:~~
`
`What's the Pitch in Cyberspace2 Find
`
`gin...
`
`~~
`
`1
`
`TM
`
`pin
`
`spotlight crosuoads ' '
`
`mer wants
`r.Doi
`~,
`
`-.~r~
`
`~ ~
`
`Information Highway. ✓www—►
`http://www.gm.com
`
`_~~. ~_
`
`~
`
`•
`
`GM The car giant drives onto the uslness ~rl
`r~ ~ ~ rim e
`..
`n lne evo ~ l~n
`
`~ ~
`
`DURA[ELc
`
`~ ~.
`
`O~ ~~a .
`
`S
`
`R4GELL \N
`
``"ahiw
`
`~WEnEo°
`
`'power to
`Duracell Harness
`deliver product news. ✓WWW~
`~ittp://www duracell.com
`
`,~
`By Bruce Judson
`With more than 1,000 site reuie s
`
`I.
`
`-rpooucTs
`
`PaRA SE1ftCli
`
`~y~C
`
`_
`
`Y ~y!~
`
`:'OUTDOOR ~~..: .•
`
`i'~.~
`
`_, ~N.lL ~'a~,f:
`
`L.L. Bean Activewear is inte~ac-
`tivewear with Bean's Net catalog.
`✓www-~http://www (lbean.com
`
`{
`i~ ,
`
`yberspace is the most
`important marketing
`medium since, tl~e advent
`of television. As the online
`population explodes, so do
`the opportunities for savvy
`marketers. Described as a
`
`"Digital Media ~' aster" and a
`"Marketer's Ma deter" by
`Advertising Ag ,Bruce Judson
`explains how y r bus~~~ess can
``,.
`vv~n• online.
`
`A Michael Wolff Book
`f
`
`Bright House Networks - Ex. 1031, Page 1
`
`

`
`The NetBooks Series is published by Wolff New Media LLC, 520 Madison Avenue, 11th Floor, New
`York, NY 10022, and distributed by Random House, Inc., 201 East 50th Street,' New York, NY 10022,
`as agent for Wolff New Media LLC.
`NetMarketing has been wholly created and produced by Wolff New Media LLC. The Net Logo is a regis(cid:173)
`tered trademark ofWolffNew Media LLC. NetMarketing, NetVote, Net]obs, NetGames2, NetTrave~ Net(cid:173)
`Taxes, NetMusic, NetGames, NetChat, NetMoney, NetTech, NetSports, NetMusic, NetHead, NetSpeak, and
`CyberPower are trademarks of Wolff New Media LLC. All design and production has been done by
`means of desktop-publishing technology. The text is set in the typefaces Garamond, customized Futura,
`Zapf Dingbats, Franklin Gothic, and Pike.
`Copyright© 1996 by Wolff New Media LLC and Bruce Judson
`All rights reserved. No part of the contents of this book may be reproduced or transmitted in any form or
`by any means without the written permission of the publisher.
`Published simultaneously in the U.S. and Canada by Wolff New Media LLC
`0 9 8 7 6 5 4 3 2
`ISBN 0-679-77031-3
`The authors and publisher have used their best efforts in preparing rhis book. However, the authors and publisher make
`no warranties of any kind, express or implied, with regard to rhe documentation contained in this book, and specifically
`disclaim, without limitation, any implied warranties of merchantability and fitness for a particular purpose with respect
`to listings in rhe book, or the techniques described in the book. In no event shall the authors or publisher be responsible
`or liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, conse(cid:173)
`quential, or any other damages in connection with or arising out of furnishing, performance, or use of this book.
`All of the photographs and illustrations in this book have been obtained from online sources, and have been included
`to demonstrate the variety of work that is available on the Net. The caption with each photograph or illustration iden(cid:173)
`tifies its online source. Text and images available over the Internet and other online services may be subject to copy(cid:173)
`right and orher rights owned by rhird parties. Online availability of text and images does not imply that they may be
`reused without the permission of rights holders, although the Copyright Act does permit certain unauthorized reuse as
`fair use under 17 U.S.C. §107. Care should be taken to ensure that all necessary rights are cleared prior to reusing ma(cid:173)
`terial distributed over the Internet and other online services. Information about reuse is available from the institutions
`that make their materials available online.
