq: MSFT) Web site creation and management tool.  Web site creators
can take advantage of the promotion by using the Bell Atlantic special offer
described in every retail package of FrontPage 98 software.
Bell Atlantic Introduces New Internet and Consumer Features for Baltimore
Yellow Pages- New Book Cover Features the Lady Maryland

BETHESDA, Md., Dec. 2 /PRNewswire/ -- Bell Atlantic's White and Yellow
Pages have new and useful Internet-related features, including a beginner's
Internet Guide.  The new directory also has a new logo andcover design.
Residents and businesses in Baltimore, Md., are currently receiving the new
1997-1998 Greater Baltimore East, West and City editions. The new features
in the directories are designed to make Bell Atlantic the customer's first choice
for information-based shopping
from ad age daily:

Dow Jones & Co.'s plan to begin charging online providers for the use of its
industrial average has caused a backlash in the financial community-

Dow Jones faces resistance from financial service providers as well as from
the Financial Information Forum, which is spearheading a protest against the
plan on behalf of its members. FIF has written letters of complaint to the
Securities & Exchange Commission and to Dow Jones.
have you seen worthwhile regional news? Send it in to

Links, Resources

Media Metrix, Inc., The PC Meter Company  calls
itself "the pioneer and leader in new media and technology measurement services."
Some of you with a consumer marketing background may recall the early to market
Internet reporting company; PC Meter. PC Meter, a division of the research firm
NPD Group, changed it's name several months ago to Media Metrix, Inc.

PC Meter did a good job of reporting on most visited sites, most used
platforms, browsers, general type of consumer usage information.
Media Metrix, Inc. still offers The Media Metrix 500; a list of top World Wide Web
Sites, Commercial Online Services, Internet Service Providers and other New
Media Applications. The list is updated monthly and often quoted by Ad Age &
the mainstream press.

Media Metrix, Inc. has expanded the scope of information reported on and now has
a "Technology Watch" feature. The purpose of Technology Watch is to provide a
snapshot of hardware and software usage and ownership to the general public and
press. Information is offered on Top Owned Business Productivity Software
Packages, Top Applications Used by Number of People, etc.

I don't know if information presented here is really of a technology focus
or how often you'll need this but this is a good resource to have. You may
find general information & statistics useful on calls or want to build it into
a PowerPoint presentation.
Zapa Digital Arts, Ltd.  develops software
solutions (servers, viewers, and authoring tools) for online publishers
and advertisers. Products will be used "for the creation of online
content, promotion, advertising and commerce."

Zapa Digital Arts; has released its first product; MicroSites. MicroSites
is geared to the small business market. MicroSites is a Java-based
tool for interactive promotion and advertising.

MicroSites is really for the small business that wants to create its
own (read to mean no ad agency necessary) Java ad banners. The
product is ideally suited for the *local ad, content market*.

Applet technology is used in MicroSites banners. We previewed similar
Java banners in the last column. The difference here is that you don't
need to be a rocket scientist with a big company budget to create
these ads!

MicroSites offers "point & click" and "drag and drop" proprietary
authoring tools, templates (clip art, animated graphics, sounds) and
a user friendly interface to make your job of creating ads easier.

MicroSites comes with a suggested retail price of $99.95 and
runs on Windows 95 and Windows NT platforms. Check out the
demo banners and demo a "lite" version, before buying at:


Audi of America  - On the consumer end of the
web, CKS Partners of Washington, D.C. (along with CKS owned ad agency
McKinney and Silver) recently launched the Audi of America Web Site.
The site allows you to do it all: build & finance your car and then find
a dealer. The site also offers up wonderful events this car company sponsors,
along with Ticketmaster information for ticket ordering.

I didn't see car insurance offered here (like Auto-By-Tel's recent deal). Auto
information gathering and lead generation is certainly becoming a big
online business and promotions like Yoyodyne Entertainment's recently
announced EZWheels help this along. I wonder if our friends at CKS Partners
in Washington can tell us how many leads the site is generating.
Better yet, lets try & find out what the conversion rate is!

