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Tech Tuesday, 2-8-11

Scott Thompson's picture

A weekly round-up of the news you need to know in digital media & technology

Social

Some new Twitter stats appeared on the official blog this week;

  • Over 200 million Tweets per day (up from 65 million a year ago.)
  • More than 1 million Twitter apps - up from 150,000 a year ago.
  • More than 600 employees- up from 250 12 months ago.

No doubt, the numbers were posted to add some context to the latest change in Twitters' advertising, as they continue to seek a business model to match the valuation I mentioned last week, with a change in the way their Promoted Tweets will be displayed. The new Twitter ads will increase a brands' visibility among their followers, as Promoted Tweets will now rise to the top of their followers' timelines.

This means that only users who have already chosen to follow the brands who are advertising will be affected; users can dismiss the Promoted Tweets with a single click (although why they would do so isn't clear, given that they will sink from view as quickly as any other tweet.) Twitter will be testing the new initiative with a number of US/Global brands.

Which means that UK brands won't be able to experiment just yet… although not for long, as Twitter's London office (which we have mentioned before) is expected to open soon, with agency talks apparently now underway.

Making the most of Twitter's new advertising is considering the way that your followers' interactions with brands affects the way that brand messages reach their friends and followers. Along these lines, some interesting social media marketing insights were published by Comscore, in a new paper on social media; "The Power of Like." One nice stat to come out of it is that for brands, "friends of fans" constitute an audience 34 times larger than "fans" alone.

In a Starbucks case study, its noted that not all of their 24 million fans will see Starbucks' updates on the site. But when those who do decide to interact with it, then it reaches their friends (at no cost to Starbucks.) Have a look at the paper for more information.

(At SMG, we have been looking at ways to understand the value of "likes", "comments" and other interactions. Be sure to have a look at that as well.)

Meanwhile, Facebook's London office is growing, as they move to a new 36,000 square foot office in Covent Garden. This week, Facebook launched "Facebook for Business", a new resource for Facebook advertisers aimed at small businesses, with tips on creating and managing pages and ads.

(If you're looking for help and advice in this area, then once you have checked out Facebook's new pages, you should also speak to our team.)

Gaming

Nintendo slashed the price of the handheld 3DS console by around a third (in Europe), giving 20 'classic' games to the console's early adopters (or "ambassadors", as Nintendo are calling them.)

A clue as to why might be revealed in an interview with the EA CEO. Consoles are now just 40% of the games industry. Ten years ago, they were 80%. Surely the rise of smartphones and mobile apps (a market dominated by games) is playing a big part. Today, devices like the iPhone and iPad are growing in number - and importance. Not only do they offer an alternative gaming platform, but they are also opening up new gaming opportunities for audiences who wouldn't typically be interested in buying a dedicated gaming device.

With low cost mobile games offering competition to high cost games for dedicated mobile platforms, the opportunities appearing for either branded games or in-game advertising are worth watching out for.

Mobile

With news that the iPhone 5 is now expected in October, developments in the mobile world is proving to be just as disruptive to related markets as they are to direct competitors.

But it isn't all smiles in the App world. Apple recently changed the way they are dealing with in-app purchases, tightening the rules around how publishers can offer their own payment mechanisms, sidestepping Apple's iTunes system (and the 30% cut that Apple take.) Some recent changes made to the Kindle application have removed the ability to purchase content from within the application completely. As Amazon explain;

In order to comply with recent policy changes by Apple, we've also removed the "Kindle Store" link from within the app that opened Safari and took you to the Kindle Store. You can still shop as you always have - just open Safari and go to www.amazon.com/kindlestore. If you want, you can bookmark that URL. Your Kindle books will be delivered automatically to your iPad, iPhone or iPod touch, just as before.

Over at Forrester, analysts at "Apps aren't the killer app" – in a blog post, they point out that just 7% of US and EU phone owners regularly download mobile applications, and only 11% of US phone owners have ever downloaded an application from a store or marketplace. (Forrester also cite a study from Pinch media — albeit from over 2 years ago — that found that 80% of free apps are never used again after the day they are first downloaded.) Forresters advice (which I would echo) is that for the publishers of many mobile applications, the need for an app is driven more by the technology than consumer insight; for many cases, a mobile-optimised website is a better solution to the problem than building a dedicated application.

However, its worth pointing out that those figures are looking at a total population –the smartphone-owing population is still a minority, but one that is growing at an incredible pace.

