Online UK retail and travel sales are expected to increase to £56bn by 2014, according to Forrester Research.
The research house expects online sales to grow by 6% a year from its current level of £37bn as consumer spending continues to shift online.
According to the research, which is due out later today, fashion was the fastest growing area of online retail during 2008. Books, DVDs and travel were the most frequently bought items over the period.
The Forrester research, which places the UK's online spend ahead of that in France and Germany, expects the number of UK online shoppers to grow from 30m this year to 37m by 2014.
In January the first new media age online shopping survey revealed 36% of people plan to do more shopping online and less on the high street this year.
The FT Group has reported a 13% rise in profits for 2008 to £195m, spurred on by its digital and subscription businesses.
In its end of year results parent company Pearson said 67% of the publisher's revenues now come from digital, up from 28% from 2000.
FT.com subscribers rose 9% to 109,609 in 2008, while registered users grew from 150,000 to 966,000.
The company posted revenues of £796m, up 7% from 2007.
A statement by Pearson said, "Looking ahead, we believe the FT Group's premium and global positions, combined with our digital and subscription businesses, put us in a good position to weather tougher economic conditions."
It also said FT.com benefited from the launch of the new access model involving registration for access to more than three articles per month.
In January the Financial Times announced plans to make 80 job cuts due to the global recession (nma.co.uk 12 January).
Showing posts with label Digital Platforms. Show all posts
Showing posts with label Digital Platforms. Show all posts
Monday, March 02, 2009
Friday, January 30, 2009
Gasta News; New Media Age Report
This week new media age reported that Google saw search impressions on its Content Network grow by over 300% year on year - an amazing statistic for something that doesn't seem to get many headlines (nma 29 January).
AdWords, naturally, is Google's piece de resistance, being far and away the most successful form of online advertising. But Content Network really isn't that far behind, if not necessarily in terms of revenue, and along with Google's display ambitions is starting to drive Google's core search business.
Efficient Frontier's UK Search Engine Performance Report Q4 2008 showed Adsense search ads generated by Google Content Network now accounting for 6.4% of all UK search impressions, up by 308% from 2.2% last year.
This is still a long way behind AdWords, at 81.8% of all impressions, but fast catching up Yahoo (8.4%) and well above Microsoft (3.4%), according to the report.
The catch-up isn't really surprising: Google's really pushed the Content Network hard this last year, rolling out new formats and better reporting.
In contrast, Yahoo last month announced the closure of Content Match, its text-based equivalent to Google's AdSense.
The company said it was because it saw the future in rich media, rather than text ads, but surely Google earning $1.68bn (£1.15bn) in revenues from AdSense in Q3 last year rebuts this view.
What I find most interesting is that while the discussions over Microsoft and Yahoo's failings in the search market have normally been with regard to AdWords, it's now the Content Network, not even a priority for Google, that is the biggest competitor.
AdWords, naturally, is Google's piece de resistance, being far and away the most successful form of online advertising. But Content Network really isn't that far behind, if not necessarily in terms of revenue, and along with Google's display ambitions is starting to drive Google's core search business.
Efficient Frontier's UK Search Engine Performance Report Q4 2008 showed Adsense search ads generated by Google Content Network now accounting for 6.4% of all UK search impressions, up by 308% from 2.2% last year.
This is still a long way behind AdWords, at 81.8% of all impressions, but fast catching up Yahoo (8.4%) and well above Microsoft (3.4%), according to the report.
The catch-up isn't really surprising: Google's really pushed the Content Network hard this last year, rolling out new formats and better reporting.
In contrast, Yahoo last month announced the closure of Content Match, its text-based equivalent to Google's AdSense.
The company said it was because it saw the future in rich media, rather than text ads, but surely Google earning $1.68bn (£1.15bn) in revenues from AdSense in Q3 last year rebuts this view.
What I find most interesting is that while the discussions over Microsoft and Yahoo's failings in the search market have normally been with regard to AdWords, it's now the Content Network, not even a priority for Google, that is the biggest competitor.
Monday, January 26, 2009
Gasta Opinion: Bye Bye Traditional Marketing
Heralding the death of non-social media
Right before the end of the year, there was a strong backlash against marketing through social media channels. If you were working anywhere near social media, it was hard to miss: People said it doesn't work. People said it doesn't work as they'd like it to. And people said it may work, but it takes effort (my favorite).
It was probably inevitable. There's never been a more explosive media format than social media. As someone wrote on one of my newsfeeds, "Is there anyone out there who isn't starting a social media company?" At any rate, backlash is practically street cred for the internet set. It's right there in the arc of the internet's growth. Personally, I have no question as to whether social media is a proper marketing channel for a company, and that's because of one simple reason: In the very near future, all media will be social media. Here's why -- and what it means for you.
Social media at point of purchase
Let's pause for a second before heading off into the future. For many brands, you could probably argue that all marketing efforts have already gone social. How?
A high percentage of purchases are already preceded by online research. And where there is online research, there are search results. Those search engine results pages often bring up links to a number of consumer review sites. Now, if you've done any amount of conversation monitoring, you know that reviewers don't exactly pull their punches. Even with shopping sites like Amazon, consumers posting negative reviews are hitting the brand where it hurts most -- at the point of purchase.
So given the above scenarios, even in a "controlled" push-media world, many brands can't even make it through the far end of the buying decision funnel without running head first into a social media situation. Compounding matters, many consumer comments are on social sites like Yelp, where they quickly rise to the top of search rankings.
This point-of-purchase invasion is heading for the physical shopping world as well. Have you tried any of the bar code scanner tools for mobile phones? I haven't found one that works well. Today. But with several of these technologies already in consumers' hands, how long until that's as seamless a part of the buying process as reading an Amazon review before purchasing online? Shoppers will be able to scan an item themselves and get all sorts of product information -- right in the store.
The rise of social viewing
So where's a company to hide from social media? On TV? Whether IPTV or internet TV is the TV model of the future, TV viewing is going to be highly social. I'd say the best glimpse of that future right now is internet TV.
Last November, I watched my high school football team play in the state championship -- on my laptop while waiting for a flight at O'Hare airport. Next to the video stream was a live chat box, open to anyone viewing the game. No sign-up, no identity verification -- just post off the top of your mind (and many did). Welcome to social viewing.
What I found particularly interesting is that during the few lulls in the game (they set the record for most points scored in a state final), the chat conversation topics would drift outside the game video to address the surrounding content on the page -- including the ads. And it certainly wasn't all positive.
Social viewing technology is also currently available in the "Watch & Chat" section of CBS.com, on View2gether.com, and in beta at NBC.com. It's similar to the gaming experience on Xbox Live, except that platform focuses primarily on voice instead of text.
If you project social viewing onto a national broadcast-like environment, you can imagine how vulnerable brands will be to public floggings. Social viewing carries with it all the things you were afraid of on the social networks, now fueled by anonymity combined with the reach of broadcast TV. With search engines aiding and abetting these conversations, even comments on small broadcasts could be discovered and shot into the mainstream conversation rapidly.
Commenting capabilities -- everywhere
In addition to TV, the future of display advertising offers little sign of protection from social media. Have you seen the display ads on Facebook? With commenting capabilities underneath? I recently commented on one, and it went straight into my newsfeed -- broadcast to all my "friends." (Facebook didn't even flag me that this would happen.)
You should expect comments across all online media to be more visible in the future. Disqus is already connecting comments across 45,000 websites, archiving them, making them more searchable, and tying them to database technologies like Plaxo.
Surely someone will invent something to stop all that, right? Here's what that would require: Less data made public for everyone to see. Less inclination among people to expose deeper and deeper levels of their lives in public. And fewer and fewer brands willing to venture into new media.
But since the public onset of the web, trends in this respect have been quite the opposite -- overwhelmingly so. So, in order to avoid that kind of social environment, brands would have to be practically invisible to anyone using online media -- and that's not exactly the objective of marketing departments.
So what's a brand to do?
How to get started
If the thought of participating in social media today seems scary, the thought of not participating in it in five years should really scare you.
Many brands will trip in their adoption path of social media. It just doesn't work the way push media like TV and print do, where you can turn on the fire hose and go from zero to $5 million a month in spend overnight. Doing so would be like the shy, quiet kid in the back of the classroom deciding to become the class clown the next day. It wouldn't be very authentic. And worse, it would be a path right back to the old-school "we're cool because we said so" form of branding. Beyond all that, it can take time to understand your audiences and to figure out what interests them and what they respond to.
This is what I would suggest to any brand that doesn't think it can go social: Start small and work your way up. Don't try to be Burger King in a month. Be yourself in a month. Start laying a foundational presence in the primary social media arenas. Initial moves into social media can be as simple as providing store locations, product information, coupons, or quizzes. Regardless, social media is where your customers are. It's where you should be too.
Papa John's has taken this route quite effectively on Facebook by adapting its website ordering technology for the social media network. As of this writing, the company has more than 200,000 "fans." Two months ago, prior to launching the Facebook app, it had about 10,000. Its 200,000 fans are a great social marketing foundation. If Papa John's can involve fans in a future Facebook campaign, their involvement will be forwarded on to their friends' newsfeeds.
Last year at SXSW, Mark Zuckerberg said the average number of friends on Facebook is 150. If that figure is anywhere near accurate, that's a newsfeed multiplier that can build significant word of mouth.
Connecting with your audience
Another proven social media tactic is to go directly to a community or group of influentials that includes your target audience. If you have something to say or share, they'll welcome you. And the more value you bring to them, the more they'll give back to you.
Virgin America connected with Boing Boing to launch its service here in the U.S. The company started by asking the Boing Boing editors to name one of its planes. (In true Boing Boing style, they tagged it "Unicorn Chaser.") That started the relationship. From there, Virgin America invited a top Boing Boing writer to join the inaugural flight.
Of course, effective social media marketing often comes back to the need for a quality product, which Virgin America has. And this reflects what Seth Godin has preached for years: Good products create their own positive press. The glowing reviews on Boing Boing were not only well written, they were supported by a convincing overview of the standout features on the plane. Boing Boing has a readership of more than 3 million early adopting consumers. What would it cost to reach them with a TV or print ad? And what ad would ever attain the level of credibility that came from Boing Boing's coverage?
So how should you begin your brand's move into social media? By reaching out to the people who are most interested in your products and services. Discover who your brand advocates are -- or who they could be. Figure out what they like about you and what they're interested in. There's a treasure trove of consumer research in that alone.
From there, expand your activities and begin engaging them in fun and distinct ways that define your brand's personality. You want to evolve with the medium so that several years from now, you don't come off as some uninformed noob.
When it comes to social media, think of your brand as a person. You don't have to be the class clown -- but you at least want to make an impression worth remembering.
Doug Schumacher is president and creative director at Basement Inc.
Right before the end of the year, there was a strong backlash against marketing through social media channels. If you were working anywhere near social media, it was hard to miss: People said it doesn't work. People said it doesn't work as they'd like it to. And people said it may work, but it takes effort (my favorite).
It was probably inevitable. There's never been a more explosive media format than social media. As someone wrote on one of my newsfeeds, "Is there anyone out there who isn't starting a social media company?" At any rate, backlash is practically street cred for the internet set. It's right there in the arc of the internet's growth. Personally, I have no question as to whether social media is a proper marketing channel for a company, and that's because of one simple reason: In the very near future, all media will be social media. Here's why -- and what it means for you.
Social media at point of purchase
Let's pause for a second before heading off into the future. For many brands, you could probably argue that all marketing efforts have already gone social. How?
A high percentage of purchases are already preceded by online research. And where there is online research, there are search results. Those search engine results pages often bring up links to a number of consumer review sites. Now, if you've done any amount of conversation monitoring, you know that reviewers don't exactly pull their punches. Even with shopping sites like Amazon, consumers posting negative reviews are hitting the brand where it hurts most -- at the point of purchase.
So given the above scenarios, even in a "controlled" push-media world, many brands can't even make it through the far end of the buying decision funnel without running head first into a social media situation. Compounding matters, many consumer comments are on social sites like Yelp, where they quickly rise to the top of search rankings.
This point-of-purchase invasion is heading for the physical shopping world as well. Have you tried any of the bar code scanner tools for mobile phones? I haven't found one that works well. Today. But with several of these technologies already in consumers' hands, how long until that's as seamless a part of the buying process as reading an Amazon review before purchasing online? Shoppers will be able to scan an item themselves and get all sorts of product information -- right in the store.
The rise of social viewing
So where's a company to hide from social media? On TV? Whether IPTV or internet TV is the TV model of the future, TV viewing is going to be highly social. I'd say the best glimpse of that future right now is internet TV.
Last November, I watched my high school football team play in the state championship -- on my laptop while waiting for a flight at O'Hare airport. Next to the video stream was a live chat box, open to anyone viewing the game. No sign-up, no identity verification -- just post off the top of your mind (and many did). Welcome to social viewing.
What I found particularly interesting is that during the few lulls in the game (they set the record for most points scored in a state final), the chat conversation topics would drift outside the game video to address the surrounding content on the page -- including the ads. And it certainly wasn't all positive.
Social viewing technology is also currently available in the "Watch & Chat" section of CBS.com, on View2gether.com, and in beta at NBC.com. It's similar to the gaming experience on Xbox Live, except that platform focuses primarily on voice instead of text.
If you project social viewing onto a national broadcast-like environment, you can imagine how vulnerable brands will be to public floggings. Social viewing carries with it all the things you were afraid of on the social networks, now fueled by anonymity combined with the reach of broadcast TV. With search engines aiding and abetting these conversations, even comments on small broadcasts could be discovered and shot into the mainstream conversation rapidly.