`Trademarks
`A number of entered words in which we have reason to believe trademark, service mark, or orher proprietary rights
`may exist have been designated as such by use of initial capitalization. However, no attempt has been made to desig(cid:173)
`nate as trademarks or service marks all personal-computer words or terms in which proprietary rights might exist. The
`inclusion, exclusion, or definition of a word or term is not intended to affect, or to express any judgment on, the va(cid:173)
`lidity or legal status of any proprietary right which may be claimed in that word or term.
`Manufactured in the United States of America.
`
`New York
`
`Bright House Networks - Ex. 1031, Page 2
`
`

`
`Introduction Welcome to the Web
`
`Welcome to the Web
`0 ver the past 18 months, a number of signifi(cid:173)
`
`cant factors have come together to create an
`extraordinary tidal wave of interest in the
`Internet. And much of that interest is being fueled by
`marketers and advertisers, who have just begun to see
`how the Internet- and more specifically, the World
`Wide Web- can be used to benefit consumers.
`International, increasingly easy to use, and visually
`appealing, the World Wide Web has all of the neces(cid:173)
`sary ingredients to become the site of a marketing rev(cid:173)
`olution.
`
`As a powerful form of non-intrusive marketing, the
`Web invites prospective consumers to visit sites- and
`it has already begun to provide marketers with the
`opportunity to experiment with different approaches,
`at low cost, in a market that is already comprised of
`millions of people. Those marketers who do experi(cid:173)
`ment will help to invent the medium, and benefit as a
`result. It's worth noting, however, that this opportuni(cid:173)
`ty may be fleeting, and the rewards will go to those
`who act quickly. As more and more Websites are devel(cid:173)
`oped, the battles for consumer attention will heat up
`and the sophistication of the sites being created will
`increase significantly. Marketers who "get in early'' will
`be building off their initial learning. Everyone else will
`be in the unfortunate role of trying to play catch-up,
`as millions of new prospects join the Web.
`
`In many ways, it is useful to think about the World
`Wide Web as an evolving, entirely new fourth medi-
`
`IN THIS CHAPTER
`
`· --tWeb Population
`
`page 7
`
`-;five More Reasons to Care
`page 12
`
`The Need for Speed
`
`page 15
`
`Online Commerce
`
`page 19
`
`4 NetMarketing
`
`Bright House Networks - Ex. 1031, Page 3
`
`

`
`Welcome to the Web Introduction
`
`qdlta -411\>t--1 WMI\t 11vts ~bouttht ide~ •f~ (vca(ola.'TfaMi\qJ'ost" )t fotst
`!ti 11~ .''Welcoll\e 10 ovr ~;te. B~t stvff:"Bvtthett 1/o&4 ~b •• t fl-.; 1 qvy
`1~ 11>0(~1"61\,I•IiMil wh• k•s #.is ~rlittq J'f~b St•ckh•l~>~ [~utsiHa~
`~Utlll'ltf V•rl\ts pi" ( iliP qa111es wtre i"Ausfr~J;. fllat '{u-.
`~lit ~otsu wm11t lllowed ;"~ 11\t co~~,. t(.,.)
`f\'rl~ illtrt's a (~<\y il\ fn1fHI4 wholu,if\
`(ij~t (oJ<~(ozie~ t<>r j•st .J>••t ~"yill;l\~ yo•~
`Nff w~·t <~tt. T"- f1of s~rt w~• ihtSt Wtb~lk art
`but"'•Ybt 1.ti f\OtNck A baa iA~~ aft(ralf.
`
`Some companies that have already begun online marketing initiatives include (fom
`top) Coca- Cola (http:l/www.cocacola.com), General Motors (http://www
`.gm.com), and Music Boulevard (http://www.musicblvd.com). Well-known brands
`and new retail enterprises alike are making use of the Web.
`
`urn, one that is distinct from existing media such as
`radio, broadcast, and print. As such, the Web can pro(cid:173)
`vide benefits not available through any previously
`exisiting marketing channel. Unlike traditional media,
`for example, no one owns the World Wide Web. As a
`result, there is no gatekeeper setting up hurdles for
`companies that want to provide different kinds of
`
`Examples of Doing Busi(cid:173)
`ness Online Maintained by
`Web Access, this page includes a
`brief description of the com(cid:173)
`mercial and marketing opportu(cid:173)
`nities available for companies in
`the online world and furnishes a
`set of links for visitors interested
`in investigating the medium.
