Tuesday, May 25, 2010

Will Apple "Blow Google Out of the Water?"

Google used the occasion of its developer conference to jab Apple. Will Apple take the opportunity at its June 7 meeting to jab back? Most people think it likely will.

"If Google didn't act, we face a draconian future," said Goolge VP Vic Gundotra at Google's recent developer meeting. "One man, one company, one device would control our future," said Gundotra.

At its upcoming Worldwide Developers Conference, Apple is expected to detail its new iPhone operating system, OS 4.



Twitter Bans 3rd-Party Ads

Twitter has is banning third-party advertisements on its site, in a move to control its monetization of the micro-blogging service, and perhaps also to protect users from perceived ad spamming.

The Twitter "Promoted Tweets" platform poses some risks of user annoyance, but might arguably provoke much more irritation if the appropriateness of the promoted messages is not controlled.

As mobile advertising starts to become a more important and bigger revenue stream, control of inventory is going to become a bigger issue, as it always does for ad-supported media.

BBC Looks To Ban Over the Top Use of Its Content

The BBC, saying it seeks to maintain its brand, says it does not want to make its programs available to third parties for VOD distribution on an unbundled basis. In part, that is one more example of how the debate over content pay walls is being played out, and also an example of the broader ways in which the battle between open and closed ecosystems likewise has heated up.

AT&T Launches Free Wi-Fi In Times Square

AT&T is launching a free wi-fi network for its customers in New York City's Times Square, obviously designed to take a load off the 3G network.

The move illustrates both the importance of wireless offload strategies as well as a changing role for fixed-line networks, which are assuming much more importance as mobile video consumption increases.

That might provide small comfort to fixed-line service providers, but comfort nevertheless. The fundamental answer for why broadband fixed line networks will remain relevant in a market that emphasizes mobile service has to do with superior bandwidth.

Fixed lines will remain the "best" way to deliver huge quantities of video to end users, in many venues, including both the linear multi-channel video and over-the-top Internet modes.

Mobile Passed Fixed for Voice in 2000, But Fixed Voice Lines Continue to Grow

You might not be especially surprised that wireless accounts in service surpassed fixed phone lines in Japan, Korea and Finland back in 2000, meaning it has been a decade since a fixed line was the preferred way of using "voice" in the consumer, and part of the business market.

(Click image for larger view)

You might not realize 2000 also was the year that wireless accounts surpassed fixed lines for voice in the U.S. market as well. At the beginning of 2010 there were 2.4 wireless lines in service for every fixed voice line, about 276 million wireless lines compared to about 114 million fixed voice lines.

That said, people often overlook the fact that fixed voice lines in service actually have grown since 2000, from about 100 million lines, up to 114 million lines. The confusion typically is driven by the decline of telco market share compared primarily to the growth of cable operator-supplied lines.

In Japan, cellular phone service was first introduced in 1979. The number of mobile ubscribers exceeded that of fixed phones late 2000.

In Korea, cellular phone service was first introduced in 1984. In 2000, the number of
subscribers exceeded that of fixed telephony.

Finland was the first country to introduce the digital GSM standard in 1992. Mobile revenue surpassed fixed line revenue in 1997.

58% of All U.S. Web Users Visit Social Networking Sites

As popular as social networking has proven to be--eMarketer now says 58 percent of U.S. Internet users visit a social networking site at least once a month--there have been questions about Facebook's business model. The answer typically has been that "a model will be found," as improbably as was the case for Google before it.

Advertising and e-commerce have been the most-frequent answers to the question of how any widely-used "free to use" application can support itself over time. And despite some "privacy" stumbles of late, Facebook continues to explore ways to position itself as an advertising venue, despite some obstacles, related in part to fragmented use of the service (there is no single "home page" everybody goes to, which would create a huge venue for display ads) and the suitability of the content environment (YouTube has the same basic problem).

Still, the rule in media is that whenever a sufficient number of "eyeballs" can be aggregated, advertising becomes viable.

eMarketer estimates that 57.5 percent of Internet users, or 127 million people, will use a social network at least once a month in 2010. That's eyeballs.

Monday, May 24, 2010

Social Networking and Brand Building: B2C Works Better than B2B

The top 10 brands on Facebook, according to number of fans suggests a couple of obvious "lessons" for marketers. All of the top-10 brands are in the consumer space, and all tend to have "enterprise" size marketing budgets. Facebook itself is in the top position, but ignoring that, the list looks like:

#2 Starbucks 7,266,488 Fans
#3 Coca-Cola 5,567,046 Fans
#4 YouTube 5,114,322 Fans
#5 Red Bull 3,727,372 Fans
#6 Disney 3,488,088 Fans
#7 Victoria’s Secret 3,470,724 Fans
#8 Converse 2,749,691 Fans
#9 McDonald’s 2,270,109 Fans
#10 H&M 2,062,377 Fans
#11 MTV 1,924,744 Fans"

In the business-to-business space, and especially for any firm that is small or mid-sized, Twitter probably is a better bet.

DIY and Licensed GenAI Patterns Will Continue

As always with software, firms are going to opt for a mix of "do it yourself" owned technology and licensed third party offerings....