Commenting capabilities -- everywhere
In addition to TV, the future of display advertising offers little sign of protection from social media. Have you seen the display ads on Facebook? With commenting capabilities underneath? I recently commented on one, and it went straight into my newsfeed -- broadcast to all my "friends." (Facebook didn't even flag me that this would happen.)
You should expect comments across all online media to be more visible in the future. Disqus is already connecting comments across 45,000 websites, archiving them, making them more searchable, and tying them to database technologies like Plaxo.
Surely someone will invent something to stop all that, right? Here's what that would require: Less data made public for everyone to see. Less inclination among people to expose deeper and deeper levels of their lives in public. And fewer and fewer brands willing to venture into new media.
But since the public onset of the web, trends in this respect have been quite the opposite -- overwhelmingly so. So, in order to avoid that kind of social environment, brands would have to be practically invisible to anyone using online media -- and that's not exactly the objective of marketing departments.
So what's a brand to do?
How to get started
If the thought of participating in social media today seems scary, the thought of not participating in it in five years should really scare you.
Many brands will trip in their adoption path of social media. It just doesn't work the way push media like TV and print do, where you can turn on the fire hose and go from zero to $5 million a month in spend overnight. Doing so would be like the shy, quiet kid in the back of the classroom deciding to become the class clown the next day. It wouldn't be very authentic. And worse, it would be a path right back to the old-school "we're cool because we said so" form of branding. Beyond all that, it can take time to understand your audiences and to figure out what interests them and what they respond to.
This is what I would suggest to any brand that doesn't think it can go social: Start small and work your way up. Don't try to be Burger King in a month. Be yourself in a month. Start laying a foundational presence in the primary social media arenas. Initial moves into social media can be as simple as providing store locations, product information, coupons, or quizzes. Regardless, social media is where your customers are. It's where you should be too.
Papa John's has taken this route quite effectively on Facebook by adapting its website ordering technology for the social media network. As of this writing, the company has more than 200,000 "fans." Two months ago, prior to launching the Facebook app, it had about 10,000. Its 200,000 fans are a great social marketing foundation. If Papa John's can involve fans in a future Facebook campaign, their involvement will be forwarded on to their friends' newsfeeds.
Last year at SXSW, Mark Zuckerberg said the average number of friends on Facebook is 150. If that figure is anywhere near accurate, that's a newsfeed multiplier that can build significant word of mouth.
Connecting with your audience
Another proven social media tactic is to go directly to a community or group of influentials that includes your target audience. If you have something to say or share, they'll welcome you. And the more value you bring to them, the more they'll give back to you.
Virgin America connected with Boing Boing to launch its service here in the U.S. The company started by asking the Boing Boing editors to name one of its planes. (In true Boing Boing style, they tagged it "Unicorn Chaser.") That started the relationship. From there, Virgin America invited a top Boing Boing writer to join the inaugural flight.
Of course, effective social media marketing often comes back to the need for a quality product, which Virgin America has. And this reflects what Seth Godin has preached for years: Good products create their own positive press. The glowing reviews on Boing Boing were not only well written, they were supported by a convincing overview of the standout features on the plane. Boing Boing has a readership of more than 3 million early adopting consumers. What would it cost to reach them with a TV or print ad? And what ad would ever attain the level of credibility that came from Boing Boing's coverage?
So how should you begin your brand's move into social media? By reaching out to the people who are most interested in your products and services. Discover who your brand advocates are -- or who they could be. Figure out what they like about you and what they're interested in. There's a treasure trove of consumer research in that alone.
From there, expand your activities and begin engaging them in fun and distinct ways that define your brand's personality. You want to evolve with the medium so that several years from now, you don't come off as some uninformed noob.
When it comes to social media, think of your brand as a person. You don't have to be the class clown -- but you at least want to make an impression worth remembering.
Doug Schumacher is president and creative director at Basement Inc.
Tuesday, January 20, 2009
Gasta News: Digital Industry awaits the Carter Report
It will be a case of Get Carter as the Digital Industry rushes to find out the proposition of Stephen Carters report on Digital Britain.
The digital industry is buzzing ahead of Stephen Carter's much-anticipated Digital Britain report, but let's not forget the compelling vision at the centre of Carter's report: the aim to make the UK a world-leading digital creative capital.
Speaking last week, Carter hinted at a need to create greater opportunities and protection for the creative industries, in order to help the UK become a location of choice for the content industries. The plan is to create the regulatory framework and structures to help shape a Britain that is fit for purpose in the digital future.
Reports today suggest Carter will push for BBC Worldwide to be freed from its regulatory shackles to allow the commercial organisation to become a "British rights company on the global stage".
It's part of Carter's vision to ensure British content continues to be exported around the world in order to reap the economic and cultural benefits. With the UK largely viewed as a leader in digital advertising, it's time the content and technology industries were awarded the same kudos.
Carter's vision is imperative as the global content market accelerates. The UK market needs to create infrastructures that support the nurturing and growth of home grown talent and businesses.
Channel 4 CEO Andy Duncan has said the report could be one of the most important elements in deciding how the UK competes in the global economy. He believes it could determine how Britain contributes culturally, creatively and economically through the turbulent times ahead and has urged the UK media industry to work together to support the UK's cultural and economic future. Duncan's not wrong on this point. The potential to create an established vision is both necessary and inspiring - if it works.
Interestingly this comes ahead of the Competition Commission's decision on Project Kangaroo due early next month. While local rivals and the CC itself have major concerns about the potential lessening of competition in the UK market, the shareholders - ITV, Channel 4 and BBC Worldwide - have always argued that Kangaroo is crucial to the UK's ability to compete on a global stage as the likes of Hulu and iTunes continue to grow internationally.
With Carter's vision likely to stir up much debate in this area, is it possible that the controversial video-on demand service may still manage to limp across the line?
The digital industry is buzzing ahead of Stephen Carter's much-anticipated Digital Britain report, but let's not forget the compelling vision at the centre of Carter's report: the aim to make the UK a world-leading digital creative capital.
Speaking last week, Carter hinted at a need to create greater opportunities and protection for the creative industries, in order to help the UK become a location of choice for the content industries. The plan is to create the regulatory framework and structures to help shape a Britain that is fit for purpose in the digital future.
Reports today suggest Carter will push for BBC Worldwide to be freed from its regulatory shackles to allow the commercial organisation to become a "British rights company on the global stage".
It's part of Carter's vision to ensure British content continues to be exported around the world in order to reap the economic and cultural benefits. With the UK largely viewed as a leader in digital advertising, it's time the content and technology industries were awarded the same kudos.
Carter's vision is imperative as the global content market accelerates. The UK market needs to create infrastructures that support the nurturing and growth of home grown talent and businesses.
Channel 4 CEO Andy Duncan has said the report could be one of the most important elements in deciding how the UK competes in the global economy. He believes it could determine how Britain contributes culturally, creatively and economically through the turbulent times ahead and has urged the UK media industry to work together to support the UK's cultural and economic future. Duncan's not wrong on this point. The potential to create an established vision is both necessary and inspiring - if it works.
Interestingly this comes ahead of the Competition Commission's decision on Project Kangaroo due early next month. While local rivals and the CC itself have major concerns about the potential lessening of competition in the UK market, the shareholders - ITV, Channel 4 and BBC Worldwide - have always argued that Kangaroo is crucial to the UK's ability to compete on a global stage as the likes of Hulu and iTunes continue to grow internationally.
With Carter's vision likely to stir up much debate in this area, is it possible that the controversial video-on demand service may still manage to limp across the line?
Thursday, January 15, 2009
Gasta Advertising: Latest trend news
Search Advertising Slowed in 2008
Though Internet advertising has been vulnerable to the overall economic decline, search advertising has become more desirable for marketers. Still, U.S. search advertising saw its annual spending increase slow down a bit from its 2007 growth.
During the first half of 2008, $5.06 billion was spent on paid search, according to a report released by Interactive Advertising Bureau/PricewaterhouseCoopers. This reflected a 23.6 percent increase compared to the first half of 2007 when paid search spending was $4.10 billion.
However, search advertising saw its annual spending increase $1.89 billion in 2008, reflecting a slower growth compared to the $2.01 billion in additional year-over-year spending in 2007, according to eMarketer.
Search advertising annual spending increases are expected to remain relatively sluggish until 2012.
Video advertising saw a 245 percent increase in revenues during the first half of 2008, thanks mostly to a low base figure from the first half of 2007.
Sponsorships and classifieds both saw declines during the first half of 2008 compared to the same period in 2007. Classifieds lost 5.2 percent, while sponsorships lost 23.3 percent in revenues, according to the IAB/PwC study.
Search advertising’s share of total online ad spending increase to 45.3 percent in 2008 from 41.5 percent in 2007.
eMarketer attributes this to search advertising’s performance-based approach, which allows marketers to keep this area accountable and controlled during tough economic times.
Source:
http://www.emarketer.com/Article.aspx?id=1006853
Though Internet advertising has been vulnerable to the overall economic decline, search advertising has become more desirable for marketers. Still, U.S. search advertising saw its annual spending increase slow down a bit from its 2007 growth.
During the first half of 2008, $5.06 billion was spent on paid search, according to a report released by Interactive Advertising Bureau/PricewaterhouseCoopers. This reflected a 23.6 percent increase compared to the first half of 2007 when paid search spending was $4.10 billion.
However, search advertising saw its annual spending increase $1.89 billion in 2008, reflecting a slower growth compared to the $2.01 billion in additional year-over-year spending in 2007, according to eMarketer.
Search advertising annual spending increases are expected to remain relatively sluggish until 2012.
Video advertising saw a 245 percent increase in revenues during the first half of 2008, thanks mostly to a low base figure from the first half of 2007.
Sponsorships and classifieds both saw declines during the first half of 2008 compared to the same period in 2007. Classifieds lost 5.2 percent, while sponsorships lost 23.3 percent in revenues, according to the IAB/PwC study.
Search advertising’s share of total online ad spending increase to 45.3 percent in 2008 from 41.5 percent in 2007.
eMarketer attributes this to search advertising’s performance-based approach, which allows marketers to keep this area accountable and controlled during tough economic times.
Source:
http://www.emarketer.com/Article.aspx?id=1006853
Wednesday, January 14, 2009
Gasta News: China online growth explosion
China's online population, already the world's largest, has expanded to 298 million.
This marks a 41.9% increase on the previous year and is still growing fast, said the government-linked China Internet Network Information Centre.
The study also showed huge increases in the number of people in China accessing the internet through mobile phones.
The report by Cinic also noted that internet use in the countryside was increasing faster than in the cities.
At the end of 2008, the number of net users in China, which has a population of 1.3 billion, was almost the same as the entire population of the United States.
Users in the countryside surged by 60.8% year-on-year to 84.6 million, compared with much more modest growth of 35.6% in the urban areas, the report said.
The Cinic report said 117.6 million people accessed the internet using their mobile phones last year, up 133% from 2007.
Students are the main strength of mobile internet users, the study said: 43.5% of them use their mobile phones to read online news, download music, check email and perform a variety of other tasks.
3G boom
China, with 633.8 million mobile phone users, last week issued long-awaited licences for third-generation (3G) mobile phones to China Mobile, China Telecom and China Unicom.
CHINA'S INTERNET USE
Total users: 298 million
Year-on-year increase: 41.9%
Mobile net users: 117.6 million
Internet penetration: 22.6%
"With the coming of the 3G era, wireless internet will have exponential growth," Cinic said in a statement accompanying the release of its report.
3G phones enable faster data transmission and services such as watching TV, playing online games, wide-area wireless calls and web surfing.
By 2011, the three operators expect to start 3G services all over China, a move which analysts predict will spur further massive growth in mobile internet use.
As the categories of mobile internet services increase, charges have also been dropping fast.
China's internet penetration is still low at just 22.6%, leaving more room for rapid growth, Cinic said.
Constraints
The study said 234 million people surfed the internet to read or watch news by the end of 2008, a much higher estimate than recently made by the Chinese Academy of Social Sciences.
In 2007, 155 million Chinese internet users relied on the web to read news, accounting for 73.6% of the total internet population, according to Cinic.
It also said the number of Chinese bloggers hit 162 million by the end of 2008.
China's booming internet use comes despite the government's tight grip on the web.
Certain websites deemed politically sensitive are blocked; these include the BBC's Chinese language news site, Reporters Without Borders and some Hong Kong and Taiwan sites.
Access to sites offering diverse political opinions remains highly restricted, even as Chinese intellectuals and activists regularly brave the constraints to post new statements.
The government is also targeting what it calls unhealthy content on the internet. Earlier this month, it launched a campaign to get rid of vulgar and pornographic content, targeting 19 websites and search engines it said had failed to remove unsuitable material.
Authorities in Beijing, meanwhile, actively use the internet to sway opinion, put across actions and ideas, and promote top leaders.
This marks a 41.9% increase on the previous year and is still growing fast, said the government-linked China Internet Network Information Centre.
The study also showed huge increases in the number of people in China accessing the internet through mobile phones.
The report by Cinic also noted that internet use in the countryside was increasing faster than in the cities.
At the end of 2008, the number of net users in China, which has a population of 1.3 billion, was almost the same as the entire population of the United States.
Users in the countryside surged by 60.8% year-on-year to 84.6 million, compared with much more modest growth of 35.6% in the urban areas, the report said.
The Cinic report said 117.6 million people accessed the internet using their mobile phones last year, up 133% from 2007.
Students are the main strength of mobile internet users, the study said: 43.5% of them use their mobile phones to read online news, download music, check email and perform a variety of other tasks.
3G boom
China, with 633.8 million mobile phone users, last week issued long-awaited licences for third-generation (3G) mobile phones to China Mobile, China Telecom and China Unicom.
