Social Networking Eclipsing Email?

Many observers have noted that one of the big changes in technology adoption over the past half decade is the preponderance of "consumer" technology compared to "enterprise" technology tools. Not only are consumer tools reshaping enterprise applications but most of the innovation now occurs on the consumer side as well.

Internet analyst Mary Meeker of Morgan Stanley says that social network use is bigger than email in terms of both aggregate numbers of users and time spent, and is still growing rapidly.

Meeker attributes social networking’s success to the fact that it’s a “unified communications plus multimedia creation tool in your pocket.” The intriguing notion there is that tools not originally envisioned as part of the unified comnmunications feature set are now in some cases supplanting those features.

In fact, consumer tools in this case seem to be displacing at some of the utility enterprise unified communications services and applications were envisioned as supplying.

Social networking passed email in terms of time spent in 2007, hitting about 100 billion minutes a month globally and now is twice that.

Social networking passed email in terms of raw user numbers in July of 2009, with more than 800 million users. Given the rate at which Facebook has been growing, that number is probably now closer to a billion users, she says.

In many ways, social networking is to unified communications as consumer VoIP was to enterprise IP telephony: all the attention was the latter, not the former, but most of the growth has occurred in the former, not the latter.

Twitter Gets into Advertising

Twitter has introduced its "Promoted Tweets" advertising program with a handful of advertising partners including Best Buy, Bravo, Red Bull, Sony Pictures, Starbucks, and Virgin America.

Promoted Tweets are ordinary Tweets that businesses and organizations want to highlight to a wider group of users, initially only when a user has conducted a Twitter search function.

Users will start to see Tweets promoted by our partner advertisers called out at the top of some Twitter.com search results pages. Twitter says it will attempt to measure whether the Tweets resonate with users and stop showing Promoted Tweets that don't resonate.

Promoted Tweets will be clearly labeled as “promoted" when an advertiser is paying, but in every other respect they will first exist as regular Tweets and will be organically sent to the timelines of those who follow a brand. Promoted Tweets will also retain all the functionality of a regular Tweet including replying, Retweeting, and favoriting. Only one Promoted Tweet will be displayed on the search results page.

Twitter says it wants to get a better understanding of the resonance of Promoted Tweets beyond Twitter search, including displaying relevant Promoted Tweets in user timelines in a way that is useful. That means the program will get a slow introduction and will be user tested in a variety of ways.

Twitter argues that all promoted tweets are organic Tweets, which makes them different from traditional search advertising and social advertising. Promoted tweets will also be timely, Twitter says.  "Like any other Tweet, the connection between you and a Promoted Tweet in real-time provides a powerful means of delivering information relevant to you at the moment," Twitter says on its blog.

There is one big difference between a Promoted Tweet and a regular Tweet, the company says. Promoted tweets must resonate with users. That means if users don't interact with a Promoted Tweet to allow us to know that the promoted tweet is resonating with them, such as replying to it, favoriting it, or Rretweeting it, the promoted tweet will disappear.

Twitter blog

Competitive Pressure Remained the Story in 4Q 2009, Says Fitch Ratings

Competitive pressures remained strong throughout the industry in the fourth quarter of 2009, say analysts at Fitch Ratings, especially among local exchange carriers and cable companies, as those firms increasingly compete in identical spaces, with similar products.

The fourth quarter revealed especially aggressive marketing and competitive pricing and discounting strategies, Fitch says. This trend is expected to affect the competitive landscape going forward, especially putting pressure on average revenue per user and profit margins on discrete products.

The big problem for telco contestants is fixed voice line losses. Although high unemployment continues to affect sales of business lines, and the effect of wireless substitution continues, affecting residential lines, total access-line losses began to decelerate toward the end of 2009 as service bundling, including network-based video services offered by operators such as AT&T and Verizon continued to gain scale.

Cable operators had an arguably easier time, gaining high-speed data subscriber market share growth during the fourth quarter of 2009 despite a decrease in overall broadband additions caused by the persistently weak economy and maturation of the broadband market.

The wireless segment of the business arguably faced the fewest problems. Total wireless net additions were strong, says Fitch.

The industry’s capital spending grew by approximately 20 percent from the third to the fourth quarter of 2009 but remained below fourth-quarter 2008 levels. It is Fitch’s opinion that all communication service providers must invest in their respective networks in 2010 in order to maintain or improve their competitive positions.

