The rules are intended to prohibit phone and cable companies blocking or discriminating against internet traffic over their broadband networks.
Net neutrality was one of the Obama administrations top campaign pledges to the technology industry.
Read More...
source BBC.com
By Maggie Shiels
Technology reporter, BBC News, Silicon Valley
Thursday, 2 December 2010
UK lags on broadband and mobile
Only a tiny percentage of UK homes have super-fast broadband and mobile speeds are slow compared to other nations, Ofcom has revealed.
In its annual International Communications Market report, the regulator said more needed to be done on fixed and mobile broadband.
Read more..
By Jane Wakefield
Technology reporter
source BBC.com
In its annual International Communications Market report, the regulator said more needed to be done on fixed and mobile broadband.
Read more..
By Jane Wakefield
Technology reporter
source BBC.com
Wednesday, 24 November 2010
The rising popularity of smartphones have increased need for data on the move
Virgin Media mulls nationwide wi-fi
Virgin Media is mulling the idea of creating a nationwide wi-fi network to compete with rival BT.
It said it had been inspired by cable operators who have launched wi-fi in other countries.
Read more on this here..
Virgin Media is mulling the idea of creating a nationwide wi-fi network to compete with rival BT.
It said it had been inspired by cable operators who have launched wi-fi in other countries.
Read more on this here..
Industry Head of YouTube Dara Nasr explains why the future of video advertising lies online
Dara Nasr
Industry Head of YouTube.
A third of web traffic is online video and Cisco predicts that this will rise to 90 per cent by 2013 so advertisers are taking notee. Recent IAB figures show that although all online advertising has grown, video is driving this with 82 per cent year on year growth in the first half of 2010.
In the early part of 2005 YouTube was born, a site created for friends to share clips. . From these humble origins, YouTube has grown: users are now watching 2bn streams a day on the site and they are now no longer merely watching clips. There are full-length shows, live concerts and sports events to grab their attention. When Harry Hill or Steve Coogan’s Alan Partridge debut their new TV shows, they do so on YouTube.
Like other forms of new media, it has taken advertisers a while to crack online video – but this year there’s evidence that they’ve really cracked it. According to Brand Week in the US, Old Spice’s genius YouTube/Twitter campaign has led to sales of their shower gel doubling. Tippex has produced a global impact from a brilliantly interactive campaign which pushed YouTube to its very limit.
Advertisers keen to embrace online video have a range of options. Virals have been a popular way of creating content and seeding it in the hope that it grows. Great creative can provide fantastic results but recent work from Millward Brown suggests that without proper promotion, most of that video will not succeed, instead getting lost amid the pure volume of YouTube’s content.
Undoubtedly the Video On Demand (VOD) market provides the easiest crossover from TV advertising and this is the largest area within video. Pre-roll advertising is continuing to grow and traditional broadcasters such as ITV and Channel 4 have benefited from this hugely. However, this space is changing. The ads are more interactive, driving consumer engagement or click-through which goes beyond pure TV creative.
Buying models are also evolving, giving the user more control over what they see. In the States, VivaKi have run a research project called The Pool which trialed various VOD ad formats, the most popular being the Ad Selector model where the user chooses one of three ads to watch before the content streams.
Similarly, YouTube are launching a skippable ad test where the user can skip the ad if they choose, and the client only pays if the ad is viewed. Both these new formats are priced on a cost-per-view basis which gives the advertiser the benefit of knowing that the viewer saw the ad because they chose to, rather than the ad being enforced upon them or merely serving as wallpaper. These innovations do not replace the traditional CPM reservation model but sit alongside it and perhaps broaden the appeal of pre-roll advertising to a wider group of clients.
Building on that thought, YouTube’s Promoted Video product launched in the UK in 2009 with the aim of allowing advertisers to keyword-target viewers. Again using a CPC model, this marries the search ad model with video. This has been a huge success in the UK with clients including Honda, O2 and Nokia adopting the format. However, this format is not exclusive to large advertisers. SMEs and start-us are using it very much as an entry point into online video advertising.
There has been no bigger success story than Orabrush, a product developed by a retired doctor to treat bad breath. Initially he could not sell the product to retailers so enlisted marketing students to help. Their research showed that 92 per cent of people would not be interested in the product. However the 8 per cent that would represented a huge opportunity. With their help he created a video for a couple of hundred dollars and promoted it on YouTube. Not the most sexy brand but through clever optimisation and relevant targeting, this video has received over 15m clicks and the company has become a multi-million dollar business.
Video will continue to grow in the future not just in popularity but also accessibility. All smartphones have video streaming functionality and we are seeing that smartphones owners are more engaged with and watch more video than those without the high-end devices. Additionally TV sets are now wifi enabled, and they all come with several video apps, allowing viewers to easily embrace VOD from their TV sets.
Online video goes beyond audio-visual advertising; it combines the breadth and reach of TV with the interactivity, creativity and accountability of online. As a result advertisers are now often putting online video at the heart of their plans and the flexibility around formats and pricing provides them with different opportunities for success.
Dara Nasr
Industry Head of YouTube
Industry Head of YouTube.
A third of web traffic is online video and Cisco predicts that this will rise to 90 per cent by 2013 so advertisers are taking notee. Recent IAB figures show that although all online advertising has grown, video is driving this with 82 per cent year on year growth in the first half of 2010.
In the early part of 2005 YouTube was born, a site created for friends to share clips. . From these humble origins, YouTube has grown: users are now watching 2bn streams a day on the site and they are now no longer merely watching clips. There are full-length shows, live concerts and sports events to grab their attention. When Harry Hill or Steve Coogan’s Alan Partridge debut their new TV shows, they do so on YouTube.
Like other forms of new media, it has taken advertisers a while to crack online video – but this year there’s evidence that they’ve really cracked it. According to Brand Week in the US, Old Spice’s genius YouTube/Twitter campaign has led to sales of their shower gel doubling. Tippex has produced a global impact from a brilliantly interactive campaign which pushed YouTube to its very limit.
Advertisers keen to embrace online video have a range of options. Virals have been a popular way of creating content and seeding it in the hope that it grows. Great creative can provide fantastic results but recent work from Millward Brown suggests that without proper promotion, most of that video will not succeed, instead getting lost amid the pure volume of YouTube’s content.
Undoubtedly the Video On Demand (VOD) market provides the easiest crossover from TV advertising and this is the largest area within video. Pre-roll advertising is continuing to grow and traditional broadcasters such as ITV and Channel 4 have benefited from this hugely. However, this space is changing. The ads are more interactive, driving consumer engagement or click-through which goes beyond pure TV creative.
Buying models are also evolving, giving the user more control over what they see. In the States, VivaKi have run a research project called The Pool which trialed various VOD ad formats, the most popular being the Ad Selector model where the user chooses one of three ads to watch before the content streams.
Similarly, YouTube are launching a skippable ad test where the user can skip the ad if they choose, and the client only pays if the ad is viewed. Both these new formats are priced on a cost-per-view basis which gives the advertiser the benefit of knowing that the viewer saw the ad because they chose to, rather than the ad being enforced upon them or merely serving as wallpaper. These innovations do not replace the traditional CPM reservation model but sit alongside it and perhaps broaden the appeal of pre-roll advertising to a wider group of clients.
Building on that thought, YouTube’s Promoted Video product launched in the UK in 2009 with the aim of allowing advertisers to keyword-target viewers. Again using a CPC model, this marries the search ad model with video. This has been a huge success in the UK with clients including Honda, O2 and Nokia adopting the format. However, this format is not exclusive to large advertisers. SMEs and start-us are using it very much as an entry point into online video advertising.
There has been no bigger success story than Orabrush, a product developed by a retired doctor to treat bad breath. Initially he could not sell the product to retailers so enlisted marketing students to help. Their research showed that 92 per cent of people would not be interested in the product. However the 8 per cent that would represented a huge opportunity. With their help he created a video for a couple of hundred dollars and promoted it on YouTube. Not the most sexy brand but through clever optimisation and relevant targeting, this video has received over 15m clicks and the company has become a multi-million dollar business.
Video will continue to grow in the future not just in popularity but also accessibility. All smartphones have video streaming functionality and we are seeing that smartphones owners are more engaged with and watch more video than those without the high-end devices. Additionally TV sets are now wifi enabled, and they all come with several video apps, allowing viewers to easily embrace VOD from their TV sets.
Online video goes beyond audio-visual advertising; it combines the breadth and reach of TV with the interactivity, creativity and accountability of online. As a result advertisers are now often putting online video at the heart of their plans and the flexibility around formats and pricing provides them with different opportunities for success.
Dara Nasr
Industry Head of YouTube
Tuesday, 23 November 2010
The birth of a UK tech giant
British chip designer ARM will soon be 20 years old. Bill Thompson was there at the start.
During the 1980s I worked at Acorn Computers in Cambridge, helping to develop the in-house engineering systems that were used by designers to create computers like the Archimedes, the popular successor to the BBC Microcomputer that had made Acorn's name during the BBC Computer Literacy project.
The computer on my desk was a BBC Model "B" microcomputer with a whopping 32 kilobytes of memory and, I believe, a 10 megabyte hard drive.
Read more...
During the 1980s I worked at Acorn Computers in Cambridge, helping to develop the in-house engineering systems that were used by designers to create computers like the Archimedes, the popular successor to the BBC Microcomputer that had made Acorn's name during the BBC Computer Literacy project.
The computer on my desk was a BBC Model "B" microcomputer with a whopping 32 kilobytes of memory and, I believe, a 10 megabyte hard drive.
Read more...
Enigma codebreaker Alan Turing's papers auctioned
Alan Turing killed himself after being prosecuted for having a sexual relationship with a manPapers published by World War II codebreaker Alan Turing are expected to fetch about £500,000 at auction later.
The Manchester University scientist, who killed himself in 1954, created a machine at Bletchley Park to crack messages in the German Enigma code.
Last year, the then prime minister Gordon Brown gave him a posthumous apology for the "appalling" treatment he received for being gay.
The documents will go under the hammer at Christie's in London later.
Turing, who has been called the "father of the computer", published only 18 papers in his short career.
He was prosecuted for having a sexual relationship with a man and two years later he committed suicide by biting into an apple which he had laced with cyanide.
He was found dead at his home in Wilmslow, Cheshire, where a plaque has been erected to pay tribute to him.
Turing's Bombe machine is viewed by many as the ancestor of the modern computer Since it was announced that the papers were going to be sold, IT journalist Gareth Halfacree has been trying to raise the cash to buy them and donate them to Bletchley Park Trust in Milton Keynes.
So far he has raised £85,000 having just received a £62,784 donation from Google.
"We are still a bit short of what we need but I still hope that Microsoft or Apple might donate at the last minute," Mr Halfacree said.
Bids for the collection, which contain his first published paper, his pioneering work on artificial intelligence and the very foundations of the digital computer, have to be submitted by 1030 GMT.
They will go under the hammer at 1400 GMT.
Mr Halfacree added: "If we do not raise enough, which is looking increasingly unlikely, I hope whoever buys it donates the papers to Bletchley Park so we can all benefit from them."
He said the money he has raised so far will still go to the trust whether it is used to buy the papers or not.
Viewers May Be Willing to Watch More Ads Online
VIEWERS of television shows on the Web have grown accustomed to 15- and 30-second commercial breaks — a fraction of the time given for commercials on traditional TV. Would they accept TV-style ad loads?
Jack Wakshlag, the chief research officer for Turner Broadcasting, the parent of TNT and TBS.