CHINA'S INTERNET USE
Total users: 298 million
Year-on-year increase: 41.9%
Mobile net users: 117.6 million
Internet penetration: 22.6%
"With the coming of the 3G era, wireless internet will have exponential growth," Cinic said in a statement accompanying the release of its report.
3G phones enable faster data transmission and services such as watching TV, playing online games, wide-area wireless calls and web surfing.
By 2011, the three operators expect to start 3G services all over China, a move which analysts predict will spur further massive growth in mobile internet use.
As the categories of mobile internet services increase, charges have also been dropping fast.
China's internet penetration is still low at just 22.6%, leaving more room for rapid growth, Cinic said.
Constraints
The study said 234 million people surfed the internet to read or watch news by the end of 2008, a much higher estimate than recently made by the Chinese Academy of Social Sciences.
In 2007, 155 million Chinese internet users relied on the web to read news, accounting for 73.6% of the total internet population, according to Cinic.
It also said the number of Chinese bloggers hit 162 million by the end of 2008.
China's booming internet use comes despite the government's tight grip on the web.
Certain websites deemed politically sensitive are blocked; these include the BBC's Chinese language news site, Reporters Without Borders and some Hong Kong and Taiwan sites.
Access to sites offering diverse political opinions remains highly restricted, even as Chinese intellectuals and activists regularly brave the constraints to post new statements.
The government is also targeting what it calls unhealthy content on the internet. Earlier this month, it launched a campaign to get rid of vulgar and pornographic content, targeting 19 websites and search engines it said had failed to remove unsuitable material.
Authorities in Beijing, meanwhile, actively use the internet to sway opinion, put across actions and ideas, and promote top leaders.
Monday, January 12, 2009
Gasta Profile:Nortel Networks Corporation
Nortel Networks Corporation (NYSE: NT) with revenues of $11.4 billion in 2006 is a global supplier of networking solutions to both service providers and enterprises. It is a leader in delivering VoIP and Wide Area Networking to carrier customers, holds the number-two position in providing carriers with optical equipment, is the number-one provider of total enterprise telephony lines, and is the second-largest provider of IP business telephony. Its business is organized in four segments: Carrier Networks (CN), Enterprise Solutions (ES) Global Services (GS), and Metro Ethernet Networks (MEN).
Nortel anticipates increase in demand for wireless networking solutions due to network traffic growth to support applications such as mobile video. To cater to this demand, it plans to increase its investment in metro Ethernet to support video delivery over wired as well as wireless access and in next generation products. To capitalize on the trend towards IP converged networks, it is trying to focus on the enterprise market and strengthen its end-to-end convergence solutions.
In 2006, it acquired Tasman Networks to strengthen its data networking portfolio and formed a strategic alliance with Microsoft to accelerate availability of unified communications. In 2005, it formed a joint venture with LG Electronics. In March this year, it announced that it would offer its own set-top box to carriers as part of its IPTV strategy. The set top boxes would be manufactured by its LG-Nortel joint venture.
In May 2007, Nortel announced its Nortel Hosted Solutions for enterprises and service providers. The portfolio, with a strong focus on the enterprise segment includes IP telephony, unified communications, automatic call distribution (ACD), contact centers and other network application services delivered to enterprises through service providers using equipment owned and managed by Nortel. It has also entered into an agreement with Polycom to jointly deliver telepresence and high definition (HD) video conferencing solutions to enterprises.
On the financial front, Nortel reported revenues of $2.56 billion in Q2 2007, a decrease of 8% compared to Q2 2006. Revenues decreased in the CN, MEN and GS segments, partially offset by an increase in the ES segment. The decline in revenue was mainly due to UMTS Access divestiture in 2006. It also reported net loss of $37 million compared to earnings of $342 million in Q2 2006. In Q1 2007, Nortel announced its 2007 Restructuring Plan which would reduce its workforce by 2,900 employees and shift approximately 1,000 positions from higher-cost to lower-cost locations. This plan is expected to save $400 million annually.
Nortel’s market cap is $7.47 billion, well below its annual revenue number. Its stock is on a downward trend since February this year when it had reached a high of $31.6. It is currently hovering around $17.
As the online video driven networking equipment market momentum marches on, a distinct possibility is that Cisco’s competitors would consolidate as a combined force. Today, the networking industry is represented as Cisco and the Seven Dwarfs. Well, if at least 3-4 of the dwarfs get together, the chances of actually being able to compete in specific markets would become higher. In fact, the combination of Nortel, 3Com and Polycom would create more efficient industry dynamics, whereby, rather than also having to compete amongst each other, they can focus their combined energy on competing with Cisco. It would also create a larger entity (although still only one-third the size of Cisco) that has product offerings in most of the important segments on the networking market, from Carriers, to Enterprise, to SME. The missing pieces need to be brought together from the other dwarfs, some of which we will explore this week.
In the meantime, Nortel, like 3Com, needs to continue cleaning up its house.
Nortel anticipates increase in demand for wireless networking solutions due to network traffic growth to support applications such as mobile video. To cater to this demand, it plans to increase its investment in metro Ethernet to support video delivery over wired as well as wireless access and in next generation products. To capitalize on the trend towards IP converged networks, it is trying to focus on the enterprise market and strengthen its end-to-end convergence solutions.
In 2006, it acquired Tasman Networks to strengthen its data networking portfolio and formed a strategic alliance with Microsoft to accelerate availability of unified communications. In 2005, it formed a joint venture with LG Electronics. In March this year, it announced that it would offer its own set-top box to carriers as part of its IPTV strategy. The set top boxes would be manufactured by its LG-Nortel joint venture.
In May 2007, Nortel announced its Nortel Hosted Solutions for enterprises and service providers. The portfolio, with a strong focus on the enterprise segment includes IP telephony, unified communications, automatic call distribution (ACD), contact centers and other network application services delivered to enterprises through service providers using equipment owned and managed by Nortel. It has also entered into an agreement with Polycom to jointly deliver telepresence and high definition (HD) video conferencing solutions to enterprises.
On the financial front, Nortel reported revenues of $2.56 billion in Q2 2007, a decrease of 8% compared to Q2 2006. Revenues decreased in the CN, MEN and GS segments, partially offset by an increase in the ES segment. The decline in revenue was mainly due to UMTS Access divestiture in 2006. It also reported net loss of $37 million compared to earnings of $342 million in Q2 2006. In Q1 2007, Nortel announced its 2007 Restructuring Plan which would reduce its workforce by 2,900 employees and shift approximately 1,000 positions from higher-cost to lower-cost locations. This plan is expected to save $400 million annually.
Nortel’s market cap is $7.47 billion, well below its annual revenue number. Its stock is on a downward trend since February this year when it had reached a high of $31.6. It is currently hovering around $17.
As the online video driven networking equipment market momentum marches on, a distinct possibility is that Cisco’s competitors would consolidate as a combined force. Today, the networking industry is represented as Cisco and the Seven Dwarfs. Well, if at least 3-4 of the dwarfs get together, the chances of actually being able to compete in specific markets would become higher. In fact, the combination of Nortel, 3Com and Polycom would create more efficient industry dynamics, whereby, rather than also having to compete amongst each other, they can focus their combined energy on competing with Cisco. It would also create a larger entity (although still only one-third the size of Cisco) that has product offerings in most of the important segments on the networking market, from Carriers, to Enterprise, to SME. The missing pieces need to be brought together from the other dwarfs, some of which we will explore this week.
In the meantime, Nortel, like 3Com, needs to continue cleaning up its house.
Thursday, January 08, 2009
Gasta Opinion: Why the forecasters are wrong about digital in 2009
While the pundits may be singing a similar tune when it comes to digital advertising's immediate future, here are a few points they may not have considered.
It's the first full work week of the New Year, and already I'm tired of the constant vacillation in moods concerning the health of internet marketing.
Depending on whom you believe, digital marketing will either follow newspapers into oblivion in 2009, or it will be hit hard but not quite as hard as other media. Hardly any of the pundits give it a positive outlook. And that's a shame, with self-fulfilling prophecies and all…
There are quite a few assertions, though, that are fairly consistently questionable from pundit to pundit when it comes to predicting digital's future. Among them:
1. Failing to grow at the same rate as last year is some sort of failure -- If digital advertising grew at 10-15 percent last year, and it will hit only 7-9 percent growth this year, that's not a failure. Accelerated year-over-year growth for any market sector, whether it be manufacturing, biotech engineering, or financial services, is unsustainable in the long term. Things have to slow down at some point. If digital advertising slows down but still grows in an economy where the word "Depression" is still commonly used in headlines for op-ed pieces, I think we're doing rather well, thankyouverymuch!
My other issue with this is that more marketers are doing things with digital that are not classified as advertising and probably don't get tracked by the prognosticators. Suppose your recommended solution to an e-commerce client is not to buy a bunch of ad banners, but instead to pay to have their digital shelf presence enhanced. Is that advertising? No. Does it address the business problem your client is trying to solve? Most definitely. Will such a deal get picked up by the powers-that-be who track internet spending? Probably not.
2. Video and social media need an ad model -- It's true that in order to make money the way that Yahoo, MSN, and Platform-A do, Facebook will need to improve its ad model. And yes, something will have to come along that can replace pre-roll and overlay ads in video. But hinging digital's growth potential on these ad model conundrums is a mistake, I think.
If video advertising won't scale appropriately (and I do believe it will to a certain degree in 2009), marketers might turn to other non-advertising ways to leverage video. Viral strategies, video syndication, and content sponsorship are all ways of making video work in ways that enhance the bottom line without registering on someone's radar as an ad spend.
As long as social networks can continue to capture everyone's attention the way they have in the last few years, I doubt the lack of an ad model will put them under. Not as long as I'm spending what I do on things like Facebook gifts and Facebook ads. I think there's a lot of potential in something like Facebook ads -- not the big banner deals they do, but the smaller, targeted buys that would appeal to small business marketers. I've used Facebook ads both to recruit people for positions at Underscore and to try to sell my home. In both cases, sub-$100 investments have yielded huge gains. If Google still has plenty of potential to roll up many thousands of small, self-serve ad deals in order to make money, why not Facebook?
3. Performance-based advertising will be where the growth is -- I've seen this prediction made by many of the pundits, followed by some Google-flattering comment about how search will drive modest growth in 2009. In the short term, this might be the case, but I think we've already seen what happens in digital when too many advertisers shift their focus to DR and performance-based digital media. Things quickly get crowded. Clearance issues abound. Lead and sale volumes drop sharply unless concessions are made with respect to price and environment. This is how we weathered the last downturn, and display never really went away and experienced a rebirth when the economy turned around and marketers learned to trust digital again.
I question these three assertions, and I'm skeptical that the equation is as simple as many of the pundits make it out to be. I'm also optimistic for another reason: Analysts and pundits who don't work in digital on a day-to-day basis often have trouble understanding the dynamic of how marketing budget decisions are made. I see a lot of potential out there for marketers and brand managers to come to the conclusion that their diminished budgets can't afford last year's levels of broadcast, and for those marketers to consider digital-heavy or digital-only options for marketing campaigns.
However, it turns out in 2009, I don't think we should resign ourselves to slowed growth or declines this year. People who work in digital tend to be people who thrive in chaos. There's certainly a good deal of chaotic behavior out there in the floundering economy, and I wouldn't be surprised if we figure out how to capitalize on it this year.
Tom Hespos is president of Underscore Marketing and blogs at Hespos.com.
It's the first full work week of the New Year, and already I'm tired of the constant vacillation in moods concerning the health of internet marketing.
Depending on whom you believe, digital marketing will either follow newspapers into oblivion in 2009, or it will be hit hard but not quite as hard as other media. Hardly any of the pundits give it a positive outlook. And that's a shame, with self-fulfilling prophecies and all…
There are quite a few assertions, though, that are fairly consistently questionable from pundit to pundit when it comes to predicting digital's future. Among them:
1. Failing to grow at the same rate as last year is some sort of failure -- If digital advertising grew at 10-15 percent last year, and it will hit only 7-9 percent growth this year, that's not a failure. Accelerated year-over-year growth for any market sector, whether it be manufacturing, biotech engineering, or financial services, is unsustainable in the long term. Things have to slow down at some point. If digital advertising slows down but still grows in an economy where the word "Depression" is still commonly used in headlines for op-ed pieces, I think we're doing rather well, thankyouverymuch!
My other issue with this is that more marketers are doing things with digital that are not classified as advertising and probably don't get tracked by the prognosticators. Suppose your recommended solution to an e-commerce client is not to buy a bunch of ad banners, but instead to pay to have their digital shelf presence enhanced. Is that advertising? No. Does it address the business problem your client is trying to solve? Most definitely. Will such a deal get picked up by the powers-that-be who track internet spending? Probably not.
2. Video and social media need an ad model -- It's true that in order to make money the way that Yahoo, MSN, and Platform-A do, Facebook will need to improve its ad model. And yes, something will have to come along that can replace pre-roll and overlay ads in video. But hinging digital's growth potential on these ad model conundrums is a mistake, I think.
If video advertising won't scale appropriately (and I do believe it will to a certain degree in 2009), marketers might turn to other non-advertising ways to leverage video. Viral strategies, video syndication, and content sponsorship are all ways of making video work in ways that enhance the bottom line without registering on someone's radar as an ad spend.
As long as social networks can continue to capture everyone's attention the way they have in the last few years, I doubt the lack of an ad model will put them under. Not as long as I'm spending what I do on things like Facebook gifts and Facebook ads. I think there's a lot of potential in something like Facebook ads -- not the big banner deals they do, but the smaller, targeted buys that would appeal to small business marketers. I've used Facebook ads both to recruit people for positions at Underscore and to try to sell my home. In both cases, sub-$100 investments have yielded huge gains. If Google still has plenty of potential to roll up many thousands of small, self-serve ad deals in order to make money, why not Facebook?
