Friday, May 31, 2013

The Dominance of Search in Our Daily Lives


I really enjoyed reading "The Search." What struck me most about Google in particular and search engines in general is the dominance of search in our daily lives. Most people use Google multiple times a day to make decisions on what they will do and how they will live. Going through a mental checklist of today, I used Google to check on a statement of a US Congressman, find a quote from "Fight Club" that I used to tease a friend on Facebook about his Ikea addiction("Save me from Swedish Furniture."), find a local Fed Ex, and try to find a better scale. Google has become the lens through which many of us view the world. That coupled with the increasing searchability of not only websites, but people, places, and things is at once alarming and exciting. Most people are excited to think that their luggage could have a tiny RF transmitter in it to ensure that it never gets lost. However, we cringe at the same technology being put to pernicious uses. US law is clear that people have no expectation of privacy in a public space. This means that video surveillance and facial recognition technology make your patterns and habits almost a matter of public record. Furthermore, although the Government's primary use of this information is for our security, corporations or other entities could use this information for unethical or illegal practices. Juvenal once asked, "Who will guard the guards"? In short, who watches what is being watched? I trust our government to a point, I trust corporations far less.
In the aftermath of the "Little Albert" experiments, psychologist John Watson went to Madison Avenue, and never looked back. Although shunned as immoral, at best amoral, by the scientific community; Watson and his deep knowledge of classical conditioning was welcomed by advertisers with open arms. Watson was a master at refining stimulus and response to get the desired result. He once taught pigeons to play ping pong. He later helped ad men sell to highly-trained consumers. What does classical conditioning and marketing have to do with Google? Everything. The effectiveness of advertisements can now be more closely tracked, stimulus and response. Marketers can more efficiently spend their money to get the right customers. This is all seemingly harmless. However, the implications of advertising becoming too good are evident in our consumer culture. The average German saves roughly 15-20% of her pay. The average American has more than $2,000 in credit card debt. Furthermore, the sweeping epidemic of dia-besity, type-II diabetes coupled with obesity, in America is an alarming and self-inflicted wound. We suffer from hyper-consumerism. I wonder if that has anything to do with Watson? I wonder if things will intensify as companies learn to harness the clickstream of intensions? Beyond this, as the expectation of privacy is stripped bare and people and corporations can come to learn where we go, what we do, and what motivates us to buy; I wonder how this will impact the human experience?
The internet is a two edged sword: with greater transparency comes greater accountability. Juvenal asked who will watch the watchmen, in America we do. We can all Google any of our Congressman or other leaders and find a litany of information on them. We can all Google "Santorum" if we want to learn about the unspeakable. In a sense, search engines have made information accessible and democratized information where the internet is free. This is good. "The Search" was a good read and predicted much of what has happened since it's publishing. I just hope that people are thoughful, if not wary, of the power of the clickstream of intentions. The net result of search engines could be overwhelmingly positive, but we must be thoughtful about how much power gets consolidated in how few hands. We must guard the guards.

The Death of Nielsen's

25,000 homes. 

The entire platform of network television advertising is based on 25,000 homes! Really Nielsen? Really. Really! (I'm channeling my best Seth Meyers impression). You put a box in the house to measure this? Really? Isn’t there a better way? Your lack of technological innovation astounds me. And yep, I’m still pissed about Firefly being cancelled. I hold you personally responsible, and I’m about to go all Hatfield’s and McCoy’s on you.

I recently read a book called The Search by John Battelle that described the incredible amounts of data that Google has at its fingertips. It can track everything you click on and how long you view the page. So why is it that TV ratings are soooooooo (I feel like I should use a soogol here: a ‘so’ followed by a hundred o’s) antiquated. 