He says the answer is yes. Research conducted by Turner suggested that programmers could surround the online streams of shows with even more ads than TV broadcasts have.
Regardless of the ad load, Mr. Wakshlag said in an interview, “people will spend approximately the same amount of time watching episodes online.”
The research comes at a pivotal time for programmers like Turner, which would like to extend TV-style ad loads to the Internet. Turner and others are slowly extending their programs to the Internet for existing cable and satellite subscribers only, a concept sometimes called TV Everywhere. Heavier ad loads and restricted access will go a long way toward bringing TV on the computer in line with TV on the living room set.
To conduct the test of online viewers’ behavior, Turner randomly assigned three sets of anonymous visitors to tnt.tv and tbs.com to a specially built video player. There, the first set was shown about a minute of ads an episode; the second was shown 8 to 10 minutes of ads; and the third was shown 16 to 20 minutes.
Viewers of 30-minute TBS sitcoms like “Meet the Browns” watched, on average, 40 percent of the episode, including the ads, if there was one minute of ads and 37 percent of the episode if there were 16 minutes of ads. Viewers of hourlong TNT shows like “Memphis Beat” watched 59 percent of the episode if there were one minute 15 seconds of ads, and 49 percent of the episode if there was 20 minutes of ads.
Mr. Wakshlag’s takeaway was that viewers watched, on average, for the same number of minutes no matter how many ads were embedded within. Indeed, the Turner research highlighted one of the oddities of online TV viewing: viewers often do not watch an entire episode, just as they channel-surf while on the couch.
Turner also found that the commercial retention rate for online video was higher than for traditional television.
Mr. Wakshlag said the research, which was done in concert with Magna Global, affirmed that people would trade ad exposure for access to programming.
The CW network has reached the same conclusions in a real-world test. CW, the home of “Gossip Girl” and “The Vampire Diaries,” announced last spring that it would increase its ad load on cwtv.com, and since then, it has reported gains in video viewing and visitor retention. According to the measurement firm comScore, the Web site averaged 57 minutes of video viewing (a total of ads and content) per visitor in September, up 140 percent from the same month in 2009.
Some in the television industry continue to proselytize for fewer but better ads. Hulu, the dominant Web site for free TV viewing, notes on its Web site that it has about one-fourth the ad load of traditional TV, and that advertisers pay a premium to be in its less cluttered environment.
One of Hulu’s principles, as expressed by its chief executive, Jason Kilar, is, “When it comes to the amount of advertising, lighten up.” In an address at the industry conference NewTeeVee Live this month, Mr. Kilar compared the four minutes of ads on the half-hour “Alfred Hitchcock Presents” in the 1950s with the eight minutes of ads when NBC broadcasts “The Office” now, and said, “Where we are today is not the ideal balance.”
Hulu has been at the fore of coming up with ad products that give viewers more options to, for example, select among three types of commercials by a car company. Still, some Hulu users have noticed an uptick in the number of ads being streamed lately, perhaps evincing the complex calculations that are under way in the industry to increase ad loads and, in doing so, increase revenue for media companies.
Asked about the recent uptick in ads, a Hulu spokeswoman reiterated that the site had “less than half” the ads compared with “what is found on traditional TV.” The company said the lighter ad load and the tailoring efforts had “resulted in the advertising spots on Hulu being measured as at least 55 percent more effective than the same ads in traditional channels.”
The ads on Web sites like hulu.com, tbs.com and cwtv.com will continue to be better customized. But if this year’s tests indicate anything, it is that there will also be more of them.
Jack Wakshlag, the chief research officer for Turner Broadcasting, the parent of TNT and TBS.
He says the answer is yes. Research conducted by Turner suggested that programmers could surround the online streams of shows with even more ads than TV broadcasts have.
Regardless of the ad load, Mr. Wakshlag said in an interview, “people will spend approximately the same amount of time watching episodes online.”
The research comes at a pivotal time for programmers like Turner, which would like to extend TV-style ad loads to the Internet. Turner and others are slowly extending their programs to the Internet for existing cable and satellite subscribers only, a concept sometimes called TV Everywhere. Heavier ad loads and restricted access will go a long way toward bringing TV on the computer in line with TV on the living room set.
To conduct the test of online viewers’ behavior, Turner randomly assigned three sets of anonymous visitors to tnt.tv and tbs.com to a specially built video player. There, the first set was shown about a minute of ads an episode; the second was shown 8 to 10 minutes of ads; and the third was shown 16 to 20 minutes.
Viewers of 30-minute TBS sitcoms like “Meet the Browns” watched, on average, 40 percent of the episode, including the ads, if there was one minute of ads and 37 percent of the episode if there were 16 minutes of ads. Viewers of hourlong TNT shows like “Memphis Beat” watched 59 percent of the episode if there were one minute 15 seconds of ads, and 49 percent of the episode if there was 20 minutes of ads.
Mr. Wakshlag’s takeaway was that viewers watched, on average, for the same number of minutes no matter how many ads were embedded within. Indeed, the Turner research highlighted one of the oddities of online TV viewing: viewers often do not watch an entire episode, just as they channel-surf while on the couch.
Turner also found that the commercial retention rate for online video was higher than for traditional television.
Mr. Wakshlag said the research, which was done in concert with Magna Global, affirmed that people would trade ad exposure for access to programming.
The CW network has reached the same conclusions in a real-world test. CW, the home of “Gossip Girl” and “The Vampire Diaries,” announced last spring that it would increase its ad load on cwtv.com, and since then, it has reported gains in video viewing and visitor retention. According to the measurement firm comScore, the Web site averaged 57 minutes of video viewing (a total of ads and content) per visitor in September, up 140 percent from the same month in 2009.
Some in the television industry continue to proselytize for fewer but better ads. Hulu, the dominant Web site for free TV viewing, notes on its Web site that it has about one-fourth the ad load of traditional TV, and that advertisers pay a premium to be in its less cluttered environment.
One of Hulu’s principles, as expressed by its chief executive, Jason Kilar, is, “When it comes to the amount of advertising, lighten up.” In an address at the industry conference NewTeeVee Live this month, Mr. Kilar compared the four minutes of ads on the half-hour “Alfred Hitchcock Presents” in the 1950s with the eight minutes of ads when NBC broadcasts “The Office” now, and said, “Where we are today is not the ideal balance.”
Hulu has been at the fore of coming up with ad products that give viewers more options to, for example, select among three types of commercials by a car company. Still, some Hulu users have noticed an uptick in the number of ads being streamed lately, perhaps evincing the complex calculations that are under way in the industry to increase ad loads and, in doing so, increase revenue for media companies.
Asked about the recent uptick in ads, a Hulu spokeswoman reiterated that the site had “less than half” the ads compared with “what is found on traditional TV.” The company said the lighter ad load and the tailoring efforts had “resulted in the advertising spots on Hulu being measured as at least 55 percent more effective than the same ads in traditional channels.”
The ads on Web sites like hulu.com, tbs.com and cwtv.com will continue to be better customized. But if this year’s tests indicate anything, it is that there will also be more of them.
Digital vaccine needed to fight botnets
The equivalent of a government-backed vaccination scheme is needed to clean up the huge numbers of PCs hijacked by cyber criminals, suggests research.
In Europe, about 5-10% of PCs on broadband net links were hijacked and part of a botnet in 2009, it suggests.
ISPs are key to wresting control of these machines away from criminals, says the Dutch report.
Initiatives in Germany and Australia show how official help can boost efforts to clean up infected machines.
Home invasion
The survey of botnet numbers was carried out in an attempt to understand the scale of the problem and reveal the forces influencing how many PCs on a particular network are hijacked.
Botnets are typically networks of home computers that malicious hackers have managed to hijack by tricking their owners into opening a virus-laden e-mail or visiting a booby-trapped website.
They are then commonly used to pump out spam and attack websites.
It drew up its by analysing a pool of 170 million unique IP addresses culled from a spam trap that amassed more than 109 billion junk mail messages between 2005 and 2009
With 80-90% of all spam being routed through hijacked PCs these IP addresses were a good guide to where infected machines were located, said Professor Michel Van Eeten from the Delft University of Technology who lead the OECD-backed research.
Analysis of this huge corpus of data showed that about 50 ISPs were harbouring around half of all infected machines worldwide. Confirmation of this finding came from other non-spam sources - the 169 million IP addresses that were part of the Conficker botnet and 130 million IP addresses collected by net security watchdog SANS.
Telephone, Eyewire Calling customers to help clean up their PC can be a costly process
The numbers of machines on these networks varied widely, said Professor Van Eeten, but infected rates on individual networks were quite stable over time relative to each other.
What was also clear from the research, he said, was that ISPs were not going to be able to clean up the large numbers of infected machines without some kind of central aid. In Holland, ISPs have dramatically increased their efforts but are still only cleaning up about 10% of infected machines.
At the moment, he said, two bottlenecks were preventing ISPs doing more to clean up machines.
The first, he said, was the lack of comprehensive data about the numbers and location of infected machines.
An initiative by the Australian government to pool data on infections and provide it to the nation's ISPs showed how this could be overcome, said Prof Van Eeten.
"The second bottleneck is that it costs money to notify customers and get them to clean up their machine," he said.
"An incoming call is very costly especially as those kinds of calls need experts," he said. "ISPs can completely lose their profit margin on a customer like that."
South Korean and Germany had tackled this problem, he said, by setting up national call centres to which ISPs can refer infected customers where they can get advice about disinfecting their machine. The call centres are publicly funded - though Germany will only pay for its centres temporarily.
"Governments can be very helpful," he said.
Prof Van Eeten said the numbers and prevalence of botnets suggests we should perhaps see them as the modern-day equivalent of the epidemics that struck in Victorian times and prompted the creation of government-backed vaccination schemes.
A similar system delivering a digital vaccine might again be part of the solution, he said.
By Mark Ward Technology correspondent, BBC News
In Europe, about 5-10% of PCs on broadband net links were hijacked and part of a botnet in 2009, it suggests.
ISPs are key to wresting control of these machines away from criminals, says the Dutch report.
Initiatives in Germany and Australia show how official help can boost efforts to clean up infected machines.
Home invasion
The survey of botnet numbers was carried out in an attempt to understand the scale of the problem and reveal the forces influencing how many PCs on a particular network are hijacked.
Botnets are typically networks of home computers that malicious hackers have managed to hijack by tricking their owners into opening a virus-laden e-mail or visiting a booby-trapped website.
They are then commonly used to pump out spam and attack websites.
It drew up its by analysing a pool of 170 million unique IP addresses culled from a spam trap that amassed more than 109 billion junk mail messages between 2005 and 2009
With 80-90% of all spam being routed through hijacked PCs these IP addresses were a good guide to where infected machines were located, said Professor Michel Van Eeten from the Delft University of Technology who lead the OECD-backed research.
Analysis of this huge corpus of data showed that about 50 ISPs were harbouring around half of all infected machines worldwide. Confirmation of this finding came from other non-spam sources - the 169 million IP addresses that were part of the Conficker botnet and 130 million IP addresses collected by net security watchdog SANS.
Telephone, Eyewire Calling customers to help clean up their PC can be a costly process
The numbers of machines on these networks varied widely, said Professor Van Eeten, but infected rates on individual networks were quite stable over time relative to each other.
What was also clear from the research, he said, was that ISPs were not going to be able to clean up the large numbers of infected machines without some kind of central aid. In Holland, ISPs have dramatically increased their efforts but are still only cleaning up about 10% of infected machines.
