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The Third Age of InternetBy Martin Payne Remember when the Internet was termed New Media? This
is hardly an appropriate term for a communications infrastructure that
celebrated its 30th birthday during 1999. It is more accurate now
to view the Internet as entering the next stage of its evolution- its Third
Age. This Third Age will make the Internet radically different from what has
gone before and will present a whole new series of challenges and
opportunities for marketers. Through the Loop has been tracking the development of
Internet-based communications in order to assess where new opportunities will
arise and how marketers can take advantage of this seismic change in the
communications infrastructure. It is perhaps most easily understood by first
considering what is meant by the Third Age of Internet. The
First Age
This is birth in 1969 until the development of the
World Wide Web. During this time, the Internet evolved from being a US
communications infrastructure designed for military purposes to wider use
particularly throughout the academic and scientific community. Penetration of
the medium was relatively low. The
Second Age
The next phase of development followed the development
of the Web and the launch of the Mosaic browser. This enabled the Internet to
move towards becoming a mass communications infrastructure. Usage evolved from
niche to mass market in leading countries while the applications for which the
Internet could be used became widespread. During this period the Internet became an important
communications channels for marketing applications and many companies
integrated it into their marketing mix for such uses as on-line shopping,
consumer communications and brand development as well as internal uses such as
company e-mail systems and supply chain management. The
Third Age
The Internet has just entered its third stage of
development. This recognises the fact that the Internet is an underlying
communications infrastructure and is not simply PC to PC communications. The
technology becomes more diverse, taking on multiple delivery forms. While the
PC will remain important, we are experiencing a fragmentation in terms of
communications delivery mechanisms. Consumers will use these different
devices, not limiting themselves to just one. Each separate device will be
appropriate for different messages delivered in different ways. The Web, as we
know it, will be just one manifestation of Internet communications. The different devices will include the PC and digital
TV. The immediate growth is almost certain to come through mobile phones and
handheld computers. This provides the user with information anytime, anyplace.
The next level of delivery devices may be household appliances which will
increasingly be sold as network-ready, e.g. the smart fridge that reorders
when products are used. Smaller devices will include access through the
wristwatch or even, potentially, the networked person. The latter may enable
remote health monitoring or even finding out exactly where your kids are
through GPS! Development of marketing communications messages
through devices other than the PC are already underway. For example, the first
advertising for WAP networks is already running. Time
is on my side (finally)
At last, a breakthrough that could solve one of
life’s fundamental problems. An aspect of the Third Age of Internet is that
it addresses consumers’ time squeeze to a greater extent. Information itself
is merely a commodity and Third Age companies will recognise that in order to
generate profit they will have to add value to information. Time has a key
role to play here as value may be added through the relevance and speed of
information. Information providers will be able to deliver
information to the consumer where and when he or she requires it. The type of
information required and time when it is needed will determine the delivery
mechanism. Information has different time values. For example, the morning
newspaper is already out-of-date as it covers the previous day’s news.
Important items of news can be delivered direct to the consumer through mobile
phone. Further detail can be found on the Web site accessed through the PC.
However, both these delivery mechanisms do not make it easy to browse and so
there is still a clear role for media such as newspapers for other types of
information such as non-time specific or for reflection. However, against this, is the possibility that the
Internet is able to adjust consumers’ time use. There has much been much
debate about whether Internet users watch less TV or consume less of other
media. This is missing a major point in that the Internet can help create
time for consumers such as through saving time stuck in traffic for shopping
or going to work. The Internet should be viewed as altering the make-up of the
day rather than as a competitor for other forms of media. Now
it’s getting personal
Unlike traditional marketing communications,
Internet-based technologies enable marketers to genuinely address consumer
needs through personalisation and one-to-one marketing. This is one of the
most significant areas for the future success of marketing. Data that is
gathered through purchasing profiles or anonymously through Web site browsing
can be used to improve the user’s experience. The biggest benefit of this is
that it makes the site easier to use. However, addressing individual consumers
strengthens the relationship through a higher level of user satisfaction and
is more likely to lead to greater usage and higher sales. Quicker
than immediate
Internet time is a whole new concept. Not only does it
allow the delivery of information to where you need it but the Third Age will
also allow pre-empting of consumer requirements through personalised delivery
of information. Information services allow the consumer to choose the
information they want and how it should be delivered. This can also be
personalised further and adjusted over time so that the level of relevance of
the information continually rises. Internet
rotates on its axis
Until now development of the Internet has been driven
by the USA. As it moved through its second age it expanded around the world
with some countries and regions, notably Scandinavia, recording very high
levels of penetration. However, the Third Age will shift the balance of power
to Europe. The high level of mobile phone penetration and market importance of
companies such as Nokia and Ericsson means that developments in this area will
be driven out of Europe. Furthermore, the world’s largest mobile phone
network is Vodafone Airtouch. In a few years it may appear that its $181
billion acquisition of Mannesmann was a bargain, regulators permitting! However, the shift in balance of power is not just
about the suppliers in the market but it will also be consumer-driven.
Disposable income has hindered Internet development in some countries through
a low level of PC ownership. However, the ability to access the Internet
through other means, most notably mobile phones, inevitably opens up this
communications network to more people. In some emerging markets such as
Central and Eastern Europe, mobile phone connections are growing faster than
fixed lines and certainly faster than PC expansion. Furthermore, there is an argument that the Third Age of
Internet will diminish the gap between have and have nots. The ability to
afford a PC and Internet connection is viewed as accentuating this gap.
However, the newer access devices such as digital television and mobile phone
tend to have a higher penetration than PCs and will thus enable a higher
proportion of the population to go on-line. Access to the Internet is
therefore less of an issue. The ability to use the information is another
matter though. Summary
It is clear that the proliferation of Internet devices
will require an in-depth understanding of how the devices are used. Each type
of delivery will use the Internet as its communications infrastructure but
will deliver information in a different format. Consumers will choose a
variety of devices to access varying levels of information at work, at home or
on the move, whichever is the most convenient. The format of the message will
depend on what it is saying and the intended delivery device. The Third Age will mean new marketing opportunities. In
turn, this means that marketers will have to rethink how they communicate with
consumers. The new delivery devices will enable marketers to deliver
communications messages that are appropriate for the device. Recognition of
the fact that the Internet has become personal and portable will be a key to
future success. Tracking the consumer and the way in which the medium
is used will become increasingly important. Companies that develop an in-depth
understanding of consumer behaviour and how the different access devices are
used will have the most to gain from the Third Age. |
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