`,twww~http:/ /webcommerce
`.com/webaccess/webcomrc.html
`
`Cyber Sales The May 1995
`issue of Interactive ~ek was de(cid:173)
`voted entirely to questions of
`online marketing and com(cid:173)
`merce. Does online advertising
`empower consumers? Can com(cid:173)
`panies save money by advertis(cid:173)
`ing online? What are the draw(cid:173)
`backs to online marketing and
`and sales? The issue includes an
`interview with Glenn Fleish(cid:173)
`man, the moderator of the In(cid:173)
`ternet Marketing Mailing List,
`columns by editor Michael
`Neuharth and publisher Paul
`Bonington, and features by
`Michael Strangelove, Gary
`Welz, and Carol Blake. All in
`all, this is an excellent general
`introduction.
`,IWWW~http:/ /pubs.iworld.com
`/iw-online/May95/toc.htm
`
`Internet Marketing Mailing
`List Archive Moderated by
`Glenn Fleishman of Point of
`Presence Communications, this
`mailing list is one of the best re(cid:173)
`sources for online marketers,
`whether they are veterans in the
`medium or wide-eyed newcom(cid:173)
`ers. The archive can be searched
`by keyword.
`,twww~http:/ /www.popco
`.com/hyper /internet-marketing
`
`NetMarketing 5
`
`Bright House Networks - Ex. 1031, Page 4
`
`

`
`; EXT:RA~HOINTS
`NET INSIDERS
`
`Introduction Welcome to the Web
`experiences for the consumer. The company putting
`up a Website "owns" a piece of this new medium, and
`no one except that company sets the rules on what can
`and cannot be done. Moreover, there is no specific
`"media charge" {as in more traditional media with lim(cid:173)
`ited time or space) for the length of the experience a
`company creates for consumers.
`
`This atmosphere of low costs and frequent experi(cid:173)
`ments is one of the great strengths of the Internet, and
`part of what has made it such a hotbed of innovation
`for marketers. But innovation in the online world can(cid:173)
`not be separated from utility. If someone creates a bor(cid:173)
`ing site, or one with little appeal for consumers, visi(cid:173)
`tors are unlikely to spend much time there, to return
`to it, or even to come to the site in the first place.
`Similarly, a highly creative site may fail if the con(cid:173)
`sumer can't find any valuable product information or
`services, since companies cannot really compete with
`creative and editorial content providers in the enter(cid:173)
`tainment market. The balance between the two, and
`even the very idea of such a balance, is one of the hall(cid:173)
`marks of the emerging online medium. Ultimately, the
`best and most creative innovations survive and prosper
`(through large numbers of visits by consumers) while
`subpar efforts utimately fade away because of their low
`use by consumers. The goal of NetMarketing is simple:
`to help readers profit. Some readers will be starting
`their own business, and will need help developing an
`online marketing strategy. Others will be working in
`marketing departments at large companies preparing
`to enter the online medium. To realize this objective,
`NetMarketing attempts to explain the tremendous
`explosion of marketing activity that is happening
`today, explores how the Web may reinvent entire busi(cid:173)
`nesses, describes strategies for taking advantage of the
`medium, and investigates the finer points of trafficking
`and sales techniques .
`
`Flux HotWired's gossip col(cid:173)
`umn, Flux comments on Net
`news and rumors of the day, tar(cid:173)
`geting both industry players and
`the media covering the online
`industry.
`.rwww--> http:/ /www.hotwired
`.com/flux
`
`lnter@ctive Week IW reports
`on companies and decisions af(cid:173)
`fecting the interactive industry.
`If there's a new ISDN develop(cid:173)
`ment or an acquisition of online
`content, lnter@ctive week covers
`it, with links to boot. The site's
`@Net Index tracks Internet
`companies on the stock market.