At the moment, he said, two bottlenecks were preventing ISPs doing more to clean up machines.
The first, he said, was the lack of comprehensive data about the numbers and location of infected machines.
An initiative by the Australian government to pool data on infections and provide it to the nation's ISPs showed how this could be overcome, said Prof Van Eeten.
"The second bottleneck is that it costs money to notify customers and get them to clean up their machine," he said.
"An incoming call is very costly especially as those kinds of calls need experts," he said. "ISPs can completely lose their profit margin on a customer like that."
South Korean and Germany had tackled this problem, he said, by setting up national call centres to which ISPs can refer infected customers where they can get advice about disinfecting their machine. The call centres are publicly funded - though Germany will only pay for its centres temporarily.
"Governments can be very helpful," he said.
Prof Van Eeten said the numbers and prevalence of botnets suggests we should perhaps see them as the modern-day equivalent of the epidemics that struck in Victorian times and prompted the creation of government-backed vaccination schemes.
A similar system delivering a digital vaccine might again be part of the solution, he said.
By Mark Ward Technology correspondent, BBC News
Monday, 22 November 2010
Have click-through rates stabilized?
Click-through rate declines experienced in 2009 and 2010 seem to have leveled off at 0.09%, according to research from MediaMind. The report also found that users who don't see a large amount of ads are more apt to click through than those who view many ads..
The debate over whether click-through rates capture the full influence of online display advertising continues to remain top-of-mind for ad executives. Most believe this is only a partial measurement of online ad success. And although CTRs have declined steadily for the past few years, online ads continue to have an increasing influence on conversions and sales.
One reason for the debate -- declining CTRs. MediaMind (formerly Eyeblaster) released a study this week suggesting that CTRs have stopped declining, and have leveled off. There are a few explanations for this end to the decline of performance for standard banner ads, according to Ariel Geifman, principal research analyst at MediaMind.
For starters, he says, the industry has found a balance where the growth in the number of impressions does not outpace users' growth in clicks, resulting in an end to the decline of CTRs. Second, advertisers have become more sophisticated in their use of standard banners -- including the use of creative optimization, retargeting and behavioral targeting ads that increase performance.
The findings, released in a Global Benchmark Report, "Standard Banners -Non-Standard Results," suggest that global CTRs stopped declining in 2009 and 2010 and remained fixed at around 0.09%.
The study found that consumers who were exposed to relatively few ads are more likely to have a high CTR compared to those who are exposed to a high number of ads.
Ironically, the main reason for drop in CTR is the success of online display advertising, with the increase in the number of online ad impressions outpacing the rise in clicks by consumers. The CTR is only a partial measure of success -- about 20% of conversions are the result of a click. Advertisers can improve campaign performance with various steps such as targeted content, utilizing large standard banners, use of creative algorithms to boost CTR and retargeting.
Click-through rates have been declining during the past decade, with the greatest decrease of 18% occurring during the financial crisis. Yet in 2009 and 2010, this decline appears to have stopped. Both in 2009 and the first eight months of 2010, average CTRs remained around 0.09%. This indicates that online advertising performance has reached what MediaMind calls "equilibrium."
What caused this decline in CTR in the first place? Evidence shows that the success of online advertising has oddly been the prime cause for the decline in CTR performance, according to the report. As more budgets poured into display, users were exposed to more and more ads. The number of ads a user clicked on did not catch up with the number of ads users viewed, so it reduced the overall CTR.
Research by comScore suggests that two-thirds of Internet users do not click on any display ads during the course of a month, and only 16% of Internet users account for 80% of all clicks. It also indicates that display advertising continues to have an influence on user behavior even at low CTRs.
The debate over whether click-through rates capture the full influence of online display advertising continues to remain top-of-mind for ad executives. Most believe this is only a partial measurement of online ad success. And although CTRs have declined steadily for the past few years, online ads continue to have an increasing influence on conversions and sales.
One reason for the debate -- declining CTRs. MediaMind (formerly Eyeblaster) released a study this week suggesting that CTRs have stopped declining, and have leveled off. There are a few explanations for this end to the decline of performance for standard banner ads, according to Ariel Geifman, principal research analyst at MediaMind.
For starters, he says, the industry has found a balance where the growth in the number of impressions does not outpace users' growth in clicks, resulting in an end to the decline of CTRs. Second, advertisers have become more sophisticated in their use of standard banners -- including the use of creative optimization, retargeting and behavioral targeting ads that increase performance.
The findings, released in a Global Benchmark Report, "Standard Banners -Non-Standard Results," suggest that global CTRs stopped declining in 2009 and 2010 and remained fixed at around 0.09%.
The study found that consumers who were exposed to relatively few ads are more likely to have a high CTR compared to those who are exposed to a high number of ads.
Ironically, the main reason for drop in CTR is the success of online display advertising, with the increase in the number of online ad impressions outpacing the rise in clicks by consumers. The CTR is only a partial measure of success -- about 20% of conversions are the result of a click. Advertisers can improve campaign performance with various steps such as targeted content, utilizing large standard banners, use of creative algorithms to boost CTR and retargeting.
Click-through rates have been declining during the past decade, with the greatest decrease of 18% occurring during the financial crisis. Yet in 2009 and 2010, this decline appears to have stopped. Both in 2009 and the first eight months of 2010, average CTRs remained around 0.09%. This indicates that online advertising performance has reached what MediaMind calls "equilibrium."
What caused this decline in CTR in the first place? Evidence shows that the success of online advertising has oddly been the prime cause for the decline in CTR performance, according to the report. As more budgets poured into display, users were exposed to more and more ads. The number of ads a user clicked on did not catch up with the number of ads users viewed, so it reduced the overall CTR.
Research by comScore suggests that two-thirds of Internet users do not click on any display ads during the course of a month, and only 16% of Internet users account for 80% of all clicks. It also indicates that display advertising continues to have an influence on user behavior even at low CTRs.
AOL, YouTube and Yahoo! show strength in rich media display ads
For the past few months, AOL (NYSE: AOL), Yahoo (NSDQ: YHOO) and YouTube (NSDQ: GOOG) have turned to huge takeover ads as a way to attract premium brand dollars as the display market has picked up markedly over last year. Takeover ads or splash pages come in various formats, but most tend to serve as a way to show premium rich media ads. Macquarie analyst Ben Schachter took a look at which sites are using takeovers during the first half of this quarter and found that most are adopted homepage takeovers as part of their display ad strategy.
The one laggard, however, is MSN, which had the lowest amount of takeovers and rich media ads among its chief rivals, suggesting Microsoft (NSDQ: MSFT) might be having some difficulty selling out its homepage inventory, Schachter found in his study.
When it comes to online brand advertising, size does matter if you’re talking about the potential to drive up premium ad prices, and most media sites have been ramping up their use of huge takeover ads over the past few months. The promise of larger ads, which have been promoted heavily by the Online Publishers Association over the past year, is that it will attract more creativity and place for rich media ads. After all, the static banner ad is the bane of premium publishers, as the format is best used for cheaper, direct response “click here now” types of advertising.
The report doesn’t directly say that the bigger ad units have been driving more revenue, but it’s pretty safe to assume that if companies are able to drive up CPMs, address issues of clutter and reduce their reliance on low performing remnant ads, they should be able to better capitalize on the display ad recovery that is expected to continue into next year.
Oversized/custom ad units accounted for 44 percent of all homepage ad units across Yahoo, AOL, YouTube and MSN during the first half Q4. Just looking at the three portals, takeovers accounted for 26 percent of all homepage ads across the portals up from 18 percent during Q3.
Aggressive adopters: Takeovers made up 23 percent of daily homepage inventory for Yahoo, which has seen its display revenues rise 17 percent in Q3. AOL, which is still getting ready to rollout its Project Devil takeover program, nevertheless had the highest percentage of takeovers with 36 percent of its ads using that format. Along with the residual effects of the ad recovery, AOL used these premium placements to arrest its display declines in the past quarter. The company has attributed those declines to the continuing restructuring of its ad sales and ad placements, and CEO Tim Armstrong has said that that business should rebound before the middle of next year.
Media are main advertisers: Given how much media companies are depending on takeover ads to build up their ad revenues, it’s not too surprising that firms in that space are the most aggressive in using those placements to promote their businesses. Media companies made up 23 percent of the takeover ads placed on the four properties Macquarie looked at. For example, Yahoo struck a pretty big ad deal during Q3 with CBS (NYSE: CBS), which used the takeover format to promote its fall season. Next in line were automotives, which were just under 20 percent, followed by financial services firms at around 12 percent. Health and pharma, retail and telecoms hovered around the 10 percent range. Consumer packaged goods and insurance comprised barely 2 percent of the marketers using takeovers.
All about branding: Much to publishers’ delight, branding was the most popular reason marketers used the takeover ads, though direct response has found a way to use the larger formats as well. Brand ads accounted for 57 percent of takeovers, while 28 percent were devoted to direct response. About 45 percent of the takeover ads presented by MSN were used by direct response. About 15 percent of takeovers were represented by what Macquarie identified as hybrids of both marketing plays.
YouTube is canvas for media: About 55 percent of the homepage ads on YouTube that Macquarie counted came from media companies. All the big names did takeovers, including Time Warner (NYSE: TWX), News Corp. (NSDQ: NWS), NBC Universal (NYSE: GE), as did smaller ones such as Lionsgate (NYSE: LGF). Video game publishers including Activision (NSDQ: ATVI), Electronic Arts (NSDQ: ERTS) and Ubisoft bought homepage inventory in the past two months.
Staci D. Kramer
The one laggard, however, is MSN, which had the lowest amount of takeovers and rich media ads among its chief rivals, suggesting Microsoft (NSDQ: MSFT) might be having some difficulty selling out its homepage inventory, Schachter found in his study.
When it comes to online brand advertising, size does matter if you’re talking about the potential to drive up premium ad prices, and most media sites have been ramping up their use of huge takeover ads over the past few months. The promise of larger ads, which have been promoted heavily by the Online Publishers Association over the past year, is that it will attract more creativity and place for rich media ads. After all, the static banner ad is the bane of premium publishers, as the format is best used for cheaper, direct response “click here now” types of advertising.
The report doesn’t directly say that the bigger ad units have been driving more revenue, but it’s pretty safe to assume that if companies are able to drive up CPMs, address issues of clutter and reduce their reliance on low performing remnant ads, they should be able to better capitalize on the display ad recovery that is expected to continue into next year.
Oversized/custom ad units accounted for 44 percent of all homepage ad units across Yahoo, AOL, YouTube and MSN during the first half Q4. Just looking at the three portals, takeovers accounted for 26 percent of all homepage ads across the portals up from 18 percent during Q3.
Aggressive adopters: Takeovers made up 23 percent of daily homepage inventory for Yahoo, which has seen its display revenues rise 17 percent in Q3. AOL, which is still getting ready to rollout its Project Devil takeover program, nevertheless had the highest percentage of takeovers with 36 percent of its ads using that format. Along with the residual effects of the ad recovery, AOL used these premium placements to arrest its display declines in the past quarter. The company has attributed those declines to the continuing restructuring of its ad sales and ad placements, and CEO Tim Armstrong has said that that business should rebound before the middle of next year.