Speaking of car sites, It'll be interesting to see what impact The Tribune,
Los Angeles Times & The Washington Post pending venture;
has on the local (online) classified advertising turf- the REAL battleground
for newspapers on the Internet.
Our very own Chris Bertchie; Advertising Director of has written a great column, found on

Chris's column; "Decisions, Decisions: Pricing Strategies for Web Site
Publishers" deals with Web ad pricing models and looks at CPM to
results-oriented pricing models, including per-lead pricing and
clickthroughs. Way to go Chris!
Phil Hagen's D.C. Registry Internet Guide
claims over 40,000 monthly site visits. D.C. Registry offers a directory listing
of Washington, D.C. area web sites, free classified ads, web based discussion
forums on Washington, D.C. topics, free home pages, a chat room and an
email newsletter.

D.C. Registry also offers the Washington, D.C.Banner Network  . The banner network is a free service
and works in a similar fashion to the Internet Link Exchange. To sign-up:  . Check it out, its free & easy, may
increase your traffic and... what the heck- this is one of the last *independents*
around. On the other hand, I thought I saw Phil huddling with well known local
media players at a recent Netpreneur Coffee & DoughNets meeting so it will
be interesting to see if & who he partners with.
Interealty Corp., of Vienna  bills itself as "the nationís
premier provider of leading-edge technology and information solutions to the real
estate industry." Interealty Corp. is owned by News Holding Corp., an alliance
of four major media organizations: Tribune Company, Cox Newspapers, Knight
-Ridder and Advance Publications.

Shortly, Interealty Corp.. will unveil PropertyChannel  . PropertyChannel is a site for those thinking
of buying a home. The site will offer searchable listings of properties for sale
and rent, information on schools, local and national content, information about
mortgage brokerage and settlement, valuation and inspection services.
PropertyChannel will also offer *interactive* features including mortgage
calculators, chat rooms and bulletin boards.

PropertyChannel is also building alliances with local media companies. In short,
it looks like this company is taking a shot at a real community here.
Interestingly, the service positions itself as "good news for the real estate
professional." Local new media company Proxicom is involved and the launch
date is slated for early 1998.

The best part of information presented is the *demo*, currently up on the site.
Check out the multimedia version  You will
need the Macromedia Shockwave Flash plug-in to view & hear
this. I downloaded the plug-in in no time with a dedicated T1 but suspect it will
take longer with a dial-up. If the demo is any indication of the pending
community and site, I'm sold- this is one of the best demos I've seen yet!
do you have a site or email marketing program you want to tell us about?
Send it in to


Online incentive or loyalty programs are beginning to gain momentum.
Internet loyalty programs mirror traditional off-line point programs.
Consumers view advertisements, provide demographic or psycographic
information, purchase goods & services, or participate in another call to
action in return for reward points. Points are them redeemed for product
or cash.

Redemption partners are often paid, by program owners, for
redeemed gifts. Marketers also pay to reach targeted consumers.
(BonusMail, a loyalty program, charges $300/CPM). Typical
rewards include frequent flyer miles, other travel offers, retailers
(CDs, books, flowers etc.), & catalog products. Program
owners make money administering the program. Advertising
or banner ads are also used & sold in online programs. Current
loyalty programs are well funded with venture money and free
to users.

You have probably seen banner ads for point programs on and other free email services, on well trafficed
consumer sites and search engines (I often see banner ads for
CyberGold  , a loyalty program that
pays you to view ads, when I check my
email account).

Shortly, you will begin receiving offers & information
via email. Programs will begin by targeting opt-in services
& registered customers via email.

A few programs have partnerships, or financial relationships,
with off-line programs that will market Internet programs
through traditional channels.