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Orange UK Study: Women Send More Pictures; Men Watch More Video

Women send more multimedia messaging service (pictures) messages than men, as much as 48 percent more than men in some age groups, says Orange UK.

But 71 percent of all mobile TV clips have been purchased by men, Orange UK says.  Likewise,
75 percent of all mobile videos have been purchased by men.

Also, some 64 percent of customers using Orange social networking sites were men and 36 percent were women.

On average, iPhone customers use 165 megabytes of data per month. This compares to an average of 115 megabytes of data for other smartphone customers, says Orange UK.

Of these data points, the one which strikes me as being most important is the statistic about data consumption. Where a fixed broadband connection might represent scores of gigabytes worth of usage each month, a mobile broadband connection might represent perhaps a gigabyte or two.

The fact that iPhone users average about 165 megabytes is interesting in that it suggests smartphone devices, though far more numerous than PC dongles, represent an order of magnitude less bandwidth demand on the mobile networks than PC devices.

That could have implications for the marketing of mobile connections to replace landline connections, given that some fixed connections represent an order of magnitude greater load on a network than a mobile PC connection.

On the other hand, the spatial distribution of PC devices, compared to mobile phones, during peak hours of use, likely is quite different. It might also be the case that mobile PC connections get used much the same way as fixed connections, with peaks in the evening.

Since most mobile networks have spare capacity in the evenings, and since evening use is likely to be distributed over a much-wider area than rush-hour traffic, mobile dongle services might mesh relatively well with smartphone usage, in the same way that business use and consumer use of broadband tends to complement, rather than compete.

Social Networking Changing Collaboration at Work

Social networking is starting to change the nature of worker collaboration within companies, new poll conducted by Harris Research suggests. Of workers who use social networking at work, 59 percent say that their usage of social networking has increased over the past year. But only about 17 percent of the 1,000 workers surveyed report using social networking.

The study found the most frequently used application for collaborating with others is email (91 percent), but that what people want from their email is changing. In addition to email, the Harris poll found that other applications being used by respondents to collaborate with others in the workplace include shared spaces (66 percent), voice calls and teleconferencing (66 percent), web conferencing (55 percent), video conferencing (35 percent), instant messaging (34 percent), and social networking (17 percent).

Respondents like the fact that email provides an easily-accessible record of communication and the ability to communicate with many people at once. Users also rank email prominently among various collaboration tools because there is a high level of comfort in using the application to easily communicate with others inside and outside their organizations. However, the poll showed there are many pain points associated with the way most email solutions function today.

While email remains the preferred method of collaboration, many respondents complained they receive too much irrelevant email (40 percent) and that they lack the ability to collaborate in real time (32 percent). End users also dislike the fact that they have very limited storage (25 percent) and that large volumes of email come into their inbox with no organizational structure (21 percent).

Half of those using social networking for work by-pass company restrictions to do so. The study participants who prefer to use social networks indicated they would like to have control over who sees their content as well as be able to share with groups of users using different tools. The respondents also indicated the desire to collaborate in real time without having to open up an additional application.

Video Substitution Still A Marginal Activity

In 2009 an estimated 800,000 U.S. households stop subscribing to a cable, satellite or telco video service, say researchers at the Convergence Consulting Group. By the end of 2011, that number is forecast to double to 1.6 million, the group predicts.

Cord cutters don’t yet represent a serious threat to the $84 billion cable/satellite/telco TV access industry, which counts an estimated 101 million subscribers, the analysts suggest. But they might be a leading indicator of the shift to TV viewing on the Web.

So far, Web video viewing clearly is ancillary to other linear TV modes. The cord-cutters make up less than three percent of all full-episode viewing on the Web. The rest comes from people who are only beginning to watch occasionally online. An estimated 17 percent of the total weekly viewing audience watch at least one or two episodes of a full-length TV show online. Last year, that percentage was 12 percent, and next year it is forecast to grow to 21 percent, Convergence Consulting says.

Nor will major programmers be compelled to speed up their online distribution efforts, as the amount of incremental advertising remains quite small.

U.S. online TV advertising made up 2.5 percent of major-network ad revenues of $62 billion in 2009. Convergence Consulting estimates the incremental revenue at $1.56 billion.
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Will LTE Bend the Cost Curve?

Mobile service providers hope Long Term Evolution will "bend the cost curve." They also hope it will provide the foundation for new services, but many of us would guess the primary advantage lies in bending the cost curve.