The Growth Of Super Artificial Intelligence Device In E-Commerce And Its Preference In The Advertising Industry In Future

A RESEARCH REPORT ON

The Growth Of Super Artificial Intelligence Device In E-Commerce And Its Preference In The Advertising Industry In Future    Part one:                                        

 An Article by Dr. Satar Mokhtarzadeh

1.1     Research Title

The growth of Super Artificial Intelligence devices in E-commerce and its preference in the advertising Industry in future

1.2     Background of the Study

1.2.1  What is Artificial Intelligence devices

Artificial intelligent (AI), broadly defined, is concerned with intelligent behavior in artifacts. Intelligent behavior, in turn, involves perception, reasoning, and learning, communicating, and acting in complex environment. AI has one of its long-term goals the development of machines that can do these things as well as humans can, are possibly even better. Another goal of AI is to understand this kind of behavior whether it occurs in machines or in humans or other animals. Thus, AI has both engineering and scientific goals (Dojat M, 2003).

Within artificial intelligence, the so-called context-free reproduction of intelligent behaviors, it is impossible to maintain that human intelligence can be clearly isolated from the context of the mind. Thus the advances in the building of intelligent devices generate many kinds of intelligence. Although they are in principle all possible for the human mind, they will increasingly transfigure the purely imagined exemplars they come from. In other words, they will be really intelligent but this will be a sort of distilled, or purified, intelligence rather than human-like.

Artificial intelligence devices seem to be similar to certain metallurgic experiments carried on board artificial satellites in order to avoid the interference of atmospheric phenomena. However, there is evidence that human intelligence is not altered by the interference of the world (owing to the activity of the brain) but is possible thanks to the relationship with the environment (Mockler R J, 2002). In this sense, when artificial intelligence devices work well, they set up a platonic kind of ideal world which is only useful for accomplishing very formal reasoning tasks, that is to say, when man has to work in an extremely pure and fatiguing abstract context.

Finally, the concept of an exemplar is a crucial point for understanding the artificial since it lies at the center of the artificiality project. On the one hand, we can conceive of the things in the world as objects or processes which we can empirically and successfully separate both in order to order to study and to reproduce them( Hendler J A, 2008). On the other, we cannot ignore that the level at which we observe the empirical world acts as a filter preventing us from observing other feature of the exemplar we have selected.

For this reason, the behavior of an artificial device will always resemble closely the human exemplar, depending on the extent to which the observer or the user closely sets himself at the same observation level as the designer.

Of course, if the observer or the user were to deal with a new or a strongly subjected observation level, then he would face more problems in recognizing the closeness of the fit of the reproduction. This is not only the case of artistic reproduction, which is innovative by definition, but it happens also in science. Indeed, the reproduction of the Copernican solar system through a mechanical device would have been not so easily understood, nor appreciated, at a time when Aristotelian representation was the commonly shared model. On the contrary, in mechanistic culture, towards the end of the sixteenth century, Keepler could design a three dimensional reproduction of the universe, the machine mundi artificials, which was given as a gift to Prince Friedrich von Württemberg. At the same time, the mathematician Henri de Monantheuil maintained that the man, being an image of God, was invited to imitate him as a mechanician and to produce objects that could complete with those made by nature.  

1.2.2  Importance of technological innovation for growth of e-commerce today

While electronic commerce has grown rapidly in recent years, it still represents a relatively small value compared to total business activities. It is too small improvements in aggregate productivity growth, e.g. in the United States ,for example, business-to-business commerce (B2B) accounted for around USD 600 billion in 1999, more than 90% of total e-commerce, manufacturing led, with 1999 e-commerce shipments (value of goods and services sold on line over open networks such as the internet and over proprietary networks running systems such as Electronic Data Interchange) accounting for 12.0% (USD 485 billion) of the total value of manufacturing shipments. Merchant wholesale were second, with e-commerce sales representing 5.3 % (USD 25 billion) of revenues for these industries. Retail trade, the focus of much e-commerce attention, had e-commerce sales in 1999 of 0.5% (USD 15 billion) of total retail sales. Retail e-commerce sales in the United States in 2000 (data from a different survey) accounted for about USD 25.8 billion, or about0.8 % of total retail sales. In Denmark, electronic commerce accounted for about 1% of business sales in 2000 with the major part (87 %) being business to business, it appears smaller in other OECD countries for which data are becoming available. In Australia, around 0.4 % of all orders were received in the Internet in 1999/2000. In Canada, around 0.4 % of all customer orders were received over the Internet in 2000.

