To: Elwood P. Dowd who wrote (36577 ) 11/14/1998 6:26:00 PM From: Dave Sullivan Respond to of 97611
What do you guys think of this? November 12, 1998 11:30 AM PST Compaq Computer Corp. [NYSE:CPQ] will trial a new model for online advertising giving users the discretion to receive small electronic payments as an incentive for viewing adverts, or to pay to access advert-free content. Compaq will explore the application of the MilliCent technology it inherited from from Digital after the two companies merged. MilliCent, which will now work in tandem with online advertising rather than as a replacement, will be tested with Compaq's online journal, The Rapidly Changing Face of Computing (RCFoC). MilliCent has been available as an experimental electronic payments system for several years, the last trials were conducted by Digital mid-1998. The concept behind the system is to enable online content providers to collect small payments below $5, or "micropayments" for low cost services. A publisher could offer pay per view articles on a Web site, for example. Significantly, Compaq's focus for MilliCent is now as a tool for advertisers, where initially it was conceived as a solution for small content providers that could not attract advertising on the Internet. "Advertisers will benefit from increased hits from users happy to view ads in return for electronic cash," said Compaq, in a statement. "Incentives such as free electronic cash are offered to encourage users to visit an advertiser's sites. The advertiser's profile is improved through increased user traffic." Internet users happy to view advertising will be rewarded with electronic cash they can use with MilliCent vendors elsewhere online. Those who do not wish to see advertising can use their electronic wallets to have it filtered out. "The traditional concept of publishing and advertising isn't working economically on the Internet," said Greg McCane, senior manager, software engineering Australia, Compaq Computer Australia. "There is no incentive for a user to look at an advertiser's site. MilliCent may provide a more workable option. If the user gains electronic money by visiting a site, and can then spend the money at other sites, both the user and the advertiser benefit." Electronic cash schemes have been slow to get off the ground online, with most people happy to use credit cards for purchases and content providers giving visitors free information as a teaser for paid services and to build the brand online. First Virtual Holdings, which also had an electronic cash system, folded in July of this year. Digicash filed for bankruptcy this month, while CyberCash and IBM schemes are either in the early stages of development or have not caught on widely yet. Users can test MilliCent's new model by visiting the RCFoC Web site at millicent.digital.com . Reported By Newsbytes News Network, newsbytes.com 00:51 CST Reposted 09:59 CST (19981112/WIRES ASIA, ONLINE/MILLICENT/PHOTO) © 1998 Newsbytes. All rights reserved.