News from BBC Worldwide about the launch of their iPlayer app for iPad is probably one good example of an opportunity that would be hard to seize using a simple web-optimised site; a free application available in 11 markets (Austria, Belgium, France, Germany, Italy, Luxembourg, The Republic of Ireland, The Netherlands, Portugal, Spain and Switzerland) will offer BBC TV content for sale at €6.99 a month, €49.99 for annual subscription, with advertising running around free, sample content.

The app is positioned differently to the UK's iPad application, with eight genres of content available (News Specials & Documentaries; Entertainment; Drama; Comedy; Science & Nature; Family & Kids; Music & Culture and Lifestyle), as opposed to the catch-up model of the UK's app. In addition, the inter nation application will allow users to download content to watch offline- a feature not available in the UK app.

Video

BSkyB has broken the £1bn profit barrier. Apparently undistracted by the recent News Corp. manoeuvring, the latest financial report from Sky shows an excellent year, with a 23% growth in operating profit breaking the £1 billion mark.

Sky is also seeing growing numbers of customers taking "triple play" bundles (broadband, telephony and Sky TV), and there are now 3.8 million Sky+HD customers (up 30% year on year) — an interesting number to keep an eye on as Sky continue to work on their AdSmart technology.

The way online video and TV will develop is certainly of interest to anyone with an eye on the future of media. Digital TV Research are forecasting a growth of on-demand TV revenues to grow to $5.7 billion by 2016 — excluding revenues from sports, adult and subscription services. This is a rise of 58% compared with 2010, with growth expected to largely grow from cable TV.

ITV are also making moves towards the paid-for model, as revealed in their latest financial reports; CEO Adam Crozier noted that;

We plan to have a pay mechanism in place around the turn of the year so that we can test what viewers are willing to pay for, and we continue to work with our partners on YouView, which is on track for launch early next year.

A US survey of online video attitudes and consumption (sponsored by video publisher MetaCafe) has some interesting findings; 63% "can't live without" their PC/Laptop, and 32% say its their primary medium for entertainment. (This compares to 60% who say they "can't live without" television, and 44% who say it is their primary medium for entertainment.)

But among 18-34 male consumers, the picture is slightly different- although the PC is slightly more important, the perceived role of TV is clearly shifting, with only 28% saying it is their primary medium for entertainment.

Its worth noting that with 14% saying the same about games consoles games consoles - which is presumably used through the television - this may be as much a distortion of having to make a single choice in the survey as reflecting different values of respondents.

As well as these attitude findings, it has some interesting stats about platforms; 25% of respondents say that they are accessing the internet through a TV set (mainly through games consoles), with a further 23% saying that they don't presently, but are interested in doing so. Plenty more stats are available in the presentation, available as a PDF to download.

Tech Tuesday 12-7-11

Scott Thompson's picture

The big news this week in media is obviously the last issue of the News Of The World published last weekend. Perhaps not entirely unforseeable, but definitely a surprise. The wider impact of recent events on the planned bid for BSkyB will become clearer tomorrow.

While the withdrawal of advertisers from the weekends' edition of the newspaper no doubt played a large part in the decision, whether or not social media played a part in brands' decisions is harder to judge.

But with our weekly focus on the news in digital media and technology, our attention turns to some very interesting developments that have been happening in online video – or more accurately, online video on Facebook. Channel 4 are planning to stream T4 content on Facebook, exclusively to people who have "liked" the T4 page. Meanwhile, Channel 5 plan to use Facebook voting in the next series of Big Brother, with payments being made for voting using the Facebook Credits payment system (at a price yet to be announced.)

Perhaps taking things a step further, BBC Worldwide have started offering remastered episodes of Doctor Who for streaming through Facebook, with Facebook Credits again as the payment system. (Similar to an experiment by Time Warner which we mentioned in March.) A selection of nine stories will be available (one featuring each of the first ten doctors, with the exception of Paul McGann's eighth doctor, who only appeared in a single TV film.)

Meanwhile, Google's apparent reaction to Facebook's growth with the launch of "Google+" last week has taken much of the tech world's attention this week. While a growing number of preview invitations have been sent out (with a recent estimate at ten million), the role that it will play for advertisers is so far unclear. Reports are out that brand pages coming in the next couple of week, while the Google +1 button appears to be proliferating on major websites.

