Shopping cart rescue tactics have been a great way to re-engage consumers who almost bought something on a website but never converted. The legend goes, according to Professor Kagan, that if you put something in your cart and then leave the site and start browsing the web or going back to that thing you call a job that you can likely force the site to offer you an added incentive to complete the sale. This "free money" secret implies that the website will try a variety of tactics to re-engage you, including offering incentives such as discounts or free shipping, to get you to complete the purchase.
One example of a rescue tactic includes display ads that follow you around the web, tempting you with that dress you had thought would look great on you for your friend's wedding. Another way is to email you directly, asking the shopper directly if they forgot to complete their purchase? Revolveclothing.com recently sent me an email titled "Did you forget something? Shop the rest of your cart! A day later they sent me an email titled "You left something behind! Shop the rest of your cart!"
While I've been reminded constantly of the items I leave in my cart, what I cannot seem to make happen is the sudden 20% discount on that purple dress I've been wanting. Apparently, because these sights seem to be aware of my shopping addiction, they've decided I don't necessitate any extra discount in order to convert... ;)
Monday, August 04, 2014
Those frustrating consequences of the rise of mobile
Killing some time on my phone no less, I came across a highly entertaining post on BuzzFeed: 31 Reasons You Should Get Rid Of Your Smartphone Immediately
I couldn't help but laugh out loud and so many of the bizarre ways in which smartphones have changed the way people behave. That feeling when you feel your phone vibrate while you are in a meeting and suddenly you are so distracted thinking about what the email or text may have been. The frustration I feel when I see my battery on my phone is low but I don't have my charger with me. The blinding flash of another person in a restaurant taking a picture of their dinner to post online. Restaurants are now linking the slower turnover of tables to people lingering while checking their smartphones at the table, as recently featured on Eater.com. People may use smartphones to find a restaurant, but restaurants are also blaming them for bad service!
I have no interest in getting rid of my smartphone, but I did enjoy this BuzzFeed list to provide perspective on how reliant on them people have become. It is a good reminder that, useful as they are, we could all benefit from unplugging a little more, every once in a while...
I couldn't help but laugh out loud and so many of the bizarre ways in which smartphones have changed the way people behave. That feeling when you feel your phone vibrate while you are in a meeting and suddenly you are so distracted thinking about what the email or text may have been. The frustration I feel when I see my battery on my phone is low but I don't have my charger with me. The blinding flash of another person in a restaurant taking a picture of their dinner to post online. Restaurants are now linking the slower turnover of tables to people lingering while checking their smartphones at the table, as recently featured on Eater.com. People may use smartphones to find a restaurant, but restaurants are also blaming them for bad service!
I have no interest in getting rid of my smartphone, but I did enjoy this BuzzFeed list to provide perspective on how reliant on them people have become. It is a good reminder that, useful as they are, we could all benefit from unplugging a little more, every once in a while...
Sunday, August 03, 2014
Google Now -- awesome or creepy?
As an android user, I have recently become familiar with the benefits of Google Now. The cards on my phone serve up relevant information before I even ask for it. The other day, I recieved an alert telling me a flight was delayed before I went onto the United website to check its status. Actually, how did Google even know I had a flight? Well, my email had the confirmation for the ticket purchase, which included the flight number, time, airport, etc. Not only did I get the alert saying I was delayed, but Google then told me when I should be leaving for the airport and how long it would take.
Flipping through other cards on my phone screen I saw cards on searches I had been doing desktop, an ad for a dress I'd left in the shopping cart on my work computer, the latest Yankees game score, and a map telling me that I was 23 minutes to my home by train and 5 minutes from m my office.
This is all incredibly useful, but it also highlights just how much Google knows about me. From reading my gmail, seeing all of my photos on Picasa, to knowing what I search, what I read, what I buy and how I engage with the internet, Google knows almost everything. It's recent acquisition of Nest means that Google even knows what temperature I set my thermostat to each night.
This wealth of information Google has on me helps it to customize my experience with the search engine, and the plethora of businesses that it owns. While I appreciate the functionality, I cannot help but feel a bit exposed. Google knows more about most people than their spouse does. That level of access is what allows Google to provide such good quality, relevant products and services to consumers. However, access to that data is a priveledge and not a right. The real question is what is Google doing to protect the data on its users? What steps is Google taking to ensure that their own employees do not abuse that priveledge?
Flipping through other cards on my phone screen I saw cards on searches I had been doing desktop, an ad for a dress I'd left in the shopping cart on my work computer, the latest Yankees game score, and a map telling me that I was 23 minutes to my home by train and 5 minutes from m my office.
This is all incredibly useful, but it also highlights just how much Google knows about me. From reading my gmail, seeing all of my photos on Picasa, to knowing what I search, what I read, what I buy and how I engage with the internet, Google knows almost everything. It's recent acquisition of Nest means that Google even knows what temperature I set my thermostat to each night.