Media are main advertisers: Given how much media companies are depending on takeover ads to build up their ad revenues, it’s not too surprising that firms in that space are the most aggressive in using those placements to promote their businesses. Media companies made up 23 percent of the takeover ads placed on the four properties Macquarie looked at. For example, Yahoo struck a pretty big ad deal during Q3 with CBS (NYSE: CBS), which used the takeover format to promote its fall season. Next in line were automotives, which were just under 20 percent, followed by financial services firms at around 12 percent. Health and pharma, retail and telecoms hovered around the 10 percent range. Consumer packaged goods and insurance comprised barely 2 percent of the marketers using takeovers.
All about branding: Much to publishers’ delight, branding was the most popular reason marketers used the takeover ads, though direct response has found a way to use the larger formats as well. Brand ads accounted for 57 percent of takeovers, while 28 percent were devoted to direct response. About 45 percent of the takeover ads presented by MSN were used by direct response. About 15 percent of takeovers were represented by what Macquarie identified as hybrids of both marketing plays.
YouTube is canvas for media: About 55 percent of the homepage ads on YouTube that Macquarie counted came from media companies. All the big names did takeovers, including Time Warner (NYSE: TWX), News Corp. (NSDQ: NWS), NBC Universal (NYSE: GE), as did smaller ones such as Lionsgate (NYSE: LGF). Video game publishers including Activision (NSDQ: ATVI), Electronic Arts (NSDQ: ERTS) and Ubisoft bought homepage inventory in the past two months.
Staci D. Kramer
EU grapples with Internet regulations
Europe's effort to regulate online "cookies" is crumbling, exposing how tough it is to curb the practice of tracking Internet users' movements on the Web.
We need a user-friendly solution,' says EU Commissioner Neelie Kroes, left.
.Seeking to be a leader in protecting online privacy, the European Union last year passed a law requiring companies to obtain consent from Web users when tracking files such as cookies are placed on users' computers. Enactment awaits action by member countries.
Now, Internet companies, advertisers, lawmakers, privacy advocates and EU member nations can't agree on the law's meaning. Is it sufficient if users agree to cookies when setting up Web browsers? Is an industry-backed plan acceptable that would let users see—and opt out of—data collected about them? Must placing cookies on a machine depend on the user checking a box each time?
Read more...
We need a user-friendly solution,' says EU Commissioner Neelie Kroes, left.
.Seeking to be a leader in protecting online privacy, the European Union last year passed a law requiring companies to obtain consent from Web users when tracking files such as cookies are placed on users' computers. Enactment awaits action by member countries.
Now, Internet companies, advertisers, lawmakers, privacy advocates and EU member nations can't agree on the law's meaning. Is it sufficient if users agree to cookies when setting up Web browsers? Is an industry-backed plan acceptable that would let users see—and opt out of—data collected about them? Must placing cookies on a machine depend on the user checking a box each time?
Read more...
Friday, 19 November 2010
Some Pushdown Examples from the BBC Website
A Pushdown ad appears on screen as a narrow strip (970 wide by 66 tall), expands for 7 seconds to 970 wide by 418 tall and automatically closes for a 1/24x frequency. Controls allow consumer to open and close unit at any time...
see some of the Pushdown ads.
Cadillac CTS
Mweb South Africa
chanel Bleu
Jaguar
Barclays
Xerox
A Pushdown ad appears on screen as a narrow strip (970 wide by 66 tall), expands for 7 seconds to 970 wide by 418 tall and automatically closes for a 1/24x frequency. Controls allow consumer to open and close unit at any time...
see some of the Pushdown ads.
Cadillac CTS
Mweb South Africa
chanel Bleu
Jaguar
Barclays
Xerox
Wednesday, 17 November 2010
New mobile ad formats pushing capacity of operator networks
This week should see the announcement of the first brands to use iAd in Europe, a format which promises to deliver a smooth and interactive ad experience on mobile devices. After launching in the US over the summer, most agencies have been impressed by the functionality iAd brings to in-app advertising while at the same time being somewhat taken aback by the huge budgets required to be a launch partner. That aside, it will be joining offerings such as YOC’s “Ad Plus” format to push the limits of what can be done with mobile advertising.
However, one of the challenges facing ad networks trying to deliver these formats is that they are at the mercy of the quality of the network signal. If you click on an ad on your PC, it will be a rare occasion that it won’t work perfectly. Do the same on mobile with a rich media ad and users can sometimes find themselves faced with an irritating delay before the content is delivered. It is an issue that can be solved by targeting campaigns so that they are only seen by people accessing the ad via Wi-Fi or 3G but this obviously reduces the potential reach of campaigns. The fact of the matter is that we have now hit a point where slow data speeds are hindering the ability to deliver the very best ad formats. The solution here in the UK will ultimately come in the form of mass 3G handset adoption, a Wi-Fi blanket being placed across cities or better still the roll out of 4G mobile services which can deliver super fast broadband speeds to your handset. Sadly however, the UK is lagging behind the rest of the world in implementing the 4G infrastructure. In the USA Verizon expect to cover 38 cities with LTE (A Mobile Network Technology marketed as 4G) by the end of the year, Sweden expect to have 99% of their population covered by LTE by the end of 2011 and Germany and Denmark are on a similar path. Despite O2 having run a successful trial of 4G in Slough last year, the 4G spectrum auction is a probably a year away meaning services are unlikely to launch in the UK before 2012.
It’s a slightly frustrating situation for all those involved in the mobile ad world but smart work-arounds and more data efficient ways of serving ads will be found before 4G takes off. The incentive for the operators is clear, better speeds will mean more people hitting the mobile web, which in turn leads to M-Commerce really taking off. If Operators then get themselves into a position to allow people to add goods and services to their mobile bill they can take a cut of the transactions or act as a credit card to their subscribers.
Tue, 16/11/2010
by James Tagg
However, one of the challenges facing ad networks trying to deliver these formats is that they are at the mercy of the quality of the network signal. If you click on an ad on your PC, it will be a rare occasion that it won’t work perfectly. Do the same on mobile with a rich media ad and users can sometimes find themselves faced with an irritating delay before the content is delivered. It is an issue that can be solved by targeting campaigns so that they are only seen by people accessing the ad via Wi-Fi or 3G but this obviously reduces the potential reach of campaigns. The fact of the matter is that we have now hit a point where slow data speeds are hindering the ability to deliver the very best ad formats. The solution here in the UK will ultimately come in the form of mass 3G handset adoption, a Wi-Fi blanket being placed across cities or better still the roll out of 4G mobile services which can deliver super fast broadband speeds to your handset. Sadly however, the UK is lagging behind the rest of the world in implementing the 4G infrastructure. In the USA Verizon expect to cover 38 cities with LTE (A Mobile Network Technology marketed as 4G) by the end of the year, Sweden expect to have 99% of their population covered by LTE by the end of 2011 and Germany and Denmark are on a similar path. Despite O2 having run a successful trial of 4G in Slough last year, the 4G spectrum auction is a probably a year away meaning services are unlikely to launch in the UK before 2012.
It’s a slightly frustrating situation for all those involved in the mobile ad world but smart work-arounds and more data efficient ways of serving ads will be found before 4G takes off. The incentive for the operators is clear, better speeds will mean more people hitting the mobile web, which in turn leads to M-Commerce really taking off. If Operators then get themselves into a position to allow people to add goods and services to their mobile bill they can take a cut of the transactions or act as a credit card to their subscribers.
Tue, 16/11/2010
by James Tagg
Google urges U.S. to treat Internet curbs as trade threat
(Reuters) - Google Inc urged Western nations on Monday to challenge restrictions in China and other countries on the free flow of information over the Internet as a threat to free trade and to negotiate new deals to protect U.S. commercial interests harmed by the practices..
Read more
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Morgan Stanley's Meeker Sees Online Ad Boom
(Bloomberg) — Mary Meeker will predict a $50 billion online advertising boom in an address at the annual Web 2.0 Summit in San Francisco today. The Morgan Stanley analyst will say as well that mobile commerce may gain market share faster than traditional online retailing.
Meeker, 51, is back in demand. She was called "Queen of the Net" by Barron's in 1998, only to see her star dim as technology stocks plunged and regulators said securities firms used biased research to lure banking business. These days, investors are scouring her research anew for would-be Web winners.
"We are trying to invest in the kinds of companies she'll mention in her reports," investor Marc Andreessen said in an interview.
Andreessen's venture firm, Andreessen Horowitz LLC, has bought stakes in Meeker-favored companies including Skype Technologies SA and Zynga Game Network Inc.
"She is becoming Mary Meeker 2.0," said Bing Gordon, a partner at venture capital firm Kleiner Perkins Caufield & Byers. Gordon said Meeker's research helped persuade his firm to "do more mobile, bigger and faster." In March, Kleiner Perkins said it will double its iFund to $200 million. The investment pool backs startups that create applications for Apple Inc.'s handheld devices, such as the iPhone and the iPad.
Bloomberg LP, the parent company of Bloomberg News, is an investor in Andreessen Horowitz.
Meeker gained renown in the 1990s for predictions on Internet growth and her bullish calls on Web companies, including EBay Inc., Amazon.com Inc. and America Online Inc.
Tech Bust
Then came the dot-com bust in 2000. The Nasdaq lost 78 percent of its value in less than three years. In 2001, Fortune published a story titled, "Where Mary Meeker Went Wrong." In 2003, after the U.S. Securities and Exchange Commission accused Morgan Stanley and other financial services firms of skewed analysis, the companies settled for $1.4 billion.
Meeker fared better than analysts such as Henry Blodget, formerly of Merrill Lynch & Co., who was fined and banned for life from the securities industry; the SEC didn't accuse Meeker of wrongdoing. Still, then-New York Attorney General Eliot Spitzer, who led the probe by state and federal authorities, said Morgan Stanley failed to supervise its analysts, including Meeker, and said the company inadequately managed conflicts of interest between its research and investment-banking divisions.
"She may have a second act, which is never an easy thing to do on Wall Street," said Tom Taulli, an independent researcher on initial public offerings. "But she is going to have to prove herself. And it's very difficult: You are associated with that brand."
Digging for Data
Meeker says the brickbats flung her way haven't altered the way she carries out research. She said Morgan Stanley's "The Internet Report" in 1995 contended that most companies fail.
"To be a successful analyst, one has to dig deep for data," Meeker said in an interview. The report "was thoughtful about the growth of the Internet, yet cautious about investments."
Meeker, a managing director who leads Morgan Stanley's technology research, spends much of her time these days thinking about the Web in the iPhone age. In 2012, smartphone shipments will exceed those of personal computers, she contends.
"It's the fastest-ramping technology transformation the world has ever seen," Meeker said. "I've been of the view for years that the mobile Internet was the next big thing."
U.S. consumers spend 28 percent of their media time online, yet only 13 percent of ad spending goes to the Internet. That creates a $50 billion online advertising "global opportunity," according to a draft of Meeker's Web 2.0 presentation.
Mobile Commerce
Another prediction: Mobile commerce may grab retail spending share "much faster" than traditional e-commerce, she says. That's because wireless connections enable impulse purchases, and location-based services let merchants deliver coupons and offers to users when they're most likely to spend.
Some of Meeker's current thinking was outlined in her Mobile Internet Report, a 424-page tome published last year, the culmination of four years of research.
Yuri Milner, chairman of Russian Internet company Mail.ru Group Ltd., calls it "the best of what's been written in this field." Mail.ru raised $912 million this month on the London Stock Exchange with Morgan Stanley among the arrangers.
Meeker, an Indiana native who graduated from DePauw University and earned an MBA from Cornell University, says she draws on personal experience, as well as data analysis and company research, to form her views..