The week also brought news of Google's plans for an online+TV measurement panel coming to light. In partnership with Kantar research, Google aims to establish a panel of 3,000 people by the end of the year, with data and analysis offered to the industry by 2012. This panel will aim to address the complex issues of accurately measuring behaviour across TV and online media with a single-source measurement- something currently very difficult to do in the UK.

This project follows some projects with the GfK Media Efficiency Panel in the UK and Germany to track the efficiency of media spend across different media, based on measuring campaign reach alongside purchase behaviour. Particularly interesting is the possibility of feeding data from the combined panel into the IPA Touchpoints study. Although BARB have similar plans for a single-source, unified TV + PC measurement system, Google's ambitions to bring cross-media measurement sooner looks likely to both provide valuable audience data, as well as create some disruption in the way TV audience viewing is measured.

Finally, the long awaited announcement from Spotify of a US launch finally arrived... kind of. Although this is the first confirmation from the site that there are concrete plans for a launch, at the time of writing there is still no news about when the site will launch in the US, or whether the proposition will be the same as the European service (ie. a combination of ad-funded and subscription based service.)

Tech Tuesday 5-7-11

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BARB announce rollout of web viewing meter. Following a trial project which ended in May this year, TV measurement body BARB will be rolling out a web TV viewing meter in 100 BARB panel homes during the second half of this year. BARB then plans to extend it to up to 1,100 homes during 2012, with around 2,500 people participating in the combined measurement process in a staged approach, to ensure that the existing quality of TV audience measurement and reporting is not compromised.

The announcement has been welcomed by the IPA, with Research Director Lynne Robinson calling it a significant step for the television industry.

In the online world of advertising, although Amazon has been selling ads for some time, they have been limited to ads on its own sites (such as Amazon itself and IMDB.) But news this week is that Amazon is partnering with the Triggit DSP.

Interestingly, the Wall Street Journal's "AllThingsD" carries the headline is that Amazon is creating an ad network– which perhaps undervalues the key differences between ad exchanges and ad networks; the technology of a DSP gives Amazon much clearer understanding of the value of its data and how it is being used. I've written here before about the value of Amazon's customer database, and I would expect to see this being just the first step by Amazon towards making the most of this locked-away value beyond on-site suggestions.

In a blog post, Twitter has announced that it has hit the milestone of 200 million tweets per day. As seems to be traditional when big numbers are announced, Twitter provide some real-world equivalents to help visualise what that means (along with some nice graphics and the top trending topics);

For perspective, every day, the world writes the equivalent of a 10 million-page book in Tweets or 8,163 copies of Leo Tolstoy’s War and Peace. Reading this much text would take more than 31 years and stacking this many copies of War and Peace would reach the height of about 1,470 feet, nearly the ground-to-roof height of Taiwan’s Taipei 101, the second tallest building in the world.

Meanwhile, the company is facing more serious issues, as it is under investigation by the FTC for its business practices, apparently due to the way it is dealing with developers of 3rd party applications. This follows some interesting movements, as Ubermedia (a company that owns a number of Twitter clients) looked set to take advantage of Twitters "open" platform and potentially build their own business around users' end experience (for example, by selling their own advertising into users' Twitter streams, bypassing Twitters ad model.) This culminated when Twitter bought Tweedeck for $40 million- apparently in a defensive move against Ubermedia.

Another Twitter partnership is looking like it might be on shaky ground as its search deal with Google has expired. Google's "realtime" search has quietly disappeared, as the deal with Twitter to include Twitter results apparently expired on July 2nd. Although there is no official news on what Google plan to replace it with, it seems likely that it will involve the recently announced "Google+" social 'project'- perhaps tying users' own social connections to make more relevant Tweets appear in search listings? I'm sure we will see soon…

On the mobile side of things, a large patent portfolio has been up for auction in the US, where Google put forward a $4 billion bid… and lost. A consortium of six companies (Apple, Microsoft, RIM, EMC, Ericsson and Sony) won the auction of 6,000 Nortel patents and patent applications with a $4.5 billion bid. The auction (and partnerships) highlights the complexity of the mobile marketplace; the value of the smartphone market goes beyond simply selling handsets; patents on hardware and software are creating complicated deals between platform owners, and the value of patents alone can be more profitable than selling handsets- recent analysis at Asymco.com indicate that Microsoft make more money from Android than Windows Mobile.