`.fWWW-->http:/ /www.zdnet.com
`rintweek
`
`Netly News The staff of Netly
`News brings infotainment to the
`masses with an array of multi(cid:173)
`media features about the Web
`industry, including irreverent
`news articles, Guest Rants from
`luminaries like Penn and Teller,
`and rotating site spotlights .
`.fWWW--+ http:/ /pathfinder.com
`/Netly
`
`Online News It's the premier
`mailing list for news about the
`online world, and it's delivered
`with alacrity and perspicacity .
`.f EMAIL--+majordomo@market
`place.com lh Type in message
`body: subscribe online-news
`
`Suck If you're looking for dry
`coverage of Net events, don't
`look here. Hip and caustic, Suck
`offers one hyperlinked article
`per day, and doesn't mince
`words.
`.fWWW--+http:/ /www.suck.com
`
`6 NetMarketing
`
`Bright House Networks - Ex. 1031, Page 5
`
`

`
`Welcome to the Web Web Population
`
`Web Population
`How many people are online? As Time magazine
`recently noted, this "seemingly straightforward" ques(cid:173)
`tion "has produced answers that range from 3 million
`to 60 million. Most of these numbers are little more
`than guesses, some highly educated, some less so. But
`none are substitutes for. .. statistically defensible
`research." However, as Time also noted, in November
`of 1995 "hard data finally arrived. Nielsen Media
`the folks who do the famous Nielsen TV
`Research-
`ratings-unveiled the results of what seems to be the
`first solid, scientific survey of the Internet. "
`Conducted in conjunction with CommerceNet, a con(cid:173)
`sortium of Internet-active companies, the Nielsen
`study drew heavy fire from some critics, who argued
`that it used a sample population skewed upward in
`terms of education and income. Nonetheless, the
`
`Percent of Americans Using the Web
`
`100 -
`
`90
`
`80
`
`70
`
`60
`
`50
`
`40
`
`30
`
`20
`
`10 -
`
`53%
`
`35%
`
`As the Internet population grows,
`the kinds of people most likely to
`use the Web change. One of the
`most comprehensive studies of
`online demographics is conduct(cid:173)
`ed twice each yea r under the
`auspices of the Georgia Institute
`of Technology, with the involve(cid:173)
`ment of the Hermes Project at the
`University of Michigan. Overseen
`by the Graphic Visual ization and
`Usability Center, this study is on(cid:173)
`li ne at http:/ / www.cc.gate
`ch.edu/ gvu/user _surveys.
`The arch ive of results not only
`p rovides a current look at the
`Web popu lation but a lso ges(cid:173)
`toward some of the
`tures
`changes that ore occurring as
`use of the World Wide Web ex(cid:173)
`plodes. As part of its study of the
`Internet, the A .C. Nielsen Com(cid:173)
`pany (http:/ /www.nielsen
`.com) also analyzed the demo(cid:173)
`graphics of Web users, although
`its interest in specific demograph(cid:173)
`ic factors is somewhat different
`from GVU's.
`
`In general, recent research sug(cid:173)
`gests that World Wide Web con(cid:173)
`sumers are on increasingly main(cid:173)
`stream and affluent bunch, and
`consequently an attractive target
`audience for marketers. It also in·
`dicates that women are a rapidly
`growing segment of the online
`population. Both the 1995 GVU
`study (which surveyed 23,000
`respondents), and the 1995
`Nie lsen/CommerceNet survey
`support these conclusions. What
`else do we know about Web
`users? A summary of the two
`studies appears on the next
`page, along with a brief annota(cid:173)
`tion.
`
`NetMarketing 7
`
`Bright House Networks - Ex. 1031, Page 6
`
`

`
`Web Population Welcome to the Web
`Nielsen/CommerceNet survey (the results of which are
`Age
`All available evidence suggests
`available at http:/ /www.commerce.net/information/
`that the typical Web user is in his
`surveys and http:/ /www.nielsenmedia.com/
`or her thirties and has Internet
`whatsnew/ execsum2.htm) remains one of the most
`access at home. The GVU study
`found that the average age of
`important early attempts to chart the numbers of
`World Wide Web users is 33.
`computer users accessing the World Wide Web today.
