Tuesday, December 7, 2010

Net neutrality plan will likely pass, former chairman Powell says

The U.S. Federal Communications Commission will likely approve a network neutrality proposal from its current chairman later this month with the support of many large broadband providers, Michael Powell, former chairman of the agency, believes.

Powell questioned the need for new net neutrality rules, but he suggested that long-term uncertainty over the proposed regulations has held back investment in the telecom industry. "At the end of the day, it's time to move," Powell said during an Internet Innovation Alliance forum.

Moving Beyond the Click

The Internet has been called "the most measurable medium," in part because of the industry’s reliance on click-through rates (CTRs) to measure online advertising. But while clicks can be measured, they do not necessarily matter, at least not to the extent that many might have believed.

There are several reasons why CTRs are not the appropriate measure of display advertising’s effectiveness. Perhaps most notably is the fact that the majority of Internet users do not click on display ads, and the percentage of users who do is continuing to decrease over time.

New Google Maps, Tablet

How Internet Interconnection Works, as a Business Matter

You can decide what it tells you about the interconnection dispute between Comcast and Level 3 Communications.

Manpower Forecast of 2011 Hiring Plans

Seasonally adjusted data for the United States indicates the most optimistic first-quarter hiring sentiment in three years; yet 73 percent of employers indicate they will keep staff levels unchanged.

While we're seeing positive signals in the data, only time will tell if we've reached the inflection point in the U.S. labor market recovery, Manpower says.

To be sure, by formal definitions, and by some, not all data, the U.S. economy is in recovery mode. Sooner or later, the U.S. economy always recovers, with or without external "help." But it is some measure of the tenor of the times that the "most optimistic" forecast has 73 percent of survey respondents not doing anything about investing in growth, at least to the extent that hiring people is required for growth.

All of that is important for all firms in the communications and entertainment businesses, and most consumers, of course.

Groupon Thinks It Will be Facebook; Will it Be Yahoo?

It remains to be seen whether Groupon, which rejected a Google takeover last week, rumored to be about $6 billion, has made a once-in-a-lifetime decision that financially emulates Facebook or Yahoo. In other words, only time will tell whether Groupon should have taken Google's offer, given the misgivings many financial analysts might have had about Google "overpaying" for the asset. That phrase tends to indicate a good deal for the seller, and Groupon has passed, in hopes of doing even better, as Facebook has, as an independent company.

The story doesn't always end that way. Yahoo co-founder Jerry Yang refused to sell to Microsoft Corp. for $47.5 billion in 2008. After rejecting the deal, Yahoo saw its valuation cut in half. In retrospect, Yahoo missed its chance, and won't get another that rich, ever.

At Facebook, founder Mark Zuckerberg turned down a $1 billion offer from Yahoo in 2006. Less than five years later, the social- networking service is valued at more than 40 times that.

Morgan Stanley Bullish on Google Instant on Mobile

Scott Devitt, Morgan Stanley analyst, thinks Google Instant, especially as used on mobile phones, is a big winner, and will drive revenue growth. If so, that also implies upside for search revenue and its possible effectiveness. Devitt also believes rapidly-growing e-commerce activity seen in the fourth quarter of 2010 also portends more strength for search advertising.

Google Instant, which makes searching more efficient by displaying search results as users type, could drive increased user loyalty and market share, Devitt believes. As a secondary benefit, it could also drive revenue upside.

Given the rapid growth in mobile usage and penetration, Google Instant on mobile may eventually prove more important to Google than its desktop search, as important as that has been.

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....