Monday, January 24, 2011

Vendor Lock-in Issues for Infrastructure or Platform "As a Service"

It's an understandable concern enterprises may have about "infrastructure as a service" compared to "platform as a service." It is one thing to rent storage or compute cycles, another thing to rent the "middleware" elements as well.

Amazon'es "Elastic Beanstalk" is an example of the platform approach, and includes handling of deployment details of capacity provisioning, load balancing, auto-scaling, and application health monitoring.

At the same time, with Elastic Beanstalk, you retain full control over the AWS resources powering your application and can access the underlying resources at any time.

Elastic Beanstalk leverages Amazon Web Serves applications and features such as Amazon EC2, Amazon S3, Amazon Simple Notification Service, Elastic Load Balancing, and Auto-Scaling to deliver the same highly reliable, scalable, and cost-effective infrastructure that hundreds of thousands of businesses depend on today.

Small businesses that are not specifically app developers and providers, on the other hand, will not have such concerns, in most cases. To some extent, they will buy turned-up services supplied by firms that already have had to make those decisions.

Twitter Ad Revenue May Reach $150 Million This Year

Twitter will triple its advertising revenue to $150 million in 2011, and it might reach $250 million in revenue next year, research firm eMarketer predicts. That isn't an overwhelming number, but some will note that Facebook booked about that much when it first started its own advertising support efforts.

Twitter has so far managed to attract big advertisers such as American Express, Coca Cola, Nissan, HP and Starbucks, and companies such as Dell have proved they can promote their products well using Twitter even before it launched its promoted tweets program.

While "advertising" is not the magical answer for any application provider's revenue model, it has become key for the largest of consumer sites, and there's no doubt Twitter is among the larger sites.

Sunday, January 23, 2011

T-Mobile USA Plays on Old "Mac PC" Ads

Nice ad, since everybody knows the "Mac and PC" series.

Mobile Advertising Could Have a Big Year in 2011

Mobile marketing is finally catching on as a viable marketing and advertising platform, and will be the fastest growing of digital formats in 2011, according to a survey conducted by Deutsche Bank.

In addition to mobile, the fastest-growing online advertising categories in 2011 will be social media and online video, all of which are believed to be gaining share of wallet within online marketing budgets.

Classic display appears to be the most vulnerable to this shift. In fact, half of the respondents think display is losing share, and only 20 percent consider it is gaining share.

“It finally feels like the tipping point for mobile is here,” Deutsche Bank says in its report. “According to our media buyers, mobile will represent roughly five percent to seven percent of online budgets in 2011. That would imply spending of about $1 billion to $1.5 billion in the U.S. market, assuming total online spending of $28 billion.

Bad News for Big Media

Jim Breyer, venture capitalist at Accel Partner says “75 percent of new Internet company value in next 10 years will be created outside U.S.."

Also, he predicts that “80 percent to 90 percent of big media companies are dying a slow death.” For that reason, he as a venture capitalist "absolutely no way" would be investing in any new companies doing TV, newspapers, or magazines.”

SMS and Email Marketing: Complementary Rather than Substitutes

Mobile Marketing Infographics: Mobile Marketing Via SMS Compared To Email, Facebook And Twitter
There is some truth to the notion that text messaging campaigns are substitutes for email campaigns. There also is some truth to the notion that they are complementary.

The "personal" nature of text messaging and the high need for user opt in are key reasons why the channels mostly appeal to different types of retailer relationships. Text messages require some sort of pre-existing relationship. Perhaps email messages are supposed to require opt in as well, but frequently permission is more tacit than formally acknowledged.

A user that has opted in to receive SMS messages presumably already has significant interest in a particular product or retailer. Email messages can cover a wider range of consumers.

Mobile Video Consumption Up 47%

While the number of people watching videos on their mobile phones remains relatively small compared to TV, they are increasingly using the devices to that end. On a year-to-year basis, the number of people watching mobile video increased more than 43 percent, while the amount of time spent doing so was up almost seven percent, according to Nielsen.

 read more here

Overall Usage Number of Users 13+ (in 000s) – Monthly Reach
Q2 2010Q1 2010Q2 2009% Diff Yr to Yr
Using a Mobile Phone ^229,375229,495220,527+3.99%
Mobile Subscribers Watching Video on a Mobile Phone ^21,95720,28415,267+43.82%
Source: The Nielsen Company
As of Q2 2010, 22 million people watched video on a mobile device

Directv-Dish Merger Fails

Directv’’s termination of its deal to merge with EchoStar, apparently because EchoStar bondholders did not approve, means EchoStar continue...