E-commerce has major potential to modify business strategies and structures in the longer term particularly in B2B. Preliminary result is available from the OECD electronic commerce business impacts project (EBIP) which uses a common analytical framework and methodology to undertake firm level case studies in different sectors in ten countries. This work shows that the Internet (www and e-mail) is used very extensively with customers for advertising and information services and with suppliers for information services. However, core business transaction in ordering. Billing, payment and delivery, with customers and suppliers are still more frequently carried out over secure proprietary electronic data interchange (EDI) systems. Ordering, billing and payments are migrating from EDI systems towards the www. Firms expected and experienced impacts of e-commerce largely in the business functions such as catalogues, ordering and information capture. Innovation impacts were in enhanced product diversification, in process co-ordination and logistic and increased inter-organizational trust. Overall the study suggest that e-commerce strategies enable firs to present a broader range of product, reduce costs of production and distribution of goods and services, manage their supply chains more effectively, and improve communications and relations with customers and suppliers. But little quantitative information on impacts is yet available.

E-commerce may provide considerable market advantage to those firms and networks of firms which successfully adopt new organizational methods. An example is the optical network industry in Canada, where inventories decline from 30-40 days a few years ago to 9-12 days today. In “old economy” areas, e-commerce and related ICT application have improved product development. Car producers are able to reduce some of the costs of intermediation, reorganizing production and the interface with customers and improving the through flow of production and customer information. The saving could be substantial in many areas. Korean car producers expect that the cost of procurement of maintenance, repair and operating supplies will decrease by 20 % of following the adoption of e-commerce.

Barriers to further use of e-commerce were perceived to be related to lack of staff training and skills as well as regularly factors (transaction security, legal structures, authentication mechanisms, and intellectual property protection). Government policies generally were not seen as major barrier to adoption, but were sometimes seen as not sufficiently facilitating e-commerce, particularly in education and training, but also in other areas.

Before on can explore the managerial challenges and opportunities of new technologies, there is a need to understand the dynamics of the market for these technologies. What factor drive, and what barrier prevent, consumer acceptance/ adoption of one media product and not another? At what point will technological development or social currents break through the barrier to adoption? What are the potential market(s) for specific media products? What are the competitive and strategic issues of these markets? What levels of substitutability exist between new and old, current and potential products? What impact will the growth/ development of one media product have on other, existing products? In the enthusiastic preview of a new media capability, it is easy to forget that the markets required to introduce and profitably sustain a product or service are affected by considerable social and psychological inertia to the degree that media scholars and managers of media industries.

Although markets determine the success and impact of technology, the peace of development of technological capabilities often continues independently of markets factors. Technological innovation potentially affects media markets in there ways: multiplication of delivery channel option for content; introduction of new content combinations; and introduction of new content option. Events involving the second and third alternatives may loosely be defined as convergence effects.

The issue of multiple delivery options means there is a steady increase in the number of channels through which consumers can obtain content. This proliferation of channel has significant potential impact on how the enterprise must be managed, whatever the medium. Consumers of television content have gone from two or three network broad cast channels to hundreds of cable options to hundreds of satellite options. Now, content is even available on-line as producers of afternoon dramas allow—for a fee—the downloading of digits files of each day’s installment for viewing on the consumer’s computer. The inevitable result of channel proliferation is audience fragmentation. The impact of this fragmentation is felt most heavily by tradition mass media. This, in turn, provides an impact of this fragmentation is felt most heavily by traditional mass media. This, in turn, provides an impetus for industry consolidation, as corporate owners seek larger aggregate audience by increasing the number of individual outlets under their control, and individual owners are encouraged to sell because of dwindling audience share.