I was just browsing through an issue of Wired magazine and I read an article called The New rules of the Hyper-Social, Data-Driven, Actor-Friendly, Super-Seductive Platinum Age of Television by Tom Vanderbilt. I compared his very low opinion of Nielsen to the high opinion I have of Google from reading The Search, and I once again wondered why in the hell companies spend millions of dollars to place television advertising based on something so archaic. There are 313.9 million people in the U.S.! Measuring 25,000 homes is only .0002% of the population (assuming 3 people per household). Sure, 25,000 seems like it meets the statistical requirements (what was that law in stats called?), but seriously???? Not to mention it only counts shows that are watched within 3 days of the original air time. Please. I just finished watching the last episode of Fringe last night and that was off the air five months ago. And to top it all off, these people know they are being tracked. Ever heard of testing bias??? I would like to see how many of those people are watching Cinemax late at night. Compared to Google, Nielsen's statistical tracking capabilities are the equivalent of a revolutionary war soldier compared to the Master Chief. Incredibly outdated and hopelessly outmatched.

Isn’t every cable box in America connected to the internet? When you push the button on the remote, doesn’t it send a signal somewhere to change the channel? So all some enterprising Columbia grad has to do is write a program that will connect to every cable box and track what shows you watch, how long you look at the guide, how many pages you scroll through, and if you push the 'More Info' button for a better description of the show. Then they can just sit back and collect the data. Sure, the cable companies and viewers may throw a fit, invasion of privacy, blah, blah, bladitty, blah. In time, this too will be accepted as part of the new data-driven society and television companies will follow the money. Once someone creates the cable television version of the crawler ‘BackRub’ (and yes, I expect royalties when you do) everyone will pour over the statistics and wonder why our caveman mentality prevented us from seeing the big picture for so long. Sure, some of you are saying “That’s not possible”, different boxes, different satellites, etc., etc. Yeah, I imagine that’s what they said when two people tried to map the entire internet and read every link on every page. This may seem complicated to us now, but in six years, it won’t. Time to leave the Stone Age behind Nielsen, and at the very least enter the Bronze age.

Facebook Video Advertising

If you are like me, you have noticed a significant increase in the number of ads in your Facebook Newsfeed over the last six months.  For most people, myself included, these ads aren't too obtrusive. You simply scroll down past it to get to the next piece of "news" in your newsfeed.  But as post-IPO Facebook continues to find ways to appease investors and monetize it's ad campaign I find myself wondering when they will cross the line.  

Perhaps that time has come.

Last month adage.com reported that Facebook would begin selling 15 second video ad spots for $1 million dollars each.  At first glance this may sound relatively innocuous but it appears as if these advertisements will be "auto-play." This means that you'll be forced to watch the 15 second video clip, whether you like it or not.  

We've all encountered auto play video ads many times before but in my experience these ads are usually on what I'll call "secondary" websites that may never have been clicked on if they weren't displayed as a google search result.  The websites that I typically visit every day do not have auto play video ads. They are able to draw me in each day (and therefore monetize their businesses) based on the quality of their content.

This type of advertising will drive me away as a daily Facebook user.  

Is this the tipping point for you too?




Thursday, May 30, 2013

Thank You for Sharing...Your Data

I found this article on LinkedIn and thought it posed an interesting question.  Although the author's tone seemed a little bit "doom and gloom" as it relates to the information that we will share virtually vs what we share 'in the real world', I liked the analogies he made of the various virtual communities as well as the concept of win/win data sharing.

Here is the link if you're interested!

http://www.linkedin.com/today/post/article/20130530180438-234814-thank-you-for-sharing?trk=tod-posts-art-

Runpee! A simple but useful app!

Every creation starts with a simple need.

Runpee.com is one of the simple and useful solution for those who want to use the restroom during the movie. Most of us might have the experience that afraid to miss the best part of the movie if we went to the restroom. Also, it's quite bothersome to ask your friend what you have missed during your leave.

Thus, here comes the solution. Runpee.com is a very simple website that listed every new released movie. Click into the movie, and you will see when is the best time to go to the restroom (Mostly they provide more than one perfect timing). Also, they provide storyline during the "peetime".

It started with a simple webpage and run by the founder Dan Florio (who named himself as CPO- chief pee officer). With the help from his family member, they can watch and provide the "peetime" for every (at least most) of the new release movie. He first sell ads on the website which is the main income source and then launched a paid app ($0.99) in 2011.