Scottish 'Epiphany'
She says she had an "epiphany" last year after a three- hour hike on the coast of Scotland, near St. Andrews. A friend who accompanied her on the hike used a Research In Motion Ltd. BlackBerry to snap photos and had posted them to Facebook by the time Meeker returned to her lodging.
"We could get to a point where a very material portion of content on the Internet is created on Facebook with mobile devices," said Meeker, who spends much of her time in New York, and has a home in Woodside, in California's Silicon Valley.
Another realization came during a recent plane ride between Washington and New York. In an informal survey of fellow first- class passengers, Meeker found four iPad tablet computers, including her own, and surmised that business users are adopting the iPad more quickly than she had expected. Besides the iPad, Meeker also boasts a Macintosh, two PCs that run Microsoft Corp.'s Windows operating system, an iPhone, an Amazon Kindle e- reader, and several iPod music players.
Executives of companies covered by Meeker say her research is as probing now as it was more than a decade ago.
3 a.m. Calls
Ken Goldman was chief financial officer of Excite At Home Corp., a Redwood City, California-based Internet-service provider Meeker covered. He recalls receiving phone calls at home at midnight from Meeker in New York, where it was 3 a.m.
"I used to dread those calls, actually," he said. "It was never a 10-minute call; it lasted 45 minutes to an hour."
Goldman now is CFO of security software maker Fortinet Inc., which went public last year with Morgan Stanley as an underwriter.
This year marks the seventh-straight year Meeker is speaking at the Web 2.0 conference. She packs a lot into her 10- minute presentation, said John Battelle, executive producer of the Web 2.0 Summit. Last year, she plowed through 75 slides in the time most presenters to cover a dozen, he said.
"The funny thing about Mary is, every year, she tries to deliver more slides in the same amount of time," Battelle said. "She may have mellowed a little bit over the years, but not much."
Meeker, 51, is back in demand. She was called "Queen of the Net" by Barron's in 1998, only to see her star dim as technology stocks plunged and regulators said securities firms used biased research to lure banking business. These days, investors are scouring her research anew for would-be Web winners.
"We are trying to invest in the kinds of companies she'll mention in her reports," investor Marc Andreessen said in an interview.
Andreessen's venture firm, Andreessen Horowitz LLC, has bought stakes in Meeker-favored companies including Skype Technologies SA and Zynga Game Network Inc.
"She is becoming Mary Meeker 2.0," said Bing Gordon, a partner at venture capital firm Kleiner Perkins Caufield & Byers. Gordon said Meeker's research helped persuade his firm to "do more mobile, bigger and faster." In March, Kleiner Perkins said it will double its iFund to $200 million. The investment pool backs startups that create applications for Apple Inc.'s handheld devices, such as the iPhone and the iPad.
Bloomberg LP, the parent company of Bloomberg News, is an investor in Andreessen Horowitz.
Meeker gained renown in the 1990s for predictions on Internet growth and her bullish calls on Web companies, including EBay Inc., Amazon.com Inc. and America Online Inc.
Tech Bust
Then came the dot-com bust in 2000. The Nasdaq lost 78 percent of its value in less than three years. In 2001, Fortune published a story titled, "Where Mary Meeker Went Wrong." In 2003, after the U.S. Securities and Exchange Commission accused Morgan Stanley and other financial services firms of skewed analysis, the companies settled for $1.4 billion.
Meeker fared better than analysts such as Henry Blodget, formerly of Merrill Lynch & Co., who was fined and banned for life from the securities industry; the SEC didn't accuse Meeker of wrongdoing. Still, then-New York Attorney General Eliot Spitzer, who led the probe by state and federal authorities, said Morgan Stanley failed to supervise its analysts, including Meeker, and said the company inadequately managed conflicts of interest between its research and investment-banking divisions.
"She may have a second act, which is never an easy thing to do on Wall Street," said Tom Taulli, an independent researcher on initial public offerings. "But she is going to have to prove herself. And it's very difficult: You are associated with that brand."
Digging for Data
Meeker says the brickbats flung her way haven't altered the way she carries out research. She said Morgan Stanley's "The Internet Report" in 1995 contended that most companies fail.
"To be a successful analyst, one has to dig deep for data," Meeker said in an interview. The report "was thoughtful about the growth of the Internet, yet cautious about investments."
Meeker, a managing director who leads Morgan Stanley's technology research, spends much of her time these days thinking about the Web in the iPhone age. In 2012, smartphone shipments will exceed those of personal computers, she contends.
"It's the fastest-ramping technology transformation the world has ever seen," Meeker said. "I've been of the view for years that the mobile Internet was the next big thing."
U.S. consumers spend 28 percent of their media time online, yet only 13 percent of ad spending goes to the Internet. That creates a $50 billion online advertising "global opportunity," according to a draft of Meeker's Web 2.0 presentation.
Mobile Commerce
Another prediction: Mobile commerce may grab retail spending share "much faster" than traditional e-commerce, she says. That's because wireless connections enable impulse purchases, and location-based services let merchants deliver coupons and offers to users when they're most likely to spend.
Some of Meeker's current thinking was outlined in her Mobile Internet Report, a 424-page tome published last year, the culmination of four years of research.
Yuri Milner, chairman of Russian Internet company Mail.ru Group Ltd., calls it "the best of what's been written in this field." Mail.ru raised $912 million this month on the London Stock Exchange with Morgan Stanley among the arrangers.
Meeker, an Indiana native who graduated from DePauw University and earned an MBA from Cornell University, says she draws on personal experience, as well as data analysis and company research, to form her views..
Scottish 'Epiphany'
She says she had an "epiphany" last year after a three- hour hike on the coast of Scotland, near St. Andrews. A friend who accompanied her on the hike used a Research In Motion Ltd. BlackBerry to snap photos and had posted them to Facebook by the time Meeker returned to her lodging.
"We could get to a point where a very material portion of content on the Internet is created on Facebook with mobile devices," said Meeker, who spends much of her time in New York, and has a home in Woodside, in California's Silicon Valley.
Another realization came during a recent plane ride between Washington and New York. In an informal survey of fellow first- class passengers, Meeker found four iPad tablet computers, including her own, and surmised that business users are adopting the iPad more quickly than she had expected. Besides the iPad, Meeker also boasts a Macintosh, two PCs that run Microsoft Corp.'s Windows operating system, an iPhone, an Amazon Kindle e- reader, and several iPod music players.
Executives of companies covered by Meeker say her research is as probing now as it was more than a decade ago.
3 a.m. Calls
Ken Goldman was chief financial officer of Excite At Home Corp., a Redwood City, California-based Internet-service provider Meeker covered. He recalls receiving phone calls at home at midnight from Meeker in New York, where it was 3 a.m.
"I used to dread those calls, actually," he said. "It was never a 10-minute call; it lasted 45 minutes to an hour."
Goldman now is CFO of security software maker Fortinet Inc., which went public last year with Morgan Stanley as an underwriter.
This year marks the seventh-straight year Meeker is speaking at the Web 2.0 conference. She packs a lot into her 10- minute presentation, said John Battelle, executive producer of the Web 2.0 Summit. Last year, she plowed through 75 slides in the time most presenters to cover a dozen, he said.
"The funny thing about Mary is, every year, she tries to deliver more slides in the same amount of time," Battelle said. "She may have mellowed a little bit over the years, but not much."
Tuesday, 26 October 2010
Branded Content Finds Home On Portals, Social Sites
Taking branded content to consumers at portals or on social media sites like Facebook and Twitter has emerged as an answer to the problem of finding or aggregating the perfect audience. That's because the audience already exists and it gives companies one-on-one conversations that provide an opportunity to fundamentally change how they market themselves.
The portal Yahoo in the past two months launched destinations for three top brands: American Express: Business Solutions; Ram Truck: Ram Country on Yahoo Music; and State Farm: Ready, Set, Dance! And, updated new features on Bank of America: Financially Fit. Then in April, Toyota launched Who Knew? on Yahoo News.
The American Express sponsorship, the latest in a series, offers small business owners access to tools and content aimed at helping businesses grow. New features will give Yahoo small businesses access to SearchManager, a platform to manage pay-per-click campaigns in one place; AcceptPay, an online payment and invoicing solution; and InsuranceEdge, a new way to do real-time quote comparisons and purchase customize business insurance. On the site visitors will find interviews with entrepreneurs like Richard Branson and Diane Von Furstenberg.
Years ago, brands built microsites, but not anymore, according to Mitch Spolan, Yahoo's VP of North American field sales. "It's all based on the insight that when consumers look for something we must fill that need on Yahoo," he says. "We took the formula and repeated it several times because it works."
In the first month, Toyota's sponsored destination Who Knew? recorded 40 million streams, Spolan says. The sites leverage an existing audience. The brands know what that audience seeks. And the experience is enhanced through content from the brands and original content through Yahoo.
Brands can take content to consumers wherever they go across the Web by following consumers to places that interest them most. It's no longer necessary to drag consumers back to branded Web sites, according to Andrew Solmssen, managing director at Schematic, an interactive ad agency. "Because guess what, they're not coming," he says.
Brands shouldn't care where consumers experience content, but many still do. "The brands want you to go to mybrand.com because they can count the consumer as a unique visitor, but are those old metrics?" he says, suggesting it brings up the point of whether consumers really experience the brand or the content. "You don't need to worry about where they experience it."
The "widgetization" of the Web, and the ability to plant content anywhere but retain branding, will support campaigns, Solmssen says. While brands can't necessarily control the stuff that surrounds "their stuff," they can control their stuff and give the user an experience that mirrors what happens on their site so it feels familiar when visitors come across it. Not many companies do it well.
The National Hockey League began living that mantra earlier this year. They not only meet fans on their turf, but reward them for allowing the NHL to do so. The latest uses Foursquare check-ins during the NHL Face-off, where fans got a chance to win free subscriptions to NHL GameCenter LIVE, jerseys, and t-shifts.
No one suggests that brands don't need a Web site. They need a great site because in the world of floaters, swimmers and divers, the floaters experience the content in passing, swimmer will grab it on the surface, and divers will jump in to learn more about Lady Gaga. So, brands better make sure the Web site experience supports amazing content.
by Laurie Sullivan, Yesterday, 4:08 PM
The portal Yahoo in the past two months launched destinations for three top brands: American Express: Business Solutions; Ram Truck: Ram Country on Yahoo Music; and State Farm: Ready, Set, Dance! And, updated new features on Bank of America: Financially Fit. Then in April, Toyota launched Who Knew? on Yahoo News.
The American Express sponsorship, the latest in a series, offers small business owners access to tools and content aimed at helping businesses grow. New features will give Yahoo small businesses access to SearchManager, a platform to manage pay-per-click campaigns in one place; AcceptPay, an online payment and invoicing solution; and InsuranceEdge, a new way to do real-time quote comparisons and purchase customize business insurance. On the site visitors will find interviews with entrepreneurs like Richard Branson and Diane Von Furstenberg.
Years ago, brands built microsites, but not anymore, according to Mitch Spolan, Yahoo's VP of North American field sales. "It's all based on the insight that when consumers look for something we must fill that need on Yahoo," he says. "We took the formula and repeated it several times because it works."
In the first month, Toyota's sponsored destination Who Knew? recorded 40 million streams, Spolan says. The sites leverage an existing audience. The brands know what that audience seeks. And the experience is enhanced through content from the brands and original content through Yahoo.
Brands can take content to consumers wherever they go across the Web by following consumers to places that interest them most. It's no longer necessary to drag consumers back to branded Web sites, according to Andrew Solmssen, managing director at Schematic, an interactive ad agency. "Because guess what, they're not coming," he says.