Some interesting things have been happening in the world of mobile games– specifically with what must be one of the biggest mobile games ever; Angry Birds. Developer Rovio have already been learning interesting lessons about the mobile applications platform – apparently making over £600,000 a month from the free, ad-supported Android version (which followed the paid-for iPhone edition.) In a deal with Barnes and Noble announced this week, Angry Birds on the Nook e-reader platform will now include a location-based feature; play the game in a Barnes & Noble store, and gamers will get a free Mighty Eagle bonus…

If you don't know what the Mighty Eagle is, then you probably aren't one of the 75 million people who are spending 200 million minutes a day playing the game.) But you could always wait for Angry Birds the movie, which is apparently going to become a reality soon.

The mind boggles…

Future Television Trading

Whilst TV has been digital for many years, the trading methodology has been remained rooted in the analogue world.

Technology will effect a major change in how TV buying can be both executed and traded. The intelligent use of data will be at the heart of this change.

Household level audience data when combined with the technology to broadcast discretely at set-top box level opens the potential for a much greater level of audience targeting. This is already happening in the US and SMG are leading the way with a national test to 13 million homes with Direct TV. Sky’s joint venture with Experian around the Sky subscriber base combined with their planned Adsmart technology means that this approach could be possible in the UK.

How this increased sophistication in audience targeting is traded is open to a number of alternative approaches. A simple approach would be to trade the increased targeting at a premium cost to normal airtime. However, a more radical alternative would be to establish a biddable marketplace. Proven in search, the approach is growing rapidly in the online display market and could be deployed effectively in TV.

There are major attractions for a company such as Sky. The current trading based on BARB measurement means that many spots that Sky broadcast are zero rated. On a cost per thousand basis, Sky are therefore unable to leverage any commercial value for them. If, however, they provided the facility for advertisers to bid for spot inventory based on a variety of audience targeting criteria (like Facebook API) they would have the potential to achieve significant revenue for airtime that currently has no value.

For advertisers it would mean being able to combine accurate targeting with a transparent bid based approach to trading. This would enable the value of each household to be understood and sophisticated bidding strategies, learnt originally in search and now in online display, to be used to optimise performance in real time.

The whole approach to TV planning and buying is going to change in the next couple of years and being at the forefront of this change, as SMG are in the US and will be in the UK, will provide a distinct point of advantage in the new landscape.

Sharwood’s Chinese Food In Minutes

Sharwood’s were able to bring simple, everyday Chinese meal solutions to busy mums through the creation of the first FMCG peak ad funded TV programme broadcast on terrestrial TV in February 2010 in conjunction with partners SMG, Five and Blink Productions. Running for 13 weeks Chinese Food In Minutes acted as a catalyst to build a wider community of consumers interested in interacting with the Sharwood’s brand.

By investing in the origination of compelling TV content, Sharwood’s gained the opportunity to maximise the programme assets further through a multi layered content and experience strat¬egy, using additional platforms to convey deeper Sharwood’s commercial messaging and build a credible dialogue with their consumers through both content and talent activation.

Additional digital, print, PR and trade channels, were used to excite and enthuse consumers about the ease of creating their own Chinese dishes in their own homes building both enthusiasm and trial. The results - One in ten housewives saw at least one of the shows, becoming Five’s no.1 rated factual entertainment show in 2010. Over 1.3 million individuals clicked through to the Sharwood’s site to find additional content with Sharwood’s share of the Chinese sauce sector rising by 4% yoy.

Sharwood’s Chinese Food In Minutes - a clear recipe for Success.

uSwitch.com Reactive TV

uSwitch challenged us to create a campaign that would push consumer response and drive a large number of switches to boost revenue.

Energy switching is not usually top of mind for the consumer; they need to be pushed to act. We had to position our communication to show consumers that uSwitch will help them save money by creating a sense of urgency and relating the benefit of energy switching to everyday life.

Our idea was to position uSwitch.com against breaking news stories relevant to the brand. When a news story breaks that is relevant to the business, we would create and air a television ad that referenced the key component of this news story within 9 hours!

The ‘Reactive’ campaigns we ran were very successful - web traffic, calls and energy switches all increased significantly. uSwitch advertises regularly throughout the year and these campaigns were created to reinforce its existing brand message. It gave consumers another reason to switch at the right time in order to save money.

Tech Tuesday 21-6-11

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Online business continues to grow

Its a story that never seems to get old, but with a few reports published this week looking into different areas of growth of online business, it seems worth the occasional reminder that digital is still growing.

Firstly, the Global entertainment and media outlook from PwC outlines an expected growth of digital's share of all entertainment & media spending from 26% to 33%.