1.2.3  Introduction to the technology commercialization in media and advertising industry today

Technology commercialization is not simply invention, but rather is a process that includes all the steps from the decision to conduct research to the identification of opportunities and paths for that research to contribute to society through diffusion and commercial application. While scientific discovery is central, it is a single piece of a complex process involving navigation of the business, legally, regularly, and economic issues that define the innovation landscape.

Understanding the interplay of these issues is difficult at best. A yearly survey by the Industrial Research Institute routinely lists “managing research and development (R & D) for business growth,” “integration of R& D and business strategy. “And“ making innovation happen” among the top five problem in R& D. Moreover, in areas with the most radical advances in sciences and technology, such as biotechnology and nanotechnology, inventions increasingly emanate from university labs so that commercialization depends on a more complicated web or coordination of university and industry action – most notably the engagement of entrepreneurial enterprises.

The search opportunities and challenges in the field of media management are multiplying with incredible speed, reflecting the changing face of media industries chronicled in the preceding chapters. In looking ahead, three factors appear likely to dominate the evolution of media industries and define the challenges facing media managers—digital technologies, consumer adoption patterns, and the global regulatory environment.

If change is the keyword to describe the direction of media industries, managers must understand media consumers to understand that change. Advances in media technology have occurred—and will continue to occur—with extraordinary peed and, sometimes, in unexpected directions. In less than a decade, the World Wide Web has gone from a curiosity to a major distribution channel for news and information, entertainment, interpersonal communication and sales of products and services. The on-line development since in the introduction of the protocols underlying the World Wide Web are not, however, primarily a story of technological advancement. There are, more importantly, a reflection of the convergence of a constellation of economic, technological, and social developments that sparked adoption of the new media options at an exponential rate.

Whether innovation involves coordination within or between institutions, it clearly involves professionals with training from a variety of disciplines. Successful innovates involves inventors who typically are scientists and engineers; corporate or technology transfer professionals who evaluate inventions in terms of commercial potential and develop business models for commercialization; and attorneys involved in various aspects of intellectual property protection. The problem is that each of the professionals involved needs to understand aspects of the others’ expertise in order to effectively facilitate both invention and commercialization.

1.3     Aims and Objectives of the Study

1.3.1  Primary Objective

·       To study the growth of Super Artificial Intelligence devices in E-commerce and its preference in the advertising Industry in future

1.3.2   Secondary Objective

• To study the basic concepts of Super Artificial Intelligence devices
• To identify their impact in E-commerce
• To understand the impact of the application of Super Artificial Intelligence devices in E-commerce on the advertising industry
•  To create an awareness of super artificial intelligent devices among the advertising industrialists

1.4     Review of Literature

1.4.1  Technological advancement in media and advertising today

People today have greater access to more kinds of media and technology than ever before. In the midst of a world-wide communications explosion, with relatively recent advances in computer and telecommunications technologies, People are spreading considerable amounts of time online. Indeed, recent advances in media and computer technology, including satellite transmission, remote control, the video cassette recorder, computer, and the Internet, have exponentially expanded the number and kids of media, and have given teens more control over when and where they use them. Advances in various forms of media and computer technology, including the Internet, has changed the ways in which children and People access information in both their home and their classrooms. Many teenagers now actively communicate through electronic mail with their peers around the world. They share ideas, interests, opinions, and beliefs regarding a wide range of issues and current events. There is also evidence that teenagers are becoming more interested in civic engagement through the Internet, but defined on their terms. However, it is clear that all children and People do not have equal access to these technologies, and it is not clear what the long-term implications will be of these inequities.