3. Performance-based advertising will be where the growth is -- I've seen this prediction made by many of the pundits, followed by some Google-flattering comment about how search will drive modest growth in 2009. In the short term, this might be the case, but I think we've already seen what happens in digital when too many advertisers shift their focus to DR and performance-based digital media. Things quickly get crowded. Clearance issues abound. Lead and sale volumes drop sharply unless concessions are made with respect to price and environment. This is how we weathered the last downturn, and display never really went away and experienced a rebirth when the economy turned around and marketers learned to trust digital again.
I question these three assertions, and I'm skeptical that the equation is as simple as many of the pundits make it out to be. I'm also optimistic for another reason: Analysts and pundits who don't work in digital on a day-to-day basis often have trouble understanding the dynamic of how marketing budget decisions are made. I see a lot of potential out there for marketers and brand managers to come to the conclusion that their diminished budgets can't afford last year's levels of broadcast, and for those marketers to consider digital-heavy or digital-only options for marketing campaigns.
However, it turns out in 2009, I don't think we should resign ourselves to slowed growth or declines this year. People who work in digital tend to be people who thrive in chaos. There's certainly a good deal of chaotic behavior out there in the floundering economy, and I wouldn't be surprised if we figure out how to capitalize on it this year.
Tom Hespos is president of Underscore Marketing and blogs at Hespos.com.
Tuesday, January 06, 2009
Gasta Vertical ad network
Can Advertisers use Ad Networks for Brand Advertising?
That depends on the network. Over the past decade we have seen some very creative advertisers do amazing online brand building programs. Yet, most of these clever programs that come to mind were executed on an individual site or portal. Are ad networks only going to attract the direct response campaigns and the low CPMs associated with direct response? The answer is: “No”
The more complete answer is still “that depends” on such things as the quality of the network’s members and the networks ability to execute hi impact ad opportunities. Most ad networks are often associated with remnant advertising on lesser quality sites. This is often why the network does not disclose a complete list of its sites. Call me old fashioned, but if I am responsible for building a brand I want to know where my hard earned ad dollars are being invested, and I probably don’t want my ad impressions only showing up at 2:00 AM (unless of course I am selling sleeping aids).
More and more ad networks are willing to show a complete site list, offering things like geo targeting and even day parting. Yet, that is still not enough to satisfy many brand advertisers who care about things like editorial quality and high impact ad campaigns. That is why vertical ad networks associated with real media companies are becoming more popular.
Media companies like IDG, Forbes, Martha Stewart have been creating some of the highest quality content in their respective verticals and have been executing big online brand campaigns for year. Now these established media companies, and many more like them, are expanding the brand solutions they offer by building online ad networks. This creates a great opportunity for brand advertisers looking to expand their market share.
When you stop and think about it, a media company like IDG already is an ad network with over 450 “owned and operated” technology websites around the world. It makes sense for IDG to expand to include selected independent technology sites. For example, IDG already knows how to recognize, recruit and nurture the best editorial experts in technology media. IDG also has executed countess online branding campaigns across its network of sites. IDG’s TechNetwork is a natural extension. Plus, IDG’s vetting of each partner site insures advertisers will get the quality editorial environment and multiple site execution which are critical to an ad network branding campaign.
The best part for big brand advertisers is when these high impact ad campaigns arrive on these independent sites the impact can be well above average. That is because independent sites often miss out on the online brand campaigns until they partner with an establish media company. Many experts predict that more and more established media companies will be building high quality networks of sites which is good news to brand advertisers looking to find uncluttered ad environments and independent sites looking for access to brand advertisers in their markets.
By Kevin Normandeau on Jul 21, 2008 in The Aggregation of Fragmentation
That depends on the network. Over the past decade we have seen some very creative advertisers do amazing online brand building programs. Yet, most of these clever programs that come to mind were executed on an individual site or portal. Are ad networks only going to attract the direct response campaigns and the low CPMs associated with direct response? The answer is: “No”
The more complete answer is still “that depends” on such things as the quality of the network’s members and the networks ability to execute hi impact ad opportunities. Most ad networks are often associated with remnant advertising on lesser quality sites. This is often why the network does not disclose a complete list of its sites. Call me old fashioned, but if I am responsible for building a brand I want to know where my hard earned ad dollars are being invested, and I probably don’t want my ad impressions only showing up at 2:00 AM (unless of course I am selling sleeping aids).
More and more ad networks are willing to show a complete site list, offering things like geo targeting and even day parting. Yet, that is still not enough to satisfy many brand advertisers who care about things like editorial quality and high impact ad campaigns. That is why vertical ad networks associated with real media companies are becoming more popular.
Media companies like IDG, Forbes, Martha Stewart have been creating some of the highest quality content in their respective verticals and have been executing big online brand campaigns for year. Now these established media companies, and many more like them, are expanding the brand solutions they offer by building online ad networks. This creates a great opportunity for brand advertisers looking to expand their market share.
When you stop and think about it, a media company like IDG already is an ad network with over 450 “owned and operated” technology websites around the world. It makes sense for IDG to expand to include selected independent technology sites. For example, IDG already knows how to recognize, recruit and nurture the best editorial experts in technology media. IDG also has executed countess online branding campaigns across its network of sites. IDG’s TechNetwork is a natural extension. Plus, IDG’s vetting of each partner site insures advertisers will get the quality editorial environment and multiple site execution which are critical to an ad network branding campaign.
The best part for big brand advertisers is when these high impact ad campaigns arrive on these independent sites the impact can be well above average. That is because independent sites often miss out on the online brand campaigns until they partner with an establish media company. Many experts predict that more and more established media companies will be building high quality networks of sites which is good news to brand advertisers looking to find uncluttered ad environments and independent sites looking for access to brand advertisers in their markets.
By Kevin Normandeau on Jul 21, 2008 in The Aggregation of Fragmentation
Gasta Travel:
Today anyone with an Internet access and Credit card can just like that, plan for a week’s tour to South Africa or the Himalayas, thanks to the travel sites who offer trip planning at your finger-tips - flight booking, hotels and car rentals along with the reviews of the hotels, places of interest, and information on packaged deals. Clearly travel sites have been redefining the travel agency business. In 2005, over 79 million people in the US used the Internet to plan and book their travel, a function which previously involved travel agents much more actively.
Online travel is one of the largest e-commerce categories. According to Forrester Research the online travel industry is projected to grow from $63.6 billion in 2005 to $110.5 billion by 2008 in the US. JupiterResearch on the other hand estimates $128 billion to be spent on online travel in the US in 2011. Jupiter expects 38% of all travel revenues to be made online by 2011. Over the last few weeks, we have analyzed the Travel sites based on the Web 3.0 framework.
The online travel industry is expected to continue its strong growth and this is one of the main reasons for the ongoing VC and entrepreneurial interest in this category. In March 2007 Silver Lake and TPG acquired Sabre Holdings the owner of popular travel sites like Travelocity and LastMinute. The Blackstone Group along with its affiliates took over the Travelport business of Cendant Corporation for $4.3 billion in August 2006. Now, they’re trying to spin off Orbitz and take it public. Indian portal Sify entered the online travel business by acquiring Globe Travels.
We have been reviewing the online travel industry and have covered Yahoo! Travel, TripAdvisor, Travelocity, Orbitz, Expedia and Priceline and Lonely Planet from a Web 3.0 perspective.
The fact that online travel is a booming industry is clear from the growing number of travel sites, emergence of travel metasearch engines like Kayak and SideStep and the mushrooming of niche sites like Site59, Farecast, FlyerTalk, Mobissimo, etc. Identifying the opportunity Forbes has launched a special section for luxury travel and NYT has tied up with Expedia for its travel portal. We have not yet had a chance to review many of these other sites. Expect to see more in due course.
Context is, by and large, poorly understood by the sites, although nuances like flights, hotels, car rentals, cruises, vacation pacakges, maps, hotel and destination reviews, trip planning, sharing, etc. allow the consumers to plan their trips and make bookings. But few have created contexts like student travel, luxury travel, adventure travel, romantic travel, etc.
The Content offerings at many of the sites are good. Some, like Lonely Planet, come from Content roots, and do an especially good job. The CPM rates for these sites are similar and are in the range of $15 to $65 per thousand impressions. Considering the present boom in the online travel industry, ad rates are expected to rise in the coming years. As for leapfrog technology, my biggest wish-list item is large scale mashups from various parts of the web that can enrich and strengthen content that is already on the site.
The Community features on most of these sites lack punch and leaves a lot to be desired. Trip Advisor has the best community section but the rest really needs to improve the community features and incorporate photo and video sharing, forums and blogs on different aspects of traveling like trekking, backpackers, family, summer holiday, etc. LonelyPlanet, though has a good video sharing, review section, trip sharing, find a travel partner, forum, etc. According to Forrester peer reviews and blogs will have a decisive influence on travel behavior.
Online travel is the largest Commerce segment and most of the revenues come from the commissions earned on the bookings made through the sites. However, these sites are not taking full advantage of e-commerce and I believe there is an opportunity for these sites to retail a lot of travel related merchandise through their site. Yes, sites like, TripAdvisor, SideStep, etc. do merchandise travel gear in partnership with Cafepress but it is a pretty shoddy affair. LonelyPlanet in fact has done a much better job.
What I would like in the Vertical Search space is that the sites allow users to Search by Context and by this I mean, if I am a student I would like to search for hostels for backpackers like me, as well as other travelers to hang out with, by destination. The basic bread-and-butter vertical search is provided by Kayak and Sidestep, which we have reviewed.
Personalization is sub-par in most of these sites and they allow users to plan their trip, save and share their trip, photos, make posts and write reviews. They have email alerts for travel deals and newsletters. Endless possibilities exist, all the way to a Personal Concierge.
Conclusion
The online travel industry is projected to grow at 30% per annum in the next 5 years and this has resulted in a number of entrepreneurs, VC and PE funds entering the space. New entrants (Gusto, Mobissimo, travelervideos.com) in the online travel space and stand-alone travel operators like airlines and hotel companies are going to put pressure on the existing travel sites. However, those sites that are able to integrate the latest technology, differentiate their offerings, build their brand and provide consumers with the best Web 3.0 experience will have an edge in this highly commoditized industry, and that opportunity applies just as well to the major airline sites.
Online travel is one of the largest e-commerce categories. According to Forrester Research the online travel industry is projected to grow from $63.6 billion in 2005 to $110.5 billion by 2008 in the US. JupiterResearch on the other hand estimates $128 billion to be spent on online travel in the US in 2011. Jupiter expects 38% of all travel revenues to be made online by 2011. Over the last few weeks, we have analyzed the Travel sites based on the Web 3.0 framework.
The online travel industry is expected to continue its strong growth and this is one of the main reasons for the ongoing VC and entrepreneurial interest in this category. In March 2007 Silver Lake and TPG acquired Sabre Holdings the owner of popular travel sites like Travelocity and LastMinute. The Blackstone Group along with its affiliates took over the Travelport business of Cendant Corporation for $4.3 billion in August 2006. Now, they’re trying to spin off Orbitz and take it public. Indian portal Sify entered the online travel business by acquiring Globe Travels.
We have been reviewing the online travel industry and have covered Yahoo! Travel, TripAdvisor, Travelocity, Orbitz, Expedia and Priceline and Lonely Planet from a Web 3.0 perspective.
The fact that online travel is a booming industry is clear from the growing number of travel sites, emergence of travel metasearch engines like Kayak and SideStep and the mushrooming of niche sites like Site59, Farecast, FlyerTalk, Mobissimo, etc. Identifying the opportunity Forbes has launched a special section for luxury travel and NYT has tied up with Expedia for its travel portal. We have not yet had a chance to review many of these other sites. Expect to see more in due course.
Context is, by and large, poorly understood by the sites, although nuances like flights, hotels, car rentals, cruises, vacation pacakges, maps, hotel and destination reviews, trip planning, sharing, etc. allow the consumers to plan their trips and make bookings. But few have created contexts like student travel, luxury travel, adventure travel, romantic travel, etc.
The Content offerings at many of the sites are good. Some, like Lonely Planet, come from Content roots, and do an especially good job. The CPM rates for these sites are similar and are in the range of $15 to $65 per thousand impressions. Considering the present boom in the online travel industry, ad rates are expected to rise in the coming years. As for leapfrog technology, my biggest wish-list item is large scale mashups from various parts of the web that can enrich and strengthen content that is already on the site.
The Community features on most of these sites lack punch and leaves a lot to be desired. Trip Advisor has the best community section but the rest really needs to improve the community features and incorporate photo and video sharing, forums and blogs on different aspects of traveling like trekking, backpackers, family, summer holiday, etc. LonelyPlanet, though has a good video sharing, review section, trip sharing, find a travel partner, forum, etc. According to Forrester peer reviews and blogs will have a decisive influence on travel behavior.
Online travel is the largest Commerce segment and most of the revenues come from the commissions earned on the bookings made through the sites. However, these sites are not taking full advantage of e-commerce and I believe there is an opportunity for these sites to retail a lot of travel related merchandise through their site. Yes, sites like, TripAdvisor, SideStep, etc. do merchandise travel gear in partnership with Cafepress but it is a pretty shoddy affair. LonelyPlanet in fact has done a much better job.
What I would like in the Vertical Search space is that the sites allow users to Search by Context and by this I mean, if I am a student I would like to search for hostels for backpackers like me, as well as other travelers to hang out with, by destination. The basic bread-and-butter vertical search is provided by Kayak and Sidestep, which we have reviewed.
