Tuesday, March 22, 2011

Mobile Search Leans to Commerce

Of people who use the mobile Web at least weekly, about 49 percent made a mobile purchase within the last six months, according to Performics, the performance marketing agency owned by Publicis Groupe. Mobile search also has pronounced e-commerce and local information angles.

The study also found that 84 percent look for local retailer information (phone, address, hours), 82 percent search to find online retailers and 73 percent find a specific manufacturer or product website.

How Extensive is Enterprise Use of Video Collaboration?

Some 68 percent of respondents to a survey by Voice Report and BizTechReports report they already use video collaboration. For about half of organizations (51 percent), video-enabled collaboration currently accounts for less than 10 percent of their inter-office communications.

However, over the next year 56.8 percent plan to deploy this technology to more locations in their enterprise, and 58.5 percent have indicated that they will increase their video-enabled collaboration budgets over the next twelve months.

The survey of 125 executives across different industries suggests that video collaboration quite often now is used by workers in many parts of the organizations, not only the "C" suite. That is the issue with such studies, equivalent to asking whether an organization uses private jets. That's a legitimate question, but is qualitatively different than asking the extent to which that particular tool is used within an organization.

What might be more telling is the extent to which video collaboration is used "at the desk," and how widespread a practice that is. A majority of respondents (56 percent) also reports that their organizations will deploy video-enabled collaboration to more locations during 2011. On that score, many organizations seem to be using video collaboration quite extensively.

More than half (56 percent) report using desktop sharing features, while 43 percent say their organizations use video-enabled collaboration for training purposes (Fig. 9). Only 31 percent report using video-enabled collaboration for presence functions and 28 percent for instant messaging. Currently, only 10 percent of respondents say their organizations support mobile device access for video-enabled collaboration, and only 6 percent say they currently use it to support contact center operations.

Almost 70 percent of respondents believe that the interactive features offered by video-enabled collaboration services are a significant benefit over legacy tele-conferencing. Among the other major benefits respondents identify are improvements in user productivity (60 percent), utilization of IP networks (53 percent), greater end-user satisfaction (52 percent), and cost savings (51 percent).

Some 30 percent cite more efficient administration, while 27 percent perceive the customer service/support they receive from video-enabled collaboration service providers as a benefit. The caveat is that such comments deal only with "perceptions," rather than more-quantitative measures that are less subjective. That is not to say there are not such benefits, merely to note that belief there is a benefit is not the same thing as demonstrating there is a benefit.

While 67 percent of respondents report some use of video-enabled collaboration, utilization within their enterprises is far from pervasive. Half of respondents report that video-enabled collaboration accounts for less than 10 percent of their organizations’ inter-office communications.

Some 22 percent report using video-enabled collaboration 10 percent to 19 percent of the time for inter-office communications, and four percent report using it 30 percent to 49 percent of the time.

While more than half of all respondents cite cost savings as a major benefit that video-enabled collaboration offers over legacy tele-conferencing, 40 percent report saving less than 10 percent over their previous travel and meeting costs. Some 31 percent report costs savings greater than 10 percent. Some 19 percent report savings of 10 percent to 29 percent, and eight percent report saving 30 percent to 49 percent. About three percent of respondents found savings of 50 percent to 75 percent over their previous costs.

Of course, much of the impact will be hard to quantify. Better quality decisions, better customer support and so forth are harder to measure, and where measurable are hard to attribute specifically to just one change in organizational practice, if many changes are underway.

When asked about the challenges their organizations experience using video-enabled collaboration, more than one third (36 percent) report issues with video quality. Some 33 percent cite issues with reliability, while 31 percent experience issues with administration. One quarter of respondents (25 percent) report experiencing issues with user satisfaction and sound quality, while 21 percent found issues with technical delays.

View Telecom Management White Papers from The Voice Report

Online Will Claim 25% of Local Business Ads in 2015

kelsey-localonlinedigitalchartOnline advertising by local businesses will account for almost a quarter of all local ad spend by 2015, says local media research and consulting firm BIA/Kelsey. The company's new U.S. Local Media Forecast points to channels such as daily deals offers as increasingly popular with consumers, and thus a market ripe for local advertising dollars.

