What CEO Larry Page Will Be Up Against at Google

Most executives would be happy to have Google's problems, namely market dominance, revenue size and growth, and ability to enter just about any market it believes it must be in. Some will question Google's track record, but its mobile initiatives are obviously having an impact.

But llooking ahead, Larry Page, who will return to the CEO post he once held, faces numerous challenges, from reinstilling some kind of entrepreneurial culture at a bureaucracy of 24,000 employees, to coping with a threatening group of newcomers such as Facebook, Twitter and Groupon, to tapping the bigger reservoir of brand dollars still spent largely on TV.

What CEO Larry Page Will Be Up Against at Google

Vendor Lock-in Issues for Infrastructure or Platform "As a Service"

It's an understandable concern enterprises may have about "infrastructure as a service" compared to "platform as a service." It is one thing to rent storage or compute cycles, another thing to rent the "middleware" elements as well.

Amazon'es "Elastic Beanstalk" is an example of the platform approach, and includes handling of deployment details of capacity provisioning, load balancing, auto-scaling, and application health monitoring.

At the same time, with Elastic Beanstalk, you retain full control over the AWS resources powering your application and can access the underlying resources at any time.

Elastic Beanstalk leverages Amazon Web Serves applications and features such as Amazon EC2, Amazon S3, Amazon Simple Notification Service, Elastic Load Balancing, and Auto-Scaling to deliver the same highly reliable, scalable, and cost-effective infrastructure that hundreds of thousands of businesses depend on today.

Small businesses that are not specifically app developers and providers, on the other hand, will not have such concerns, in most cases. To some extent, they will buy turned-up services supplied by firms that already have had to make those decisions.

AWS Elastic Beanstalk

Twitter Ad Revenue May Reach $150 Million This Year

Twitter will triple its advertising revenue to $150 million in 2011, and it might reach $250 million in revenue next year, research firm eMarketer predicts. That isn't an overwhelming number, but some will note that Facebook booked about that much when it first started its own advertising support efforts.

Twitter has so far managed to attract big advertisers such as American Express, Coca Cola, Nissan, HP and Starbucks, and companies such as Dell have proved they can promote their products well using Twitter even before it launched its promoted tweets program.

While "advertising" is not the magical answer for any application provider's revenue model, it has become key for the largest of consumer sites, and there's no doubt Twitter is among the larger sites.

Twitter Ad Revenue May Reach $150 Million This Year

T-Mobile USA Plays on Old "Mac PC" Ads

Nice ad, since everybody knows the "Mac and PC" series.

Mobile Advertising Could Have a Big Year in 2011

Mobile marketing is finally catching on as a viable marketing and advertising platform, and will be the fastest growing of digital formats in 2011, according to a survey conducted by Deutsche Bank.

In addition to mobile, the fastest-growing online advertising categories in 2011 will be social media and online video, all of which are believed to be gaining share of wallet within online marketing budgets.

Classic display appears to be the most vulnerable to this shift. In fact, half of the respondents think display is losing share, and only 20 percent consider it is gaining share.

“It finally feels like the tipping point for mobile is here,” Deutsche Bank says in its report. “According to our media buyers, mobile will represent roughly five percent to seven percent of online budgets in 2011. That would imply spending of about $1 billion to $1.5 billion in the U.S. market, assuming total online spending of $28 billion.

Mobile Marketing and Technology

Bad News for Big Media

Jim Breyer, venture capitalist at Accel Partner says “75 percent of new Internet company value in next 10 years will be created outside U.S.."

Also, he predicts that “80 percent to 90 percent of big media companies are dying a slow death.” For that reason, he as a venture capitalist "absolutely no way" would be investing in any new companies doing TV, newspapers, or magazines.”

DLD Lost For Words About Nokia - Tech Europe - WSJ

SMS and Email Marketing: Complementary Rather than Substitutes

There is some truth to the notion that text messaging campaigns are substitutes for email campaigns. There also is some truth to the notion that they are complementary.

The "personal" nature of text messaging and the high need for user opt in are key reasons why the channels mostly appeal to different types of retailer relationships. Text messages require some sort of pre-existing relationship. Perhaps email messages are supposed to require opt in as well, but frequently permission is more tacit than formally acknowledged.

A user that has opted in to receive SMS messages presumably already has significant interest in a particular product or retailer. Email messages can cover a wider range of consumers.

Mobile Video Consumption Up 47%

While the number of people watching videos on their mobile phones remains relatively small compared to TV, they are increasingly using the devices to that end. On a year-to-year basis, the number of people watching mobile video increased more than 43 percent, while the amount of time spent doing so was up almost seven percent, according to Nielsen.

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Overall Usage Number of Users 13+ (in 000s) – Monthly Reach
	Q2 2010	Q1 2010	Q2 2009	% Diff Yr to Yr
Using a Mobile Phone ^	229,375	229,495	220,527	+3.99%
Mobile Subscribers Watching Video on a Mobile Phone ^	21,957	20,284	15,267	+43.82%
Source: The Nielsen Company As of Q2 2010, 22 million people watched video on a mobile device

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.

Email Evolution: Web-based Email Shows Signs of Decline in the U.S. While Mobile Email Usage on the Rise - comScore

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.

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.

Yankee Group Research Report

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."

Starbucks Unveils Mobile Payment System for BlackBerry, iOS | News & Opinion | PCMag.com:

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.

comScore Releases December 2010 U.S. Online Video Rankings