It stands for "focused broadcasting," an advertising system that takes full advantage of both the culture and the technology of the Internet in general, and the World Wide Web in particular. By providing virtual matchups of classified and want ads in cyberspace, it is the ultimate balance of the push-pull dynamics in the Information Age.
How does Focasting work?
Three parties are involved: Viewer, Focaster, Advertiser.
The Viewer registers with the Focaster (who may be an ISP, E-Mall, Directory, Web-Host, etc.) free of charge, indicating specific items, categories, or sources of interest.
Provided with an ID and Password for subsequent visits, the Viewer sees Web pages at the Focaster's site showing only timely information furnished by Advertisers of interest.
The Advertiser pays the Focaster at rates that can be meaningfully established and negotiated based on Viewer demands.
What Focasting is not?
It is not information brokering, purchase agency, or any traditional role of go-betweens and middlemen. As the trend in cyber-culture is toward disintermediation, even automation of such models is not promising. Instead, the Focaster strives to be an efficient conduit of valuable information. Apart from helping to classify and match the supply and demand, no value judgment is exercised. Hence, no value-based commission is charged.
Why does Focasting make sense?
The Viewer sees only what is of interest, for free. The Advertiser reaches only those who are interested (a focused audience), and more cost-effectively than with conventional advertising. The Focaster earns a fee by providing the service, leveraging Web technology for economies of scale. Why not charge the Viewer a fee? Obviously, the Viewer derives value from the service and may indeed be willing to pay for it. However, competition among Focasters will eventually drive this fee to zero. As long as focasting generates sales for the Advertisers, they have an incentive to pay.
Why is Focasting innovative?
There are many precursors to the building blocks of the Focasting system. Customized reports and newspapers embody the same technology, but not the economics. Existing E-Malls and Industry Networks serve the same purpose, but lack the dynamics to balance the pushing and pulling of information. Ultimately, it is the recognition that by catering fully to the Viewer, the Focaster ends up with a product that is perfectly marketable to the Advertiser. With the new focused channels, the Advertiser can concentrate on timely and customized announcements, rather than the relatively static and mass appeal approach in conventional media.
How is Focasting different from Webcasting as featured in Business Week?
Webcasting, ("A way out of the Web maze," Business Week, Feb. 24) while offering a wide selection of ad-supported "channels," follows primarily the conventional cable TV idiom. True breakthrough will come only when viewers and advertisers get cyber-matchups in a highly effective classified/want ad medium. Then advertisers can turn from pushing generic propaganda to timely and custom pitches, knowing their money is well spent on targeted audiences. With ad revenues, Internet service providers will compete to provide personalized "hangouts" on the Web to viewers for free, pulling in what is available on the market to suit their specific needs of the moment. As the usefulness of such free service fuels its popularity, more advertisers are enticed. The feasibility of balancing the push-pull dynamics of the Information Age is indeed the unique and defining feature of the Web.
Who is Focasting for?
Any individual consumer or business entity is a potential Viewer. Most providers of Internet-related services can become Focasters. Anyone with something to sell can be an Advertiser.
If it is so simple, won't one major ISP corner the whole market?
No. While the technical requirements are quite straightforward (essentially the ability to create database-driven web pages on the fly), effective classification schemes are nontrivial. This will give rise to numerous opportunities for specialized or regionalized niche markets.
Is there evidence that Internet users will find Focasting compelling?
Yes. See the results of "A Pilot Study of Internet User Attitudes toward Focused Broadcasting."