A local netpreneur: Emaginet
is launching a loyalty program this week at Internet World.
Emaginet's technology, called e-centives, allows marketers
to identify consumers' specific interests and preferences
& then reward them with incentives (e-centives).

Emaginet's plan calls for marketers to use the e-centives Server;
software that works in conjuction with the company's Web server.
The e-centives Server runs on Windows NT and Sun Solaris
platforms. Consumers will thdownload the e-centives
Organizer; client software that allows them to redeem offers.
Consumers stipulate the types of offers they want to receive.

Intellipost Corp.'s BonusMail program
rewards consumers for reading & responding to promotions.
Points (or credits here) can be redeemed for on & off-line
merchandise from an impressive list of well known retailers.
As an example, 5,000 credits gets you a $10 gift certificate
to the Gap and 10,000 credits gets you $25 off any Bouquet
Purchase at 1-800-Flowers. Launched last July, BonusMail
claims 150,000 current program participants.

Internet incentive programs come with advantages over
traditional, off-line programs. The cost for marketers to reach
customers is certainly lower then traditional direct mail. So far,
online programs come with no cost to consumers (I pay $50 a
year for the well known, off-line American Express loyalty

The time it takes to target or reach consumers is reduced.
Targeting itself should be more accurate and response rates
should be better. Given the great promise of 1 to 1 marketing
in this medium, marketers should be willing to pony up & spend
money to acquire and retain customers in this fashion.

Online loyalty program issues are similar to issues that the Internet
faces. Many point programs highlight privacy and sites carry the
trust-e logo. Another issue seems to be critical mass; how long it
will take and how many users will eventually come online. But then
again, critical mass seems to be one of the big issues marketers
are forever talking or writing about...

I have yet to see a B-B incentive program. I wonder why that is? What
do you think?
have an opinion or point of view? Send it in to

List News

And now this from Nua..., the Internet constancy and developer,
that bring you the increasingly popular and quoted Internet


The Internet and information technology are changing the way we work
and live. Making it Work will look at the changes in technology and
how these are impacting on the way business is done. It will examine
how theory and good ideas are being turned into worthwhile technology
which saves time and improves the way things are done. It is available
by sending an email to with the word
"subscribe" in the body of the message.

This & That

As a follow-up to last week's discussion on Java's impact on advertising,
the following thread comes via:

The Internet Advertising Discussion List; subscribe at:

Subject: IA: Interactive Banners

From: Michael Kraizelman <>

>[McCormack, Josh]  Java is not widely supported in banners, and
>even when it is can take so long to start up that your ad is never seen.
>It is no problem to do this type of thing in HTML, and as far as worries
>about browser support, everything Netscape 2 and above will work fine.

>Ivar Jarnefors]  Java IS widely supported. You will never be able to reach
>everyone with an ad campaign, no matter what medium...
> ...A GIF-animation is faster when compared to a Java class of the same byte
>size. But, a Java advertisement is, if well designed, much more effective.
>The Java banners we develop have a much higher click ratio than ordinary
>GIF animations.

I would like to point out that Java advertising allows the publisher to
interact with the potential customers. We at WebTelecom have developed a
Java based communication system allowing shop owners receive calls from
customers and show them around the store. Using Java banner you can give
the customer the choice of: "Tel us what you interested in, and click
here to Email us, Here to call us online, Here to have us call you. Etc.
The new dimension of human interact allow you to sell goods that can't
be sold otherwise, and fully exploit your money invested in banner
Java gives you much more flexibility then GIF.
Michael Kraizelman
Web Telecom General manager
Private phone:
home page:
Putting the real salesperson in the virtual store!
In the holiday spirit, Mort Rumberg, of AITP, sends in the following:

S- Satan calling Bill Gates . . . "Wiiiiilliam Gaaaates..."
B- "Oh, hi, Satan. What's up downstairs?"
S- "It's tiiiiime..."