Personalization is sub-par in most of these sites and they allow users to plan their trip, save and share their trip, photos, make posts and write reviews. They have email alerts for travel deals and newsletters. Endless possibilities exist, all the way to a Personal Concierge.
Conclusion
The online travel industry is projected to grow at 30% per annum in the next 5 years and this has resulted in a number of entrepreneurs, VC and PE funds entering the space. New entrants (Gusto, Mobissimo, travelervideos.com) in the online travel space and stand-alone travel operators like airlines and hotel companies are going to put pressure on the existing travel sites. However, those sites that are able to integrate the latest technology, differentiate their offerings, build their brand and provide consumers with the best Web 3.0 experience will have an edge in this highly commoditized industry, and that opportunity applies just as well to the major airline sites.
Thursday, December 18, 2008
Gasta News:IAC Announces the Launch of Black Web Enterprises Inc
IAC Announces the Launch of Black Web Enterprises Inc.
IAC’s Online Destination for the Black Community Prepares to Introduce First Site in the Coming Weeks
NEW YORK – February 4, 2008 - IAC (NASDAQ: IACI) today announced the launch of Black Web Enterprises Inc. (BWE), the company’s online destination for the Black community, and its newly appointed executive management team. The announcement solidifies IAC’s previously publicized commitment to launch an interactive community platform for the U.S. Black population.
“With a phenomenal management team in place, we are on the cusp of unveiling the first initiative under the Black Web Enterprises umbrella… a site that will revolutionize the internet for the Black Community,” said Johnny C. Taylor, Jr., President & CEO of BWE. “Rather than compete with existing sites already geared toward the Black community, our goal with the initiative is to expand this market in order to bring the absolute best and most relevant web experience to Black people everywhere.”
Mr. Taylor will lead BWE. His executive management team includes:
Brad Gebert, Vice President, Technology – A proven technology expert, Mr. Gebert brings outstanding experience as a Technical Development Manager to BWE to lead application development and ensure that the business will run on the most advanced technological systems available. Brad also brings to BWE a keen understanding of IAC’s brands, having spent 7 years prior at IAC’s LendingTree and GetSmart.
Kevin McFall, Vice President, Products – An accomplished executive of the media and technology industries, with experience spanning a number of interactive media companies including Zap2it.com and BlackVoices.com (Tribune Company), Mr. McFall brings more than a decade of digital product development experience to guide strategic planning, as well as product management and execution for BWE.
Katrina Witherspoon, Vice President, Marketing & Business Development – With more than 12 years of product management and marketing experience with Reach Media Inc.’s BlackAmericaWeb.com and IAC’s Match.com, Ms. Witherspoon will lead BWE’s marketing, sales, and business development strategies.
Heather Keets Wright, Managing Editor – A seasoned journalist with 15 years experience in writing and editing for national magazines (Essence), newspapers, (The Washington Post) and websites (MarthaStewart.com), Ms. Keets Wright will oversee all editorial content related to BWE initiatives.
BWE will house a number of yet-to-be-announced online destinations catering to the distinct needs and interests of the estimated 50 million Black people living in the U.S., from African Americans to Blacks from Latin America and the Caribbean. The business is a part of IAC Programming, established in 2006 under the leadership of Michael Jackson to grow branded online content properties.
“Johnny and his colleagues have spent the greater part of a year engulfed in the task of building a site that understands and meets the needs of the Black community unlike any other that exists today,” said Mr. Jackson. “Beyond our enthusiasm for bringing this venture to the forefront of IAC Programming, we look forward to building upon the knowledge and success of this first launch for future endeavors tailored to very specific audiences.”
Today’s move comes after IAC’s November 2007 announcement of plans to separate IAC into five publicly traded companies, spinning off HSN, Ticketmaster, Interval International and LendingTree. Expected to be completed in the second or third quarter of 2008, the new IAC will include:
The businesses currently comprising its Media & Advertising sector: Ask.com, Bloglines, Citysearch, CursorMania, Evite, Excite, IAC Advertising Solutions, InsiderPages, iWon, My Fun Cards, My Way, Popular Screensavers, Smiley Central, Webfetti and Zwinky;
Match.com, ServiceMagic, Shoebuy.com, Entertainment Publications and ReserveAmerica;
Emerging Businesses including Pronto and Gifts.com, Green.com, Primal Ventures, and InstantAction;
IAC Programming businesses including Black Web Enterprises, BustedTees, CollegeHumor, GarageGames, Very Short List, Vimeo and 23/6;
IAC’s current investments in Active.com, Brightcove, FiLife, MerchantCircle, OpenTable, Points.com and SHOP Channel.
About IAC
IAC operates leading and diversified businesses in sectors being transformed by the internet, online and offline... our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. To view a full list of the companies of IAC please visit our website at http://iac.com
Contact Information:
IAC Communications Office
Stacy Simpson / Leslie Cafferty
(212) 314-7470 / 7326
IAC Investor Relations
Eoin Ryan
(212) 314-7400
IAC’s Online Destination for the Black Community Prepares to Introduce First Site in the Coming Weeks
NEW YORK – February 4, 2008 - IAC (NASDAQ: IACI) today announced the launch of Black Web Enterprises Inc. (BWE), the company’s online destination for the Black community, and its newly appointed executive management team. The announcement solidifies IAC’s previously publicized commitment to launch an interactive community platform for the U.S. Black population.
“With a phenomenal management team in place, we are on the cusp of unveiling the first initiative under the Black Web Enterprises umbrella… a site that will revolutionize the internet for the Black Community,” said Johnny C. Taylor, Jr., President & CEO of BWE. “Rather than compete with existing sites already geared toward the Black community, our goal with the initiative is to expand this market in order to bring the absolute best and most relevant web experience to Black people everywhere.”
Mr. Taylor will lead BWE. His executive management team includes:
Brad Gebert, Vice President, Technology – A proven technology expert, Mr. Gebert brings outstanding experience as a Technical Development Manager to BWE to lead application development and ensure that the business will run on the most advanced technological systems available. Brad also brings to BWE a keen understanding of IAC’s brands, having spent 7 years prior at IAC’s LendingTree and GetSmart.
Kevin McFall, Vice President, Products – An accomplished executive of the media and technology industries, with experience spanning a number of interactive media companies including Zap2it.com and BlackVoices.com (Tribune Company), Mr. McFall brings more than a decade of digital product development experience to guide strategic planning, as well as product management and execution for BWE.
Katrina Witherspoon, Vice President, Marketing & Business Development – With more than 12 years of product management and marketing experience with Reach Media Inc.’s BlackAmericaWeb.com and IAC’s Match.com, Ms. Witherspoon will lead BWE’s marketing, sales, and business development strategies.
Heather Keets Wright, Managing Editor – A seasoned journalist with 15 years experience in writing and editing for national magazines (Essence), newspapers, (The Washington Post) and websites (MarthaStewart.com), Ms. Keets Wright will oversee all editorial content related to BWE initiatives.
BWE will house a number of yet-to-be-announced online destinations catering to the distinct needs and interests of the estimated 50 million Black people living in the U.S., from African Americans to Blacks from Latin America and the Caribbean. The business is a part of IAC Programming, established in 2006 under the leadership of Michael Jackson to grow branded online content properties.
“Johnny and his colleagues have spent the greater part of a year engulfed in the task of building a site that understands and meets the needs of the Black community unlike any other that exists today,” said Mr. Jackson. “Beyond our enthusiasm for bringing this venture to the forefront of IAC Programming, we look forward to building upon the knowledge and success of this first launch for future endeavors tailored to very specific audiences.”
Today’s move comes after IAC’s November 2007 announcement of plans to separate IAC into five publicly traded companies, spinning off HSN, Ticketmaster, Interval International and LendingTree. Expected to be completed in the second or third quarter of 2008, the new IAC will include:
The businesses currently comprising its Media & Advertising sector: Ask.com, Bloglines, Citysearch, CursorMania, Evite, Excite, IAC Advertising Solutions, InsiderPages, iWon, My Fun Cards, My Way, Popular Screensavers, Smiley Central, Webfetti and Zwinky;
Match.com, ServiceMagic, Shoebuy.com, Entertainment Publications and ReserveAmerica;
Emerging Businesses including Pronto and Gifts.com, Green.com, Primal Ventures, and InstantAction;
IAC Programming businesses including Black Web Enterprises, BustedTees, CollegeHumor, GarageGames, Very Short List, Vimeo and 23/6;
IAC’s current investments in Active.com, Brightcove, FiLife, MerchantCircle, OpenTable, Points.com and SHOP Channel.
About IAC
IAC operates leading and diversified businesses in sectors being transformed by the internet, online and offline... our mission is to harness the power of interactivity to make daily life easier and more productive for people all over the world. To view a full list of the companies of IAC please visit our website at http://iac.com
Contact Information:
IAC Communications Office
Stacy Simpson / Leslie Cafferty
(212) 314-7470 / 7326
IAC Investor Relations
Eoin Ryan
(212) 314-7400
Wednesday, December 17, 2008
Gasta Vertical Ad Network
As advertisers look for more ways to yield greater efficiency, going narrower but still with some scale means looking seriously at vertical ad networks.
Vertical ad networks are all the rage. If they aren't the toast of the town these days, they certainly are the talk of it.
However, vertical ad networks are nothing new. They are online advertising networks that have a particular focus. They aggregate a collection of sites together that have an affinity with one another and bring those "passion places" together in a way that provides advertisers meaningful scale without the uncertainty of a vast collection of unknown and dissimilar sites.
The appeal of a vertical ad network is first and foremost its focus. Second is the modicum of control it offers. As advertisers look for more ways to yield greater efficiencies and better accountability, going narrower but still with some scale means looking more seriously at vertical ad networks.
Travel Advertising Network is one such vertical, and company representatives gave the folks at the iMedia Agency Summit in La Quinta, Calif., a good look at what they are doing and why vertical ad networks are so important.
Travel Ad Network actually has the largest travel information audience in the world, with 19 million users worldwide (14 million in the U.S.). Notice that I did not say "travel" audience. This is an audience looking for information about traveling, be it destinations or transportation or boarding. This is not where they transact, according to Cree Lawson, founder/CEO, and Brian Silver, president. Their users are "in the aisles."
Why a vertical ad network?
The reason Travel Ad Network went this route was for three reasons: They listened to their clients who were demanding some level of transparency; they could get a better quality of advertiser; and they offered exclusive representation.
The guys from Travel Ad Network proceeded to deliver some valuable information in the form of a kind of Trivial Pursuit game. These questions and their answers make a terrific primer on vertical ad networks (particularly of the travel variety).
1. Are consumers different at vertical ad networks than horizontal ad networks? No. The reason advertisers should use vertical ad networks is not necessarily because the audiences there are so different than horizontal ad networks, but because those audiences are more engaged. As Lawson and Silver pointed out during their Spotlight presentation, people found in either horizontal or vertical ad networks are equally diverse. But those found within the confines of a vertical network have a higher degree of engagement and specialization. They are in their passion places.
2. Which ad supported property is in comScore's Buying Power Index top 10 list? Yes, Yahoo is there. But at the very top is Travel Ad Network, with a BPI of 280. That means that the average person found within Travel Ad Network has 2.8 times more buying power than the average person online.
3. What percentage of brands that advertise in verticals are endemic versus non-endemic? It turns out a lot more non-endemic advertising is going on. Just to give you a sense of what is meant by this: Less than 25 percent of advertising in a travel magazine is from travel product advertisers.
4. How many visits to travel sites does the average consumer make before booking a trip? Twenty-two. Before you click that "buy" button to book your airfare or hotel, chances are you've been to sites 22 times. That doesn't mean you've been to 22 sites, but you have made 22 different trips online before making your decision. It turns out that 15 percent of people don't know where they are going when they start planning, and 39 percent don't know when they will be traveling. This provides ample opportunity to talk to people in the questing frame of mind, to inform their seeking.
5. How much has the share of total page views changed for travel agencies in the last two years? It's down 15 percent. With all the information out there, people are starting to go around booking engines to find out what they want to know, and then pop onto that booking engine at the last minute to get the transaction done. If you are looking for an audience that is a travel audience, or has affinity with it, there are many chances to message that audience before they get to buy.
6. How much of every dollar spent online is spent on travel/travel products? Forty-four percent. That's right, $.44 of every dollar is spent on travel. This does not mean that travel makes up the bulk of the transactions. As someone in the audience pointed out, the dollars per transaction for travel are much higher than they are for, say, books. But all that means is that the online travel buyer is someone comfortable with spending a good deal of money online. The point here is that verticals are good for those "spending" audiences.
Vertical ad networks, like any ad network, may consist of a lot of sites an advertiser has never heard of. But if the audience they are looking for has, and that audience is at those sites, it makes sense to be there when the audience is there. You may not recognize the cover of the book, but if the book is being read, isn't that all that matters?
Jim Meskauskas
Vertical ad networks are all the rage. If they aren't the toast of the town these days, they certainly are the talk of it.
However, vertical ad networks are nothing new. They are online advertising networks that have a particular focus. They aggregate a collection of sites together that have an affinity with one another and bring those "passion places" together in a way that provides advertisers meaningful scale without the uncertainty of a vast collection of unknown and dissimilar sites.
The appeal of a vertical ad network is first and foremost its focus. Second is the modicum of control it offers. As advertisers look for more ways to yield greater efficiencies and better accountability, going narrower but still with some scale means looking more seriously at vertical ad networks.
Travel Advertising Network is one such vertical, and company representatives gave the folks at the iMedia Agency Summit in La Quinta, Calif., a good look at what they are doing and why vertical ad networks are so important.