According to BIA/Kelsey, local online ad spending by small and medium-sized businesses will represent 23.6 percent of all local ad spending by 2015, growing from $21.7 billion last year to $42.5 billion by 2015. The economic downturn has tempered the company's predictions, previously more bullish. Back in 2006, the firm predicted local search and online classified spending alone would hit $31.1 billion in 2010.

http://www.clickz.com/clickz/stats/2035870/web-ads-draw-nearly-local-spend-2015?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+clickzstats+%28ClickZ+-+Stats%29

AT&T Defends Value of its T-Mobile USA Buy

Whether a new U.S. mobile market remains workably competitive after an AT&T acquisition of T-Mobile USA is a matter for economists, policymakers and policy advocates to dispute. The analysis will be tougher because one cannot assume that the rest of the market remains unchanged, either. Whether two or three large national competitors is too many or too few to support robust innovation and competition will be something hard to establish in the abstract.

Many will argue a long-term stable market structure will ultimately feature only two dominant national players, but both operating with regional competitors and in an environment where most of the innovation comes from third parties. It isn't so clear that potentially-less "access" competition will have impact as dramatic as if innovation were not coming "over the top." Nor is it clear whether a market dominated by two contenders is not workably competitive. What is clear is that a market with two national players will, at some level, necessarily be less competitive than a market with four contestants.

http://www.att.com/Common/about_us/pdf/INV_PRES_3-21-11_FINAL.pdf

Social Shopping The Year in Numbers




Group Deals Industry Report

Groupon Now to Launch, Deals on the Move

"Groupon Now," a new feature GroupOn will launch soon, will extend Groupon's activities in the mobile promotion and local advertising business, with a huge "geo-location" angle.

http://images.businessweek.com/mz/11/13/600/1113_mz_70groupon.jpg

Groupon Now will show two simple buttons that likely will have huge impact on the local restaurant trade and local shopping.
The two buttons: "I'm Hungry" and "I'm Bored."

As you might guess, there are huge implications for "liquidity" of information and deals. People will be offered deals at places that satisfy "hunger," right in the immediate area, or offer diversions when a person has free time and wants something to do.

Post-PBX World?

It isn't yet a "post-PBX" world, but we are moving that way, with the advent of distributed, software-based replacements that run on servers, either at a user's location or remotely, in the cloud.

"But the technology and industry are moving in that direction," says Fred Knight. "For the past decade, we've seen the relentless disassembly of the PBX, to the point where credible and implementable architectures now can be built without a PBX, its functionality, instead, carved up and delivered via a widely distributed network of servers."

Ofcom Says 4 4G Providers Best for Competition

U.K. communications regulator Ofcom is preparing for a major auction of spectrum to support fourth-generation mobile services, and has concluded that there would be a significant risk to national wholesale competition if there were fewer than four national wholesale competitors with credible spectrum portfolios for providing higher quality data services.

To guard against this risk, Ofcom proposes introducing limits both on the minimum and maximum amounts of spectrum bidders can win. These are called auction "floors" and "caps," and will ensure that there are four 4G competitors.

Email Blasts Face GMail Filtering

What's helpful for users sometimes is not helpful for marketers, but that's just a reality as users can tailor and filter their message stream. Google's "Priority Inbox" is one example of a helpful sorting and filtering mechanism good for users and arguably not so good for bulk email campaigns.

"Smart Labels" takes Priority Inbox a step further by dividing all inbound communications into three broad categories. The first identifies email from individuals, always placed in the "Important and Unread" section of the Gmail inbox.

The second label is called "Notifications," for news alerts, LinkedIn connections notices, and event updates. These messages are placed into either the 'Important and Unread' section or the 'Everything Else' section of Priority Inbox, depending on subscriber engagement.

The final Smart Label is "Bulk,"which attaches a 'Bulk' label to Everything Else. That often means almost 100 percent of promotional email is immediately placed in the bulk folder, giving the user an easy way to avoid seeing any of it.

