Thursday, October 27, 2011
Social Media ROI Still Tough to Measure
Since marketing is a "staff" function rather than a "line" function, it is hard to measure results. That's not unusual, as it can be hard to measure the return on investment from lots of other business activities, ranging from finance and accounting to legal support or most forms of operations support that are not customer-facing.
On the other hand, marketers "need to prove" to resource allocation authorities that return from content or other forms of marketing actually can be measured. That's the driver behind current desire for better measurement of social and content marketing efforts.
Only 13 percent of respondents in a recent Chief Marketer survey thought they were very effective at measuring social media campaigns, while 47 percent said somewhat effective, 28 percent said not very effective and 12 percent said not at all effective.
Data from the August 2011 Chief Marketer “2011 Social Marketing Survey” found that only 26 percent of marketing professionals saw amassing total followers as an aim for social media marketing. More popular goals included driving traffic to a website (66 percent), generating sales or leads (48 percent), and identifying and addressing brand fans (47 percent).
The most popular tactic among survey respondents was including a social sharing button in emails or on a company website, with 69 percent of respondents saying they did that. Additionally, 59 percent offered unique content for social media fans and followers, 58 percent had a Facebook “like” button on their websites and social pages, and 54 percent posted videos to social video sites. Marketers Seek to Measure Social Media Success
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Why Did Amazon Profits Take A Hit? It Is Investing In The Future (Content And Web Services) | TechCrunch
If one is going to slam Netflix for investing in its future, one might as well add Amazon to this list. Amazon’s third quarter 2011 profits are down 73 percent and on Oct. 25, 2011 is being slammed in after-hours trading (down $28 a share).
Orders for the new Kindle Fire apparently are substantially above what Amazon had projected, so Amazon is building millions more units than it originally expected.
Amazon also is ramping up investments in the backend infrastructure to support all the digital media it expects people will want to consume on their Kindles, especially their Kindle Fires. Amazon spent $769 million on “technology and content” in the quarter, up 74 percent from a year ago.
As also was the case at Netflix, revenues were up, in Amazon's case, up 44 percent to $10.9 billion.
Orders for the new Kindle Fire apparently are substantially above what Amazon had projected, so Amazon is building millions more units than it originally expected.
Amazon also is ramping up investments in the backend infrastructure to support all the digital media it expects people will want to consume on their Kindles, especially their Kindle Fires. Amazon spent $769 million on “technology and content” in the quarter, up 74 percent from a year ago.
Sometimes companies have to take risks. Sometimes they have to invest. Investors don't like the quarterly fluctuations.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Will Consumers Use More Than One Mobile Wallet?
It might not make as much sense for consumers to use multiple "mobile wallet services" compared to a single repository for credentials, but on the other hand there might be some compelling reasons to do so, as when a particular retailer does not support multiple wallet services. Also, despite the initial set-up of credentials in any wallet system, how much on-going hassle is it for a consumer to use multiple platforms?
In some cases, the offers available on leading wallet services might be different, meaning consumers can take advantage of multiple offers. From a retailer's point of view, fewer is better, for logistical reasons. But in all cases, it is arguably true that mobile wallets have an immediate advantage for retailers that "mobile payments" do not.
Mobile payments will require greater investment in terminal equipment and systems. Mobile wallets will also require some investment, but where a new "mobile payment" scheme offers questionable or subtle benefits for a retailer.
Mobile wallets are a vehicle for customer loyalty, customer acquisition and probably average sale size as well. That's quite a bit more substantial and immediate than simply adding one new form of payment.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Smartphones and Tablets Drive Nearly 7 Percent of Total U.S. Digital Traffic - comScore, Inc
Wi-Fi Offload podcast |
And users are shifting 37 percent of their mobile device access to fixed connections, using Wi-Fi. The percentage of usage grew nearly three percentage points in just three months.
In August 2011, nearly 10 percent of traffic from tablets used a mobile network connection, a fact of some importance for mobile service providers, since that means additional revenue.
Today, half of the total U.S. mobile population uses mobile media. The mobile media user population (those who browse the mobile web, access applications, or download content) grew 19 percent in the past year to more than 116 million people at the end of August 2011.
Labels:
mobile broadband,
smart phone,
tablet,
Wi-Fi offload
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
France Telecom Revenue, Profit Fall as Evolution Continues
France Telecom’s third-quarter 2011 profit fell by 5.2 percent to €3.99 billion. All regions in which it operates, except Spain, had negative results. In France, revenue dipped 4.6 percent.
But France Telecom grew customers by 8.6 percent, pointing to a profit margin erosion issue. France Telecom attributes 1.7 percent of the revenue pressure to regulatory change.
Some of the revenue weakness was caused by a delay in iPhone 4 availability, while slower SMS, voice and roaming income also played a role, as did declining home phone line connections. On the other hand, France Telecom is doing better on the market share front, and loss of landline accounts is slowing.
Everything Everywhere, the joint venture with Deutsche Telekom’s T-Mobile UK, also saw revenue dip by 4.3 percent, with data and text messaging revenue growing 14 percent to comprise 42 percent of average per-customer revenue.
To be sure, the key revenue trends France Telecom is facing have been in place since the mid-2000s. As data from 2007 shows, mobile operators were almost certain to see a shift of revenue from voice to other services in the future, if only because mobile voice essentially was saturated, calling prices were high and VoIP alternatives were coming.
Also, a 2007 estimate of landline and mobile provider revenue contributors in five additional years showed about what one would expect. Analysts at the Yankee Group expected revenue from mobile data and TV, as well as broadband to be high-growth areas, and one would have to agree that has been the case. Beyond that, it has been much less clear what additional lines of business could fuel equivalent growth.