Travel Ad Network actually has the largest travel information audience in the world, with 19 million users worldwide (14 million in the U.S.). Notice that I did not say "travel" audience. This is an audience looking for information about traveling, be it destinations or transportation or boarding. This is not where they transact, according to Cree Lawson, founder/CEO, and Brian Silver, president. Their users are "in the aisles."
Why a vertical ad network?
The reason Travel Ad Network went this route was for three reasons: They listened to their clients who were demanding some level of transparency; they could get a better quality of advertiser; and they offered exclusive representation.
The guys from Travel Ad Network proceeded to deliver some valuable information in the form of a kind of Trivial Pursuit game. These questions and their answers make a terrific primer on vertical ad networks (particularly of the travel variety).
1. Are consumers different at vertical ad networks than horizontal ad networks? No. The reason advertisers should use vertical ad networks is not necessarily because the audiences there are so different than horizontal ad networks, but because those audiences are more engaged. As Lawson and Silver pointed out during their Spotlight presentation, people found in either horizontal or vertical ad networks are equally diverse. But those found within the confines of a vertical network have a higher degree of engagement and specialization. They are in their passion places.
2. Which ad supported property is in comScore's Buying Power Index top 10 list? Yes, Yahoo is there. But at the very top is Travel Ad Network, with a BPI of 280. That means that the average person found within Travel Ad Network has 2.8 times more buying power than the average person online.
3. What percentage of brands that advertise in verticals are endemic versus non-endemic? It turns out a lot more non-endemic advertising is going on. Just to give you a sense of what is meant by this: Less than 25 percent of advertising in a travel magazine is from travel product advertisers.
4. How many visits to travel sites does the average consumer make before booking a trip? Twenty-two. Before you click that "buy" button to book your airfare or hotel, chances are you've been to sites 22 times. That doesn't mean you've been to 22 sites, but you have made 22 different trips online before making your decision. It turns out that 15 percent of people don't know where they are going when they start planning, and 39 percent don't know when they will be traveling. This provides ample opportunity to talk to people in the questing frame of mind, to inform their seeking.
5. How much has the share of total page views changed for travel agencies in the last two years? It's down 15 percent. With all the information out there, people are starting to go around booking engines to find out what they want to know, and then pop onto that booking engine at the last minute to get the transaction done. If you are looking for an audience that is a travel audience, or has affinity with it, there are many chances to message that audience before they get to buy.
6. How much of every dollar spent online is spent on travel/travel products? Forty-four percent. That's right, $.44 of every dollar is spent on travel. This does not mean that travel makes up the bulk of the transactions. As someone in the audience pointed out, the dollars per transaction for travel are much higher than they are for, say, books. But all that means is that the online travel buyer is someone comfortable with spending a good deal of money online. The point here is that verticals are good for those "spending" audiences.
Vertical ad networks, like any ad network, may consist of a lot of sites an advertiser has never heard of. But if the audience they are looking for has, and that audience is at those sites, it makes sense to be there when the audience is there. You may not recognize the cover of the book, but if the book is being read, isn't that all that matters?
Jim Meskauskas
Wednesday, December 10, 2008
Gasta News: The Power of Search Networks
What the Search Engines Have Found Out About All of Us
Gasta.com European Search Network
Google has released its map of the national brain and appetites for 2008, and it turns out that many, many people across America have been asking the Internet “what is love?” and “how to kiss.”
And to tighten the focus, Google has also provided a list of search queries made by people sitting at computers in New York City.
It turns out that New Yorkers are looking for something a bit different. On a list of the 10 subjects that posted the greatest increases this year, the country as a whole was looking for Fox News and information about David Cook, the “American Idol” champion.
Neither made the New York list. Then again, the national list did not have 2 of the city’s top 10: Walter Gropius, the founder of the Bauhaus architecture school, and the Large Hadron Collider, a 17-mile circular underground tunnel in Switzerland that was built to smash protons into each other at the speed of light.
No doubt someone out in cyberspace can explain the surge of interest this year in Gropius, who has been dead since 1969 and has only one structure of any note in the city, the former Pan Am building.
The collider is easier to understand. There were worries that the crash of protons would instantly create a black hole, but in good news that was widely overlooked at the time, no hole appeared — or is it disappeared? — on Sept. 10, the day the machine was turned on. Search-engine interest in the collider promptly dropped off, as people pointed their anxieties and inquiries toward “Wall Street.” (The collider is currently on the fritz, as is Wall Street.)
On the surface, these kinds of lists are supposed to reveal what Google calls the zeitgeist of 2008, though it’s not much of a surprise that people were interested in Sarah Palin and Barack Obama. But they also provide hints of the level of personal details that people are now turning over to search engines and related businesses without much awareness.
The lists, said Lt. Col. Greg Conti, a professor of computer science at West Point, “are just major tsunami-type activities, big waves in the online searches.”
Professor Conti, the author of “Googling Security: How Much Does Google Know About You?” (Addison-Wesley, 2008), contends that Google’s internal tools make it possible to develop detailed pictures of individual interests, not just of masses of teenagers looking for the very latest about Miley Cyrus.
“A complete picture of us as individuals and as companies emerges — political leanings, medical conditions, business acquisitions signaled by job searches,” he said. “It would be very scary if we could play back every search we made. Those can be tied back very precisely to an individual. You can go all the way from individual molecules of water up to the tsunami.”
INFORMATION on the Web looks free, but it is actually swapped for little bits of data that are useful to businesses. Google records Internet protocol addresses that are generated by each computer, cookies permitted by the users, the kind of browser being used, and the operating system of the computer, said Heather Spain, a spokeswoman for Google.
After nine months, Ms. Spain said, Google “anonymises” the data it has collected.
“At that point we permanently delete the last two digits from both the I.P. address and parts of the cookie numbers,” she said. “This breaks the link between the search query and the computer it was entered from. It’s similar to the way in which credit card companies replace digits with hash marks on receipts to improve their customers’ security.”
Professor Conti said that few people have the slightest idea how much of a trail they leave across the Internet. “People tend to think they’re only leaving footprints on sites that they trust,” he said, but many Web sites contain invisible code, like Google Analytics, that can track users over swaths of the Web.
The lists of popular searches, Ms. Spain said, are the products of inquiries by millions of people and do not threaten anyone’s privacy. The tools Google provides to the public for analyzing searches generally make it possible to look at the inquiries made in a particular state, not by individual cities.
For now, surrendering personal information is the cost for asking questions and getting answers quickly. All of the privacy measures are cumbersome.
“I speak about this at hacker conferences,” Professor Conti said, “and if they say something’s hard to use, believe me, it’s hard. There’s really no solution now — except abstinence. And if you choose not to use online tools, you’re not a member of the 21st century.”
By JIM DWYER
Gasta.com European Search Network
Google has released its map of the national brain and appetites for 2008, and it turns out that many, many people across America have been asking the Internet “what is love?” and “how to kiss.”
And to tighten the focus, Google has also provided a list of search queries made by people sitting at computers in New York City.
It turns out that New Yorkers are looking for something a bit different. On a list of the 10 subjects that posted the greatest increases this year, the country as a whole was looking for Fox News and information about David Cook, the “American Idol” champion.
Neither made the New York list. Then again, the national list did not have 2 of the city’s top 10: Walter Gropius, the founder of the Bauhaus architecture school, and the Large Hadron Collider, a 17-mile circular underground tunnel in Switzerland that was built to smash protons into each other at the speed of light.
No doubt someone out in cyberspace can explain the surge of interest this year in Gropius, who has been dead since 1969 and has only one structure of any note in the city, the former Pan Am building.
The collider is easier to understand. There were worries that the crash of protons would instantly create a black hole, but in good news that was widely overlooked at the time, no hole appeared — or is it disappeared? — on Sept. 10, the day the machine was turned on. Search-engine interest in the collider promptly dropped off, as people pointed their anxieties and inquiries toward “Wall Street.” (The collider is currently on the fritz, as is Wall Street.)
On the surface, these kinds of lists are supposed to reveal what Google calls the zeitgeist of 2008, though it’s not much of a surprise that people were interested in Sarah Palin and Barack Obama. But they also provide hints of the level of personal details that people are now turning over to search engines and related businesses without much awareness.
The lists, said Lt. Col. Greg Conti, a professor of computer science at West Point, “are just major tsunami-type activities, big waves in the online searches.”
Professor Conti, the author of “Googling Security: How Much Does Google Know About You?” (Addison-Wesley, 2008), contends that Google’s internal tools make it possible to develop detailed pictures of individual interests, not just of masses of teenagers looking for the very latest about Miley Cyrus.
“A complete picture of us as individuals and as companies emerges — political leanings, medical conditions, business acquisitions signaled by job searches,” he said. “It would be very scary if we could play back every search we made. Those can be tied back very precisely to an individual. You can go all the way from individual molecules of water up to the tsunami.”
INFORMATION on the Web looks free, but it is actually swapped for little bits of data that are useful to businesses. Google records Internet protocol addresses that are generated by each computer, cookies permitted by the users, the kind of browser being used, and the operating system of the computer, said Heather Spain, a spokeswoman for Google.
After nine months, Ms. Spain said, Google “anonymises” the data it has collected.
“At that point we permanently delete the last two digits from both the I.P. address and parts of the cookie numbers,” she said. “This breaks the link between the search query and the computer it was entered from. It’s similar to the way in which credit card companies replace digits with hash marks on receipts to improve their customers’ security.”
Professor Conti said that few people have the slightest idea how much of a trail they leave across the Internet. “People tend to think they’re only leaving footprints on sites that they trust,” he said, but many Web sites contain invisible code, like Google Analytics, that can track users over swaths of the Web.
The lists of popular searches, Ms. Spain said, are the products of inquiries by millions of people and do not threaten anyone’s privacy. The tools Google provides to the public for analyzing searches generally make it possible to look at the inquiries made in a particular state, not by individual cities.
For now, surrendering personal information is the cost for asking questions and getting answers quickly. All of the privacy measures are cumbersome.
“I speak about this at hacker conferences,” Professor Conti said, “and if they say something’s hard to use, believe me, it’s hard. There’s really no solution now — except abstinence. And if you choose not to use online tools, you’re not a member of the 21st century.”
By JIM DWYER
Gasta News: Microsoft still soft on Yahoo Deal
Key issues to watch in Microsoft's next bid for Yahoo's search business
Posted:
It's starting to seem inevitable: Microsoft appears poised to make another run at Yahoo's search business. The point was driven home by the selection of Qi Lu as Microsoft's new online chief last week, giving the company a former Yahoo insider to oversee the integration, if it comes to that.
Discussing Lu's hiring during an interview with the Wall Street Journal last week, Microsoft CEO Steve Ballmer all but scheduled the Yahoo negotiations.
"I think a search deal makes great sense for Microsoft, and Yahoo, and I think I've been very open about that," Ballmer told the paper. "That's as true with Qi joining us as it was before Qi joined us. Obviously the logistics of any such integration … can only be simpler by having somebody who will know both sides."
There have been so many twists and turns since Microsoft's original Yahoo acquisition bid that it's impossible to know what will come next. But assuming Microsoft gives a search deal another try, these will be some of the key issues to watch:
PARTNERSHIP OR SEARCH ACQUISITION? Microsoft hasn't been clear on this point. At the company's shareholders meeting last month, Ballmer used the phrase "search collaboration." Some media reports focus on Microsoft acquiring Yahoo's search assets.
Matt Rosoff, an analyst at Kirkland-based Directions on Microsoft, said this morning that the most logical scenario would be a partnership letting Yahoo keep its portal while redirecting search queries to Microsoft's engine and advertising system.
TIMING: The biggest complication here may be Yahoo's ongoing CEO search. Will the Sunnyvale, Calif., company engage in serious talks with Microsoft without a new chief on board? And once the new CEO is in place, how will he or she approach the possibility of a Microsoft deal? In any event, Ballmer made it clear during the WSJ interview that he wants to do something soon.
SEARCH BRAND: On the surface, at least, this seems the easiest issue to resolve. Microsoft is looking for a better search brand, and it appears ready to go off in a new direction with Kumo.com or some other new name. But were the companies to combine search operations, wouldn't the Yahoo search brand be the one to lead the way, based on market position?
PEOPLE AND LOCATIONS: Much of this will depend on the outcome of the "partnership or acquisition" question above. But depending on the agreement the companies reach, it seems reasonable to expect more of Microsoft's search operations to be based in Silicon Valley, building on the existing presence of both companies there.
ANTITRUST: With a combined total of roughly 30 percent of the U.S. search market, a Yahoo-Microsoft search deal wouldn't face nearly the regulatory hurdles that the Google-Yahoo deal did.
But things could get more complicated if the companies bring their Web portals, Web mail or instant-messaging systems into the mix, even tangentially. Particularly on an international level, the market strength of those properties could attract the attention of regulators.
The additional complication is the transition of power in the United States. Depending on how it's structured, a Microsoft-Yahoo search deal could be the first big test of U.S. antitrust policies under Obama and Eric Holder, his nominee for attorney general.
P.S.: Microsoft is holding an internal employee meeting with Lu and Ballmer this afternoon in Redmond. My request to cover it was turned down, but hopefully some details will emerge. Contact me at toddbishop@bizjournals.com.
Posted:
It's starting to seem inevitable: Microsoft appears poised to make another run at Yahoo's search business. The point was driven home by the selection of Qi Lu as Microsoft's new online chief last week, giving the company a former Yahoo insider to oversee the integration, if it comes to that.
Discussing Lu's hiring during an interview with the Wall Street Journal last week, Microsoft CEO Steve Ballmer all but scheduled the Yahoo negotiations.