This wealth of information Google has on me helps it to customize my experience with the search engine, and the plethora of businesses that it owns. While I appreciate the functionality, I cannot help but feel a bit exposed. Google knows more about most people than their spouse does. That level of access is what allows Google to provide such good quality, relevant products and services to consumers. However, access to that data is a priveledge and not a right. The real question is what is Google doing to protect the data on its users? What steps is Google taking to ensure that their own employees do not abuse that priveledge?
Mobile search means business
Convinceandconvert.com recently posted that "70% of mobile searches lead to online action within an hour." Furthermore, it said that "Mobile users that find your business online have a conversion percentage nearly three times higher than the same search done on a desktop or laptop." Does this mean that mobile sites and ads are more engaging on their own? Probably not. More likely is their hypothesis that the WAY in which people search on mobile vs on a laptop is quite different. Browsing is more common on laptops, whereas mobile queries tend to occur quickly and with a more specific intent. Mobile searches tend to be more specific and more likley to be deep in the long tail of searches. They know what they want and are quickly trying to find it. As a marketer, if you can meet that need with relevant content, the opportunity for high quality conversion is exceptional.
Google Quick Answers -- to Everything!
Google has been serving up 'quick answers' to various search queeries in order to keep searchers in their results. I first experienced this a while ago when I Googled "current USD GBP exchange rate." At the top of the SERPS was a small window that gave me the current rate. It also let me adjust the units of USD or GBP and automatically recalculated the valuation of the other currency based on that volume. Without having to go looking through the SERPS for the rate and potentially a site that would perform the conversion for me, Google supplied it instantly.
Google Quick Answers has spread from simple questions like Capital of Estonia or game scores for tonight's Yankee/Red Sox game to even offering suggestions and dabbling in religion. The search for a Jewish blessing for types of food and meals. Searchengineland just pointed out that 'Bracha for Yogurt' results in a box that gives the blessing for both before and after eating yogurt.
http://searchengineland.com/google-quick-answers-jewish-food-blessings-198662#
It seems Google is continuing to expand the ways in which is will dominate the "now" in search. Expanded images and information to which it is supplying its own direct responses re more examples of this strategy.
Google Quick Answers has spread from simple questions like Capital of Estonia or game scores for tonight's Yankee/Red Sox game to even offering suggestions and dabbling in religion. The search for a Jewish blessing for types of food and meals. Searchengineland just pointed out that 'Bracha for Yogurt' results in a box that gives the blessing for both before and after eating yogurt.
http://searchengineland.com/google-quick-answers-jewish-food-blessings-198662#
It seems Google is continuing to expand the ways in which is will dominate the "now" in search. Expanded images and information to which it is supplying its own direct responses re more examples of this strategy.
Whack-a-Mole and the Legal Mess From UGC Online
I was THRILLED the other night when I watched an episode on the Good Wife titled "Whack-a-Mole." In this episode, members of Scabbit, basically a fictional version of Reddit, are speculating on the identity of a recent bomber and begin to place blame on Alicia's former client, a school teacher who was in town for a conference. Anonymous users are posting pictures of Zayeed that they believe connect him to the incident. The FBI ultimately sees the postings and takes it seriously enough to begin investigating Zayeed directly.
The lawyers want to protect their client and try to get Scabbit to take down the thread. However, because of an obscure law called the Communications Decency Act, Scabbit refuses to edit the content, silence its user base or take down the post. Section 230 of the CDA essentially grants immunity to sites that host content published by other users or contributors. No matter how libelous the content is, Scabbit is not liable for that content, but the individual poster is.
With the rise of anonymity online, anyone can easily attack someone else almost endless channels by which to do it. User generated content on websites is valuable for many reasons. It boosts engagement amongst users, it helps for SEO, and its a free way to make your website more relevant and expansive online. Why write an article or a post when your users will do it for you for free!? Sadly, when users use that freedom to contribute to attack other people, the consequences can be devastating.
The Right to Forget in Europe is a step in the right direction to limit the ability of offensive content to slander people. However, when will the law go further to call out those who intentionally slander good businesses and people? When one restauranteur posts fake negative reviews on his competition? When will those people be called out for their irresponsible behavior? The Right to Forget is a step in the right direction, but it's only the first step in what will be a very long battle...
The Good Wife episode is here: http://www.cbs.com/shows/the_
The lawyers want to protect their client and try to get Scabbit to take down the thread. However, because of an obscure law called the Communications Decency Act, Scabbit refuses to edit the content, silence its user base or take down the post. Section 230 of the CDA essentially grants immunity to sites that host content published by other users or contributors. No matter how libelous the content is, Scabbit is not liable for that content, but the individual poster is.