For the UK, PwC forecast a 4.8% increase over the next 4 years to £17.7 billion, with a rise of 11.2% for the online market (the only segment to be forecasted double digit growth.) However, although search advertising has previously been the main driver for the UK's online growth, social media and classified advertising are expected to be the source of the next wave of digital expansion.

Consumer spending on media and entertainment is expected to show slower growth of 2.7%, to hit £32.7bn by 2015, with £9.2bn being spent on accessing online media.

(Figures reported by NMA.co.uk)

Meanwhile, the IMRG Capgemini e-Retail index reported that online consumer spend in May was up 18% on last year to £5.3bn – equating to an average spend of £85 per person, with a total of £27.5 billion spent by consumers this year so far. By omitting travel (with "big ticket" spending in categories such as travel, electrical and home & garden still seeing the impact of the recession), an even more impressive growth of 21.5% is reported.

A similar report from the Office of National Statistics (PDF link) claims that ecommerce now accounts for 9.4% of the total retail market (excluding automotive fuel), up from 7.4% last year and 8.5% in April.

Guardian goes "Digital First"

But that's not to say that everything touched by digital turns to gold, as the chief executive of Guardian Media Group announced £33m in losses for last year, as while readership is moving online, revenues aren't following at the same pace, saying that they could run out of cash in three to five years if the business operations did not change.

The group is now committed to a "digital first" strategy, aiming to double digital revenues to nearly £100m by 2016. Editor-in-chief Alan Rusbridger said that an "open" digital philosophy would be embraced, bringing in contributions from beyond the ranks of its own journalists.

The move indicates that the Guardian doesn't believe that the decline in the print edition can be stopped or reversed, with Miller saying that "All newspapers will ultimately exit print, but we’re putting no timeframe on that.", and Rusbridger saying that "Every newspaper is on a journey into some kind of digital future. That doesn't mean getting out of print, but it does require a greater focus of attention, imagination and resource on the various forms that digital future is likely to take."

But rather than abandon the physical product, the newspaper could expect to see a redesign, aiming to be "as relevant at 9am as 9pm" and aiming to emulate "Newsnight not News at Ten."

ICANN opens new opportunities for web domain names

Top Level Domain Names (the last part of web addresses- ".com", ".org", ".int" etc.) have, until now, been intended to refer to either the geographic location of the web services, or provide information about the sort of services on offer (for example ".gov" indicating a US governmental agency, ".biz" indicating a business, ".mobi" indicating a site for mobile devices etc.)

ICANN – the body that oversees the management of internet names and addresses – have changed the system, allowing "groups" to create top level domains in any language or script.

What this means is that – in theory – large corporations (with $180,000+ to spare) will be able to set up a top level ".google" or ".msn" domain for their own use. What is more likely is that we will see more useful naming systems- so perhaps in a few years, you will get Premiership football updates from "premiership.sport" or "football.news", listen to music from "itunes.music", or find a nearby restaurant at "london.food" or "food.london". (Maybe you will end up finding us at "emergingspaces.media" – unless we can find the cash for "emerging.spaces"…)

ICANN have published a full guide (PDF link) to how the new system will work, and there is a useful 9 things you need to know post over at Mashable.com.

Mobile applications for catch-up TV

An ITV Player Android application has been launched, giving mobile access to ITV's catch-up TV services. Available across all Android 2.2-compatible devices, the app is free, although ITV haven't ruled out micropayments for content in the future.

With similar apps expected for Apple tablets and smartphones later in the year, this follows releases earlier this year of mobile applications for iPlayer and 4OD.

4OD's application is currently free, carrying sponsorship from Heineken, but it is understood that the long term strategy is to provide access for a one-off payment.

iPlayer is free for UK users but also this week, the BBC announced the first stage of a global rollout would begin with Western Europe. (Source: NMA.com) The international iPlayer would be a "different proposition" to the UK version– instead of serving as a catch-up service for broadcast TV content, the iPlayer will be the only way of accessing BBC content, which will be available for a monthly subscription of "less than £6", with a definitive amount yet to be announced.

Disclosure: Heineken is a Starcom MediaVest Group client.

Facebook, iPad Apps and HTML5

A year since the launch of the iPad, and still no official Facebook iPad app- even though the iPhone app was ready as soon as the App Store opened.

Apparently, not for long though. According to a New York times report, an official Facebook iPad app is understood to be in the final stages of testing- although the official word from Facebook is "nothing to announce now."