"I think a search deal makes great sense for Microsoft, and Yahoo, and I think I've been very open about that," Ballmer told the paper. "That's as true with Qi joining us as it was before Qi joined us. Obviously the logistics of any such integration … can only be simpler by having somebody who will know both sides."
There have been so many twists and turns since Microsoft's original Yahoo acquisition bid that it's impossible to know what will come next. But assuming Microsoft gives a search deal another try, these will be some of the key issues to watch:
PARTNERSHIP OR SEARCH ACQUISITION? Microsoft hasn't been clear on this point. At the company's shareholders meeting last month, Ballmer used the phrase "search collaboration." Some media reports focus on Microsoft acquiring Yahoo's search assets.
Matt Rosoff, an analyst at Kirkland-based Directions on Microsoft, said this morning that the most logical scenario would be a partnership letting Yahoo keep its portal while redirecting search queries to Microsoft's engine and advertising system.
TIMING: The biggest complication here may be Yahoo's ongoing CEO search. Will the Sunnyvale, Calif., company engage in serious talks with Microsoft without a new chief on board? And once the new CEO is in place, how will he or she approach the possibility of a Microsoft deal? In any event, Ballmer made it clear during the WSJ interview that he wants to do something soon.
SEARCH BRAND: On the surface, at least, this seems the easiest issue to resolve. Microsoft is looking for a better search brand, and it appears ready to go off in a new direction with Kumo.com or some other new name. But were the companies to combine search operations, wouldn't the Yahoo search brand be the one to lead the way, based on market position?
PEOPLE AND LOCATIONS: Much of this will depend on the outcome of the "partnership or acquisition" question above. But depending on the agreement the companies reach, it seems reasonable to expect more of Microsoft's search operations to be based in Silicon Valley, building on the existing presence of both companies there.
ANTITRUST: With a combined total of roughly 30 percent of the U.S. search market, a Yahoo-Microsoft search deal wouldn't face nearly the regulatory hurdles that the Google-Yahoo deal did.
But things could get more complicated if the companies bring their Web portals, Web mail or instant-messaging systems into the mix, even tangentially. Particularly on an international level, the market strength of those properties could attract the attention of regulators.
The additional complication is the transition of power in the United States. Depending on how it's structured, a Microsoft-Yahoo search deal could be the first big test of U.S. antitrust policies under Obama and Eric Holder, his nominee for attorney general.
P.S.: Microsoft is holding an internal employee meeting with Lu and Ballmer this afternoon in Redmond. My request to cover it was turned down, but hopefully some details will emerge. Contact me at toddbishop@bizjournals.com.
Tuesday, December 09, 2008
Gasta Marketing: Use localised content to build a global audience
Consumers will seek out brand content, but only if it appeals to them on a local and personal level. That's why your content strategy needs to factor in context as well.
Despite the challenging economic times, organizations everywhere are still taking their business global. While there's no question that going global opens doors for many companies, who ever heard of a global consumer? Today's interactive marketing efforts need to be local, personal and focus on everything from consumption patterns to the weather.
Meaningful starts with "me"
Maybe it's because digital content is delivered to me on devices that I consider to be extremely personal: my iPod, my laptop, my smart phone. Unless I think that a marketer is truly speaking to me, the content they offer will not gain access to my wired world.
Montrealers and Parisians both speak French, n'est-ce pas? But as I have witnessed firsthand, while Quebecers "understand" brand communications aimed at their overseas brethren, they don't necessarily respond to them on an emotional level. In digital media, where the goal is to interact with your audience, a marketer needs to speak like a local.
Digital media is local -- and personal
Local terms and language are also key to a successful search strategy. Think about it: The keywords and expressions people type into search engines reflect the natural language of their region or community, not what a bilingual dictionary (or heaven forbid, Babel Fish) suggests. The takeaway? It's probably not a good idea to tap an American writer to adapt content meant for a U.K. audience.
Consider this example: A tourist board that communicates worldwide wanted to create a Spanish-language emarketing campaign. The writers in Madrid came up with teaser copy in letter-perfect Castilian. But during tests, the target consumers -- Mexicans -- said the words for "nightclubber" and "shopping" didn't correspond to local usage. The vocabulary was adjusted so it would resonate with the target audience.
You may have heard that Italians equate translation with treason in a pithy aphorism ("Traduttore, traditore"). When rolling out online marketing campaigns in multiple markets, global brands need to pay attention to the content adaptation -- or else their audiences won't pay attention at all. It's not just the words that require translation; nuances and "flavor" require adjustment as well.
Paco Rabanne just launched 1Million, a new fragrance for men, with a slick online buzz campaign in three countries: France, the U.K. and Spain. The campaign content included scores of tongue-in-cheek buzzwords and allusions to celebrity lifestyles, which demanded painstaking transposition for each local market. A straight translation simply won't do justice for a word-of-mouth campaign.
Content strategy is context strategy
Brand content that speaks to your target like a local is just the first step toward relevance. Working in markets all over the world, we've learned that an effective digital content strategy is a context strategy that factors in not only language and cultural references, but also bandwidth, technology, media consumption patterns and even climate.
Case in point: Recently, tire manufacturer BFGoodrich sought a way to connect its brand with young-adult Canadian males. How does this segment spend time online? Gaming and socializing. Given the audience and the context, it made sense to create an interactive racing game and place the application on Facebook, where players could invite their friends to compete. To make the game feel even more authentic, it was designed to reflect the harsh winter driving conditions that Canadians know so well. Successful content marketing entails approaching consumers in their contexts with content that both satisfies them and engages them with the brand.
Marketers need to meet the challenge of developing digital content for a broadening range of contexts because connected consumers now expect to interact with brands on demand: "on my terms," "in my timeframe," "on my preferred device." Ever-smarter devices and clever, specialized apps further stimulate those rising expectations.
Technology, tastes and regional behaviors also determine a user's context. If you were to map out a mobile content strategy, for example, you wouldn't take the same approach in Tokyo, where it's not uncommon for people to watch sitcoms on their phones; Paris, where passengers in the Métro can talk on their cell phones; or New York City, where people can do neither, but instead download podcasts to while away their commutes.
Once you have a handle on how, when and where your audience chooses to experience digital media, you can start creating content that your customers desire and is in line with what your brand can credibly provide. (Honestly: Do I need Lexus to teach me how to pack a picnic?)
Why serve ads? Serve content
We know from experience that consumers all over the world will welcome -- and seek out -- brand content that is valuable, targeted and offered at the point of need.
In Beijing during the Summer Olympics, wine and style enthusiasts consulted dining and nightlife recommendations offered by Australian winemaker Jacob's Creek. Celebrity bloggers recruited for the occasion wrote reviews of Jacob's Creek partner restaurants, and users were invited to post comments as well. Thousands of visitors took advantage of this useful, entertaining service provided on both web and mobile platforms.
In France, to coincide with the release of the iPhone late last year, L'Oréal Paris debuted a custom iPhone site that makes the brand's expert beauty content -- from skin analysis to product recommendations, from customer support to how-to videos -- available to consumers at their point of need, whether in the store, in a car or in front of their mirror. This is the way forward for brand communications: providing desirable digital content in a personal context, on demand.
In North America, interactive content can be a key differentiator for ecommerce sites. In a move away from a strictly utilitarian approach, successful online merchants are building relationships with online shoppers before, during and after purchase with user-generated online reviews, interactive buyers' guides, auctions, clubs, video demos and project how-to demos. Initially developed to boost SEO rankings, branded content -- particularly the bloggable, shareable kind -- is proving to be a traffic driver as well.
Get creative with content services
Think about it: Doesn't it make sense for marketers to offer consumers content rather than ads? It's a win-win situation. Consumers benefit -- for free -- from the expertise and brand-relevant services that companies can provide around their products. On their side, brands can free up the advertising dollars devoted to hiring models or filming TV spots and devote those funds instead to creating digital content services that consumers actually want and willingly connect with.
The next time you sit down to brainstorm with your interactive agency, focus on coming up with fresh ideas for content services aligned with your brand. The process is just as "creative" as coming up with a catchy tagline, but the result is far more satisfying to your audience.
Sheila Mooney is director of content development at Nurun.
Despite the challenging economic times, organizations everywhere are still taking their business global. While there's no question that going global opens doors for many companies, who ever heard of a global consumer? Today's interactive marketing efforts need to be local, personal and focus on everything from consumption patterns to the weather.
Meaningful starts with "me"
Maybe it's because digital content is delivered to me on devices that I consider to be extremely personal: my iPod, my laptop, my smart phone. Unless I think that a marketer is truly speaking to me, the content they offer will not gain access to my wired world.
Montrealers and Parisians both speak French, n'est-ce pas? But as I have witnessed firsthand, while Quebecers "understand" brand communications aimed at their overseas brethren, they don't necessarily respond to them on an emotional level. In digital media, where the goal is to interact with your audience, a marketer needs to speak like a local.
Digital media is local -- and personal
Local terms and language are also key to a successful search strategy. Think about it: The keywords and expressions people type into search engines reflect the natural language of their region or community, not what a bilingual dictionary (or heaven forbid, Babel Fish) suggests. The takeaway? It's probably not a good idea to tap an American writer to adapt content meant for a U.K. audience.
Consider this example: A tourist board that communicates worldwide wanted to create a Spanish-language emarketing campaign. The writers in Madrid came up with teaser copy in letter-perfect Castilian. But during tests, the target consumers -- Mexicans -- said the words for "nightclubber" and "shopping" didn't correspond to local usage. The vocabulary was adjusted so it would resonate with the target audience.
You may have heard that Italians equate translation with treason in a pithy aphorism ("Traduttore, traditore"). When rolling out online marketing campaigns in multiple markets, global brands need to pay attention to the content adaptation -- or else their audiences won't pay attention at all. It's not just the words that require translation; nuances and "flavor" require adjustment as well.
Paco Rabanne just launched 1Million, a new fragrance for men, with a slick online buzz campaign in three countries: France, the U.K. and Spain. The campaign content included scores of tongue-in-cheek buzzwords and allusions to celebrity lifestyles, which demanded painstaking transposition for each local market. A straight translation simply won't do justice for a word-of-mouth campaign.
Content strategy is context strategy
Brand content that speaks to your target like a local is just the first step toward relevance. Working in markets all over the world, we've learned that an effective digital content strategy is a context strategy that factors in not only language and cultural references, but also bandwidth, technology, media consumption patterns and even climate.
Case in point: Recently, tire manufacturer BFGoodrich sought a way to connect its brand with young-adult Canadian males. How does this segment spend time online? Gaming and socializing. Given the audience and the context, it made sense to create an interactive racing game and place the application on Facebook, where players could invite their friends to compete. To make the game feel even more authentic, it was designed to reflect the harsh winter driving conditions that Canadians know so well. Successful content marketing entails approaching consumers in their contexts with content that both satisfies them and engages them with the brand.
Marketers need to meet the challenge of developing digital content for a broadening range of contexts because connected consumers now expect to interact with brands on demand: "on my terms," "in my timeframe," "on my preferred device." Ever-smarter devices and clever, specialized apps further stimulate those rising expectations.
Technology, tastes and regional behaviors also determine a user's context. If you were to map out a mobile content strategy, for example, you wouldn't take the same approach in Tokyo, where it's not uncommon for people to watch sitcoms on their phones; Paris, where passengers in the Métro can talk on their cell phones; or New York City, where people can do neither, but instead download podcasts to while away their commutes.
Once you have a handle on how, when and where your audience chooses to experience digital media, you can start creating content that your customers desire and is in line with what your brand can credibly provide. (Honestly: Do I need Lexus to teach me how to pack a picnic?)
Why serve ads? Serve content
We know from experience that consumers all over the world will welcome -- and seek out -- brand content that is valuable, targeted and offered at the point of need.
In Beijing during the Summer Olympics, wine and style enthusiasts consulted dining and nightlife recommendations offered by Australian winemaker Jacob's Creek. Celebrity bloggers recruited for the occasion wrote reviews of Jacob's Creek partner restaurants, and users were invited to post comments as well. Thousands of visitors took advantage of this useful, entertaining service provided on both web and mobile platforms.
In France, to coincide with the release of the iPhone late last year, L'Oréal Paris debuted a custom iPhone site that makes the brand's expert beauty content -- from skin analysis to product recommendations, from customer support to how-to videos -- available to consumers at their point of need, whether in the store, in a car or in front of their mirror. This is the way forward for brand communications: providing desirable digital content in a personal context, on demand.
In North America, interactive content can be a key differentiator for ecommerce sites. In a move away from a strictly utilitarian approach, successful online merchants are building relationships with online shoppers before, during and after purchase with user-generated online reviews, interactive buyers' guides, auctions, clubs, video demos and project how-to demos. Initially developed to boost SEO rankings, branded content -- particularly the bloggable, shareable kind -- is proving to be a traffic driver as well.
Get creative with content services
Think about it: Doesn't it make sense for marketers to offer consumers content rather than ads? It's a win-win situation. Consumers benefit -- for free -- from the expertise and brand-relevant services that companies can provide around their products. On their side, brands can free up the advertising dollars devoted to hiring models or filming TV spots and devote those funds instead to creating digital content services that consumers actually want and willingly connect with.
The next time you sit down to brainstorm with your interactive agency, focus on coming up with fresh ideas for content services aligned with your brand. The process is just as "creative" as coming up with a catchy tagline, but the result is far more satisfying to your audience.
Sheila Mooney is director of content development at Nurun.
Wednesday, December 03, 2008
Gasta News:New domain to be web's phone book
source: BBC
The .tel addresses will be reachable via mobiles too
From 3 December companies will be able to buy addresses associated with a new web domain.
Called .tel, the domain is intended to act as a universal contact point rather than as a hook on which to hang websites.
