Friday, April 15, 2011

On the Go Ad Exposures: More than Phones and Tablets

For most of us, on-the-go media consumption is mostly about smart phones and tablets. But there also is growing place-based media exposure as well. Viewer exposure to advertising at 12 monitored bars, restaurants, airports, hotels, retail stores and other place-based venues in the last quarter of 2010 was up nearly 250 percent, compared to the eight location-based networks measured that same period one year ago.
For the fourth quarter of 2010, that translates to more than 500 million gross minute exposures per month.
Exposures Per Visit, P18+
VENUECOMPANY“Q4 2010 (P18+)
Visits
Exposures
per Visit
Total Exposures (P18+)
RetailBest Buy29,269,628129,269,628
AirportsCNN Airport Network17,788,9661.322,660,178
Health ClubsZoom Fitness16,699,3651.830,342,746
Gas StationsOutcast/PumpTop16,601,527116,601,526
Bars & RestaurantsTouchTunes Interactive Networks14,980,01615.2228,104,737
RestaurantsindoorDIRECT13,005,969113,005,969
HotelsThe Hotel Networks10,415,4752.829,104,737
Bars & RestaurantsTargetCast10,157,1475.151,591,435
Health ClubsRMG Fitness10,036,6631.515,205,544
Health ClubsOutcast: Health Club Media Network5,357,4252.714,206,215
StadiumsAccess 360-AMNTV3,747,80511.39,393,868
Bars & RestaurantsAMI1,808,6005.242,325,398
TOTAL149,868,586501,811,981
Source: The Nielsen Company

mSpot Challenges Netflix?

Mobile and PC entertainment company mSpot delivers music, movies, radio and TV to more than six million mobile customers across 10 wireless carriers in North America, including Verizon, AT&T and Sprint.

The company, which actually has an earlier release window for new movies than Netflix does, also plans to show them at the same prices. In other words, mSpot is offering more recent movies than Netflix does, about matching Netflix’s all-you-can eat movie pricing. So some wonder if mSpot might e the next candidate to grab market share from Netflix and others in the streaming video business.

Daren Tsui, chief executive of Palo Alto, Calif.-based mSpot, says mSpot has been able to secure new release movies on the same day that studios release them on DVDs. Netflix, by contrast, has to wait as much as 28 days longer.

Apple and Google Capture U.S. Video Game Market Share in 2010

Apple iPhone and Android smart phones are taking game revenue and market share from dedicated mobile game playing units, a new analysis by Flurry suggests. From 2009 to 2010, iOS and Android game sales increased from five percent to eight percent market share within the U.S. video game market.
Flurry iOS Android USvideoGameShare 2010
Flurry estimates that iOS and Android game revenue increased from $500 million in 2009 to more $800 million in 2010. Of this, the significant majority of revenue was generated by iPhone games.

Flurry estimates that retail PC game revenue was $700 million in 2010. That implies that smart phone and tablet game revenue has surpassed the U.S. PC game category, for the first time, in 2010.

Overall, total U.S. game revenue from 2009 to 2010 was relatively flat, totalling $10.4 billion and $10.7 billion, respectively. However, while console game revenue increased slightly, from about $7.4 billion in 2009 to $7.8 billion in 2010, the combination of declines in portable gaming software and a jump in smart-device app sales has squeezed the portable game category down from 24 percent market share in 2009 to just 16 percent in 2010.

It’s clear that prolific intalled base gains by Apple and Android devices, low priced games (including a very robust free-to-play model enabled by in-app purchases) and seamless digital distribution to games on devices so near to consumers 24-hours-a-day, is driving potent industry-disruption.

Over 2011, Flurry expects to see continued and significant smart-device game growth fueled by the recent launch of iPad 2, iPhone coming into distribution on Verizon, the expected release of iPhone 5, a relentless expansion of Android devices by leading OEMs across all major U.S. carriers, and Google’s enablement of in-app purchase billing, a proven key driver in iOS game revenue.

U.S. Internet Users Watched 4.3 Billion Video Ads in March 2011

Americans viewed 4.3 billion video ads in March 2011, with Hulu generating the highest number of video ad impressions at more than 1.2 billion, according to comScore.

Tremor Media Video Network ranked second overall (and highest among video ad networks) with 804.3 million ad views, followed by Adap.tv (553 million) and BrightRoll Video Network (398 million).

Time spent watching videos ads neared 1.9 billion minutes during the month, with Hulu delivering the highest duration of video ads at 520 million minutes. Video ads reached 43 percent of the total U.S. population an average of 33 times during the month.

Hulu also delivered the highest frequency of video ads to its viewers with an average of 47 over the course of the month.

North America Will Have Half of all NFC Phones in Service in 2014

At least one in five smart phones globally will have near field communications functionality by 2014, Juniper Research estimates.

Worldwide, Juniper Research forecasts almost 300 million NFC capable smart phones by 2014. Juniper’s analysis shows that this growth will be driven in the short term by mobile network operators launching services in 20 early adopting countries before the end of 2012.

Juniper Research forecasts that NFC-based mobile payments and retail marketing capability via coupons and smart posters will become common amongst smart phone users in Western Europe, North America and other developed regions.

North America will account for half of all NFC smart phones in 2014, followed by Western Europe.

Kotak Mahindra Bank Launches Mobile Banking

Kotak Mahindra Bank has launched "Interbank Mobile Payment Service" (IMPS) for its customers. The mobile banking system allows customers to transfer funds between retailers or people who have banking services and are part of the IMPS network.

In order to send money using IMPS, the sender losg into the Kotak mobile banking application, enters the mobile number and the Mobile Money Identifier (MMID) of the beneficiary along with the amount to be transferred.