Brands shouldn't care where consumers experience content, but many still do. "The brands want you to go to mybrand.com because they can count the consumer as a unique visitor, but are those old metrics?" he says, suggesting it brings up the point of whether consumers really experience the brand or the content. "You don't need to worry about where they experience it."
The "widgetization" of the Web, and the ability to plant content anywhere but retain branding, will support campaigns, Solmssen says. While brands can't necessarily control the stuff that surrounds "their stuff," they can control their stuff and give the user an experience that mirrors what happens on their site so it feels familiar when visitors come across it. Not many companies do it well.
The National Hockey League began living that mantra earlier this year. They not only meet fans on their turf, but reward them for allowing the NHL to do so. The latest uses Foursquare check-ins during the NHL Face-off, where fans got a chance to win free subscriptions to NHL GameCenter LIVE, jerseys, and t-shifts.
No one suggests that brands don't need a Web site. They need a great site because in the world of floaters, swimmers and divers, the floaters experience the content in passing, swimmer will grab it on the surface, and divers will jump in to learn more about Lady Gaga. So, brands better make sure the Web site experience supports amazing content.
by Laurie Sullivan, Yesterday, 4:08 PM
Monday, 25 October 2010
In Africa, Yes We Can
Oct 22, 2010 -
I visit Africa often, and it is apparent that a “yes, we can” attitude is spreading across the continent, as awareness of its business and investment opportunities reaches around the globe.
Africans have much to be proud of, including some recent major economic successes. In September, Wal-Mart made an offer to buy the South African retailer Massmart for $4.2 billion. And this summer's FIFA World Cup – a first for Africa – generated more than $3 billion in revenue for South Africa, the host country.
Still, there is much to be done.
Analysts and business leaders often focus on mineral resources when considering prospects for Africa's future – the continent is the source of much of the world's platinum, diamonds and gold. But I believe Africa's most valuable assets are its wonderful people, particularly its entrepreneurs.
Millions of men and women are carefully building small businesses suited to local markets, working off the radar in regions untouched by big business. They are the real diamonds. These entrepreneurs are agents of change, taking risks that may someday generate jobs and build communities.
Yet many lack the financial resources and support networks needed to help them scale up their businesses. Some have such limited access to teachers and mentors that simple training on pricing, marketing and product design can have a massive impact. With the right support, their entrepreneurial efforts can produce even more opportunities, leading to the prosperous dynamic of progressive capitalism.
That's why Virgin Unite, our non-profit foundation, established the Branson School of Entrepreneurship in Johannesburg to support and celebrate young South Africans as they launch new ventures. We help them expand their businesses by connecting them with entrepreneurs from South Africa and around the world – people who can provide mentorship, help them gain access to markets and raise capital.
We're also directly investing in some African businesses, from small startups to larger companies. Indeed, one of our best investments is Virgin Active in South Africa. It was recommended to me by Nelson Mandela almost 10 years ago when he asked me to rescue a chain of health clubs that had gone into receivership. Today, the business has grown to 92 clubs across the country; it has half a million customers and is planning to expand to more than 100 clubs in 2011.
In the meantime, across the border, the people of Zimbabwe need more international investment and expertise to help them revitalize their country, which has been suffering under years of dictatorship and disastrous economic policies. In September, Virgin Unite, together with Humanity United and The Nduna Foundation, launched Enterprise Zimbabwe to help Zimbabweans attract and foster investments from philanthropic and commercial donors. This organization will target small businesses and social initiatives in key areas such as health, small-scale agriculture and education.
An example of one of our early projects: In partnership with American and Australian entrepreneurs, Enterprise Zimbabwe is investing in a growers' association that represents 2,000 farmers near Harare. We hope to assist a small number of these farmers to revitalize their operations over the next six months. We will then assess the impact of this pilot project, and pay attention to what is needed on the ground.
If Zimbabwe is going to recover, it's critical for the global community of business leaders and philanthropists to come together to support the people who will rebuild its economy. In 2011 Enterprise Zimbabwe will help to arrange a number of trips to the country, so that entrepreneurs and leaders of charitable foundations can meet with Zimbabweans. We hope to help these leaders to understand how they can help, and to match them with emerging businesses and social development opportunities.
Every time I visit the continent, I am impressed by what daring African businessmen and women are accomplishing in the face of tough social and economic challenges. I am certain that Africa will someday occupy a more prominent place on the world stage. President Barack Obama summed it up well last year in his famous speech to the Ghanaian parliament: Africa is not a world apart, it is a “fundamental part of our interconnected world.”
While we often hear what's wrong in Africa, I'd like to hear what Africans are doing right. Inspiration comes from leaders who care about communities. Let's find those entrepreneurs who are making a meaningful impact.
Do you believe in Africa? Tell me what you think. If you have African stories of hope to inspire others to change their lives and the lives of others, or if you are an entrepreneur who wants to make a difference, please let me know at Richard.Branson@nytimes.com.
Questions from readers will be answered in future columns. Please send them to BransonQuestions@Entrepreneur.com. Please include your name and country in your question.
I visit Africa often, and it is apparent that a “yes, we can” attitude is spreading across the continent, as awareness of its business and investment opportunities reaches around the globe.
Africans have much to be proud of, including some recent major economic successes. In September, Wal-Mart made an offer to buy the South African retailer Massmart for $4.2 billion. And this summer's FIFA World Cup – a first for Africa – generated more than $3 billion in revenue for South Africa, the host country.
Still, there is much to be done.
Analysts and business leaders often focus on mineral resources when considering prospects for Africa's future – the continent is the source of much of the world's platinum, diamonds and gold. But I believe Africa's most valuable assets are its wonderful people, particularly its entrepreneurs.
Millions of men and women are carefully building small businesses suited to local markets, working off the radar in regions untouched by big business. They are the real diamonds. These entrepreneurs are agents of change, taking risks that may someday generate jobs and build communities.
Yet many lack the financial resources and support networks needed to help them scale up their businesses. Some have such limited access to teachers and mentors that simple training on pricing, marketing and product design can have a massive impact. With the right support, their entrepreneurial efforts can produce even more opportunities, leading to the prosperous dynamic of progressive capitalism.
That's why Virgin Unite, our non-profit foundation, established the Branson School of Entrepreneurship in Johannesburg to support and celebrate young South Africans as they launch new ventures. We help them expand their businesses by connecting them with entrepreneurs from South Africa and around the world – people who can provide mentorship, help them gain access to markets and raise capital.
We're also directly investing in some African businesses, from small startups to larger companies. Indeed, one of our best investments is Virgin Active in South Africa. It was recommended to me by Nelson Mandela almost 10 years ago when he asked me to rescue a chain of health clubs that had gone into receivership. Today, the business has grown to 92 clubs across the country; it has half a million customers and is planning to expand to more than 100 clubs in 2011.
In the meantime, across the border, the people of Zimbabwe need more international investment and expertise to help them revitalize their country, which has been suffering under years of dictatorship and disastrous economic policies. In September, Virgin Unite, together with Humanity United and The Nduna Foundation, launched Enterprise Zimbabwe to help Zimbabweans attract and foster investments from philanthropic and commercial donors. This organization will target small businesses and social initiatives in key areas such as health, small-scale agriculture and education.
An example of one of our early projects: In partnership with American and Australian entrepreneurs, Enterprise Zimbabwe is investing in a growers' association that represents 2,000 farmers near Harare. We hope to assist a small number of these farmers to revitalize their operations over the next six months. We will then assess the impact of this pilot project, and pay attention to what is needed on the ground.
If Zimbabwe is going to recover, it's critical for the global community of business leaders and philanthropists to come together to support the people who will rebuild its economy. In 2011 Enterprise Zimbabwe will help to arrange a number of trips to the country, so that entrepreneurs and leaders of charitable foundations can meet with Zimbabweans. We hope to help these leaders to understand how they can help, and to match them with emerging businesses and social development opportunities.
Every time I visit the continent, I am impressed by what daring African businessmen and women are accomplishing in the face of tough social and economic challenges. I am certain that Africa will someday occupy a more prominent place on the world stage. President Barack Obama summed it up well last year in his famous speech to the Ghanaian parliament: Africa is not a world apart, it is a “fundamental part of our interconnected world.”
While we often hear what's wrong in Africa, I'd like to hear what Africans are doing right. Inspiration comes from leaders who care about communities. Let's find those entrepreneurs who are making a meaningful impact.
Do you believe in Africa? Tell me what you think. If you have African stories of hope to inspire others to change their lives and the lives of others, or if you are an entrepreneur who wants to make a difference, please let me know at Richard.Branson@nytimes.com.
Questions from readers will be answered in future columns. Please send them to BransonQuestions@Entrepreneur.com. Please include your name and country in your question.
Mobile to Become a $1 Billion Business in the U.S. Next Year
Apple's IAd Aided Growth in 2010, but Google and AdMob Will Accelerate It, Says EMarketer
by Kunur Patel
Published:October 18,2010
NEW YORK (AdAge.com) -- Mobile is red hot this year, but it still won't be a billion-dollar ad business in the U.S. until 2011, according to new eMarketer estimates.
According to a new report, U.S. mobile advertising spending will reach $743 million this year, up a whopping 79% from $416 million the year prior. Mobile spending will cross the $1 billion mark in 2011 with sustained growth, though at slower rates.
Why has mobile seen such a rush in new ad money? Thank Apple.
"IAd has served as a tremendous catalyst in the industry," said eMarketer mobile analyst Noah Elkin of Apple's rich-media mobile ad unit, which launched this year at a high-profile press conference in Cupertino, Calif.
But it is Google and its recently acquired mobile-ad network, AdMob, that are projected to propel growth.
"Over time the combo of Google and AdMob has the potential to be equally, if not more, significant [than Apple] because of the scale Google brings the medium," Mr. Elkin said.
Last week, Google made a surprise announcement that it's on track to bring in $1 billion in global mobile ad revenue. The company did not break that reporting out by country, though revenue outside the U.S. is likely sizable, because it includes markets where mobile is more prevalent than desktops, such as India. Google's head of mobile ads, Omar Hamoui, the CEO of AdMob before the acquisition, told Ad Age in September about Google's plans to bring its sophistication in online ad serving and infrastructure to mobile.
SMS messaging is still the largest ad format in mobile, projected to hit $327 million this year. However, Apple's iAd, as well as Google's bet on mobile display through AdMob and its growing suite of rich-media units, will soon unseat text messaging as the primary mobile-ad medium. Mobile search and display ads are expected to pass messaging in 2012. Upticks in mobile search and display also coincides with growing smartphone penetration; Nielsen says there will be more internet-enabled phones than basic-feature phones in the U.S. at some point next year. Search and display also rely on faster and more pervasive mobile-internet connectivity.
Within mobile spending, video is the fastest growing ad medium, albeit from a tiny base, and will continue to be through 2014.
"Apple helped show the way with iAd. Obviously they weren't the first, but they are really good at getting the market excited," Mr. Elkin said. "All of that helps advertisers realize they can do a lot more branding on this medium. That's why you're going to see more dollars flowing into richer ad units over the next four to five years."
By jeffgreenhouse | Philadelphia, PA October 18, 2010 06:04:03 pm:
I wonder how they count ads served to iPads. Are they "mobile" ads? With more tablets and larger-format mobile devices (which may start consuming the same IAB units as desktop and laptop computers) the lines will continue to blur. I'm sure there will be debates about the methodology of measurement.