With the rise of anonymity online, anyone can easily attack someone else almost endless channels by which to do it. User generated content on websites is valuable for many reasons. It boosts engagement amongst users, it helps for SEO, and its a free way to make your website more relevant and expansive online. Why write an article or a post when your users will do it for you for free!? Sadly, when users use that freedom to contribute to attack other people, the consequences can be devastating.
The Right to Forget in Europe is a step in the right direction to limit the ability of offensive content to slander people. However, when will the law go further to call out those who intentionally slander good businesses and people? When one restauranteur posts fake negative reviews on his competition? When will those people be called out for their irresponsible behavior? The Right to Forget is a step in the right direction, but it's only the first step in what will be a very long battle...
The Good Wife episode is here: http://www.cbs.com/shows/the_
Facebook users call 911 over site outage?!
I caught an article today in the news feed for Facebook claiming that the LAPD has received multiple calls from LA residents complaining about the social networking site being offline. PC Magazine covered the story here: http://www.pcmag.com/article2/0,2817,2461807,00.asp
Some sources may say that the growth of Facebook's user base is slowing, and some sources even claim that people are leaving the site all together for other sources. However, calls to 911 when the site goes down would indicate the user base is as loyal as ever. As Facebook looks to further integrate itself into the lives of its users, young Zuck must be high-fiving himself with this story. LAPD has clearly received its fair share on non-emergency-related 911 calls, but multiple sources and the need for the police commissioner to go to social media to voice his frustration with the phenomenon indicates this is more than an isolated incident.
Beyond mobile apps and desktop engagement, what's the next way in which Facebook will try to invade our lives? The Facebook phone was a flop, but what about Facebook tv? Ordering your takeout via Facebook and paying within the app, eroding the need for Seamless or Paypal? If the site was down and I could no longer get my favorite fish tacos from Mole...? Well, that just MIGHT be reason enough to call 911... ;)
Some sources may say that the growth of Facebook's user base is slowing, and some sources even claim that people are leaving the site all together for other sources. However, calls to 911 when the site goes down would indicate the user base is as loyal as ever. As Facebook looks to further integrate itself into the lives of its users, young Zuck must be high-fiving himself with this story. LAPD has clearly received its fair share on non-emergency-related 911 calls, but multiple sources and the need for the police commissioner to go to social media to voice his frustration with the phenomenon indicates this is more than an isolated incident.
Beyond mobile apps and desktop engagement, what's the next way in which Facebook will try to invade our lives? The Facebook phone was a flop, but what about Facebook tv? Ordering your takeout via Facebook and paying within the app, eroding the need for Seamless or Paypal? If the site was down and I could no longer get my favorite fish tacos from Mole...? Well, that just MIGHT be reason enough to call 911... ;)
Saturday, August 02, 2014
Business models of Mobile Apps
- SELLING THE USERS
Collecting user data to resell them to advertising companies. For example, WhatsApp sold its user at a higher price than Instagram.
- FREE, BUT WITH ADS
Relying on ads sales means to make a bet on the fact that you’ll reach millions of users in a short amount of time. In this case it is crucial to be able to offer something really unique with high quality standards and moderate but targeted advertising.
- FREEMIUM COMPLEXITY
Offering basic service and asking for money for premium services. A classic example is Dropbox that, besides having more than 200 Million users, has a conversion ratio, to paying service, between 4% and 5%.
- PAY AND ENJOY
Selling apps is a difficult mission but it can also be very productive for a small team. According to Gartner data, 90% of paid apps do not reach 500 daily download and generates less than 1.250 Dollars per day.
- AN INNOVATIVE MODEL
We could call it simply a ‘pay later model’: if you want to continue to use the app you must pay. If you have already been using the app for one year you’ll probably do it.
Source) https://www.workingcapital.telecomitalia.it/en/2014/03/mobile-apps-which-business-model-is-best/
Collecting user data to resell them to advertising companies. For example, WhatsApp sold its user at a higher price than Instagram.
- FREE, BUT WITH ADS
Relying on ads sales means to make a bet on the fact that you’ll reach millions of users in a short amount of time. In this case it is crucial to be able to offer something really unique with high quality standards and moderate but targeted advertising.
- FREEMIUM COMPLEXITY
Offering basic service and asking for money for premium services. A classic example is Dropbox that, besides having more than 200 Million users, has a conversion ratio, to paying service, between 4% and 5%.
- PAY AND ENJOY
Selling apps is a difficult mission but it can also be very productive for a small team. According to Gartner data, 90% of paid apps do not reach 500 daily download and generates less than 1.250 Dollars per day.
- AN INNOVATIVE MODEL
We could call it simply a ‘pay later model’: if you want to continue to use the app you must pay. If you have already been using the app for one year you’ll probably do it.