Again, good for users, not so helpful for marketers. But all that points to the future of targeted, opt-in, contextual messaging. "Spray and pray" doesn't work so well now. It really won't work in the future.

AT&T Faces Regulatory Hurdle

Monday, March 21, 2011

Media and Telecom Face Similar Problems

Newspaper ModelIt recently has seemed to me that were are some parallels between the U.S. airline industry and the telecom industry; as well as some similarities between the telecom and media industries.

Airlines are capital intensive businesses subject to periodic over-capacity issues, tend to be heavily regulated, though not as heavily as they once were. Both now are heavily competitive, and both have stranded capacity issues.

Airlines cannot sell seats once a plane has departed, and telecom providers often cannot sell services to locations they have spend quite significant sums of money to "wire up for service."Media, on the other hand, has seemed relevant simply because it is a business subject to disruption by new digital delivery systems, much as telecom itself is subject to disruption from over-the-top application providers.

This bit of data is not, I am suggesting, a forecast for the telecom industry. It is rather a factual look at some problems that arguably predate the Internet. Click on the image for a larger view. Classified advertising has taken the brunt of the shrinkage as online alternatives such as Craigslist have created alternatives. But you also can see the shrinkage, roughly in half, of display ad revenues as well.

The comparison that has struck me as germane is that as newspapers are losing revenue and share in their legacy business, so telecom service providers are losing share in their legacy core business of voice. The difference is that, up to this point, telecom service providers have been much more successful at replacing lost revenues with new revenues.

Where long distance once was the revenue mainstay, mobility has taken that role as long distance simply "dried up." Newspapers have yet to make even the first step. Meanwhile, telcos have added video and broadband access service revenues as well, and seem to be taking the first meaningful steps into banking, promotion and location services.

The newspaper example is instructive only because it seems to be an industry that has not been able to innovate, compared to telcos.

Possible Future AT&T Ad Synergies

T-Mobile Online Display Ad Spending
Annual in Millions, 2006-2010
20062007200820092010
$35m$29m$39.3m$37.4m$53.8m
Data provided by Kantar Media, 2011

We are a year away from knowing if the AT&T purchase of T-Mobile USA will be approved by the Department of Justice and the Federal Communications Commission. Assuming the deal does pass muster, there will be all sorts of synergies for the new company: lower backhaul costs in some cases; less overhead; fewer retail stores to support; fewer employees and less advertising than the two firms had been spending.

In T-Mobile USA's case, there is perhaps $54 million that will not be spent after AT&T becomes the new owner. In total, AT&T expects to save about $40 billion.

E-Books 9% of Total Books Sales in January 2011

E-book sales in January 2011 represented about nine percent of total book sales, according to the Association of American Publishers, and have increased "annually and significantly in all nine years of tracking the category," the AAP says.

E-book net sales increased by 115.8 percent over January 2010 (from $32.4 million to $69.9 million).

AT&T, T-Mobile USA Deal: Video

Does Technology Have to Be Tailored for Older Users?

Some people think technology has to be tailored for older users. Others might think the issue is overblown, since many surveys now show that older users want the same features that younger users enjoy, even if usage rates might be lower.

The argument for different approaches usually is based on technology reluctance or physical issues. It often is assumed that devices optimized for older users need to feature more prominent buttons with bigger letters and numbers, for example, with stripped-down functionality. There are some cases where that might be the case.

But there is a growing body of evidence that, in fact, users in every age demographic are starting to appreciate new technology, and do use it. Not everybody, in every age demographic, is likely to be as enamored of some innovations as others are. But there are few applications you can think of that "only" younger users appreciate. Over time, in fact, application and technology adoption trends tend to normalize across the entire age range, or across the vast portion of it.

That isn't to say there are not differences in intensity of use; obviously there are such differences. But usage across age ranges tends to be a matter of degree, not a matter of adoption.

Is Private Equity "Good" for the Housing Market?

Even many who support allowing market forces to work might question whether private equity involvement in the U.S. housing market “has bee...