Archive for the ‘advertising’ Category
News for Mobile Bulls
Posted by Jamie Hutson | Filed under Local Search, Mobile, Mobile Web, advertising
Considering this is the end of August, last week was surprisingly full of news in the mobile arena. There were several market studies released in the past month, and they’ve got me excited about mobile again.
Jumptap just announced a very major Series D raise - $26 Million led by AllianceBernstein. They will be using the funds to build out and improve their growing mobile advertising platform, with the plan to capitalize on the growing mobile search and advertising market. In their release Dan Olshwang also points out that mobile devices now outnumber PC’s with over 3.3 billion devices in use worldwide.
“Internet advertising is currently growing at a compound annual rate of 18.3% and will reach $73 billion in 2011. What is really exciting about mobile advertising is its ability to eclipse Internet advertising,” said Dan Olschwang, President and Chief Executive Officer of JumpTap.
Those are some really smart people pouring huge amounts of money into Mobile search. Considering the overwhelmingly tight credit market right now, this is a really astonishing deal. And its really not getting any major press (at least that I’ve found). I had to dig all the way to JumpTap’s “News” page to find the release.
One of the reasons why there seems to be a recent resurgence of mobile is that there is data flowing out of all the major research firms indicating significant growth in mobile use, both the volume and frequency. Gerg Sterling pointed out an interesting report from Nielsen Mobile that shows some intersting data on mobile search (and surpise - domination by Google of the market). According to the report about 89% of searches were in the three categories of “Information,” “Local Listings” “and Websites/Navigation.”
Most relevant to my local interests is that 29% of all mobile searches were for “local listings” and 33% were for “Information” (- thats a pretty broad term). In an August 12th report Neilsen Mobile noted that US and Eurpoean markets were “more mature” and mobile use was focused around email and search, compared to entertainment as the leading segment in Brazil, Russia, India and China. Entertainment doesn’t fall in the top 5 for US and EU - (But city guides/maps do!). This data goes along with a trend that JumpTap is reporting as well:
JumpTap notices a shift away from entertainment-centric searches, such as ring tones and downloads. It reports more navigational searches: Users looking for websites (such as specific social networking sites) and utilities (such as email) on their devices. (From msearchgroove)
This data points out that people are beginning to use their mobile devices for real life tasks, perhaps representing the beginning of the shift from computers to Mobile Devices. One of the frequent arguments against mobile advertising was that mostly people were going online to download wallpapers and ringtones for the phones (which is pretty uselss for any marketer not representing wallpapers or ringtones), but now a widespread adoption of mobile use is changing that argument.
The market is maturing and the huge investment by AB shows that the day when our phones replace our laptops is one day closer. I hadn’t put much thought into mobile until recently, but all this talk of Googles Android and their “Content Market“, iPhone and of course their apps, is hard to ignore. Will marketers begin to listen, or will old school execs continue their slow migration to online media one step at a time?
Internet Yellow Pages and Local Search in 2009
Posted by Jamie Hutson | Filed under Local Search, Mobile, SMBs, Search Marketing, advertising
I was doing some late night number crunching and data research and I came across some interesting points. A few I touched on earlier in the week, but I’ve had some more time to address some of these and I wanted to talk about them. There are huge numbers involved here, and some interesting theories that I haven’t quite finalized in my head. Maybe these thoughts will help clear that up.
Check out this post form Conde Nast in February talking about the Yellow Pages. It is fairly amusing considering how just about anyone you ask in the Northeast will admit that they don’t care much for print advertising. (We hear this all the time) Note the comment:
If Nielsen can’t get TV viewership right after all of these years, how on earth can the Yellow Pages Association know how many times anyone “references” the Yellow Pages?
Thats exactly the point, you can’t track how people use the yellow pages, you can’t see which people read your ad, or how many times people read it and took action, or no action. There is no data to support their continued use.(or even to figure out why people aren’t using them anymore)
However, people still need to find stuff; restaurants, clothes, hotels, doctors, lawyers, whatever… simply now people are turning to the web for a quicker, easier search experience. And search is dominating the web these days. Google is raking it in, Yahoo and Microsoft are scrambling to get a bigger piece, and startups like Cuil and Mahalo are trying to get break into the scene. But however they’re gonna find it, people are going to use search, more specifically local search.
Local search will soon be the king of search, as the economy tightens, people are traveling less and are generally more concerned with whats happening in their community. (and thus more willing to spend their x dollars locally) A particularly powerful quote from A new report by Borrell Associates (which I referenced in an earlier post):
“Local online advertising,” defined as search, “local banners,” and video (classifieds are also in there), would reach $12.6 billion in 2008, with “local search” contributing roughly $5 billion to that total.