Source) https://www.workingcapital.telecomitalia.it/en/2014/03/mobile-apps-which-business-model-is-best/
Friday, August 01, 2014
Is Facebook Really Failing Marketers?
Facebook is the darling of the Wall Street right now. But does it really generate ROI for its advertisers? The answer is less clear. Various sources of research seem to be pointing different directions but one thing is for sure - the consensus is definitely not there yet.
http://digiday.com/platforms/is-facebook-failing-marketers/
http://digiday.com/platforms/is-facebook-failing-marketers/
Wednesday, July 30, 2014
Twittering Up
By Alice Lam
Despite the fact that many soccer fans were unhappy with Argentina's loss, Twitter came out to be the true winner. Critics have questioned how Twitter would innovate in a media where everyone is limited to 140 characters. However, Twitter tapped into the hearts of the soccer fans by doing just that: creating interesting experiences and games on the platform and grabbing more users from other countries, thereby increasing the share of the pie. By focusing on the two pillars of business, growth and engagement, sales shot up. Second quarter earnings reported a $312 million revenue, a 124% increase from last quarter. 89% attributed to mobile.
Twitter is in fact its own case of how a brand does social media well. Twitter is by now, a pretty established brand and instead of resting on its laurels, it tapped into a very unique, global event that lends itself to virality. Inversely ironic, soccer fans are growing within the US and really strong in other parts of the world, that are not using Twitter. Using Twitter as a channel to make commentary on sports games really highlight its immediacy, community and shareability in ways that other brands simply can't. Unlike Facebook, Twitter is used mainly through mobile, which is a growing area right now in advertising. If Twitter continues to innovate and create new, fun ways to reach customers, their revenue will continue to skyrocket.
http://adage.com/article/digital/world-cup-delivers-a-big-win-twitter/294378/
Despite the fact that many soccer fans were unhappy with Argentina's loss, Twitter came out to be the true winner. Critics have questioned how Twitter would innovate in a media where everyone is limited to 140 characters. However, Twitter tapped into the hearts of the soccer fans by doing just that: creating interesting experiences and games on the platform and grabbing more users from other countries, thereby increasing the share of the pie. By focusing on the two pillars of business, growth and engagement, sales shot up. Second quarter earnings reported a $312 million revenue, a 124% increase from last quarter. 89% attributed to mobile.
Twitter is in fact its own case of how a brand does social media well. Twitter is by now, a pretty established brand and instead of resting on its laurels, it tapped into a very unique, global event that lends itself to virality. Inversely ironic, soccer fans are growing within the US and really strong in other parts of the world, that are not using Twitter. Using Twitter as a channel to make commentary on sports games really highlight its immediacy, community and shareability in ways that other brands simply can't. Unlike Facebook, Twitter is used mainly through mobile, which is a growing area right now in advertising. If Twitter continues to innovate and create new, fun ways to reach customers, their revenue will continue to skyrocket.
http://adage.com/article/digital/world-cup-delivers-a-big-win-twitter/294378/
Amazon enters the 3D printing business
Almost anything can be bought on Amazon and be shipped in a few days to your doorstep. Now, they opened a 3D printing store. The store does not sell the products to print at home but rather sells products from 3D printing companies that will ship the product to you. The difference to an ordinary product is that it can be customized on Amazon's website.
The offering covers various product categories, such as jewelry, home & kitchen, electronics, and toys & games. Most of the sold objects cost less than $40, the jewelry often retails for $100 or more.
Source:http://mashable.com/2014/07/28/amazon-3d-printing-store-2/
The offering covers various product categories, such as jewelry, home & kitchen, electronics, and toys & games. Most of the sold objects cost less than $40, the jewelry often retails for $100 or more.
Source:http://mashable.com/2014/07/28/amazon-3d-printing-store-2/
http://boss.blogs.nytimes.com/2014/07/30/curalate-expands-its-analytic-tools-to-cover-facebook-instagram-and-tumblr/
Curalate is attempting to bridge the gap between the deluge of user generated content and its relevance to retailers and firms. By and large, user generated content has been either unfiltered and unsorted, except through the channel of personal selection, meaning a particular person's Instagram feed or Facebook album. The closes in terms of establishing relevance between this content and the desires of a marketer has been Pinterest, where users can 'Pin' products or ideas that they desire.
The service offered by Curalate allows companies to quantify user engagement in a visual sense, which is an enormous capability to be able to leverage. The further step taken by Fanreel, allowing click through for purchase, is an obvious, if technically difficult one. Importantly, this is not far off from a capability that Facebook wishes to develop internal to its own structure, allowing customers to purchase directly through company pages and the Newsfeed.
Curalate is attempting to bridge the gap between the deluge of user generated content and its relevance to retailers and firms. By and large, user generated content has been either unfiltered and unsorted, except through the channel of personal selection, meaning a particular person's Instagram feed or Facebook album. The closes in terms of establishing relevance between this content and the desires of a marketer has been Pinterest, where users can 'Pin' products or ideas that they desire.