But there is some interesting discussion going on around Facebook's future involvement with native apps for iOS devices.

TechCrunch has reported about a project at Facebook going under the codename "Project Spartan", aimed at building a web application in HTML5, targeted at Mobile Safari users. Like the FT app we noted recently, the web app would bypass Apple's App Store, creating a platform that Facebook would be able to build on without having to follow Apple's rules and guidelines.

This highlights some important shifts that are going on with online platforms. As a platform owner, Apple are in control of what goes onto iOS– whether that is the recently announced integration with Twitter in iOS5, or the Apps that are allowed in the App Store.

But Facebook are a software platform– developers can build applications that work within Facebook. For their platform to work effectively across both desktop and mobile devices, they need to have control over it. On the technical front, this means that applications that work within Facebook need to be able to work on all sorts of devices– including ones that can't/won't/don't support technology like Flash (which appears to be the main drive behind the Spartan project.)

Another post over at Techcrunch suggests that Facebook's PR is none too happy about the news being broken, suggesting that Apple aren't aware of what a Facebook platform that bypasses Apple's App Store might be able to offer. Because if Facebook want to develop features like Facebook Credits which allow for payments within Facebook, then they will need to either figure a way to operate within Apple's guidelines (which includes Apple's 30% cut of in-app payments), or find an alternative way of reaching users of Apple's applications.

Perhaps Apple won't mind payments made in Facebook credits (provided Facebook don't directly sell them within the application.) But it seems a safe bet that Facebook won't want to be building all their future plans on assumptions of what Apple might or might not allow– both now and in the future.

New York Post blocks iPad users from website

But Apple aren't the only ones who can control what goes onto their platform– as a surprising story from the US shows, where the New York Post is apparently blocking iPad users from accessing their website.

Although access to the site is free to web browsers on the desktop and other mobile devices (including the iPhone), iPad users attempting to visit the site (either the homepage, or following links posted elsewhere) will see a message asking them to download the iPad application from the App Store – and pay either a subscription of $6.99/month or $74.99/year to access the content.

Currently, iPad users can still use a browser other than Safari (the iPads default) to access the website– or use an alternative device. We can only assume that this is not a strategic decision in itself, but simply a step towards the implementation of a full paywall strategy and other devices will see similar blocks as soon as alternative applications are in place.

Tech Tuesday, 31-5-11

Scott Thompson's picture

Apple reveal WWDC topics

Apple announced an outline of its annual Worldwide Developers Conference Keynote speech next Monday. Although it is unusual for Apple to pre-announce the content of a keynote speech, the announcement was doubly unusual in that it also contained the name of a new product; "iCloud". Expectations for the service are running high, with speculation ranging from a free offering similar to MobileMe (released at the same time as the iPhone, but to a considerably less enthusiastic response), a web-based iTunes (with Apple reportedly having signed 3 of the 4 major music labels, with Universal close to finalising a deal), Twitter integration, an online storage service – and many more theories beside.

With updated versions of the iPhone & iPad operating system iOS5 and the eighth version of Mac OSX, it is expected that iCloud will be deeply embedded in Apple's various products' software platforms.

The keynote itself will be presented by Steve Jobs; another surprise, since he announced a medical leave of absence earlier this year. Despite updated iPhone versions being announced at around this time of year since the original 2007 launch, new hardware is not expected to be among Apple's announcements.

Apple also announced that it's iWork suite of office applications (already available on the iPad) are now available on iPhone.

Google Wallet

Google have announced "Google Wallet", a mobile-based service which will allow users to use their phones as payment systems.

Google claim that;

In the past few thousand years, the way we pay has changed just three times—from coins, to paper money, to plastic cards. Now we’re on the brink of the next big shift.

The system will see a limited launch; only available on smartphones with built-in NFC (Near-Field Communication)- Google have announced that the system will be available at launch on the Nexus-S 4G in the US, with support for other devices to follow.

This announcement was quickly followed by the news that Google were being sued by PayPal, with accusations of Google poaching key employees and using trade secrets developed by PayPal for their own mobile payment system.

Although the convenience of a touch-to-pay system for smartphone owners seems relatively clear, whether consumers will want to move away from plastic cards and start using phones for payment is unclear. It seems unlikely that people will feel happy leaving their cards behind, as it will no doubt take some time for NFC-enabled payment systems to become as widely available as chip & pin card readers at points of sale.