Up to this point, France Telecom primarily has used out-of-region strategies to maintain its growth, a strategy that is not exhausted.
But France Telecom grew customers by 8.6 percent, pointing to a profit margin erosion issue. France Telecom attributes 1.7 percent of the revenue pressure to regulatory change.
Some of the revenue weakness was caused by a delay in iPhone 4 availability, while slower SMS, voice and roaming income also played a role, as did declining home phone line connections. On the other hand, France Telecom is doing better on the market share front, and loss of landline accounts is slowing.
Everything Everywhere, the joint venture with Deutsche Telekom’s T-Mobile UK, also saw revenue dip by 4.3 percent, with data and text messaging revenue growing 14 percent to comprise 42 percent of average per-customer revenue.
To be sure, the key revenue trends France Telecom is facing have been in place since the mid-2000s. As data from 2007 shows, mobile operators were almost certain to see a shift of revenue from voice to other services in the future, if only because mobile voice essentially was saturated, calling prices were high and VoIP alternatives were coming.
Also, a 2007 estimate of landline and mobile provider revenue contributors in five additional years showed about what one would expect. Analysts at the Yankee Group expected revenue from mobile data and TV, as well as broadband to be high-growth areas, and one would have to agree that has been the case. Beyond that, it has been much less clear what additional lines of business could fuel equivalent growth.
Up to this point, France Telecom primarily has used out-of-region strategies to maintain its growth, a strategy that is not exhausted.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
CTIA Backs Net Neutrality Rules
CTIA-the Wireless Association, a trade group that represents wireless carriers, filed a motion in federal court supporting the Federal Communications Commission's net neutrality regulations. CTIA backs net neutrality rules:
Four public interest groups, including Free Press, have sued the FCC, arguing that the agency's net neutrality rules do not go far enough.
Four public interest groups, including Free Press, have sued the FCC, arguing that the agency's net neutrality rules do not go far enough.
The CTIA filing might strike some as odd, to the extent that the industry group is supporting mandatory "best effort only" broadband access. Sometimes, half a loaf is better than no loaf. The rules allow mobile service providers greater freedom to manage their networks, in principle also preserving the ability to create quality of service mechanisms.
Even for service providers that operate both fixed and mobile networks, freedom for the strategic mobile business means it is an acceptable compromise to give up the ability to create quality of service mechanisms for fixed line broadband access.
Of course, there already is a challenge to all of the rules, filed by Verizon Wireless, so fixed-line interests are not completely sacrificed as a result of CTIA support for the net neutrality rules.
For some, net neutrality is about denying ISPs the legal right to create new revenue-generating products that create quality of service mechanisms, as this is said to create a "two tier" Internet. Sometimes people mistakenly believe it is about "content blocking."
In the former case, if there are restraint of trade issues, they can be dealt with by the Federal Trade Commission. There is a legitimate concern that ISPs might favor their own services over rival services by applying QoS only to "owned" services, not to all services willing to pay for such QoS. But many would note that other remedies already exist for such situations.
In the latter case, the FCC and all ISPs already have agreed that consumers have the right to access all lawful content.
For others it is about both consumer choice and network management, in the former case the right of a consumer to buy services that optimize voice, video or gaming experiences, in the latter case the simple necessity of managing a shared resource. In either case, anti-competitive conduct can be restrained by either effective market competition or the FTC.
Even for service providers that operate both fixed and mobile networks, freedom for the strategic mobile business means it is an acceptable compromise to give up the ability to create quality of service mechanisms for fixed line broadband access.
Of course, there already is a challenge to all of the rules, filed by Verizon Wireless, so fixed-line interests are not completely sacrificed as a result of CTIA support for the net neutrality rules.
For some, net neutrality is about denying ISPs the legal right to create new revenue-generating products that create quality of service mechanisms, as this is said to create a "two tier" Internet. Sometimes people mistakenly believe it is about "content blocking."
In the former case, if there are restraint of trade issues, they can be dealt with by the Federal Trade Commission. There is a legitimate concern that ISPs might favor their own services over rival services by applying QoS only to "owned" services, not to all services willing to pay for such QoS. But many would note that other remedies already exist for such situations.
In the latter case, the FCC and all ISPs already have agreed that consumers have the right to access all lawful content.
For others it is about both consumer choice and network management, in the former case the right of a consumer to buy services that optimize voice, video or gaming experiences, in the latter case the simple necessity of managing a shared resource. In either case, anti-competitive conduct can be restrained by either effective market competition or the FTC.
Labels:
CTIA,
FCC,
net neutrality,
Verizon
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Time Warner Cable Loses Residential Voice Subs
Time Warner Cable grew its residential voice services revenue, but lost subscribers in its third quarter of 2011. The loss was slight, about 8,000 customer accounts on a base of about 4.5 million, but shows that voice is no longer a leading contributor to Time Warner Cable residential customer revenue growth. Neither is video, where Time Warner Cable lost 128,000 accounts.
High-speed data continued to grow revenues and subscribers, but is was business services that are showing the fastest growth rates.
Though smaller revenue contributors than any of the residential services, business high-speed data grew at a 16.7 percent annual rate, while business voice revenues grew 57 percent and wholesale transport grew 80 percent year over year. Time Warner Cable loses residential voice customers
Wholesale revenue was paced by mobile tower backhaul revenues.
Wholesale revenue was paced by mobile tower backhaul revenues.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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