The service offered by Curalate allows companies to quantify user engagement in a visual sense, which is an enormous capability to be able to leverage. The further step taken by Fanreel, allowing click through for purchase, is an obvious, if technically difficult one. Importantly, this is not far off from a capability that Facebook wishes to develop internal to its own structure, allowing customers to purchase directly through company pages and the Newsfeed.
Tuesday, July 29, 2014
Chinese Government is Looking into Microsft and Qualcomm
http://www.reuters.com/article/2014/07/29/us-microsoft-china-idUSKBN0FX0TY20140729
http://www.theaustralian.com.au/business/latest/china-opens-investigation-into-microsoft-monopoly/story-e6frg90f-1227006416465?nk=659f6ac60632b66019a0641a48927f20
This week, the SAIC (State Administration for Industry and Commerce) of China has conducted a surprise investigation to Microsoft and Qualcomm in their Chinese offices. Government of China claimed that Microsoft and Qualcomm are "anti-competitive".
This incident is easily to remind the forced step-out of Google in China. The political risk for the foreign company in China is certainly a big issue.
http://www.theaustralian.com.au/business/latest/china-opens-investigation-into-microsoft-monopoly/story-e6frg90f-1227006416465?nk=659f6ac60632b66019a0641a48927f20
This week, the SAIC (State Administration for Industry and Commerce) of China has conducted a surprise investigation to Microsoft and Qualcomm in their Chinese offices. Government of China claimed that Microsoft and Qualcomm are "anti-competitive".
This incident is easily to remind the forced step-out of Google in China. The political risk for the foreign company in China is certainly a big issue.
Facebook moves all mobile chat to Messenger app
Not sure exactly what's the impact of this -- maybe Facebook forcing to diversify even further their revenue potential on mobile?
Full article:
http://www.pcworld.com/article/2459000/facebook-to-require-messenger-app-for-mobile-chat.html
Best,
Bruno.
Full article:
http://www.pcworld.com/article/2459000/facebook-to-require-messenger-app-for-mobile-chat.html
Best,
Bruno.
Blackberry and Secusmart: ill-timed and ill-conceived?
The sun has well and truly set on RIM. The once dominant OEM has floundered since the introduction of the i-Phone in 2007 and is now desperately looking for ways to stay relevant.
With failed ventures into tablets and other mobile variations, the latest foray comes in the form of an acquisition in the voice encryption space with German-based Secusmart. The idea here is that governments and industry will have renewed fears about data and voice call security in the aftermath of the Snowden debacle and that Secusmart, known recently for its anti-eavesdropping software, will become a core component of BlackBerry's highly lauded security portfolio.
There's no doubt that there's strategic value in the sector . Where the emphasis in the past was firmly on data, going forward, the market looks to be shifting decisively towards voice protection, particularly in the enterprise space. The question however on everybody's mind is whether the move has simply come too late in the day.
RIM's market erosion began in the US, but over time, it has spread throughout the world and even in once BlackBerry strongholds like Germany, they've lost out to other smartphones mostly from Samsung and Apple.
It remains to be seen what the future holds for BB, but whatever the world looks like in 10 years from now, the consensus seems to suggest that it wont include the once poster boy of mobile communications.
---------------------------------------------
http://www.zdnet.com/blackberry-acquires-secusmart-ups-voice-security-ante-7000032086/
http://techcrunch.com/2014/07/29/blackberry-snags-german-voice-encryption-firm-secusmart-but-years-too-late/
With failed ventures into tablets and other mobile variations, the latest foray comes in the form of an acquisition in the voice encryption space with German-based Secusmart. The idea here is that governments and industry will have renewed fears about data and voice call security in the aftermath of the Snowden debacle and that Secusmart, known recently for its anti-eavesdropping software, will become a core component of BlackBerry's highly lauded security portfolio.
There's no doubt that there's strategic value in the sector . Where the emphasis in the past was firmly on data, going forward, the market looks to be shifting decisively towards voice protection, particularly in the enterprise space. The question however on everybody's mind is whether the move has simply come too late in the day.
RIM's market erosion began in the US, but over time, it has spread throughout the world and even in once BlackBerry strongholds like Germany, they've lost out to other smartphones mostly from Samsung and Apple.
It remains to be seen what the future holds for BB, but whatever the world looks like in 10 years from now, the consensus seems to suggest that it wont include the once poster boy of mobile communications.
---------------------------------------------
http://www.zdnet.com/blackberry-acquires-secusmart-ups-voice-security-ante-7000032086/
http://techcrunch.com/2014/07/29/blackberry-snags-german-voice-encryption-firm-secusmart-but-years-too-late/
After a long struggle, mobile payments are about to take off
The so-called mobile wallet has been seen as a great opportunity for years now. What is more futuristic and at the same time more easy to think of that using smartphones for payments also, by simply hitting a button?