`Nielsen similarly found that 56
`percent of Web users were be·
`Nielsen found that 37 million people over the age of
`tween the ages of 25 and 44, as
`16 in the U.S. and Canada have access to the Internet
`compared to 43 percent of the
`total population of the U.S. and
`either directly or through a friend, that 24 million
`Canada. Nielsen also found that
`people (or 11 percent of the total population) had
`62 percent of Internet users had
`used the Internet in the past three months, and that
`access at home, 54 percent had
`access at work and 30 percent
`18 million people (8 percent of the total population)
`had access at school, which is
`were users of the World W ide Web. Whatever the
`synonymous with college in most
`instances. (These numbers total
`issues with sampling and surveying methodology-'
`more than 100 percent, as a
`and these may well temper the study's enthusiasm(cid:173)
`number of people have Internet
`the Nielsen study nonetheless clearly demonstrates
`access through more than one lo(cid:173)
`cation.)
`that the number of users of the Web already constitute
`a significant market. T he Web, in short, is well on its
`way to becoming a mainstream medium. Since
`Nielsen's survey occurred early, and since Web growth
`will only move in one direction, there is every reason
`to believe that Web use will continue to increase at a
`furious pace. By the year 2000 over 50 percent of the
`total American population will probably be users of
`the World Wide Web (see the chart on page 7). This
`startling growth will be fueled by a wide variety of
`events, innovations, and activities, all of which will
`reinforce each other over the next several years, and all
`of which will lead more and more people to become
`active users.
`
`Income
`The Nielsen survey found that
`Web users are a highly affluent
`group: 55 percent of those who
`answered the question about
`personal worth have incomes at
`or above $50,000 (as compared
`to 29 percent of the total populo·
`lion) . Similarly, 35 percent of
`those who answered the question
`have incomes at or above
`$70,000, as compared to 14
`percent of the total population.
`
`T he starting point for thinking about growth in the
`use of the Web is the computer itself. Decades ago
`computer scientists predicted that before the end of
`the twentieth century, incredible advances in miniatur(cid:173)
`ization would result in computers as small as a book(cid:173)
`case, and capable of fitting in a single room. We know
`now that their future-vision was near-sighted; with five
`
`Education
`Nielsen found that 64 percent of
`Web users had completed col(cid:173)
`lege, while the GVU placed this
`number at 55 percent. Both of
`these totals are significantly
`above the 28 percent of the gen·
`eral population that has complet·
`ed college.
`
`Gender
`The percentage of women on the
`Web has been steadily increas·
`ing since the middle of 1995,
`
`8 NetMarketing
`
`Bright House Networks - Ex. 1031, Page 7
`
`

`
`Occupation
`Nielsen found that more than 60
`percent of Web users work in
`professional, technical, and man(cid:173)
`agerial functions. This total
`stands in sharp contrast to the
`demographics of the entire popu(cid:173)
`lation, where only 33 percent fall
`within these categories.
`
`Welcome to the Web Web Population
`years to go before the twentieth century ends, comput(cid:173)
`and women now represent ap(cid:173)
`proximately one-third of Web
`ers are small enough to fit on desks, in portable carry(cid:173)
`users. Estimates vary slightly-the
`ing cases, and even in the palm. The widespread use of
`GVU study found that 33 percent
`of U.S. Web users identified
`the computer as a home consumer appliance is
`themselves as fema l e, while
`inevitable. Jupiter Communications estimates that by
`Nielsen placed the percentage at
`1995, 40 percent of households had personal comput(cid:173)
`36 percent. Whatever the exact
`number, the rapid increase in the
`ers, while 57 percent of these households had
`percentage of female users of the
`Internet is striking: they represent(cid:173)
`modems.
`ed less than one-fifth of the on(cid:173)
`T hese numbers will certainly increase as the relative
`line population in previous GVU
`studies and other online demo(cid:173)
`costs of computers decrease (see sidebar, page 11). In
`graphic surveys.
`addition, Net participation will be helped along by the
`emergence of low-cost Internet-dedicated computers
`and access appliances. International Business Machines
`(IBM) and other major companies, for example, have
`announced plans to introduce a machine completely
`configured for immediate and simple out-of-the-box
`Internet access that will retail in the range of $5 00 or
`less. The emergence of these dedicated machines has
`the potential to significantly increase consumer use of
`the Internet not just because of their low cost, but
`because they will be extraordinarily easy to use. T his
`ease-of-use is important in bringing the next genera(cid:173)
`tion of users-who will be far less computer-savvy
`to the Web.