- Jeff Greenhouse
http://www.JeffGreenhouse.com
http://Twitter.com/JeffGreenhouse
By AllyLevin | Baltimore, MD October 18, 2010 06:55:40 pm:
Yes, mobile IS red hot, 100 percent. There are more than 1 billion people using mobile internet today. So I really don't understand why companies won't invest in quality mobile Web sites that you can actually use from your phone! Sites that are meant to be functional from on the go.
I found this link for a software that actually makes the mobile site for you, based on your existing site. Seems like a pretty cool idea - http://webtomobiles.com
By janestone | New York, NY October 19, 2010 10:36:33 am:
There's isn't any mention of the growth of tablets which will obviously play a major role in the significance of mobile advertising. Also, one may expect CPM's to go down as additional mobile devices penetrate the market and inventory becomes more widespread.
Jane Stone
VP Marketing
http://www.designpax.com
By JIM | ARLINGTON HEIGH, IL October 19, 2010 11:42:53 am:
I think it is interesting that cost per action advertising is left out of almost all mobile advertising discussions. While ad revenue may be increasing, the performance segment is skyrocketing in mobile. Instead of just serving an impression, CPA serves up engagement with measurable ROI from ad spend. Companies such as OfferMobi.com are forging a new frontier in mobile ads, tying spend to performance and results. Isn't that what buying ads is all about, measurable results? But no one wants to talk about the effectiveness of ads, only the wow factor.
At the end of the day, advertisers and agencies will be forced to include performance based ads, simply because the CPM rates for apps (which drives a significant portion of impressions industry-wide) are declining. This is pushing more app development companies to work with OfferMobi to serve up demographically matched campaigns that return higher eCPM's. As the app developers catch on, so will mobile site publishers as they see an additional bump in revenues from better targeting of the ads they place on their mobile sites.
Jim Lillig
VP Business Development
www.Offermobi.com
By RudyCCS | San Diego, CA October 19, 2010 02:25:39 pm:
I'm loving the creativity and more intimate brand connection available with mobile platforms. Smaller ad companies are building brands by emphasizing the importance of two-way conversation.
Check out www.textango.com to see a great example of an advertising revolution.
By DanaT3D | New York, NY October 19, 2010 06:02:09 pm:
We have had great success with text message marketing and are always looking for alternative ways to promote our brand and products. It is interesting how this industry is growing so rapidly.
There are a couple of interesting posts here that I am going to follow up on, but would like to know if anyone here has had personal experiences with them,
1. Offermobi
2. designpax-- I understand the value of mobile site, but why this company?
3. textango
By jchamberlin | Lakewood, CO October 20, 2010 11:04:19 am:
Mobile marketing in particular SMS Text campaigns create a conversation with consumers. With SMS Text campaigns marketers are able to re-engage consumers back to the brand.
By Robert | Wayne, PA October 22, 2010 01:24:10 pm:
Many people may look at the bottom chart and believe that mobile messaging is in decline. Quite the contrary. Text message marketing is the lone mature product of the mobile marketing bunch and will always be a lynchpin of your mobile efforts. While it may not be growing as quickly as video, for instance, the size of the pie is growing and therefore the size of the messaging pie is also growing.
Published by Ad Ops on the 25th Oct 2010
by Kunur Patel
Published:October 18,2010
NEW YORK (AdAge.com) -- Mobile is red hot this year, but it still won't be a billion-dollar ad business in the U.S. until 2011, according to new eMarketer estimates.
According to a new report, U.S. mobile advertising spending will reach $743 million this year, up a whopping 79% from $416 million the year prior. Mobile spending will cross the $1 billion mark in 2011 with sustained growth, though at slower rates.
Why has mobile seen such a rush in new ad money? Thank Apple.
"IAd has served as a tremendous catalyst in the industry," said eMarketer mobile analyst Noah Elkin of Apple's rich-media mobile ad unit, which launched this year at a high-profile press conference in Cupertino, Calif.
But it is Google and its recently acquired mobile-ad network, AdMob, that are projected to propel growth.
"Over time the combo of Google and AdMob has the potential to be equally, if not more, significant [than Apple] because of the scale Google brings the medium," Mr. Elkin said.
Last week, Google made a surprise announcement that it's on track to bring in $1 billion in global mobile ad revenue. The company did not break that reporting out by country, though revenue outside the U.S. is likely sizable, because it includes markets where mobile is more prevalent than desktops, such as India. Google's head of mobile ads, Omar Hamoui, the CEO of AdMob before the acquisition, told Ad Age in September about Google's plans to bring its sophistication in online ad serving and infrastructure to mobile.
SMS messaging is still the largest ad format in mobile, projected to hit $327 million this year. However, Apple's iAd, as well as Google's bet on mobile display through AdMob and its growing suite of rich-media units, will soon unseat text messaging as the primary mobile-ad medium. Mobile search and display ads are expected to pass messaging in 2012. Upticks in mobile search and display also coincides with growing smartphone penetration; Nielsen says there will be more internet-enabled phones than basic-feature phones in the U.S. at some point next year. Search and display also rely on faster and more pervasive mobile-internet connectivity.
Within mobile spending, video is the fastest growing ad medium, albeit from a tiny base, and will continue to be through 2014.
"Apple helped show the way with iAd. Obviously they weren't the first, but they are really good at getting the market excited," Mr. Elkin said. "All of that helps advertisers realize they can do a lot more branding on this medium. That's why you're going to see more dollars flowing into richer ad units over the next four to five years."
By jeffgreenhouse | Philadelphia, PA October 18, 2010 06:04:03 pm:
I wonder how they count ads served to iPads. Are they "mobile" ads? With more tablets and larger-format mobile devices (which may start consuming the same IAB units as desktop and laptop computers) the lines will continue to blur. I'm sure there will be debates about the methodology of measurement.
- Jeff Greenhouse
http://www.JeffGreenhouse.com
http://Twitter.com/JeffGreenhouse
By AllyLevin | Baltimore, MD October 18, 2010 06:55:40 pm:
Yes, mobile IS red hot, 100 percent. There are more than 1 billion people using mobile internet today. So I really don't understand why companies won't invest in quality mobile Web sites that you can actually use from your phone! Sites that are meant to be functional from on the go.
I found this link for a software that actually makes the mobile site for you, based on your existing site. Seems like a pretty cool idea - http://webtomobiles.com
By janestone | New York, NY October 19, 2010 10:36:33 am:
There's isn't any mention of the growth of tablets which will obviously play a major role in the significance of mobile advertising. Also, one may expect CPM's to go down as additional mobile devices penetrate the market and inventory becomes more widespread.
Jane Stone
VP Marketing
http://www.designpax.com
By JIM | ARLINGTON HEIGH, IL October 19, 2010 11:42:53 am:
I think it is interesting that cost per action advertising is left out of almost all mobile advertising discussions. While ad revenue may be increasing, the performance segment is skyrocketing in mobile. Instead of just serving an impression, CPA serves up engagement with measurable ROI from ad spend. Companies such as OfferMobi.com are forging a new frontier in mobile ads, tying spend to performance and results. Isn't that what buying ads is all about, measurable results? But no one wants to talk about the effectiveness of ads, only the wow factor.
At the end of the day, advertisers and agencies will be forced to include performance based ads, simply because the CPM rates for apps (which drives a significant portion of impressions industry-wide) are declining. This is pushing more app development companies to work with OfferMobi to serve up demographically matched campaigns that return higher eCPM's. As the app developers catch on, so will mobile site publishers as they see an additional bump in revenues from better targeting of the ads they place on their mobile sites.
Jim Lillig
VP Business Development
www.Offermobi.com
By RudyCCS | San Diego, CA October 19, 2010 02:25:39 pm:
I'm loving the creativity and more intimate brand connection available with mobile platforms. Smaller ad companies are building brands by emphasizing the importance of two-way conversation.
Check out www.textango.com to see a great example of an advertising revolution.
By DanaT3D | New York, NY October 19, 2010 06:02:09 pm:
We have had great success with text message marketing and are always looking for alternative ways to promote our brand and products. It is interesting how this industry is growing so rapidly.
There are a couple of interesting posts here that I am going to follow up on, but would like to know if anyone here has had personal experiences with them,
1. Offermobi
2. designpax-- I understand the value of mobile site, but why this company?
3. textango
By jchamberlin | Lakewood, CO October 20, 2010 11:04:19 am:
Mobile marketing in particular SMS Text campaigns create a conversation with consumers. With SMS Text campaigns marketers are able to re-engage consumers back to the brand.
By Robert | Wayne, PA October 22, 2010 01:24:10 pm:
Many people may look at the bottom chart and believe that mobile messaging is in decline. Quite the contrary. Text message marketing is the lone mature product of the mobile marketing bunch and will always be a lynchpin of your mobile efforts. While it may not be growing as quickly as video, for instance, the size of the pie is growing and therefore the size of the messaging pie is also growing.
Published by Ad Ops on the 25th Oct 2010
Tuesday, 12 October 2010
Google Unleashes Ad Display Automation Tools
Google's long-term plan to automate the advertising supply chain will lead the Mountain View, Calif. tech company on Tuesday to release two tools aimed at removing costs from serving up display ads across the Google Display Network.
The tools -- Display Campaign Optimizer and Contextual Targeting Tool--are geared toward helping advertisers reach performance goals on the Google Display Network, simplify the entire system to buy and sell display ads, and open the entire ecosystem through innovation.
Display Campaign Optimizer manages targeted bids to generate more conversions such as sales or leads by finding the correct sites that drive performance. It does this within milliseconds. The tool, based on machine learning technology, determines what works and what doesn't in real time and adjusts accordingly.
For campaigns with higher conversion rates the learning period is shorter, but if the company only sells one item per month it's challenging for the system to learn, according to Brad Bender, product management director for the Google Display Network.
Google employs brilliant engineers who like to solve complex problems. Think of the technology similar to the "self-driving car for advertising," Bender says. "It's auto-optimization that drives performance for advertisers in a way that works."
Advertisers tell Google the campaign's parameters, and based on the average conversion rate for a month in the specific vertical, the machine learning technology could determine the correct bids and placement. "Typically, the campaign is in a learning mode during the first week," Bender says. "The CPA could vary during that week. Once the system has enough data to shift the targeting and bidding, we start to see the CPA move."
Campaigns generating many conversions and impressions take less time to fill the data bucket required by the machine learning technology built into the tool. The lower the impression volume, the longer it takes.
Looking across the Web to connect with consumers who care about the environment to offer discounts, Seventh Generation, which sells eco-friendly home and baby products, found that Google's Display Campaign Optimizer delivered 60% of the coupon downloads with a cost per acquisition of 20% below their target quickly.
"If we can make display advertising more effective, we have the ability to grow the entire display pie for advertisers, publishers and users," Bender says.
The advertising industry could take a lesson from manufacturing when it comes to squeezing cost from automation. Rather than cutting costs for the delivery of raw materials through the supply chain, the advertising industry would eliminate costs to serve up ads online.
While automation in the manufacturing supply chain stretches back to the 1970s, the amount of cost savings driven by technology early on starts at about 5% annually, according to Kevin O'Marah, group vice president of supply chain at Gartner Research. "If you take automation and supply chain, and apply the broad principal to any other domain starting from scratch, you should be looking for between 5% and 10% savings in the first and second year," he says. "Depending on the deficiencies in the supply chain, it will taper off into a diminishing returns profile over three to five years."