For those who do not have smartphone, Runpee.com still provides free service on their website.  (http://m.RunPee.com/) Nowaday, the website only provides movie release in 90 days. Movies older than 90 days can only been checked on app.

A great idea doesn't need to be really fancy. Many marketers are stuck in somewhere trying to create a "Big Idea"but forget those ideas which can solve our daily problem/ feed the needs are named good ideas!

*  Runpee.com went viral without any advertisement.


Wednesday, May 29, 2013

Display Marketing - Videos

I’ve been a movie buff since I can remember.  Not that I really had a choice since movies are a bit of a family tradition started by my grandmother “Granny Dura Anne”.  Granny would literally go to blockbuster (when they were relevant) and buy an arm full of movies.  Over the years she amassed literally thousands of films on VHS, the transition to DVD was a hard one for her to accept.  But needless to say when companies take the time to present their “experience” or products through a creative video I’m instantly and emotionally engaged.

When I came across TechCrunches “Google Admits It Spams TheHell Out Of You In New Gmail Commerical” it made me think of a few companies/startups that hooked me while selling me. Gmail addresses their Google+ spamming by easily allowing users to filter mail in a new way, here is the Google video.  Although, you could always filter specific emails to folders; to the unsophisticated emailer it looks like a solution to a problem you may or may not have even noticed.  Google’s catchy tunes and sharp product demo make the user want to open Gmail and get to work.  Could be why I have four Gmail accounts… damn you Google and your beautiful videos! But Google hits that mark and their videos inspire action.

Other companies like NYC based start-up Kohort used video marketing in a different way, beta launch build up.  If you’re unfamiliar, Kohort is a firm founded by entrepreneur turned venture capitalist turned entrepreneur Mark Davis, also a Columbia MBA.  Prior to Kohort's launch they were in stealth mode meaning they strategically let the press know they raised a large sum of money and encourage users to reserve their usernames before they were all gone BUT did not actually tell you what they did.  They had a mysterious buzz so when they finally launched in May of 2011 they already had thousands of users eager to use their product (me included) but no clue what it was.  They produced this AMAZING video to explain their offering. Unfortunately, for Kohort their commercial is the best part of their company.  The user interface and overall site design misses the mark, but that’s a topic for another day.  Although their product execution is horrible, Kohort's video does execute and again encourages the user to at the very least test the product.


When done properly video can inspire consumers to act by either signing up or buying a particular product or service.  Videos are an easy way, again if done correctly, to emotionally connect a brand with an individual.  Just don’t over sell your capabilities and fall into the Kohort trap.  

What videos hit the mark for you?

Smart TVs and the future of the Set Top Box

According to Decipher, an influential emerging media consultancy for the TV industry, there are “two parallel and competitive strands to ‘connectivity’ innovation in TV: the emerging ‘smart’ environments on connected TV screens and the ecosystems being built around the connected set top box.” However, as it currently stands, connected set top boxes are successfully fighting off the Smart TV threat.  According to Decipher’s FutureMedia 2013 analysis, when looking at comparative rates of usage where consumers had both a connected set top box and a smart TV in the same installation, 73% favored the set top box

In the long-term, however, we do not expect this trend to continue. As cloud computing and Over-The-Top content (OTT) applications continue to flourish, we can expect smart TV technology to become more dominant, eventually eliminating the need for an additional device. Currently, set top boxes only exist to serve three purposes.  First, they encrypt cable content, since televisions are not equipped to view this content in its raw form.  Second, they serve as computing hubs, enabling a host of interactive features.  Third, they support Video on Demand by means of two-way communication.  Initially, given the competitive nature of the consumer electronics industry, manufacturers were opposed to building this expensive functionality directly into television sets. However, as DVR technology continues to become more commonplace, streamlined and established, we can expect smart TVs of the future with native DVR functionality, especially given the inevitability of technological convergence.  In summary, it is reasonable to expect the set top box to become an increasingly archaic and redundant piece of equipment. 

Furthermore, in accordance with this school of thought, several major cable companies are not bullish on the future of the set top box either.  As revealed by Glenn Britt, CEO of Time Warner Cable, in a personal and exclusive interview with me, “We want to get rid of our set top boxes altogether.  They are expensive, clunky and mandate a high level of customer service.  Consumers don’t need to be locked in to using our device or program guide.” 