Children and People are likely to benefit greatly from the wealth of information and educational materials available on the Internet, as well as valuable skills that are likely to ensure their competitiveness in the workforce. There is also growing concern about children and People’ access to information and material that are developmentally inappropriate and even potentially harmful. As a result, there has been a growing interest on behalf of the internet and future technologies will no doubt continue to play an important role in the lives of teenagers worldwide.

1.4.2  The role of technology in advertising and media industry

It is evidential the diffusion of communication technologies has become a critical force in shaping not only a society but also the future of its media industries. New media technologies often have the potential of generating additional revenues or cutting costs; they might also transform the rules of transform the rules of competition in existing media markets. The arrival of the internet and digitization clearly illustrates the diversity of strategies exhibited by the different media firms and the magnitude of change brought about by communication technologies. Nevertheless, media management and economic literature has not adequately explored the subject of the technology in the contacts of firm’s behavior and the drivers of that behavior. In a sense, technology enables the shifting of the balance of power between different type of media organizations and between media and their consumers. For instance, the advent of multiple media outlets, the Internet, and Broadband infrastructure seems to have given consumers more control and benefited media contact packages who have better contacts or knowledge of audience. The essential role of technology in today’s media markets means that media organization needs to monitor the types and rates of technological changes and diffusion and develop appropriate strategies to capitalize on that technological development.

The public relation industry, like so many other professional fields (including journalism), is embracing change due to technologies and a global expansion of knowledge. Technological advancement, particularly the internet, now impact on the availability and delivery of the materials. Rapid developments in the delivery of audio, still and moving images now allow the media to make their own cocktails of news, words and pictures from those provided online. New and extremely savvy publics, like blogger, now need to be considered carefully in their intersection with corporate communications and political noise. Add to their availability of 24-hours-a-day information and there seems to be no way to reign in the boundaries of the communication and information professions. Public relations and indeed relations—are on the move.

1.4.3  New Trends in Advertising

The technology of advertising has developed side by side with the technology of the mass media. Let us discuss how information technologies are starting to transform conventional advertising forms.

1.4.4  Personalized Online Advertising

Advertising works in a society and not in isolation. It reflects the collective wisdom, cultural ethos and technological advancement of the society, and the country. In Victorian times showing even a women’s ankle was considered vulgar. Today, the advertisements of contraceptives have broken many a societal norms.

Mass Production, mass consumption and competition forces the seller to resort to keep a strong thrust in media communication, advertising. And then, as affluence catches more and more customers, customization and tailor-made products take precedence. With the Knowledge of demographics, firms will do well in fine tuning their message to reflect the aspiration and benefits most valued by the segment members. More people with money and willing to spend it are going to rule the market place of tomorrow.

After banner ads had their day advertisers found that the hidden gold of the internet was buried deeper, in the internet working protocol (IP), which tells website owners the Internet addresses of the visitors and also where they surfed from and where they go next. Together with the cookies and web bugs that websites use to track their visitors, this gave advertisers an unprecedented ability to identify and probe the media and consumption habits of individual consumer on a massive scale.

Advertisers can now reach consumers efficiently through a system of online ad networks, also known as ad servers, such as Double Click (now owned by Google) and Value Media. They partner with thousands of websites to display internet at ads that reach millions of users collectively, but that also target individual user. By collating information from IP addresses, cookies, and web bugs, DoubleClick can identify websites visitors who are likely prospect for buying for new car, for example, web users who divulged their age (say, 21) and annual income ($35,000) when they registered at a website and who recently read a new-car review in the online New York Times. Ad servers collate the demographic information (deposited in a cookie on the user’s hard drive that can be opened and read by the ad server) with the surfing patterns by the times. The next time the user opens the Times home page they might see an ad for a new Honda civic inserted in the home page, while prospective sofa buyers will see an ad for furniture. The ad servers also responsible for many of the pop-up ads that many of us find annoying when the ads open on top of (or underneath) a webpage we are trying to reach.