Visa and Samsung Electronics have been working together last year to make mobile payments easier. Nowadays, Samsung phones incorporate Visa’s
payments software, payWave. This near-field communications (NFC) technology allows users to complete a payment by simpliy tapping their phones against a payment terminal.
Nonetheless, this service has been struggling to take off. Many people are not aware of
the new payment systems, others are confused by the many choices, and
some see no benefit in the mobile option over using cash or credit
cards. In addition to these, and probably of greater importance, merchants are not interested in installing new payment software and
hardware unless a large percentage of shoppers are using the service.
Thus, there won't be a need for a pre-installed hardware (as for payWave) anymore: the system will just be an app, serving as a NFC-enabled mobile wallet regardless of which telecom provider the phone is used on.
Will this "cloud" revolution eventually boost mobile wallets?
Read more:
http://www.ft.com/intl/cms/s/0/7b1eb6fa-99a9-11e3-b3a2-00144feab7de.html#axzz38pj3pzLO
The importance and effectiveness of mobile advertising
The role that smartphones play in the daily lives of consumers is no more under discussion: mobile devices are not only communication devices any more, but they have become "always on" companions for people in everyday life. Few statistics on this phenomenon:
(Source: http://digitalmarketingmagazine.co.uk/mobile-digital-marketing/the-significance-and-growth-of-mobile/806)
The objective of marketers is to drive sales, and mobile devices are increasingly becoming an integral part of this process. So, how can advertisers take advantage of this, developing mobile campaigns that appeal their customers and move them directly to a purchase decision?
The key is to convey the right message, to the right audience at the right time. Invasive and irrelevant advertisements only annoy users, so marketers should try to create content-rich ads and to show them to a specific target audience, before people are actively engaged in an activity (e.g., while an app is uploading). Moreover, showing pictures and text is not enough any more to really engage customers: click-to-call or click-to-download, geolocation, and the use of smartphones features such as the calendar, are some examples of how to enrich the content of an ad and make it more engaging for customers.
Source: http://digitalmarketingmagazine.co.uk/mobile-digital-marketing/how-to-ensure-the-pounds-follow-the-eyeballs-when-it-comes-to-mobile-advertising/808
- There are more than 1 billion monthly active users of Facebook mobile, corresponding to about 79% of its total users worldwide
- Mobile services such as messaging apps, the most popular in terms of growth, registered a 203% usage increase in 2013
- Health and fitness apps usage has grown exponentially since 2013, reporting a 62% increase over the past 6 months, and 3 million patients worldwide are expected to be using remote healthcare monitoring devices based on smartphones to transfer information by 2016
(Source: http://digitalmarketingmagazine.co.uk/mobile-digital-marketing/the-significance-and-growth-of-mobile/806)
The objective of marketers is to drive sales, and mobile devices are increasingly becoming an integral part of this process. So, how can advertisers take advantage of this, developing mobile campaigns that appeal their customers and move them directly to a purchase decision?
The key is to convey the right message, to the right audience at the right time. Invasive and irrelevant advertisements only annoy users, so marketers should try to create content-rich ads and to show them to a specific target audience, before people are actively engaged in an activity (e.g., while an app is uploading). Moreover, showing pictures and text is not enough any more to really engage customers: click-to-call or click-to-download, geolocation, and the use of smartphones features such as the calendar, are some examples of how to enrich the content of an ad and make it more engaging for customers.
Source: http://digitalmarketingmagazine.co.uk/mobile-digital-marketing/how-to-ensure-the-pounds-follow-the-eyeballs-when-it-comes-to-mobile-advertising/808
Monday, July 28, 2014
Facebook Pulls Ahead Of Google In US Digital Display Ad Revenues
Although Google is the $4 billion darling of the US display ad space,
players like AOL, Amazon and Facebook are closing in on that share.
Most noticeably, Facebook, which for the first time last quarter
served more ad impressions on mobile devices than on the desktop, experienced a
50.5% increase in US digital display ad revenue last year to Google’s 33.3%
growth rate, according to eMarketer.
If eMarketer’s estimations are accurate, Facebook has already pulled
ahead of Google in US display ad spend. Although Facebook was nipping at
Google’s heels in 2012, totaling $2.18 billion in display ad revenues to
Google’s $2.26 billion, the social platform pulled ahead of the search giant
last year totaling $3.28 billion in display ad revenue to Google’s $3 billion.
EMarketer includes mobile along with desktop in net digital display ad
estimations, which makes the growth explainable.
Fast forward to the end of this year and Facebook is expected to reach
some $4.8 billion in digital display revenues to Google’s $4 billion. This is a
markedly higher estimation than one year
ago, when eMarketer forecasted Facebook would generate $3.35 billion in digital
display ad revenues by the end of 2014.