AdMob ad requests triple in past year

As AdMob marked its first anniversary of being acquired by Google (following a rumoured bidding war between Google and Apple), the mobile advertising company has announced some impressive figures of growing advertising activity.

Overall ad requests have grown more than 3.5 times in the last year, with over 2.7 billion ad requests a day.

AdMob also revealed that the market for tablet ads is growing fast; more than 300% in the last six months, with 1 in 5 mobile ads now being served to tablet devices – far exceeding the ratio of tablets to smartphones in active use. AdMob's announcement included new formats for tablet ads, with full-screen interstitial ads now available to advertisers, which can include branded video, image galleries and interactive elements. Google's Doubleclick for Publishers ad serving platform has also been integrated with AdMob

SeeSaw to close

Following a strategic review by owners Arqiva, online video aggregator site SeeSaw is to close down due to lack of funding. The site started out as "Project Kangaroo", a combined TV catch-up service from the BBC, ITV and Channel 4, which was blocked by the Competition Commission due to its potential unfair dominance of the UK's online TV industry. The planned brand and technology were purchased by Arqiva, who went on to launch the service. However, facing competition from a number of sources, it has failed to have a significant impact on the UK market.

Govt to resume ad spend

Following a report that the government's freeze on advertising spending had resulted in the loss of lives, around £44m has been set aside for four advertising campaigns in England. These will include promotion of the SmokeFree anti-smoking website (which has seen traffic levels drop by a half), Change4Life campaign for healthy living (down by two thirds), and specific messages targeted at young people, and issues related to older people.

The report also set out guidelines for social media marketing activity, recommending "a shift away from traditional mass-media channels towards those channels the government already owns, such as government websites and poster sites in government buildings." Social media is expected to play a major part in these activities.

Tech Tuesday, 3-5-2011

Scott Thompson's picture

With the Bank Holiday at one end and the royal wedding at the other, most of the UK saw a short working week last week (which probably meant a week off for just 3 days holiday for some, and a full week's worth of work in just 3 days for the rest.

The royal wedding was doubtlessly the big event in the UK (with the online traffic at one point crashing the BBC's website), the media story of the week was the death of Osama bin Laden. But as with any major headline, it revealed a few interesting insights into how journalism and news reporting is changing in an increasingly digital, connected world.

The White House is obviously a powerful enough voice to be able to control its own message, but it is still interesting to note that it has a number of online channels of its own, allowing the Oval Office to communicate directly with the people. This includes a Flickr photostream- so you can take a look at a shot of Obama and the security team receiving updates (presumably while watching real-time updates.)

On the mainstream media side, in the rush to report what was obviously going to be a massive story a few mix ups were made along the way.

But the social media side is where things are chaning rapidly. One Twitter user, in Afghanistan on a break from the rat race, inadvertantly live blogged the attack. There is an interesting account of how the trail of Twitterers led from a relatively modest Twitter existence to the attention of the world's press.

Once the location of the strike had been identified, a number of people started posting "reviews" of the location on Google Maps. More user data from related tweets have been gathered and analysed, producing some interesting visualisations of Twitter data. There are also some <a href="http://kottke.org/11/05/the-limits-of-crowds>interesting insights into the way people react to big news, big events, and big crowds (noting that Twitter is, in effect, a big crowd.)

But my personal favourite tweet on the subject;

Twitter changing the way modern news is reported.I never expected Phil Neville to be the first person to tell me Bin Laden's been killed.

Expect to see lots more industry news over the next week or two as we start seeing the effect this major news story has had on news websites' traffic and newspaper sales.

Twitter buys Tweetdeck

Techcrunch reports that Twitter is to buy TweetDeck - the London-based company responsible for the Twitter client application of the same name.

While there are a number of Twitter clients, Tweetdeck is notable in providing a dashboard-like interface, allowing users to keep track of multiple accounts, Twitter searches, messages, and a number of other services (including Facebook) in seperate columns. For power users, this makes Tweetdeck a very popular choice of client - and it is the Twitter power users who are of particular interest to marketers interested in word of mouth and potential brand advocates.

A recent post from Techcrunch explains the importance of the deal, and how losing control of Tweedeck users could have significantly damaged Twitter's potential advertising market.

Taxi by text: Vodafone customers to be able to pay with mobiles

Vodafone has announced a scheme to allow Londoners to pay for black cabs using a text message; the amount charged can then be charged to the customers' mobile phone account. The company will also be installing branded cabs with chargers for a range of handsets, including iPhones and BlackBerrys. The scheme is part of a £10m campaign focussed on London, where mobile networks have been pressured by the growth of smartphones.

