The Original WWW

By: Yogin Vora on April 9, 2010 No Comment

How do you evaluate a technology that has completely captured the publicâ€™s imagination and spawned thousands of articles in newspapers n magazines? What about a technology that has come to indicate innovation, where the ignorance of how it works is a sure sign of being on the wrong side of a generational divide? What if that technology so captured the publicâ€™s imagination that commentators claimed it would revolutionize culture, education, and commerce?

Such a dilemma confronted the radio analyst in 1992. Radio was the original WWWâ€”Worldwide wireless. When the RCA corporation took this logo in 1920, it saw itself in the business of wireless telegraphy and wireless telephony. It had U.S rights to send telegrams and messages to ships and other hard to reach locations. As part of a settlement following World War 1, the Marconi company of England had been forced to give up its monopoly of the world wireless market and turn the American rights over to the newly formed RCA. Wireless was viewed as a security matter, having little impact on commercial activity.

In 1922, radio suddenly changed from a low cost niche business to a consumer and business phenomenon. It was â€œtop of the chartsâ€ and seemed to point the way to the future. The number of broadcasting stations mushroomed from five at the end of 1921 to more than 575 a year later. Starting radio stations was the height of entrepreneurship. Listening to radio became a runaway consumer fad. â€œCombing the etherâ€ was the hit of the day.

Radio changed business, especially marketing. Radio accelerated economyâ€™s transformation into a mass market. It greatly facilitated the creation of national brands. A firm could launch national marketing campaigns simultaneously, backed by a nationally created image. New product store introductions could be synchronized with advertising campaigns to build consumer interest. Product positioning became more flexible. Business throughout the economy learned to use this new, powerful method of reaching customers.

Radio changed the everyday life of millions of listeners, altering aspects of their lives from church attendance to newspaper reading. A scheduled mass culture emerged. As early as 1923, the happiness boys had become famous as â€œyour Friday night date, from seven-thirty to eightâ€. Timeslots, lead-ins, and prime time became familiar concepts.

In making the transition from hobby to industry, radio as an industry struggled with the basic requirement of generating a self sustaining revenue base. Providing value to customers created opportunities, but it was necessary to make a profit to sustain a business. Radio had to solve the business model problem. There was a major competing vision. Some argued bitterly against advertising support and commercialization. In many European countries, this stance led to government support of radio. The U.S administration was opposed to government control and pushed for a purely private solution.

For a time, a private solution did not look promising. By the end of 1924, 581 broadcast stations were operating. Many of these stations found it impossible to be profitable, and by mid 1926, stations were failing at a rate of almost 15 percent per month. At the same time, consumers continued to rush to purchase new radios. Ultimately the emergence of national networks combining local and national advertising made radio profitable.

Internet marketing and commerce show many of these same uncertainties, potentials and impact. The internet changes the way companies connect to their customers. It expands the opportunities for branding, innovation, pricing and selling. It leads to new ways of thinking about time and distance and opens up new distribution channels and markets.

Fundamentally, the internet forces every business to think carefully about the benefits it provides to its customers. It encourages new thinking and innovation.

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