“Facebook and Google are still much larger than everyone else, and
while Google is still much larger than Facebook in terms of total market share,
Facebook’s growth is particularly impressive,” said Dan Marcec, a spokesman for
eMarketer.
Facebook’s growth figures are not surprising, particularly because of
its mobile traction. AdExchanger reported
last summer that Facebook was encroaching on Google’s mobile ad share. In
August, according to an eMarketer source, “Facebook has charged ahead of most
of its competitors in the mobile display space. … The reach that they offer
advertisers combined with their targeting makes them a relatively singular
option for advertisers looking to reach people with display ads on mobile.”
However, it’s worth noting that in recent quarters,
Google has promised less of a focus on ads and more of an emphasis on its
hardware business. Wall Street analysts have also identified Google's display
business as robust, but have expressed concerns over margins.
Although Facebook and Google dominated in digital display ad revenue,
Amazon and AOL are also worth watching. Amazon will generate $172 million in
display ad revenue this year (not including search), according to eMarketer.
The ecommerce giant has in recent months been experimenting with new ad formats,
including incorporating video into e-commerce ad placements.
“We haven’t seen results yet, so it’s kind of hard to say, exactly,
but the new ad formats are certainly something we’re keeping an eye on and
watching closely,” Marcec said. “In terms of where Amazon is right now and will
be in the next two to three years, it’s similar in size in the US as AOL in
overall digital ad spending,” including search.
Specific to display, AOL’s growth had dropped off pretty significantly
for a long time, Marcec said, but because of the company’s seeming commitment
to “programmatic, video and [renewed] ad pricing, they’ve been seeing some
success now, which is pushing their growth back in the double digits.”
While eMarketer pinned AOL’s display ad revenue growth rate at 9.6%
last year, the research firm expects this rate to increase to 15.5% this year.
Yahoo, on the other hand, underperformed with a -6.4% growth rate in digital
display ad revenue last year. EMarketer had considered such factors as lower
inventory levels and short-term revenue losses as a result of internal
restructures. This is reflected in Yahoo’s net display ad revenues for the
United States, which dropped from $1.35 billon in 2012 to $1.26 billion last
year.
Yahoo is on course for a modest improvement this year, and will
experience 2.2% estimated growth in digital display ad revenue. Slight growth
would put the company at an estimated $1.29 billion this year. However, the
volatility due to organizational changes and continued acquisitions is still
apparent – eMarketer estimates that the 2.2% growth rate in digital
display ad spend this year could dip again to 2% in 2015.
Although
Marcec noted Yahoo is making an effort to gather new ad revenue streams around
video and Tumblr, "we haven't seen enough results yet to predict any
significant changes long-term."
Facebook Answers Critics With Mobile-Ad Surge
Facebook Inc. on Wednesday put to rest any lingering doubts about its ability to transform its business into a mobile-advertising juggernaut.
The social network reported that profit more than doubled and revenue topped estimates for the ninth straight quarter. About 62% of Facebook's ad revenue now comes from advertising on mobile devices, which this year is expected to eclipse newspapers, magazines and radio in the U.S. for the first time, according to eMarketer.
Facebook also continued to show it can weather concerns that it is losing its "cool" factor among teens or irking users worried about privacy. Facebook added another 40 million users in the second quarter, with one-fifth of the world's population now logging into the social network at least once a month.
"This is a good quarter for us," said Facebook chief executive Mark Zuckerberg on a conference call with analysts Wednesday, but "there's still so much room to grow," he said.
The results sent Facebook's stock to an all-time high in after-hours trading, rising 3.7% to $75. That is nearly double Facebook's initial public offering price of $38.Facebook's revenue rose 61% to $2.91 billion in the second quarter, generating a profit of $791 million, up from $333 million a year ago.
Facebook started placing ads on its mobile site and app only two years ago around the time of its initial public offering. It has now found itself in an entrenched battle with Google Inc., fighting to inhale mobile advertising dollars that would otherwise have gone to the Web, print or television. Anyone else would be a distant third.
Facebook is projected to command about 18% of the roughly $17.7 billion U.S. mobile ad market this year, up from 9% two years ago, according to eMarketer. Google will remain No. 1, but its share is expected to fall to 39.8% from 49.8% during that time.
"What Facebook has done with mobile is one of the most impressive things I've seen an Internet company do in recent years," said Mark Mahaney, an analyst for RBC Capital Markets, after the earnings release Wednesday. Mr. Mahaney warned, though, that Google is still the behemoth in the industry and might be only beginning to assert itself on the platform.
