Tuesday, August 31, 2010

iAd Campaign Disappoints

From August 19 through August 25 Cross Forward ran a campaign on the "iAd for Developers" platform for its Audiobooks Premium app. The results were disappointing,the company says.

For all the promise of selling your apps directly within an advertisement, it appears that so far this is not a viable way to drive traffic and create an economically sustainable promotion, the company says.

For $1,251.75, the campaign generated a total of 84 downloads, thus a Cost Per Acquisition (CPA) of ~$15. For a $0.99 app, those economics just can’t work out.

Be Mobile, Or Dust

Is Amazon Getting Ready to launch a Video Service?

Amazon might be getting ready to expand its video offerings, according to a report released this afternoon by The Wall Street Journal.

The subscription video service that would operate similarly to its current services, which can be watched on the Web or a variety of video devices.

According to The Journal, Amazon has approached a number of media companies to try to get them to sign onto the plan.

Digg Users Don't Like Latest Version

Less than a week after Digg released version 4 of its social news-sharing site, fans have rebelled, flooding Digg with links from a rival sharing site, staging a 'Quit Digg Day,' and prophesying a major drop-off in traffic if the site doesn't return to its roots.

$1.54 Billion U.S. Mobile Content Revenues in 2010; $3.5 Billion in 2014

Mobile content revenues will reach $1.54 billion in the United States this year, according to a new report from eMarketer. 

Analysts at eMarketer estimate combined revenues from three principal streams—subscriptions (streaming music and mobile TV services); direct and pay-per-view downloads (full music tracks, games and TV/movie/event programming); and advertising-supported (games, music services and video)—will more than double from 2010 to reach $3.53 billion in 2014.

Gaming is by far the leader in terms of usage and revenues: The number of U.S. mobile gamers is expected to reach 64 million in 2010, driving revenues of $849 million.

Meanwhile the number of US consumers who watch mobile video or television on their mobile devices is expected to reach 23 million this year and draw revenues of $719 million. By 2014, however, mobile video revenues are expected to reach $1.3 billion. 

Verizon Business Introduces Hybrid Cloud Computing Solution

Verizon Business and VMware have launched a new enterprise-class hybrid cloud solution that will enable enterprises to move their applications to the cloud more quickly without compromising security or performance.

The hybrid solution allows enterprise managers to use all their existing VMware tools "in the cloud," just as if they were interacting with the local data centers. All existing firewall and other security measures usable in a local data center also are available when using the cloud computing service as well.

That eases operational chores, maintains security, and also allows managers to gradually test and use cloud computing services without a "flash cut" to the new paradigm. Most enterprise information technology managers are being asked to test cloud computing, but every manager also is responsible for ensuring that current operations are not endangered or disrupted.

The new hybrid capability allows VMware customers to use cloud computing for some tasks and in-house facilities for other activities.

Customer Service, iPhone, Combat Churn for Verizon, AT&T and Sprint Nextel

Credit good customer service for Verizon's traditionally low churn, customer appetite for the iPhone for AT&T's performance, and improved customer service for Sprint Nextel's better performance of late.

Mobile Churn Issues: the Youth Element

Churn is a big problem for mobile and all other service providers because younger users simply are less loyal than older users.

Older Adults: Social Media Use Doubles

While social media use has grown dramatically across all age groups, older users have been especially enthusiastic over the past year about embracing new networking tools. Social networking use among internet users ages 50 and older nearly doubled—from 22 percent in April 2009 to 42 percent in May 2010.

Between April 2009 and May 2010, social networking use among internet users ages 50-64 grew by 88 percent--from 25 percent to 47 percent.

During the same period, use among those ages 65 and older grew 100 percent--from 13 percent to 26 percent.

By comparison, social networking use among users ages 18-29 grew by 13 percent—from 76 percent to 86 percent.

Verizon Encourages Mobile Substitution, in Some Markets

You might it a bit jarring to see Verizon encouraging customers to replace their landline phone service with mobile service. But there's a good explanation. Verizon operates landline networks in only part of the country. It operates wireless networks nationwide.

So Verizon actually gains if it can convince a landline voice customer outside its wired network service area to switch to the Verizon wireless service. Sprint and T-Mobile USA have an even-easier position. Since neither firm owns any fixed access network assets, both firms likewise can encourage wireless substitution without risking any cannibalization of existing revenues or customer base.

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Marketing Spending to Rise

Chief marketing officers surveyed recently by Professor Christine Moorman at Duke's Fuqua School of Business reported that on average their budgets would increase 9.2 percent, a much larger increase than any of the other surveys done in the past two years. Spending on social media also is rising, as you might well expect.

Borders Drops Prices Of Kobo And Aluratek Devices

Borders is cutting the prices of its leading e-book reading devices, the Kobo and Aluratek to $129 and $99.99 respectively. The Kobo was previously priced at $149.99 and the Aluratek was priced at $119.99.

Borders also says Velocity Micro’s Android-based Cruz Reader R101 and Cruz Tablet T103 are now available for preorder on Borders.com for $199 and $299 respectively. Borders is currently offering 1.5 million titles through its e-book readers.

Customer Service, iPhone, Combat Churn for Verizon, AT&T and Sprint Nextel

Credit good customer service for Verizon's traditionally low churn, customer appetite for the iPhone for AT&T's performance, and improved customer service for Sprint Nextel's better performance of late.

Is Mobile Search Marketing Finally Here?


Mobile search marketing expert Michael Martin says 2010 is the year when mobile takes off. Aside from a general caveat that anointing any year as the "Year of X" has generally been a contrary indicator, Martin does point out that conversion rates for mobile devices is at least four times higher for local searches, than from other types of browsers.

The reason is that with mobile devices, most people aren't really doing 'search' for research purposes, but doing 'finding' for something close that will meet an immediate need. That makes sense.

Monday, August 30, 2010

iPads are Content Consumption Devices, Studies Find

A survey by copywriting firm Cooper Murphy Webb found that iPad owners use them largely for entertainment purposes.

Almost a quarter of respondents said it had become their primary entertainment device, ahead of TV and trailing PCs by just nine percentage points.

To a large extent, iPads and possibly other tablets compete with e-book readers, gaming consoles, mobile phones and TVs more than other PC form factors.

The iPad was considered the top delivery method for newspapers and magazines, and its popularity for books was even greater. Some 41 percent of iPad owners preferred to read on the device, compared to 36 percent of respondents who liked hard copies better.

Also, iPads were the top gaming device for owners of the tablets, beating out consoles by two percentage points.

A study by Ball State University researchers suggests new iPad users deem it best for leisure activities, not content creation.

Will ChatGPT Ever Make Money?

A study by Epoch AI illustrates the monetization issue faced by language model developers , where continual needs to invest in the next ite...