Automation in the supply chain is about reducing unnecessary tasks and streamlining processes with technology to cut costs and eliminate waste. O'Marah says the savings could potentially become greater in the advertising supply chain.
A fully automated solution may not work for all campaigns. Advertisers should not have to sacrifice control to gain efficiencies and boost performance.
While the Display Campaign Optimizer automates the bidding and determining what works, the Contextual Targeting Tool automates the task of determining the keywords to target the words that work, so advertisers can boost performance by building campaigns in minutes rather than hours. The tool lets advertisers build hundreds of ad groups in minutes for companies that sell yoga gear, for example, to quickly scale campaign performance.
Companies can input a product the company sells like "yoga matt" in quotes into the tool to automatically generate hundreds of keyword lists. The management tasks would historically take hours.
The tool will roll out in phases and become available to all advertisers in the coming months.
Administrative costs remain daunting for the overall ad industry as it continues to serve up more advertisements to reach the increase in consumers flocking online. For every dollar spent, it costs between 26 cents and 28 cents in overhead to support the delivery of an ad, according to Bender, quoting industry stats. "There are opportunities that can make the process more efficient," he says.
MediaPost
The tools -- Display Campaign Optimizer and Contextual Targeting Tool--are geared toward helping advertisers reach performance goals on the Google Display Network, simplify the entire system to buy and sell display ads, and open the entire ecosystem through innovation.
Display Campaign Optimizer manages targeted bids to generate more conversions such as sales or leads by finding the correct sites that drive performance. It does this within milliseconds. The tool, based on machine learning technology, determines what works and what doesn't in real time and adjusts accordingly.
For campaigns with higher conversion rates the learning period is shorter, but if the company only sells one item per month it's challenging for the system to learn, according to Brad Bender, product management director for the Google Display Network.
Google employs brilliant engineers who like to solve complex problems. Think of the technology similar to the "self-driving car for advertising," Bender says. "It's auto-optimization that drives performance for advertisers in a way that works."
Advertisers tell Google the campaign's parameters, and based on the average conversion rate for a month in the specific vertical, the machine learning technology could determine the correct bids and placement. "Typically, the campaign is in a learning mode during the first week," Bender says. "The CPA could vary during that week. Once the system has enough data to shift the targeting and bidding, we start to see the CPA move."
Campaigns generating many conversions and impressions take less time to fill the data bucket required by the machine learning technology built into the tool. The lower the impression volume, the longer it takes.
Looking across the Web to connect with consumers who care about the environment to offer discounts, Seventh Generation, which sells eco-friendly home and baby products, found that Google's Display Campaign Optimizer delivered 60% of the coupon downloads with a cost per acquisition of 20% below their target quickly.
"If we can make display advertising more effective, we have the ability to grow the entire display pie for advertisers, publishers and users," Bender says.
The advertising industry could take a lesson from manufacturing when it comes to squeezing cost from automation. Rather than cutting costs for the delivery of raw materials through the supply chain, the advertising industry would eliminate costs to serve up ads online.
While automation in the manufacturing supply chain stretches back to the 1970s, the amount of cost savings driven by technology early on starts at about 5% annually, according to Kevin O'Marah, group vice president of supply chain at Gartner Research. "If you take automation and supply chain, and apply the broad principal to any other domain starting from scratch, you should be looking for between 5% and 10% savings in the first and second year," he says. "Depending on the deficiencies in the supply chain, it will taper off into a diminishing returns profile over three to five years."
Automation in the supply chain is about reducing unnecessary tasks and streamlining processes with technology to cut costs and eliminate waste. O'Marah says the savings could potentially become greater in the advertising supply chain.
A fully automated solution may not work for all campaigns. Advertisers should not have to sacrifice control to gain efficiencies and boost performance.
While the Display Campaign Optimizer automates the bidding and determining what works, the Contextual Targeting Tool automates the task of determining the keywords to target the words that work, so advertisers can boost performance by building campaigns in minutes rather than hours. The tool lets advertisers build hundreds of ad groups in minutes for companies that sell yoga gear, for example, to quickly scale campaign performance.
Companies can input a product the company sells like "yoga matt" in quotes into the tool to automatically generate hundreds of keyword lists. The management tasks would historically take hours.
The tool will roll out in phases and become available to all advertisers in the coming months.
Administrative costs remain daunting for the overall ad industry as it continues to serve up more advertisements to reach the increase in consumers flocking online. For every dollar spent, it costs between 26 cents and 28 cents in overhead to support the delivery of an ad, according to Bender, quoting industry stats. "There are opportunities that can make the process more efficient," he says.
MediaPost
Viewers More Engaged With Original Web Video Than TV
Despite the continued success of big-budget TV programming, consumers now place considerable value on original online content, according to new research from Web TV network creator Next New Networks and YouTube, and research/consulting firm Frank N. Magid Associates.
Polled between May and June of this year, 54% of respondents who reported watching Web original videos deemed them to be just as -- if not more -- entertaining than what they viewed on traditional television.
While they consider online video entertaining, those surveyed regarded this content as its own category and not directly comparable to what is available on television.
They define these types of videos as original, having fewer boundaries, and adaptable to individual viewing schedules, according to the joint report.
"The study uncovered strong consumer appeal of Web original programming as compared to traditional television shows," said Mike Vorhaus, managing director of Frank Magid Associates. "The findings confirm what many have believed for some time now: there is incredible content and talent available on the Web."
Overall, 60% of respondents reported watching original Web video content weekly, while 58% saw Web originals as providing quality entertainment whenever they want it.
Over one-quarter of viewers found Web original content to be more entertaining than traditional television, while viewers are 2.5 times more likely to be fully engaged in online video than their counterparts who watch traditional television programming.
The research also found that more than half of viewers read comments from other viewers, while 41% rate the videos they watch.
Also of note, 37% of Web original viewers simultaneously surf the Web -- compared to 60% of TV viewsers; 28% simultaneously talk to others -- compared to 52% of TV.
What's more, three-quarters of viewers said they use email, social networking sites, or conversation to tell others about their favorite Web originals.
About 40% of viewers report sharing original videos with others; 37% email video links to friends; 36% post the video to Facebook or MySpace; and 10% share the link via Twitter.
mediapost
Polled between May and June of this year, 54% of respondents who reported watching Web original videos deemed them to be just as -- if not more -- entertaining than what they viewed on traditional television.
While they consider online video entertaining, those surveyed regarded this content as its own category and not directly comparable to what is available on television.
They define these types of videos as original, having fewer boundaries, and adaptable to individual viewing schedules, according to the joint report.
"The study uncovered strong consumer appeal of Web original programming as compared to traditional television shows," said Mike Vorhaus, managing director of Frank Magid Associates. "The findings confirm what many have believed for some time now: there is incredible content and talent available on the Web."
Overall, 60% of respondents reported watching original Web video content weekly, while 58% saw Web originals as providing quality entertainment whenever they want it.
Over one-quarter of viewers found Web original content to be more entertaining than traditional television, while viewers are 2.5 times more likely to be fully engaged in online video than their counterparts who watch traditional television programming.
The research also found that more than half of viewers read comments from other viewers, while 41% rate the videos they watch.
Also of note, 37% of Web original viewers simultaneously surf the Web -- compared to 60% of TV viewsers; 28% simultaneously talk to others -- compared to 52% of TV.
What's more, three-quarters of viewers said they use email, social networking sites, or conversation to tell others about their favorite Web originals.
About 40% of viewers report sharing original videos with others; 37% email video links to friends; 36% post the video to Facebook or MySpace; and 10% share the link via Twitter.
mediapost
Friday, 17 September 2010
Thursday, 9 September 2010
Friday, 30 July 2010
How to encode a FLV file?
This video will show you the basics about how to encode a FLV file using Adobe/Macromedia Flash Video Encoder.
http://www.adopstools.net/index.asp?section=howto&page=encode
(Ad ops tool)
http://www.adopstools.net/index.asp?section=howto&page=encode
(Ad ops tool)
Flash Ad Using clicktag Does Not Click Through
Summary:
When the clickTag tracking variable is passed into the movie it is placed on the Main timeline of the movie. However, many Flash files will have Movie Clips within the Main Movie file.
Because of this, in order for buttons or actions in any Movie Clip to use clickTag you must refer to the clickTag variable as "_level0.clicktag" or else it will not click through.
Discussion:
Putting _level0: in front of the variable clicktag ensures that the correct instance of clicktag will be used. Inside a Flash movie, there can be multiple variables that have the same name.
Flash has various methods of organizing content. One of these methods is the concept of levels. Think of Flash levels as levels of a multi-story building. Each level can have different things happening on it -- the ground floor could have a front desk or reception area, the upper floors some offices. If the floors and ceilings were made of glass, and you looked down on the building, the things on the upper levels would obscure the things on the lower levels. Similarly, each level in Flash can have a separate movie. The movies on the upper levels would block the movies on the lower levels.
Of course, with Flash, there is one movie that starts first. The first movie is loaded into level 0 (the ground floor). This movie is the SWF file in the object and embed tags in the sniffer or HTML code. All the click tracking information in DART is also loaded into level 0. For the duration of the ad, this information stays on level 0. To refer to the clicktag information on level 0, use _level0.clicktag.
Using clicktag by itself is similar to asking for someone's office and being told it is in the northeast corner. If you are on the correct floor to begin with, you can hopefully find the office without many problems. If you start on the wrong floor, you will end up at the wrong office. However, if you were told bottom floor, northeast corner, you could find the office even if you start off at the wrong floor.
Even though placing _level0: in front of clicktag is not always necessary, consistently using _level0.clicktag can help prevent future problems.
Note: For ads published to Flash version 4, you should use the "colon" syntax
_level0:clicktag
Flash 4 does not support the "dot" syntax used in Flash 5 and higher.
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When the clickTag tracking variable is passed into the movie it is placed on the Main timeline of the movie. However, many Flash files will have Movie Clips within the Main Movie file.
Because of this, in order for buttons or actions in any Movie Clip to use clickTag you must refer to the clickTag variable as "_level0.clicktag" or else it will not click through.
Discussion:
Putting _level0: in front of the variable clicktag ensures that the correct instance of clicktag will be used. Inside a Flash movie, there can be multiple variables that have the same name.
Flash has various methods of organizing content. One of these methods is the concept of levels. Think of Flash levels as levels of a multi-story building. Each level can have different things happening on it -- the ground floor could have a front desk or reception area, the upper floors some offices. If the floors and ceilings were made of glass, and you looked down on the building, the things on the upper levels would obscure the things on the lower levels. Similarly, each level in Flash can have a separate movie. The movies on the upper levels would block the movies on the lower levels.
Of course, with Flash, there is one movie that starts first. The first movie is loaded into level 0 (the ground floor). This movie is the SWF file in the object and embed tags in the sniffer or HTML code. All the click tracking information in DART is also loaded into level 0. For the duration of the ad, this information stays on level 0. To refer to the clicktag information on level 0, use _level0.clicktag.
Using clicktag by itself is similar to asking for someone's office and being told it is in the northeast corner. If you are on the correct floor to begin with, you can hopefully find the office without many problems. If you start on the wrong floor, you will end up at the wrong office. However, if you were told bottom floor, northeast corner, you could find the office even if you start off at the wrong floor.
Even though placing _level0: in front of clicktag is not always necessary, consistently using _level0.clicktag can help prevent future problems.
Note: For ads published to Flash version 4, you should use the "colon" syntax
_level0:clicktag
Flash 4 does not support the "dot" syntax used in Flash 5 and higher.
was this information helpfull?...
please send us your coments.
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