`than the current generation-
`In fact, it is entirely possible that these low-cost
`Internet-access machines will be widely available by
`the third quarter of 1996. LSI Logic Corp.
`(http://www.lsilogic.com) has already developed a
`powerful , low-cost computer chip that can process up
`to 100 million instructions per second. Company offi(cid:173)
`cials say that this chip could be the centerpiece of an
`Internet-access device that sold for as low as $200,
`provided it used a television set as a monitor.
`Additional features such as a faster modem, a hard
`drive, or a PC monitor could bring the machine's cost
`to $5 00. A start-up company, ViewCall America
`(http://www.viewcallamerica.com), has already
`
`Time Spent Online
`The GVU study also found that
`people spend a lot of time on the
`Web: more than 40 percent of
`United States respondents report(cid:173)
`ed that they spend between 6
`and 10 hours per week on the
`Web, while 27 percent said they
`spent between ll and 20 hours
`per week on the Web. In addi(cid:173)
`tion, 78 percent of all respon(cid:173)
`dents reported that they use their
`Web browser at least once a day.
`
`Uses of the Web
`According to the GVU study, the
`most common use for Web
`browsers (79 percent) is "simply
`for browsing." Browsing or
`searching for "product informa(cid:173)
`tion" was listed by a majority of
`online users. Nielsen similarly
`found that 55 percent of Web
`users indicated that they hod
`used the Web to search for infor(cid:173)
`mation on products and services.
`
`NetMarketing 9
`
`Bright House Networks - Ex. 1031, Page 8
`
`

`
`Web Population Welcome to the Web
`announced a product called W EBster, a set-top box
`that gives consumers direct access to the Internet and
`online services through their television sets using a
`28,800 bps modem. The expected pricing is below
`$300 for each unit, along with a low monthly sub(cid:173)
`scription fee. According to Alan McKeon, president of
`ViewCall America, "The system was developed to give
`consumers a low-cost, easy-to-use on-ramp to the
`information superhighway, enabling them to reap the
`benefits of the Internet without the expenses and
`learning curve ofP Cs." ViewCall America trials began
`in early 1996.
`
`The data discussed suggest sev(cid:173)
`eral important conclusions: First,
`the Web has moved away from
`its roots as a college-based me(cid:173)
`dia. While the Web user popula(cid:173)
`tion of a few years ago was lim(cid:173)
`ited primarily to those in their
`late teens and twenties, the aver(cid:173)
`age Web user is in his or her thir(cid:173)
`ties. Second, the Web popula(cid:173)
`tion - with its current average
`age, high income, and profes(cid:173)
`sional/ managerial orientation-is
`a group that is actively sought by
`marketers.
`
`Cheaper computers are part of the growing market
`penetration of the Internet, but not the only part.
`Equally important is the growing availability ofWeb
`access. Today, all of the major online services, includ(cid:173)
`ing America Online, CompuServe, the Microsoft
`Network, and Prodigy provide easy consumer access to
`the Web. Some of these online services furnish their
`own browsers and proprietary software, while others
`have invested in extant browsers like Netscape
`Navigator. The commercial services are also growing at
`a rapid rate (America Online, the largest of the Big
`Four, has more than 5 million subscribers, and is sign(cid:173)
`ing up an average of 60,000 new members each week) ,
`and their continued health is a great boon to the suc(cid:173)
`cess of the Internet.
`
`At the same time, major telecommunications compa(cid:173)
`nies have begun to provide consumers with direct dial(cid:173)
`up access to the Web. AT&T's early 1996launch of
`WorldNet, a national Internet-access network with a
`toll-free number, a year-long free trial offer for con(cid:173)
`sumers, and a $ 19.95 unlimited-access plan, signifi(cid:173)
`cantly increased the likelihood of universal Web access.