Those are big numbers, and there are big players already in and entering the local search market. But there are a lot of nuances in local, people are different, politics matter and most often they have no idea who Marc Andreesen is, they don’t care who backed your startup, they dont care about the fancy rails technology your site runs on. They want results and they want to talk to a person.
There is no concrete answer to the question of who will succeed in local search, there are many verticals and plenty of niches to tackle, but there is certainly going to be a battle over it in 2009. And I didn’t even touch on mobile, which Google’s Eric Schmidt thinks will one day be more profitable than anything else they do. Thats a scary thought.
Will the general population move towards mobile search, are we still two or three years away? Or will local search dominate 2009? I know there are other much hotter topics, but seriously if you are reading this you probably aren’t Joe Cleveland. (Ok, easy)
Lets go USA!
Posted by Jamie Hutson | Filed under Life, advertising
Did anyone else notice that the Olympics are expected to generate about $100 Million in online Ad Spending!
Thats awesome, a huge event, millions of eyeballs and some advertisers are recognizing that money spent online is more than likely money well spent. Go ahead and see if you can triple that by 2010…
NBCOlympics.com had over 4 million visits on day one and Google has created a special medal count widget for iGoogle.
Now cheer on America and lets see if we can’t take it to China on their home turf.
Fake Internet Money
Posted by Jamie Hutson | Filed under Local Search, advertising, marketing, revenue models
I have tons of fake internet money. And I’m planning to get a bunch more, my question is what is everyone going to do with all their fake internet money. Alot of businesses out there are converting thier giant audiences into real money, but what are the large sites doing to monetize their views and return their investors money. Rounds C and D are exciting and there were alot big numbers thrown around last year and earlier this year, but when is that all going to come around. I’ve got a hunch that it isn’t.
Youtube became so succesful because it was free to its users, no money and no interuption cost of advertising. Facebook continues to be successful with its users because it limits the interuption cost as much as possible, but I would consider Facebook to be the field-leader in monetization. There are alot of competitors in an increasingly crowded space launching new platforms after their second and third rounds of funding all going after the same ad dollars (Zvents, outside.in, and many more). I’m not the only one who warns of seeking the same ad dollars with similar audiences.
I’m just curious who will be funding these companies in 6-8 months, will the economy pick up, or will ad networks save the day. There is some data showing a slowing online advertising atmosphere, however there is much more optimism towards online ad growth. I can’t see all of these local search competitors succeeding down the road, but the ones that do will own large shares of local markets and have a palpable relationship with these local markets. I cringe when I see “People Love Us on Yelp!” stickers - for a reason, they’re there and they are good.
Mobile Opportunities - 2D Barcodes
Posted by Jamie Hutson | Filed under Local Search, Mobile, Mobile Web, Small Businesses, advertising, marketing, web 2.0
Ok, so the iPhone phrenzy has calmed down slightly and every major news outlet or blog has covered their view of the device. Now lets examine how the opportunities in mobile have evolved with this fancy new device.
The GPS capabilities have been upgraded so my iPhone friends will be able to easily figure out, not just who, but also where they are. This brings a variety of Location Based Services to the iPhone that are more readily available now. Local coupons, location aware information and a slew of soon to be spammy SMS services are sure to be around the corner.
I’d like to focus on an interesting new technology that is very popular in Japan, and I’ve mentioned before - 2D Barcodes. Google made these next generation bar codes available in their print ads. Heres an excerpt from their explanation:
Recently, you may have seen newspaper ads for ServiceMagic placed through the Google Print Ads platform. These particular ads include a Google Consumer Response Tag (CRT) with multiple response mechanisms: URL, search terms, phone number, coupon code, SMS code, and 2D barcode. This test is part of our efforts to make print advertising more useful for readers and more measurable for advertisers. 2D barcodes are an especially exciting part of this because they allow readers to “click” on interesting print ads with their cellphones and seamlessly connect to relevant online content.
Whats really exciting about these “Quick Response” codes, is that many features of these 2D bar codes will soon be reaching consumers and connecting them instantly with businesses. With their application to convert local search online to the real world (and vice versa) these QR codes could be extremely valuable to marketers and small businesses.
To the right is an example of a 2D Barcode from the website semapedia.org. Semapedia.org lets you take a link from wikipedia, wikimedia and several other wikis, create a 2D Barcode to link back to specific articles, then print it and place it where ever you wish. Their goal is to “connect the virtual and physical world by bringing the right information from the internet to the relevant place in physical space.” Now picture this applied to your favorite restaurant, or take out place.
You’re walking down the street, right around the corner and you see an ad for the deli. You whip out your phone and snap a picture of the code and bang, you just got a free beverage if you come into the deli and order a sandwich in the next 10 minutes. Just bring your phone.