Owners of .tel domains will be encouraged to populate it with details about how they can be contacted.
The domain is designed to work on the web and with mobile phones such as the Apple iPhone and Blackberry.
"All other top level domains like .com use the net's domain name system in the same way," said Kash Mahdavi, head of Telnic which runs the .tel registry. "They all store IP address and they are all about websites."
By contrast, he said, .tel had been designed to act as a repository for all a company's or individual's contact details. A .tel domain, said Mr Mahdavi, could feature phone numbers, e-mail addresses, GPS data or buttons that kick off a Skype call.
Mr Mahdavi said it had some similarities to the Enum projects that aim to bind phone numbers and e-mail addresses into a unified contact system.
The flaw, he said, with Enum was that it demanded people be on the web. By contrast, .tel will work with many different devices such as smart phones.
Phase one
Owners of .tel domains will be able to manage their contact details via a simple dashboard and surrender as much or as little information as they desire, said Mr Mahdavi.
He added that .tel domains have a "friending mechanism" that will grant close friends access to private areas that give more ways for a person to be contacted.
"It will become their place on the cloud," said Mr Mahdavi.
Access to the domain is being granted in three phases. The first begins on 3 December and is the "sunrise" phase for trademark owners to get domains related to their brands.
The second phase begins on 3 February 2009 and is a "landrush" phase open to anyone though domains will be on sale at a premium.
The final general availability phase starts on 24 March 2009 when the domain will be open to all comers.
Phil Kingsland, director of communications for Nominet, the firm that manages the .uk domain, notes that a number of new domains will go online when a new process for allocating them rolls out next year.
"Businesses will need to be aware of the potential uses of .tel and how it can work for them," said Mr Kingsland.
"They should have a clear and robust domain name strategy in place, so that when new top-level domains such as these come onto the market, they are ready for them."
Mr Mahdavi would not be drawn on the final price for a .tel domain but said it would be in line with that charged for other domains.
The .tel addresses will be reachable via mobiles too
From 3 December companies will be able to buy addresses associated with a new web domain.
Called .tel, the domain is intended to act as a universal contact point rather than as a hook on which to hang websites.
Owners of .tel domains will be encouraged to populate it with details about how they can be contacted.
The domain is designed to work on the web and with mobile phones such as the Apple iPhone and Blackberry.
"All other top level domains like .com use the net's domain name system in the same way," said Kash Mahdavi, head of Telnic which runs the .tel registry. "They all store IP address and they are all about websites."
By contrast, he said, .tel had been designed to act as a repository for all a company's or individual's contact details. A .tel domain, said Mr Mahdavi, could feature phone numbers, e-mail addresses, GPS data or buttons that kick off a Skype call.
Mr Mahdavi said it had some similarities to the Enum projects that aim to bind phone numbers and e-mail addresses into a unified contact system.
The flaw, he said, with Enum was that it demanded people be on the web. By contrast, .tel will work with many different devices such as smart phones.
Phase one
Owners of .tel domains will be able to manage their contact details via a simple dashboard and surrender as much or as little information as they desire, said Mr Mahdavi.
He added that .tel domains have a "friending mechanism" that will grant close friends access to private areas that give more ways for a person to be contacted.
"It will become their place on the cloud," said Mr Mahdavi.
Access to the domain is being granted in three phases. The first begins on 3 December and is the "sunrise" phase for trademark owners to get domains related to their brands.
The second phase begins on 3 February 2009 and is a "landrush" phase open to anyone though domains will be on sale at a premium.
The final general availability phase starts on 24 March 2009 when the domain will be open to all comers.
Phil Kingsland, director of communications for Nominet, the firm that manages the .uk domain, notes that a number of new domains will go online when a new process for allocating them rolls out next year.
"Businesses will need to be aware of the potential uses of .tel and how it can work for them," said Mr Kingsland.
"They should have a clear and robust domain name strategy in place, so that when new top-level domains such as these come onto the market, they are ready for them."
Mr Mahdavi would not be drawn on the final price for a .tel domain but said it would be in line with that charged for other domains.
Tuesday, December 02, 2008
Gasta News: Report from NMA Editor Justin Pearse
The Phorm saga rolled on this week, with the announcement of the departure of four members of the behavioural targeting company's board. It could be argued that the appointment of ex-Ofcom executive board member Kip Meek as one of the replacements was more significant than the departures for a company fighting regulatory and PR battles on all fronts, Meek's experience in the regulatory arena at Ofcom, on a European as much as domestic level, will be invaluable. Behavioural targeting itself got a welcome boost in support with BBC Worldwide's plan to launch it across its international website BBC.com. As large publishers board the behavioural targeting bandwagon, it should help to build a level of confidence to help address the reactionary hysteria it so often generates.
Targeted advertising has always been one of the promises of mobile, of course, although the operators' reluctance to release deep customer data has stymied this somewhat. Content providers, although happy with the traffic operator portals generate, are desperate for more control. So it was a heartening sign to see Sky start selling advertising around its content on the T-Mobile and Vodafone portals
Bauer is the only other content owner to do this. The resulting control should help encourage publishers to commit further to mobile advertising but few will have the market muscle to force such deals through to operators. Especially as mobile advertising is failing to meet the lofty heights its hype promised. One of the reasons behind O2 launching global media sales division O2 Media Group. The move is designed to let O2 sell integrated ad opportunities across its entire real estate, from mobile and online to in-store and DM. Rival Vodafone is also planning a similar offering. As all operators look to bolster their online operations, such holistic views of themselves could be powerful in convincing media agencies and advertisers to view them as media companies rather than telecoms suppliers.
Towards the end of the month came news of the government's tacit admission of its lack of understand of the new media industry. The IAB began a programme to educate civil servants in government departments from the DCMS to Berr. The move generated mixed emotions. On the one hand, anything to increase government understanding of the fast moving digital industry is to be applauded. On the other, it could be seen as worrying this education was needed following a year of increased regulatory attention to the internet by government, from Andy Burnham’s speech on the readiness of the internet for governance, to the Byron Report and the Council for Child Safety.
The evolution of online video and internet TV is clearly one area where regulatory confusion will see increasing government attention over the coming year. The sector is moving so fast that multi-platform commissions are becoming commonplace. However, the complexity of getting such projects to market was highlighted this month with Virgin Media's delay of launching Prom Queen due to the lack of a sponsor. Sony Pictures Television is the latest to be searching for distribution partners for its multi-platform series Gemini. The three minutes series was broadcast in the US by Amazon Unbox, NBC Online, NBC Mobile, Xbox Live and Zune. Just the type of fascinating broadcast model we'll be seeing more of in the UK in the coming year.
Targeted advertising has always been one of the promises of mobile, of course, although the operators' reluctance to release deep customer data has stymied this somewhat. Content providers, although happy with the traffic operator portals generate, are desperate for more control. So it was a heartening sign to see Sky start selling advertising around its content on the T-Mobile and Vodafone portals
Bauer is the only other content owner to do this. The resulting control should help encourage publishers to commit further to mobile advertising but few will have the market muscle to force such deals through to operators. Especially as mobile advertising is failing to meet the lofty heights its hype promised. One of the reasons behind O2 launching global media sales division O2 Media Group. The move is designed to let O2 sell integrated ad opportunities across its entire real estate, from mobile and online to in-store and DM. Rival Vodafone is also planning a similar offering. As all operators look to bolster their online operations, such holistic views of themselves could be powerful in convincing media agencies and advertisers to view them as media companies rather than telecoms suppliers.
Towards the end of the month came news of the government's tacit admission of its lack of understand of the new media industry. The IAB began a programme to educate civil servants in government departments from the DCMS to Berr. The move generated mixed emotions. On the one hand, anything to increase government understanding of the fast moving digital industry is to be applauded. On the other, it could be seen as worrying this education was needed following a year of increased regulatory attention to the internet by government, from Andy Burnham’s speech on the readiness of the internet for governance, to the Byron Report and the Council for Child Safety.
The evolution of online video and internet TV is clearly one area where regulatory confusion will see increasing government attention over the coming year. The sector is moving so fast that multi-platform commissions are becoming commonplace. However, the complexity of getting such projects to market was highlighted this month with Virgin Media's delay of launching Prom Queen due to the lack of a sponsor. Sony Pictures Television is the latest to be searching for distribution partners for its multi-platform series Gemini. The three minutes series was broadcast in the US by Amazon Unbox, NBC Online, NBC Mobile, Xbox Live and Zune. Just the type of fascinating broadcast model we'll be seeing more of in the UK in the coming year.
Friday, November 28, 2008
Content Sites Win With Gasta.com
Gasta.com search network of over 250+ search engines and the content relevancy tools InstantAds and SearchMatch our winners on the content site platform.
Gasta.com offers Increased site engagement:
Gasta Search is the primary mode of navigation on the web, and a better search experience will keep users on your site longer.
Gasta.com Increased content consumption:
Industry research projects that within three years nearly 87 percent of all internet users in the U.S. will be regularly viewing online video – an audience of well over 150 million people. Surfacing your audio and video content as part of a user’s overall search experience is the key to driving increased multimedia consumption and the associated advertising opportunities.
Increased advertising opportunities:
Exposing a previously buried treasure trove of multimedia content opens a new stream of advertising revenue. In addition, Gasta SearchMatch provides enhanced targeting opportunities from the rich metadata that wraps your audio and video content. With video advertising commanding premium pricing, enhancing multimedia consumption and targeting is the key to unlocking this $4 billion advertising opportunity.
Gasta.com offers Increased site engagement:
Gasta Search is the primary mode of navigation on the web, and a better search experience will keep users on your site longer.
Gasta.com Increased content consumption:
Industry research projects that within three years nearly 87 percent of all internet users in the U.S. will be regularly viewing online video – an audience of well over 150 million people. Surfacing your audio and video content as part of a user’s overall search experience is the key to driving increased multimedia consumption and the associated advertising opportunities.
Increased advertising opportunities:
Exposing a previously buried treasure trove of multimedia content opens a new stream of advertising revenue. In addition, Gasta SearchMatch provides enhanced targeting opportunities from the rich metadata that wraps your audio and video content. With video advertising commanding premium pricing, enhancing multimedia consumption and targeting is the key to unlocking this $4 billion advertising opportunity.
Wednesday, November 26, 2008
Gasta Marketing News: Mobile advertsing
Some 98% of marketers say online marketing is crucial to business success through the economic downturn, according to research by Efficient Frontier.
The survey of over 300 UK, French and German marketers found 73% expect to see the headcount of digital marketing teams increase through 2009, and 87% of those surveyed predict digital marketing will grow at the same rate in 2009 as it did in 2008.
UK marketers ranked SEM higher than both its French and German counterparts, some 78.5% of UK respondents rated SEM as a 'top three' priority in marketing campaigns.
David White, general manager of Efficient Frontier Europe, said, "We're continuing to see enormous growth from our UK, French and German offices. It's pleasing to see these survey results reflecting a positive story during this current economic environment."
Mobile Ads
Coca-Cola and Xbox are among brands set to increase their mobile ad investment, as new research shows mobile marketing budgets will grow by 150% over the next five years despite the economic downturn. An O2 survey by Vanson Bourne of 100 marketing and IT directors from the financial services, manufacturing and retail sectors found that 60% favoured mobile marketing due to its targeted nature. Some 85% said mobile marketing campaigns generate a higher response than traditional methods....
The survey of over 300 UK, French and German marketers found 73% expect to see the headcount of digital marketing teams increase through 2009, and 87% of those surveyed predict digital marketing will grow at the same rate in 2009 as it did in 2008.
UK marketers ranked SEM higher than both its French and German counterparts, some 78.5% of UK respondents rated SEM as a 'top three' priority in marketing campaigns.
David White, general manager of Efficient Frontier Europe, said, "We're continuing to see enormous growth from our UK, French and German offices. It's pleasing to see these survey results reflecting a positive story during this current economic environment."
Mobile Ads
Coca-Cola and Xbox are among brands set to increase their mobile ad investment, as new research shows mobile marketing budgets will grow by 150% over the next five years despite the economic downturn. An O2 survey by Vanson Bourne of 100 marketing and IT directors from the financial services, manufacturing and retail sectors found that 60% favoured mobile marketing due to its targeted nature. Some 85% said mobile marketing campaigns generate a higher response than traditional methods....
Tuesday, November 25, 2008
Gasta Mobile News:Buongiorno
Buongiorno uses viral to push mobile social network
A viral ad campaign supporting digital entertainment company Buongiorno's mobile social network has been viewed over 400,000 times.
The 411,101 views in the first three weeks of the campaign resulted in 3,135 visits to the Real Time Real People website, which contains more information about the mobile-specific social network.
According to the company, around 12% of unique viewers requested an invitation code to Blinko with over 27% subscribing.
Blinko is a pan-European attempt from Buongiorno to enter mobile social networking following success from established online players including Bebo, Facebook and MySpace.
The viral campaign was designed and created by DLV Proximity to generate interest in the new product. Buongiorno has allocated a total marketing budget of €500,000 (£426,000) to promote Blinko.
A viral ad campaign supporting digital entertainment company Buongiorno's mobile social network has been viewed over 400,000 times.
The 411,101 views in the first three weeks of the campaign resulted in 3,135 visits to the Real Time Real People website, which contains more information about the mobile-specific social network.
According to the company, around 12% of unique viewers requested an invitation code to Blinko with over 27% subscribing.
Blinko is a pan-European attempt from Buongiorno to enter mobile social networking following success from established online players including Bebo, Facebook and MySpace.
The viral campaign was designed and created by DLV Proximity to generate interest in the new product. Buongiorno has allocated a total marketing budget of €500,000 (£426,000) to promote Blinko.
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