Indeed, we are already seeing a sharp increase in Smart TV sales.  According to a report by market research firm IHS iSuppli, smart TV sales rose 27% in the year 2012.  By 2015, the report anticipates that smart TVs will comprise 55% of all global shipments with 141 million units sold.

We are already seeing the early signs of this nascent industry start to congeal in the far reaches of Silicon Valley. Microsoft is starting to tie its Kinect architecture into televisions using technology that is not too far removed from the Xbox One.  We anticipate an entry from Apple as well, beautifully integrated with their devices and the iTunes store. 

The concept of smart TVs is still evolving, and currently both proprietary and open-source software frameworks are being developed for commercial purposes.  Also, there are varying digital distribution platforms, with some smart TVs equipped with the ability to run applications. Depending on the trajectory this technological revolution takes, we might well see a whole new plethora of apps directly integrated into app-enabled smart TVs. 





Are all Advertising Dollars Equal?

This professor I follow on twitter retweeted an article (subscription required) on Ben Smith (aka BuzzFeed Ben), which called him a “shill for the right wing”.  Now I don’t know the professor’s motivation for retweeting, so I won’t hold the contents of the article against him. It was an interesting read.

The article's author views himself as an investigative journalist but is actually what I would call a “hater,” to the point that he wrote a book called “The Corruption of Malcolm Gladwell.”  In my eyes, it speaks poorly of your character when you write a book for the purpose of taking down another author.

The article makes a few points to back up the “RightWingBen” assertion, the first being that BuzzFeed hosted an immigration panel funded by the Koch Institute.  While true, the fact that everyone on the immigration panel ended up supporting a path to immigration is somehow lost on the author.  Actual conservatives were pretty unhappy about the panel.

Of course, none of the above has much to do with this class or blog.  Thus, more importantly, the article mentions that BuzzFeed had a webpage/advertisement sponsored by the Koch Institute.  I believe this is the article/webpage to which the author is referring. 

Clearly, this is quasi sponsored content by the Koch Institute.  Now comes ethical question… or the question that sprung up in my mind:

Should a content website, which is a business model that relies solely on advertising dollars, reject advertising due to its political nature? 

I’d argue that as long as the material isn’t offensive to your readers, you should be accepting money/advertising from all sources.  TV stations do it, newspapers do it, and now even online news portals have said they will do it.  The Washington Post and Politico both recently announced they were doing something similar, with the advertorial, allowing sponsors to post content.

In other words, I have no problem with BuzzFeed posting an “advertorial” written by the Koch Institute.  I’m sure BuzzFeed understands the economics of its choice and is willing to take the risk that its growing readership won’t go somewhere else for their adorable duck pictures.

The Search and Today

Having the opportunity to read The Search was really interesting for me. I first started interning in the Web Department of our company in 2004, around the time the book was written. I still remember checking our organic rankings in the major search engines (Google, Yahoo, MSN, and AOL) and participating in our first pilots in Overture, Google, and smaller search engines not even mentioned in the book like Dogpile and MetaCrawler. The team was very uncertain on how to approach the campaigns and what would work on our very limited budget. As you may have guessed from reading the book, it worked, and it worked well.

As much as I enjoyed the book's historical rundown, what I found most interesting and to an extent, fascinating, is how much of the book's speculation has become or is on a clear road map to become a reality. Most notably, vertical search and the use of click streams to determine relevant search results.

Battelle initially characterized vertical search as up and coming but felt the market(s) for vertical search were somewhat limited. In his (final) update chapter, he notes that there had been significant growth in this area and perhaps the growth was not so limited. In the work I do, vertical networks (driven by vertical search) are nearly as important, if not just as important, as Google and Bing. I cannot speak for other industries in terms of importance, but I do know vertical networks have grown quite a bit and are critical to us.