This technology has applications across many mediums, business types and ad types. Use it to get more information on cars at the bus stop, movies on the subway, hotel rooms at rest areas or just about anything - on demand, on location, while the consumer is in purchase mode. Talk about ROI, send the coupon to a tracking URL and see how many coupons are redeemed from your coupon.
No Nigerian Spammers, no number harvesting, just on demand information. Brilliantly simple.
I see an opportunity in a tinyurl style “QR” generator. Although there are a couple companies doing it in Europe and Japan (Kaywa seems to be the most friendly). They currently offer personal QR codes free as well as enterprise and API use for a fee. Unfortunately there is little traction in the market here in America, as usual we are behind the mobile curve.
Here is an example of mobile marketing from Sweden: Crossmedia Avenue ran a MMS campaign for a pension insurance company that invited users to send in a picture of themselves and see their face transformed 70 years in the future. With over 262k photos sent via MMS in one month! That is a powerful response in a country of 9 million people. I can’t imagine that we are more than 9-12 months away from these sort of campaigns coming to the US.
With over 14 million BlackBerry’s sold last year in the US, iPhone sales expected to reach 10 million world wide by the end of this 2008 and analysts expecting the pie to keep growing, the proliferation of smartphones into our lives is close to reaching a critical mass.
Now if only I could grow a second set of thumbs…
Old Media vs. New Media
Posted by Jamie Hutson | Filed under Local Search, Mobile, advertising, social media, web 2.0
The world of old media is degrading faster than ever. Newspapers have been suffering more than ever before, and are losing necessary traction in local markets. TV is beginning to embrace digital media as an alternative source of media, but as a new member of media is a step above print in the food chain.
So where does this lead us? How do the old guys (read newspapers, but include old TV guys), compete on a level playing field where consumers are more and more determining their place and time to consumer their media. (A great discussion of this topic can be found at Screenwerk)The rise of the internet, and mobile specifically should be seen by these players as bountiful opportunities. They have strong brand presence in their market, established goodwill and existing relationships in their respective communities. Except there is one thing missing from them: awareness of the opportunity vs rather than observation of the threat.
I had a meeting recently with some “old guys” interested in reaching a more engaged, younger audience via a partnership through with local search. They were smart, experienced and were using a pretty good model and having success with it. But 10 minutes into the meeting, I could tell they didn’t get it. They knew what I was talking about, but they didn’t get how the differentness of what we were discussing made it better. A classic “old way of doing something with new technology, vs new way of doing something” issue. And it wasn’t the first time I saw it.
Newspapers are still in trouble and now seem to be past “denial” of the threat the web poses to them, but they remain stubborn in embracing it. Local content should be celebrated and contributions should be encouraged, however the model of user generated content and social collaboration that has made so many online organizations successful continues to be rejected. Until Web 2.0 is embraced by old media, newspapers in particular, they will continue to falter.
Newspapers more than any other medium are most well positioned to capture value out of their local markets with the web. The lack of their expansion into other verticals is a prime example of their stubbornness. They would have to sack it up and realize that there is potential revenue through a different medium. Hundreds of other companies have realized this and have capitalized on these gaps. Yelp, every version of the yellow pages and all local directories are in existence today because the big players (newspapers) failed to act.
Now what is the next space that the new, big players will fail to act in?
The Power of Hype
Posted by Jamie Hutson | Filed under Life, advertising, marketing
And why its actually useless.
Last week my (never met him before or interacted with in anyway whatsoever, but read so much of what he thinks that I usually think to myself “what would Seth Godin say about this” whenever I do anything) friend Seth Godin wrote a valuable post about “Grand Openings” and how they are not so grand. I laughed when I read it because I was scheduled to attend the Grand Opening party of an old restaurant that had closed and re-opened under a new owner/management that evening.
It was Saturday when I realized the value of the Hype, the artificial pumping up of events, products and companies. I was at the Belmont, in hopes of witnessing history in the form of the first Triple Crown winner in 30 years.
You had to live in a cave to not know about this event. The trainer was everywhere, the horse was everywhere, a big dollar investment was made and a multinational company purchased a first of its kind endorsement. Big Brown came around the final turn and stopped running. The most heavily favored horse to go off at Belmont Stakes in decades, the sure shot, became the first Triple Crown contender to finish dead last.
More than twice as many people watched the stakes on television this year over last year and over 100k people braved the heat to watch in person. People were excited, then they were disappointed. Massively disappointed.
When things don’t live up to the hype, people remember the bad, the letdown or they don’t remember it at all. Eitherway, all the press, all the hype that was put into the event was a waste of many and probably will hurt the brand/event/promoter in the long term.
Don’t try to live up to the hype, let the hype try to live up to you. Make the hype follow the event, let people talk about how great it was, because if something was really worth all the hype, you won’t need to put all that hype into it before hand.