The beneficiary gets the credit instantly.

MMID is a 7-digit code issued by the bank which along with the mobile number will identify the customer’s bank and account number. To receive money using IMPS, the customer needs to share the mobile number registered with the bank along with the MMID for the account in which he/she wishes to receive money.

T-Mobile Adds 10 New 4G Markets

Ten more markets have T-Mobile's 4G (HSPA+)network, bringing the 4G network up to 167 markets and more than 200 million people in the United States.

The new 4G markets include:
Ames, Iowa
Anderson, Indiana
Battle Creek, Michigan
Benton Harbor, Michigan
Jackson, Michigan
Fort Collins-Loveland, Colorado
Lawrence, Kansas
Manhattan, Kansas
Springfield, Illinois
Wichita Falls, Texas.

T-Mobile is also working to double the speeds of its 4G service to 42 Mbps in 25 of its 4G markets, covering more than 140 million people, this year.

New York City, Las Vegas and Orlando are already online with 42 Mbps service. Chicago, Long Island and parts of New Jersey are slated to follow soon.

G-Slate by LG, on T-Mobile USA

T-Mobile is launching a new Android tablet, the GSlate by LG.

Google Capex for Data Centers Grows

Google invested $890 million in its data center infrastructure in the first three months of 2011, the second-highest total in its history.

In fact, it’s Google’s biggest capital expenditure spending for any quarter in which it hasn’t bought real estate for other reasons.

Of course, Google also slowed investment in 2008 and 2009.

Google spent a record $2.55 billion on capital expenses in the fourth quarter of 2010, most of it related to the purchase of 111 8th Avenue, a 2.9 million square foot building in New York that is one of the city’s premier Internet and telecom hubs. It also serves as the main New York office for Google, which has about 2,000 employees on site.

Thursday, April 14, 2011

Google 1Q 2011 Earnings

Google says there have been three billion Android apps downloaded. Apple just passed 10 billion app downloads mark in January 2011. But sales of Android phones are growing fast, so Google app downloads should accelerate as well. The first billion installs took 20 months, the second billion installs took another five months, and the third billion took only two months.

Alcatel-Lucent Explores Sale of PBX Business

Alcatel-Lucent SA is exploring the sale of its enterprise phone system business, according to the Wall Street Journal.

The company has hired advisers and during recent days began to examine options for the business, which has about $1.5 billion in annual sales.

Lucent, you will recall, sold off its enterprise phone system unit as Avaya, in 2000. You might argue that a business phone system business these days requires a level of concentration that might be easier in the context of a stand-alone company. Lucent certainly came to that conclusion over a decade ago.

Hawk Cam: Live From the Nest

This is a live video feed from the 12th floor of Bobst Library at New York University where a pair of red-tailed hawks — Violet and Bobby — have built a nest, stick by twig, outside the office of the university’s president, John E. Sexton, overlooking Washington Square Park.

Just another way to waste a bit of time, but I admit, I watched it.

Worldwide PC Shipments Decline in 1Q 2011

"Worldwide PC shipments totaled 84.3 million units in the first quarter of 2011, a 1.1 percent decline from the first quarter of 2010, according to preliminary results from Gartner. Although the first quarter is traditionally a slow one for PC sales, these shipment results indicate potential sluggishness, not just a normal seasonal slowdown. These figures are below Gartner's earlier forecast for three percent growth in the first quarter of 2011.

Low prices for consumer PCs, which had long stimulated growth, no longer attracted buyers. Instead, consumers turned their attention to media tablets and other consumer electronics.

With the launch of the iPad 2 in February, more consumers either switched to buying an alternative device, or simply held back from buying PCs. Gartner is not yet sure whether this is a temporary situation or indicative of a trend.

Global Telco Capex Stable to 2014, Wireless Grows

Capital expenditures by the top 100 global telecom operators between now and 2014 suggests carriers collectively will decrease their capex-to-sales ratio to 16.5 percent of revenues by 2014, down from 18.4 percent of sales in 2008.

With industry revenues expected to grow at a modest two percent a year to 2014, overall capital expenditure will remain stable (0.7 percent CAGR) to 2014. Wireless access infrastructure, already accounting for 43 percent of total telecom infrastructure capex, will increase its overall share as spending continues to shift away from fixed infrastructure.

As a consequence, the rollout of LTE networks in Europe and North America, and 3G deployments in India and South America will be key drivers of overall equipment revenues.

Read more here

Study Finds Broadband Stimulus Funds Were "Wasted"

A new economic analysis of federal government broadband stimulus projects awarded by the Department of Agriculture’s Rural Utilities Service concludes that the program’s funding of duplicative broadband networks has resulted in an extremely high cost to reach a small number of unserved households.

The study shows that the RUS’ history of funding duplicative service has continued under its Broadband Initiatives Program and that the current program is not a cost-effective means of achieving universal broadband availability. 

The study examined three large BIP subsidy awards which total $231.7 million, or about seven percent of the total BIP $3.5 billion combined loan and grant program:
  • $101.2 million in western Kansas
  • $66.4 million for Lake and St. Louis counties in northeastern Minnesota 
  • $64.1 million to cover a portion of Gallatin County in southwest Montana. 
The study was commissioned by the National Cable Telecommunications Association and prepared by Jeffrey Eisenach and Kevin Caves of Navigant Economics of Washington, D.C.

The American Recovery and Reinvestment Act (ARRA) included $7.2 billion to subsidize broadband deployment – $4.7 billion to the National Telecommunications and Information Administration (NTIA) and $2.5 billion to RUS. The NTIA and RUS programs funded by ARRA make up the largest federal subsidies ever provided for broadband construction in the U.S.

Read more here

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