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measuring Internet use. When Hoffman and Novak set out in mid-1996 to survey
Web-based advertising, they discovered there were more than ninety sizes of Web
ad banners, little consistency among sites in pricing advertising, and little
demographic information about customers. Sites don't even necessarily charge the
same way. While most charge by the thousand "impressions"--the number of times
an advertising banner is displayed on a page downloaded by a visitor to the site--
some charge by "clickthrough," that is, the number of times a visitor clicks on an
advertising banner to go to the advertiser's own site, the disadvantage being that
the sponsored site loses out if the advertiser's design is too poor to attract those
clickthroughs.

Differences and inconsistencies like these led Hoffman and Novak to call, in
September 1996, for the development of standardized techniques for measuring
Web use. "First, there are no established principles for measuring traffic on
commercial Web sites that seek to generate revenues from advertising
sponsorship," they wrote. "Second, there is no standard way of measuring
consumer response to advertisements. Third, there are no standards for optimal
media pricing models. Finally, the complexity of the medium in general hinders the
standardization process."[12] Nonetheless, they note, estimates are
that Web-based advertising will grow substantially over the next few years, and
predictions put advertising revenue for the year 2000 at $1.7 billion to $5 billion.[13] To put those numbers in perspective, in 1995 U.S. companies spent
$31.2 billion on direct mail and $11.1 billion on radio advertising. In 1996, Web
advertising was a tiny fraction of those, and two-thirds of that went to the top ten
sites.[14]

This is one of the reasons that predictions that large corporations will fare badly on
the Web will probably be proved incorrect. The Web's lack of familiarity and raw
immaturity as a medium reward familiar names disproportionately. Buying groceries
through one of the few trial systems available at the end of 1996 meant choosing
products from a list offering little auxiliary information; the inevitable result is to
gravitate toward national brand names and known quantities.

In order for Web sites to have a shot at turning commercial--sites like the Internet
Movie Database and the search engine Yahoo! started as personal projects--they
have to collect demographic information to show potential advertisers that they
attract the kind of visitors those advertisers are interested in. The simplest way of
collecting this information is the registration forms required by many sites,
especially those publishing new, professionally written material--what they call
"content."

Unfortunately for site owners who are trying to find a way to pay themselves a
living, this kind of information isn't exactly what a lot of Net users want to supply.
Attempts to log user characteristics are seen by many Netheads as an unwelcome
invasion of privacy; in fact, this was named as the most important issue facing the
Net by 26.2 percent of respondents to the October 1996 GVU survey of user
attitudes. Besides, people hate looking at ads; that's why we now have VCRs that
mark the ads and automatically spin past them. The Net equivalent is services like
the Anonymizer and Internet Fast Forward,[15] which allow anonymous
browsing, and intermediary services that allow you to register once and then
browse using a single, numbered ID. The third-party service makes only the
aggregated demographic data available to its subscribing sites, while users only
reveal their personal details to one centralized site.

Many Web wanderers don't realize just how much information Web sites can
acquire about them while they're visiting, even without registration forms. Most of
this is pretty harmless--do you really care if the Alien Abduction Web site marks
down that you're using Windows 95 and Netscape 3.0 while it's asking you to sign
up for a date and time to be abducted?[16] But it spooks people to
think that a Web server can read information like that off what they think of as their
private, personal computer systems. Web sites can also typically tell what domain
you're coming from (though generally not your precise email address) and what
pages you look at and when.
     
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