Sunday, January 23, 2011

Web-based Email Shows Signs of Decline

In November 2010, the number of U.S. visitors to web-based email sites declined six percent compared to the previous year, while the number of users accessing email using their mobile devices grew by 36 percent, comScore reports.g

“From PCs to mobile devices, whether its email, social media, IM or texting, consumers have many ways to communicate and can do so at any time and in any place," says Mark Donovan, comScore senior vice president of mobile.

The decline in web-based email is a byproduct of these shifting dynamics and the increasing availability of on-demand communication options.

The broad conclusion might be that people are using email less, but when they do so, it is likely to be on a mobile device. That isn't likely to matter much for person-to-person or person-to-multiple-person messaging. But it will be significant for email marketers, who no longer can assume their messages are received on a larger-screen PC, with ability to display images natively, for example.

Google Management Shake-up: Good for Google?

Both Google and Apple now face scrutiny over management issues at each company.

Apple iPhone: 2 better than 1

Apple says "Two is better than one." Better for Apple; better for consumers; better for all the suppliers of iPhone components; better for mobile app providers working in the Apple ecosystem; arguably better for Verizon Wireless; not good for AT&T; still bad for Sprint and T-Mobile USA.

That sort of illustrates the conundrum mobile service providers now face, and that fixed-line providers have faced for some time, notably that value in both ecosystems has shifted in the direction of devices and apps.

That isn't to say "access" lacks definite value. Spending time someplace with no broadband access, or with poor access, will quickly illustrate the point. Of course, contestants in the apps and devices parts of the ecosystem would say they face significant competitive pressure as well.

But the fact remains: people might "love" their apps and devices. They rarely have any emotional attachment to their "access." Of course, it is much harder to develop a true brand preference for an intangible product, compared to something tangible such as a device or a favored application.

From Apple's point of view, two is better than one. But the ad indirectly points out yet again where value is shifting in the communications business.

Saturday, January 22, 2011

4G for Business: What's the Value Driver?

Some people believe, and carriers obviously hope, that new fourth-generation networks will create and enable new applications and revenue streams differentiated from 3G. That hope or expectation is based on the higher bandwidth and lower latency offered by 4G networks.

(click on image for a larger view)

"Unlike 3G, 4G networks are end-to-end IP, designed from the start to support converged application traffic and provide improved latency," Yankee Group researchers note. Examples of new applications sometimes center on collaboration apps, especially forms of telepresence and videoconferencing.

Others suggest 4G can be used as a better replacement for existing 3G applications and use cases, as a backup or replacement for fixed-line broadband, backhaul or redundant capacity service for times of peak load.

Call me a skeptic at this point, but similar claims about "enabling new applications" were touted when 3G networks were deployed as well, and it took quite some time for important new apps to develop.

New 4G networks are a vast improvement over 3G in many ways, but the mere existence of the network probably will not lead to dramatically-new apps, right away. If that does happen, some have suggested, it will be "personal Wi-Fi hotspot" or video apps that likely will drive the lead apps.

Initially, though, 4G is likely to be viewed as "better wireless broadband," to support existing apps. I'd prefer to be proven wrong, and soon. But history suggests it will take some time for really new apps to develop, in the business or consumer spaces.

Starbucks Mobile Payment System is Really About Loyalty

About 20 percent of Starbucks transactions are made using a Starbucks Card, which provides users with a rewards program. Mobile payment "will extend the way our customers experience and use their Starbucks Card," says Brady Brewer, Starbucks Card and Brand Loyalty VP.

Starbucks said customers loaded $1.5 billion onto Starbucks Cards in 2010, a 21 percent jump over 2009.

In a real sense, the Starbucks mobile payment system is more about loyalty than "payments."

Mobile Banking and Payments: Will Carriers Partner or Compete?

 There's an undeniable argument that mobile phone companies could, in the future, threaten banks by introducing their own mobile payment systems. There's probably an equally compelling argument for mobile carriers working with payment processors. Patrick Dixon offers his thoughts.

85% of U.S. Internet Users Watched Online Video in December 2010

Some 84.6 percent of the U.S. Internet audience viewed online video in December 2010. That represents 172 million U.S. Internet users. The average viewer watched of 14.6 hours, according to "comScore. The total U.S. Internet audience engaged in nearly 5.2 billion viewing sessions during the course of the month.

Video ads reached 49 percent of the total U.S. population an average of 39.8 times during the month. Hulu delivered the highest frequency of video ads to its viewers with an average of 47.1 over the course of the month.

The duration of the average online content video was 5.0 minutes, while the average online video ad was 0.4 minutes. Video ads accounted for 16.4 percent of all videos viewed and 1.6 percent of all minutes spent viewing video online.

Americans viewed 5.9 billion video ads in December, with Hulu generating the highest number of video ad impressions at more than 1.2 billion. Tremor Media Video Network ranked second overall (and highest among video ad networks) with 1.0 billion ad views, followed by ADAP.TV (682 million) and BrightRoll Video Network (588 million).

Google Sites, driven primarily by video viewing at YouTube.com, ranked as the top online video content property in December with 144.8 million unique viewers, followed by Yahoo! Sites with 53.1 million viewers.

In one year since its launch, VEVO has steadily grown to reach 50.6 million viewers in December, with much of its viewing being driven by VEVO on YouTube. AOL, Inc. maintained the fourth position with 48.6 million viewers, followed by Viacom Digital with 45.9 million. Google Sites had the highest number of viewing sessions with 1.9 billion, and average time spent per viewer at 274 minutes, or 4.6 hours.

Directv-Dish Merger Fails

Directv’’s termination of its deal to merge with EchoStar, apparently because EchoStar bondholders did not approve, means EchoStar continue...