`What all this suggests is that the consumer will soon
`be able to acquire access to the Web as easily as dialing
`an 800 number today. As a result of AT&T's entry
`
`Another important implication of
`this research is that women now
`play a major role in the World
`Wide Web community. This is vi(cid:173)
`tal ly important to all consumer(cid:173)
`product manufacturers and dis(cid:173)
`tributors, because women ac(cid:173)
`count for two-thirds of all shop(cid:173)
`ping in the U.S. The growing role
`of women on the Web is likely to
`have a positive effect on the
`growth of Web -based com·
`merce.
`
`Finally, the increasing popularity
`of the Web as a source of prod(cid:173)
`uct and service information is in(cid:173)
`terwoven intimately with the sta(cid:173)
`tistics on time spent online and
`browser use. As a non-intrusive
`medium, the advertising value of
`the Web is sometimes ques(cid:173)
`tioned. If a company invests in a
`Website, will consumers choose
`to visit? Given the average num(cid:173)
`ber of usage hours that con(cid:173)
`sumers spend willingly browsing
`sites, as well as the fact that fully
`half of those surveyed indicated
`that they used the medium as a
`place to go for gathering product
`information, the Web is clearly a
`medium to be reckoned with as
`a means of communicating prod(cid:173)
`uct and consumer-oriented infor(cid:173)
`mation.
`
`10 NetMarketing
`
`Bright House Networks - Ex. 1031, Page 9
`
`

`
`Welcome to the Web Web Population
`into the market, not to mention the efforts of other
`MOORE'S LAW
`large corporations like IBM and MCI, Internet access
`has become an intensely competitive business. As
`The dramatic, but still pre (cid:173)
`dictable, drop in computer costs
`prices decline rapidly, access providers are embarking
`is known as Moore's Law, after
`upon extensive marketing efforts designed to grab larg(cid:173)
`Gordon Moore, the founder of
`Intel (the world's largest manufa(cid:173)
`er shares of this market. T he net effect will be three(cid:173)
`turer of microprocessors, the
`fold: (1) Extensive marketing efforts by these competi(cid:173)
`hardware brains of computers).
`tors to educate consumers about the benefits of the
`Moore predicted that because of
`advances in technology, process(cid:173)
`Web; (2) a race to develop and deploy software that
`ing power for computer chips
`makes the consumer experience increasingly easy and
`would double every 18 months
`while chip costs would remain
`interesting; and (3) lower prices at every turn.
`the same. He was right, and over
`time we have witnessed dramatic
`decreases in the cost of comput(cid:173)
`ing. In 1979, it essentially cost
`$1.00 per instruction per second
`(the operating command telling
`the computer to do something) .
`By 1995, that cost had de(cid:173)
`creased to $.00001 per instruc(cid:173)
`tion per second.
`
`\I.\ I \\otid\rt "' Vllulc you moy nmr rcurh the cncl olthe Web ~- ~rr.J
`-
`you'll olwuy< f111d 111 center ' "
`
`smocc
`
`[ Homef Pr e.s Release I FAQs I Sign Up No w I Web W h e Game l Sneak Peek ]
`
`Internet for Evtryonet
`lnrroducing AT&T WorldNtt ~ !mice.
`A world of possibilities within yoo r
`ruth.
`Discover ntW ways IO ltay in t(l(l<h
`with the pooplt. idtu, and infonnation
`th1t art imporfVJt to you at home
`and at work.
`If you can poior and did,
`you'rt ll>trt.
`W.'R be with you m ry lt!fl of tht
`"'1· 24 boon a <Uty, 1 dars a Wftk.
`It's afford.\tfe, .•. Choose tht pricing
`plan rhat'r righrfot you.
`
`PYese
`Release&
`
`"""''"•
`
`FAQa
`
`Sign Up
`Howl
`
`Play
`Web Wise
`
`IN- SITII AT&T WorldNet
`hHp:/ / www.aH.com/ worldnet/ w is
`An nounced in February 1996, WorldNet is likely to change the face of the on line-access(cid:173)
`provider ind ustry. By offering special Internet access rates (including five hours ftu per
`month) to irs 90 milli o n long-disranc e cust o m e rs, AT&T m ad e it s m a rk. As
`NetMm·kering goes to press, AT&T expects tO give Wor!dNet subscribers a free version of
`the Netscape W eb browser branded with AT&T's logo and plans to li nk to a large clara(cid:173)
`base of W ebsite reviews as well as offer a comp lete guide for online newcomers.