In an effort to entice big brands to spend more on its site and app, Facebook is making a bigger push into premium video advertising. It also launched a mobile advertising network in April through which Facebook sells ads that actually appear on mobile apps that the company doesn't own. Depending on how many apps choose to participate, Facebook could expand its business through the ad network.
Facebook has also invested in market research data to try to prove to brands that ads on the platform are effective. It has convinced some large advertisers to put more resources into Facebook, helping boost revenue. But there are still skeptical advertisers, and if Facebook can convince them, too, it will see even more growth.
On Wednesday's conference call with analysts, Facebook Chief Operating Officer Sheryl Sandberg called attention to the social network's ability to sell ads to small businesses. She told the story of Chumbak, a maker of Indian-inspired products. After the company's owners used their life savings to start Chumbak, they began purchasing Facebook ads, which are now responsible for generating 35% of that company's online revenue.
Ms. Sandberg pointed to an advertising campaign in India designed specifically for low-end feature phones. She saidProcter & Gamble Co.'s Gillette brand launched its Vector 3 razor there, where 80% of the 100 million users of Facebook in India are on mobile.
She also pointed to a McDonald's video ad campaign on Facebook that used anthropomorphic french fries as soccer players and re-enacted World Cup scenes.
Beyond advertising, investors continue to pay attention to Facebook's user growth, which has been steady as it blankets more of the world's Internet population. The company said 1.32 billion users logged into the service at least once a month during the quarter, up about 3.5% from 1.28 billion three months earlier. The number of users who logged in daily grew to 829 million on average in June, up from 802 million in March, indicating people are spending more time on the platform.
It isn't clear whether the latest privacy flap—a furor over a psychological experiment Facebook conducted on its users—will cause people to leave the social network. Ms. Sandberg apologized earlier this month for not properly communicating to its users about the experiment, which was exposed last month and conducted in 2012 to determine whether Facebook could alter the emotional state of its users and prompt them to post more positive or negative content.
On the conference call, Facebook executives didn't address the uproar over the experiment. But most numbers have indicated that people continue to use the service more, despite ongoing privacy concerns raised by incidents like the experiment.
In the U.S., where the market has been saturated with Facebook users for years, mobile users spent 157 million minutes on the platform in June, according to comScore, a 50% increase year-over year, including Facebook's photo-sharing app Instagram. Facebook and Instagram shared 200 million unique visitors in June, up from 185 million a year ago. That is second only to properties controlled by Google and Yahoo Inc.
If there is any other worry about Facebook, it is the company's inability to innovate. It has launched several stand-alone apps, including Poke, Paper and Slingshot, all of which have received a lukewarm response from users. In May, Facebook shut down Poke, which was a competitor to messaging service Snapchat.
Facebook has pointed to its Messenger app as a success, but it forces users of its mobile app to download it to send and receive Facebook messages. It has found innovation elsewhere, paying $19 billion for competing messaging program WhatsApp and buying virtual-reality headset maker Oculus VR for about $2 billion.
Mr. Zuckerberg signaled to investors that he would continue to make similar investments. "It's not that we're necessarily going to go out and have a lot more new strategic priorities, but we expect to go very deep on the priorities that we have to make sure that we completely nail them all," he said.
Meanwhile, Google, has stretched its tentacles into numerous areas outside of advertising, from self-driving cars, to television streaming devices, to wearables and home electronics.
Among the biggest themes on Facebook's earnings call was a simple message: The company plans to move slowly on various projects, like expanding the places Facebook ads can go, creating auto-play video advertisements, and turning its Instagram acquisition into a moneymaker.
"We want to make sure we don't get ahead of ourselves," Mr. Zuckerberg said.
Which digital company just went public with news of 61% increase in revenue this quarter?
Facebook recently released its 2014 second quarter earnings report.
Some highlights include:
Personally, I was surprised by these numbers. It's common knowledge that Facebook is doing well and is not going anywhere anytime soon, but a 61% increase in revenue is incredible.
For those of you who are not surprised by these numbers - "So, what? I knew those numbers were coming..." - then you might be surprised by the news that Facebook is now thinking about ways to go retail. Check out this short, informative Bloomberg video here.
Some highlights include:
- 19% increase (year-over-year) in daily active users, average of 829 million per day
- 39% increase ("....") in mobile daily active users, average of 654 million per day
- 61% increase in revenue for 2Q2014 (compared to 2Q2013) to $2.91B
- 22% increase in expenses for 2Q214 ("...") to $1.52B
- 62% of ad revenue coming from mobile advertising (compared to 41% in 2Q2013)
Personally, I was surprised by these numbers. It's common knowledge that Facebook is doing well and is not going anywhere anytime soon, but a 61% increase in revenue is incredible.
For those of you who are not surprised by these numbers - "So, what? I knew those numbers were coming..." - then you might be surprised by the news that Facebook is now thinking about ways to go retail. Check out this short, informative Bloomberg video here.
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