Battelle also speculated that search technologies would begin using click streams as data inputs to serve relevant results to users. I am not sure how this has progressed in terms organic search, but one of the items Google most recently pitched to us was retargeting (or remarketing as Google calls it) via AdWords (sponsored) search. Retargeting is essentially serving advertisements to Web users that have already come to your site (information collected in user click streams). Usually companies do this to capture visitors that left their sites without converting, but there could be other reasons depending on company objectives. This platform has become very popular within Display Ad Networks.

While I'm not completely sold on the merits of retargeting on these platforms, particularly in the way many companies that specialize in it have tried to sell us on it (I'll save that rant for another post), I see a lot of promise for retargeting/remarketing in AdWords. The primary difference in my mind is that retargeted users in display networks are specifically sought out because they had come to some site at some point in the past. In AdWords, however, users have to essentially call themselves out by taking an action (showing an intent) relevant to the advertiser before they are served a retargeted ad (much to the point of the book of course).

I have not had the opportunity to try this new retargeting feature in Adwords. I believe it's still in Beta although I had heard it would be released to the public by now. I do look forward to trying it when it does become available to us though and find it very interesting how closely it connects with Battelle's prediction.

Pasted below are some articles/blog posts I think describe this (soon to be) new Adwords feature.

http://blog.microsecommerce.com/index.php/uncategorized/google-remarketing-in-search/

http://searchenginewatch.com/article/2208956/Google-Launches-Remarketing-in-Search-in-Beta

http://threeventures.com/2013/04/google-adwords-remarketing-for-search/

http://blogs.webtrends.com/2013/01/four-strategic-uses-of-remarketing-lists-for-search-ads/

Also interestingly, at least one engine, DuckDuckGo.com (which Professor Kagan made mention of in class as a possible up and comer), is taking the opposite stand on personalization, using it to market its "superiority". Basically, DuckDuckGo is saying that their engine is better because they don't personalize, they are an advocate of their users' privacy and that good search results should be good for everyone (unfiltered/unpersonalized results mean that you won't miss any results that someone else is served).

The links below provide DuckDuckGo's Privacy Policy and an article on DuckDuckGo's platform. The article also has a short video advertisement from DuckDuckGo that compare Google's personalization procedures with its own procedures. Definitely worth a watch.

https://duckduckgo.com/privacy

http://www.webpronews.com/duckduckgo-thinks-you-dont-want-personalized-search-results-2012-10

Kool-Aid & the Google IPO

John Battelle has written an engaging book about Google's origins and the implications that search will have on the future of media and technology.The early chapters of the book, in which Battelle focuses on recounting narrative, are meticulously researched and wonderfully presented. It was a breeze to read these sections of the book.

As we move towards debating issues like privacy concerns and the future of Google, Battelle's love of Google begins to overwhelm his skilled storytelling, and I found this distracting. I was struck, in particular, by his interpretation of the IPO. Battelle sets the reader up by recounting the various ways in which Google flaunted Wall Street norms in the lead up to its IPO. The most visible example is Google's choice to use a Dutch Auction instead of a more traditional roadshow underwriting process.He rightfully points out that these decisions were consistent with a general culture of non-conformity, and a little arrogance, at Google.

In the end, Battelle observes the following, after Google went public at a price of $85 a share.
What happened next put to rest nearly every doubt about Google's offering. By the end of the day, the stock had rocketed to nearly $100. By the next day, GOOG was at $108.31- breaking into its original predicted range.
Bizarrely, and illogically, Battelle seems to have convinced himself that this massive move in the first two days (a 27% increase) is evidence that Google had prevailed with its quirky and unconventional ways. On the contrary, while the larger issues of corporate governance seem to have played out positively since (although its worth noting that no couterfactual is available for testing), the initial move in the stock price seems to be a strong indication that the Dutch auction was suboptimal. Indeed, Google left a tremendous amount of money on the table. Presumably, Google avoided a traditional underwriting process to avoid exactly this kind of 'pop', and they ended up with a pop that was significantly higher than is typical for IPOs. Battelle fails to make this fairly straightforward observation, and in doing so, erodes his credibility when we think about his writing on Google in China and Google and privacy.