`
`What is responsible for these ex·
`traordinary advances? Transistor
`density, to name just once cause;
`with each technological break(cid:173)
`through, it is possible to include
`more and more transistors (elec·
`Ironic devices which incorporate
`instructions) on a single micro·
`processor chip. Today, for exam(cid:173)
`ple, a single microchip can con ·
`fain 20 million transistors . This
`powerful relationship is shown on
`the graph below, which demon(cid:173)
`strates how the power of Intel's
`chips have increased over time.
`PROCESSING
`Cost to perform
`one million
`instructions
`per second
`(MIPS)
`
`$100
`
`$60
`
`$40
`
`$20
`
`from Fortune magazine
`NetMarketing 11
`
`Bright House Networks - Ex. 1031, Page 10
`
`

`
`tiEXTRA1R.OINTS ,"
`ONLINE ACCESS
`
`alt.online-service Although
`disc ussions abo ut th e various
`o nli ne se rvices (Am eri ca On (cid:173)
`line, C omp uServe, BBSs, etc.)
`ap pear occas io nall y o n chi s
`newsg ro up, t he fo rum is pri(cid:173)
`marily a place for online services
`to advertise .
`.; USENET-+alt.online·service
`
`AT&T WorldNet AT &T's Of(cid:173)
`fi cial Wo rldNe t site incl udes
`press releases, pricing informa(cid:173)
`tion, and a sign-up form .
`.f WWW-+ http:/ /www.att.com
`/world net
`
`Five More Reasons to Care Welcome to the Web
`Five More Reasons to Care
`Many marketers may be skeptical about the growth of
`the Internet. For those skeptics, here are five more rea(cid:173)
`sons why more and more Americans will soon be join(cid:173)
`ing the online revolution:
`1. Access to the Internet will increasingly be bun(cid:173)
`dled with other types of software. The latest version
`of the popular home fin ance software package
`Q uicken, fo r example, includes Internet-access soft(cid:173)
`ware that takes the consumer to Q uicken's Website
`(http://www.intuit.com) fo r free, at which time it
`offers an Internet-access subscription offer. T his strate(cid:173)
`gy is likely to be used more and more frequently,
`which will further lead to easy Internet access for con(cid:173)
`sumers.
`2. Advances in software and capabilities. Thousands
`of people, in both large companies and small start-up
`operations, are developing software for the Web. This
`entrepreneurial environment is quickening the pace of
`development of the medium with two d ear benefits:
`the Web will become increasingly easy for consumers
`to use as more consumer-friendly software is devel(cid:173)
`oped, and Web content providers will be able to create
`sites that are increasingly entertaining and useful.
`3. Growing business uses. T he single greatest factor
`in the growth of the Web is increased use by business(cid:173)
`es. T his increase meets several business needs, includ(cid:173)
`ing Internet Web-based networks (or Intranets), cus(cid:173)
`tomer-service systems, and extended secure Enterprise
`Networks fo r each company's customers and suppliers,
`as well as business-to-business connections (see pages
`220-223).
`4. The availability of quality content and applica(cid:173)
`tons will draw consumers. It also seems that almost
`every day, a major media company announces that it
`
`IBM Global Network Big
`Blue offers Internet access. Visit
`the site for pricing informacion
`about access services, a list of lo(cid:173)
`cal access numbers, and a de(cid:173)
`sc ri p ti o n o f its Web develop(cid:173)
`ment services .
`./ WWW-+ http:/ /www.ibm .com
`/ globalnetwork
`
`Internet Providers A lise of
`Internet providers, both nation(cid:173)
`al and international.
`.r www -. http:/ /www.yahoo
`.com/Busin e ss_and_Economy
`/Companies/ lnternet_Services
`/lnternet_Access_Providers
`
`The List Nea rly 2, 000 access
`prov iders, an d a search engine
`that makes locating the closest
`provider fast and easy .
`.fWWW-+ http:/ / thelist.com
`
`POCIA (Providers of Com(cid:173)
`mercial Internet Access) A
`collection of links to sites for al(cid:173)
`most 1,000 Internet providers .
`.r www -+ http:/ /www.celestin
`.com/ pocia/inde