Personalized communication with consumer on this scale is something the old media could never do on their own. Some claims the Internet can extend the effectiveness of traditional Media, such as newspapers, magazines, radio, and television (Kaye & Medoff, 2001). For example, magazines advertisement for the cereal Smart Start also appears on the Kellogg’s website. That is why so many of the television and newspaper ads we see direct consumer to websites and why many old-media firms now have internet advertising vehicles of their own.

Similarly, Google’s sponsored links display advertisements that are specific to the key words typed into its search engine. If you subscribe to Google’s Gmail service, then Google software reviews your message, looking for keyword on the type of ad to shoot to you. So, if your mom sends an e-mail explaining that she can’t send you money because she ran out of checks, then you might see a sponsored link to a money-wiring service that accepts credit cards. Likewise, Google analyzes the discussion of participating blogs, posts relevant advertisements in them, shares the revenues with the bloggers. For example, a forum about college football might attract a beer advertisement. Some blogs have been extremely successful generation advertisement revenue. TechCruch is a blog about Internet startups. Because more than 1 million people visit the blog each month, it can charge $ 10,000 a month for a display ad (Zuckerman, 2007).

1.4.5  Beyond Banner Ads

Advertisements are popping up everywhere in cyberspace. The Internet advertising Bureau introduced new size options so that Internet ads now fill more of the Web Page and may appear in the middle of pages instead of the top and bottom margins. Animated ads play audio and video clips or features graphics that sometimes literally leaps across the page. Intermercials (ads appearing while a web page downloads) and buttons (miniature banner ads) are other recent developments. Floaters are similar to pop-ups, but they use Flash animations and are immune to pop-up blocker program. Ads also appear in RSS (Really Simple Syndication) feeds, text messages that scroll across the bottom of popular websites with updates of the latest news, weather, and sports.

In 2008, Google finalized a deal to purchase DoubleClick, an online advertising company that specializes in placing ads tailored to user characteristics on websites. Combining the existing specially of the two organizations has the potential to present Internet user with precision-tailored advertisements. DoubleClick’s strength is its ability to produce flashy banner ads and video ads that are parallel to high-end magazine and television ads. The purchase helps Google move towards its goal of becoming an advertising giant in additions to being the search engine leader (Story & Helft, 2007).

For consumers, the most interesting accepts of the Internet is its multimedia, interactive nature. For instance, the website for hallmarkcards has a “remainder service” whereby customers are asked for friends’ and relatives’ names and birthdays and later contacted through e-mail when it’s time to send a person a greeting card. These Internet Features allow advertisers to communicate with consumers in nontraditional ways, thus enabling advertisers to grow personalized consumer relationship that build strong ties to the brand.

Another form of advertising at which the internet excels is viral marketing. The advertisers’ strategy is to stimulate brand-related discussion and hope that other will carry it on, spreading word of the product like a virus to new customers. For example, Norelco created a humorous online video about a new electrical shaver that generates over a million downloads and lots of Internet “buzz”. Netflix works closely with its nemesis blog, hacking Netfix.com, to distribute news about its products (Steinberg, 2006).

The Internet also has the potential to change the way ads are bought and sold, a threat to the role of the conventional ad agency. Internet giants Microsoft, Yahoo!, and Google operates advertising exchanges that match buyers and sellers of advertising space and automatically place ads, without the services of an ad agency—and also without paying the commission that advertisement agencies realize on the ads they place in the media.

1.4.6  Social Networking Sites: Advertisers’ New Frontier

My space and Facebook are popular social network sites where users build pages about themselves, post pictures, and create discussion. Because Facebook users provide geographic information, such as age, sex, geographical location, and religious, the social network site is an advertiser’s dream. Facebook is described as a “Net within the Net” because it allows advertisement to reach their target audiences with precision (Grossman, 2007). Although developed for college students, Facebook’s fastest-growing demographic is someone who is 35 years of age or older.

Microsoft announced in 2006 that for the next three years it would be the exclusive seller and provider of banner advertising and sponsored links for Facebook. The announcement came on the heels of a statement that Google would pay a minimum of $ 900 million over a three-year period to provide MySpace with search functions and advertising (seelye, 2006).

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