Tuesday, May 28, 2013

TV Streaming fight heats up with new lawsuit


I just saw this article about a new lawsuit against Aerokiller, which is a subscription service for live-on air TV streaming to your computer/mobile device. Apparently, in April the courts ruled that Aerokiller could continue to operate in NY, CT and Vermont. However, a more recent ruling in California is closing down this service on the entire West Coast. This case reminds me of Apple and Itunes and the fight that record labels made at having their songs available for only $1 or less. TV networks should be up in arms given that this new service could make all networks obsolete. All the technology we have unvieled can both help and harm at the same time. It can harm big companies that are slow moving and can't react to smaller more nimble companies. Making TV networks obsolete will inevitable mean less jobs and higher unemployment. At the same token the new technology could create new opportunties. The key lies in having a company that can monitize on the new technology - much in the same way Google founders did during the Internet boom. It will be interesting to see how this plays out... (full article link below).

http://paidcontent.org/2013/05/24/fight-over-tv-streaming-heats-up-as-broadcasters-file-new-lawsuit-in-washington-dc/?utm_source=General+Users&utm_campaign=7a5f7f0c80-c%3Amed+d%3A05-27&utm_medium=email&utm_term=0_1dd83065c6-7a5f7f0c80-99185201

Xbox One's potential to change advertising

I recently came across this article about how the new Xbox One could change TV advertising and the way consumers shop at home. I've posted the paragraphs I found most interesting below, but the thing that really jumped out to me was how much this reminded me of parts of The Search, and how this could have the potential to make TV advertising both more effective, and easier to measure the impact it is having on a company's bottom line.

One of the biggest issues with TV advertising I see is that unless you're selling directly to consumers via the ad (as seen on tv products for example), you'll run into attribution challenges more often than not. If the Xbox was able to more accurately serve up relevant TV advertising, it could switch from a CPM model to a pay per impression (which would be targeted to specific audiences) or pay per click model (when a person wants more info or navigates to a pop-up product page). In my opinion this would have marketers lining up to bid on those potential impressions for specific products, in addition to the brand advertising they could keep running during TV episodes.

The advertising revolution the contributor mentions may never actually happen, but it's interesting to think how some of the marketing tactics that are currently available online could be moved into a new channel, TV.

http://www.forbes.com/sites/willburns/2013/05/27/how-xbox-one-will-change-advertising-forever/?partner=yahootix


All TV Will Be Direct-response TV.
Okay, let’s push this platform a little, and let’s say an ad for a new John Grisham novel comes on the TV. No reason why Microsoft MSFT +1.75% couldn’t allow you to shout, “More info,” at any point during the ad which would automatically drop the ad into a smaller screen on the left while a custom-made fulfillment web site pops up next to it. The ad pauses when it ends (also pausing the show you’re watching) and allows you to navigate the pop-up site for more information on the new Grisham novel. With your profile pre-loaded with your credit card information, you can shout, “Purchase,” and the book is automatically downloaded to your Kindle. And on with the show.
Know Your Audience ADNC -0.64%.
Now let’s go a step further, beyond what the Xbox One can do today. We know the Kinect technology is so sensitive it can detect a person’s heart beat. That means facial recognition can’t be far behind. That being the case, the Xbox One will one day know the genders and rough ages of those watching and then be able to serve up appropriate advertising for that mix of people. Even if it’s just one person.
I’m only scratching the surface here, but you get the idea.
Microsoft did not mention any of this during their Xbox One debut, but it doesn’t take a futurist to see where it’s going. Assuming we can get past the privacy issues that some of these ideas will raise, this is going to be big. The time is now for all of us in marketing and advertising to start planning for this exciting interactive sell. I’ll wager that the ideas marketers come up with to take advantage will be as exciting as the technology itself.