B- "Yeah, but we're still debugging Memphis, and Ballmer swears he'll
wipe out  Adobe before lunch, and Melinda wants to change the tile in the
third-floor  kitchen again, and..."
S- "Sorry, Bill. I've given you too many extensions already, not to mention
the Oracle8 launch event disaster, not to mention Steve Jobs' head on a

B- "Yeah, that was a good one. I think you enjoy this as much as I..."
S- "Regardless, a deal's a deal. Your soul is mine, Bill Gates. And today is
the day you pay your eternal debt to me."
B- "Now, let's be reasonable here, Satan..."

S- "Reasonable?!? You want reasonable?!? You're the richest man in the
world!  You've got a beautiful wife and daughter! Microsoft is the most
powerful company on the planet! We're even using NT to run hell's WAN
server! And frankly, it sucks. That's one of the reasons I've come to
collect.  If you can't get my network to run right, you'll spend the
afterlife writing Windows applications that run on doorbells..."
B- "What's your alternative, Satan? Netware? AppleTalk? OS/2? You're a
funny guy for someone who breathes fire."

S- "Well, God is porting all his heaven-critical applications to Java..."
B- "Java?!? Stop it, Satan. You're going to make me wet my pants again like
that time you told me to buy Novell for $50 a share."
S- "Yes, Java, running on Sun servers, IBM plumbing and Oracle databases
with thin clients accessing the apps via the web through Netscape

B- "That's not a solution, that's one of those Grimm's fairy tales that
scare children to death. I have yet to see an NC actually being used to
do anything except crash during demonstrations. Look, Java is a nice little
language for animating web sites, but Shockwave after too many
espressos isn't going to displace Windows as an applications platform on
hundreds of millions of PCs."

S- "Nevertheless, Java is the future of computing, and I'll be damned if I'm
going to give God a strategic technology advantage!"
B- "Satan, what if I told you I could kill off Java with a single word?"
S- "Interesting. Tell me more."
B- "Wait a minute. What's in it for me?"
S- "I promise I won't turn you into Larry Ellison's bidet right this second."

B- "Okay, that works for me. Here's the word...disable."
S- "Disable what?"
B- "Disable Java support in Internet Explorer."
S- "You mean Microsoft's web browser won't run Java anymore?"

B- "That's right, brimstone breath. You want to run Java, give Netscape 50
bucks per seat and pray that IBM doesn't buy the company to merge
Communicator with Lotus Notes."
S- "The Department of Justice will..."

B- "Will what? Punish me because I won't support a product my enemies
want to use to destroy my company? Chevrolet dealers don't have to sell
Fords.  Pepsi's restaurants don't have to offer Coke. Why does Microsoft
have to support Java?"
S- "It's an industry standard..."
B- "It's an industry hallucination."

S- "There will be a public outcry..."
B- "From who? Network managers? MIS? The CIO? They're up to their
nosehairs  in Cobol getting ready for January 1, 2000. To them, Java is
still a cute word for coffee."
S- "What about all those spiffy applets on thousands of web sites?"

B- "Microsoft owns 100 percent of the Apple and Windows preload market
for browsers, and our overall share has gone from zero to half in two
years. It's a safe bet most people will soon use IE for web access. If
they come to a site that doesn't work because of Java, they'll simply jump to
the next one. Trust me, developers will switch to ActiveX faster than you
can say 'Playstation.'"

S- "What about other platforms..."
B- "Like Intel has competition?"
S- "Interactive TV..."
B- "We call it WebTV in Redmond."
S- "Venture capitalists have invested billions..."

B- "To get a date with Kim Polese."
S- "Sun will write a plug-in..."
B- "Not without the hidden APIs."
S- "Of all my minions, you are my very favorite, Bill. You may stay."
B- "Thanks, Satan. Now, about that Exchange license agreement..."

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Mitch Arnowitz      Advertising/Marketing Discussion Group
Business Development                   
PKW Netpreneur Program                        v 703.620.8971                                 f 703.620.4102

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