At 5 o’clock vendors were selling Big Brown tshirts for $20. At 6:30 they were selling those same shirts 3 for $5. Of course, if he had won, those shirts might have been selling for $40. Perhaps the Belmont Stakes is not the best example, but it made me think about what we do in order to hype things up and get people to pay attention. As Mr. Godin commonly puts it, make something remarkable - worth talking about, and people will talk about it.
Speak softly and carry a big stick. Just Do It. Walk the Talk. Moral of the story, instead of talking about doing it, go ahead and buckle in and do it. Because almost never was, and probably never will be.
Its late now, and I’m going to stop hyping this post.
You Have No Idea What You’re Talking About
Posted by Jamie Hutson | Filed under advertising, marketing, measurement, web 2.0
Not necessarily you, but alot of people out there who are responsible for making decisions based around incorrect or misused information. “Well we just got our new RSS feed live so we are on the forefront of the the online game.” “Our online advertising needs are being met by our facebook page because (insert 3 random and conflicting facts about facebook here).” We just placed a large buy with the local paper’s website, so we are all set for now.”
All three of these are actual comments I’ve heard from advertising prospects in the past week. Of course we get turned down, we’re not perfect, but it is frustratingly amusing when I hear these responses. “No, we don’t need your services because we have this other program that isn’t measurable and entirely different from your program. But what is it you do again?” The beauty of the internet is that it is measurable, fixable, flexible, adaptable, etc. But just because you can measure 37 different variables on your latest campaign doesn’t mean you’ll get the data you want.
I’m digressing from my point. I sometimes feel like half of the people out there using new technologies are like 16 year olds with out their license cruising around in a Lamborghini - they don’t know what they hell they’re talking about. Sure your RSS feed is nice to have, and I’m happy to hear that you have a blog for your business, and I’m impressed that you have taken the time to build a facebook page. But your facebook page has 2 fans, and the last time your wrote on your blog was December - what is a new feed going to do for your business?
My point is, just because you have something fancy, doesn’t mean you’re using it right. Technology is not a money tree, you have to use it wisely and there isn’t just one way to do that.
A little break, but not from my BB
Posted by Jamie Hutson | Filed under Life, Local Search, Mobile, Mobile Web, advertising, marketing, social media
Last night Ryan Seacrest was on Larry King, and was speaking on a variety of issues, including the usual useless gossip, but he also touched on his BlackBerry Addiction. Larry asked him about the several businesses he runs and how he manages to keep them all together and when he sleeps. His response was basically that he turns his BlackBerry to silent, but wakes up routinely to check it through the night. I was watching this with my girlfriend and she informed me that Ryan’ BlackBerry use sounded an awful lot like mine.
Took a fairly last minute trip to North Carolina to visit my Grandmother, and we crushed the BlackBerry on the way here. Same old stuff for me that I’ve written about before, but it emphasizes how relevant it truly is. AT&T has announced that it will subsidize the release of the 3G iPhone this summer by as much as $200. BlackBerry announced its new “Bold” device (with 3G). Overall, the market for mobile phones and web-rich devices is growing enourmously. If people are able to buy iPhones for 2 or 3 hundred dollars, imagine how many they will sell.
Once everyday people, not just the early adopters and business savvy customers, but everyday Jones is able to access rich, mobile internet - then we will see the explosive growth in mobile advertising. I’m very excited to see what happens in the 4th quarter this year…
Mobile is Progressing
Posted by Jamie Hutson | Filed under Local Search, Mobile, Mobile Web, advertising, marketing
This week I saw a few examples of how mobile is finally beginning to cross the chasm between innovators and early adopters. Large players are seeing a shift in their advertising dollars, Google announced it was making a major partnership with Sprint, and launched their international portal for iPhones, iMedia Connection came out with a great overview of mobile barcodes, and also yesterday my BlackBerry was with out data for about 4 hours and I kind of freaked out.
The combination of these events, along with specific posts from two of my favorite bloggers (David Berkowitz on privacy and Darren Herman on privacy) led me to the conclusion that we are near the tipping point of doing something great with mobile (working on a very cool new mobile tool for our company).
If you read David and Darren’s posts, you’ll see that they feel strongly about privacy and the prospect of invasion of your personal space on a cell phone. I don’t see mobile marketing being a success if its seen as an invasion; however, mobile marketing becomes a success when marketers are able to reach people as they are in transaction mode. Transaction mode being any of the following: “Lets find a hotel nearby,” “I’m hungry,” “I’m thirsty,” “I really want one of those…” etc. As marketers see the value in reaching users searching for this information, and the mobile device becomes more of a “pocket” notebook computer more dollars will flow across the mobile airwaves.
As the devices transition, the dollars will transition behind them.