Monday, May 27, 2013

Millennial's competitive advantage on the workplace

The Millennial generation (born 2000 and beyond) brings new dynamics and disruptions to the workforce. Millennial's impact to the workplace can be categorized into three broad categories, self branding, entitlement, and right fit. First, with the advent of mobile and digital technology,  Millennials are differentiating themselves from the mass is evident and ubiquitous. For example, they use blogs to get as many hits as possible to raise their visibility. Also, through introspection and leverage natural strength, Millennials are  effective at differentiating in a genuine manner than earlier generations. Second, Millennials have no fear to ask for jobs, promotions and dreams. With this entitlement behavior, Millennials tend to achieve more wants than the earlier generations.  At the same time, they have not much to lose to ask for entitlement because worse case is a "NO" response. Third, Millennials are focused to find perfect fitted career. Armed with unprecedented amount of knowledge in the information age, they have a plethora of choices. Consequently many are taking the time to reach a decision realizing that work is the most time spent in a lifetime. Considering these Millenials' dynamics and complexities, in the years ahead, older generations must learn and  adapt to Millennial culture to remain competitive and to succeed in business.
 

To read more Millenials’ impact at work, visit http://huff.to/114dCrS

Tuesday, December 11, 2012

Why is Square Distruptive innovation?

Recently, I had to visit a chiropractor, and he had a set up at home. After he finished the treatment, he took out his iPhone with a white strip on top and proudly claimed that he accepted credit card. He has been using Square to accept the credit card. According to him, his business has grown 30% since he started using Square. That is disruptive.

Square is a revolutionary service that enables anyone to accept credit cards anywhere. Square offers an easy to use, free credit card reader that plugs into a phone or iPad. It’s simple to sign up. There are no extra equipment, complicated contracts, monthly fees or merchant account required.

How does it work? The Square reader converts a credit card’s magnetic stripe into audio pulses, which are then transmitted via the iPhone’s headphone audio connector and cellular network to Square. That is a truly innovative approach.

Also it has disrupted the process – When you signed up for a Square account, you became a credit-card accepting merchant within minutes. previously it took weeks and it was a tedious and costly process.

Square has grown from $1 billion in payments processed annually to $8 billion. The company has closed a $200 million round of funding, which reportedly values the mobile payments company at $3.25 billion.

FastCompany named Square number one
Innovation company of financial industry in 2012. When Square launched in October 2010, it was a mere dongle that plugged into iPhones, enabling anyone--especially small businesses--to accept credit card payments. No more. Square has since set out to transform the entire payments process, launching an iPad app designed to replace the cash register and point of sale credit card equipment and processing and its Card Case app brings the future of the digital wallet to smartphones today without having to wait for a tap-and-pay system of embedded chips and readers.

If you would like to read more about the company @
http://www.fastcompany.com/most-innovative-companies/2012/square

Small Business Saturday: From Nothing to a Nationally Renowned Day


One of my best friends from college helps to lead the Small Business Saturday program pioneered by American Express. After witnessing her in action, I can certainly appreciate how much work and planning goes into the seemingly organic drive to support small businesses the Saturday after Thanksgiving. This past Small Business Saturday exceeded expectations with consumers spending around $5.5 billion compared to the $5.3 billion estimated total. Furthermore, American Express confirmed the consumer turnout among AmEx cardholders at small businesses rose by nearly 21 percent versus last year’s event. (Source: PRWeb)
Several elements of digital marketing (among others) helped to make SBS a huge success:

Class Flash Mob

What's the best way to be in a class mob without learning out to dance?

Know exactly when and where it is... that's what I did!

And now I get all the glory, but without the embarrasment!

Thanks camera person...

Monday, December 10, 2012

Big data @ FourSquare

I have attended a meetup sometime back at FourSquare location regarding their big data usage. If you want to know what technology they use, this blog is for you.

This is talk given by Blake Shaw - data scientist and Joe Crobak -engineer from foursquare

FourSquare has 20m+ users and it records 1500 actions per second. Blake talked about mining signals from check-ins and build social recommendation engine on top it ( they called it Explorer).

He talked about the place. The place is not only a physical entity but also a place where people meet and interact in a certain timeframe.

Blake showed one of the map created by million of people who checkin at one location. It was the map of central park created by checkin!!!

They collect, analyze and report on time signature for places.

By mining the check-in data, they can discover the correlation between event and sale. For example - hot weather is correlated with the high checkin near ice cream shops. They can recommend people place to go based on weather pattern.

They also analyze the sentiment data - called happiness on foursquare. They analyze the comments people are making during their checkin and discover the negative or positive sentiments.

Blake uses algorithms of finding similar items -Critical for their recommendation engine. Large sparse k-nearest Neighbors is one of the main algorithm.

He is also computing venue similarity for the recommendation purposes.

Blake also showed the excellent visualization of historical checkin on the world map at different times. He used Matlab to create that visualization.

Joe Crobak talked about the hadoop infrastructure in details -

Th infrastructure handles ~1.5B log events per week

Infrastructure components -

Cloudera CDH3u3
12 node Hadoop cluster in EC2
Hive
Pig
Solr
mongoDB
Ozzie
Scala
Google spreadsheet -automated reporting
Scoobi - hadoop MR connector for Scala

They started with elastic map reduce (EMR) and faced few limitations and moved to their own Hadoop cluster in AWS. One of the limitation was that people are running Hive query very frequently, so they need a Hadoop cluster that is running all the time.

Overall, they have been using big data to drive insight from petabyte of data successfully.

Is Daily Deal business dead ?

Despite all the down days, we just had on the wall street, It has actually been a pretty good year. S&P 500 is still up almost 10% for 2012. So, you can't blame economy for what is happening with the daily deal pioneer website Groupon. It's stock is down more than p80% since it went public year ago.

Is Daily Deal dead? Analysts say that It is not dead but little tired. Consumers have been running daily deal fatigue. The business was good when one of the spa deal landed in your mailbox once a day. But now, it is not unusual to have 4 or 5 deals in a day. After a while it become too much. Sometime, there are same coupons for same local spa and restaurants. Groupon and others are running out of streams to discover new business model.

On the other side, the marchants are also cooling off , after loosing money on step discounts and not able to convert those consumers as repeat customers.

But, Saving money never get old. Deals and offers never go out of fashion. What we have now is massive correction in the daily deal market. Meanwhile, to stay alive, Groupon and other daily deal companies are moving beyond the daily deal. Groupon and livingSocial both are selling products such as electronic items, Jewelry etc at discount as well as selling marketing service to small businesses to market their businesses.

Visual Recognition for Instagram

An early stage startup has developed image recognition software that can recognize brand logos from user Instagram photos. The startup, known as GazeMetrix, can identify photos with branded items such as Starbucks coffee cups or coke bottles. This is considered a valuable feature for brands who are interested in how consumers interact with their brands. GazeMetrix also provides analytics to brands such as how often they are featured in photos. Of the 25 brands that GazeMetrix tracks, Starbucks appears most often in photos followed by Coca-Cola, BMW, Monster Energy, Google, and Corona.

Learn more about GazeMetrix here:

http://www.gazemetrix.com/

Technology behind Kinect...

We saw in class how amazing thing Kinect can do? If you are curious about the technology behind it, this blog for you.

PrimeSense is the company who invented the technology behind the Kinect and licensed to Microsoft. PrimeSenae developed the method and core software that camera/controller uses to read human bodies and gestures.

Before PrimeSense's technology, most gestural control systems were based on a "time-of-flight" method -- infrared light (or the equivalent: invisible frequencies of light) were sent out into a 3D space, and then the time and wavelengths of light that returned to the specially-tuned cameras would be able to figure out what the space looked like from that. But PrimeSense's method actually encodes information in light patterns as it goes out, and the deformation of those patterns is what the camera looks for.

Once the camera recieves the IR light back, it gets an image similar to the one above -- you can see me sitting with a notepad on the left, and a few other people from PrimeSense around the small room on the right. The computer builds a basic shape of the room it sees through the camera and the people in it, and then the real processing starts.

PrimeSense actually developed a chip that sits right in the camera device, and that's where the camera starts deciphering the image. It looks for any shapes that appear to be a human body (a head, torso, and two legs and arms), and then starts calculating things like how those arms and legs are moving, where they can move (your arms probably can't fold backwards at the elbow, for example), and where they'll be in a few microseconds.

They have been revolutionized the way we interact with machine. It is just starting.
There is more to come.....