Second Sony security breach

Following an attack on the PlayStation Network last week in which an estimated 77 million users' account details (including passwords, security questions and credit card details) were accessed in an attack on the network, a second attack on the Sony Online Entertainment Network has been discovered. Although the second attack happened on the 16th and 17th April (before the PlayStation Network attack), it was only discovered on Monday May 1st.

Strong results from BSkyB indicate a strong digital future

Despite some slowdown in customer and product sales growth (as the relatively new digital TV market approaches saturation), strong sales in broadband services indicate the BSkyB may be approaching a position of dominance in a digital future. With strong investments in content and services in the pay-TV market, Sky have a very dominant position.

A few years ago, this wouldn't have troubled the likes of BT, or traditional broadcasters, but with the growth of VOD and the increasing likelihood of online content becoming tied to the online delivery (eg. access to VOD for Sky subscribers, or access to The Times online for Sky News subscribers), as well as the connections between TV, broadband and mobile subscriptions, the impact that Sky will have as paid-for online video services start to grow (as video moves from the PC to the TV screen) will be making some service providers nervous, as it funnels its earnings from the increasingly lucrative pay TV business.

Tech Tuesday, 26-04-11

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Tesco acquires 80% stake in Blinkbox

With the video on demand market growing rapidly already, but expecting to see an explosion as "connected TVs" become more prevalent, it seemed that the big players in the market were already lining up against one another; Apple with iTunes, Google with YouTube, LoveFilm (owned by Amazon) and Netflix with established DVD rental businesses expecting to transition into online (as well as the TV broadcasters, film studios etc.)

But despite their scale in selling physical media from the supermarket shelves, I don't think too many people were expecting Tesco to be a major player in the UK VOD market. But with an 80% stake in VOD service Blinkbox, it looks clear that they could be in a very interesting position to make a very powerful link between video advertising and online shopping.

Particularly interesting in light of the Blinkbox announcement are some interesting experiments in what can be done with their own broadcast channel as well, potentially turning TV advertising into a true response medium by allowing customers to respond to TV advertising by adding an item to their Tesco online shopping basket from their Freeview box.

And that isn't even starting on what could be done with their enormous Clubcard database…

Google is rumoured to be signing studio deals to rent movies via YouTube.

If true, the service would apparently sit alongside YouTube’s existing film rental service, which allows people to watch more than 400 independent ad-supported titles. How Google would implement a payment system is currently unclear, but Google's recently announced OnePass system seems like a safe bet.

This would put YouTube into direct competition with established film-on-demand services such as Netflix and Lovefilm (who last week announced a partnership with Walt Disney to add their films to its online, on-demand service.)

VEVO launches in the UK

Music video site Vevo has officially launched in the UK, opening up access to the website, as well as mobile and tablet apps. Although some of Vevo's videos have been available in the UK through the Vevo on YouTube channel (although not all have been accessible within the UK), access to the Vevo.com website has previously been restricted to the US and Canada.

The site is a joint venture between Sony Music Entertainment, Universal Music Group and Abu Dhabi Media, with EMI licencing its content. (Warner Music Group — the third of the "big four" major labels — is distributing videos through the rival MTV Networks.) The site aims create an attractive environment for advertisers, providing offical, high-quality versions of the latest music videos with referral links to purchase tracks on Amazon and iTunes.

Facebook announce "Send" button for private sharing

Just a few days after the "Like" button's first birthday, Facebook have launched a new button for website owners to add to their sites, enabling users to easily share links with selected groups and individuals on Facebook, but without posting it to their public profile.

The key difference between a "like" and "send" is that, instead of something that all your friends might see, users can "send" something they want to be sure will be seen by specific friends or groups. It can be implemented by website owners either as a standalone "send" button, or in conjunction with the Facebook "like" button (as you should be able to see at the bottom of this post; feel free to send this to your Facebook friends to try it out— and of course, "like" this post to see the difference!)

The button seems to be another step towards Facebook's aim at being at the centre of its users' online social activity; the company announced its social inbox last November, aiming to integrate Facebook with traditional email services.

For brands who might have previously thought that they didn't have an interesting enough profile to warrant a Facebook presence, the ability for users to "privately share" an interest should be enough to rethink the ways they are using technologies like the Open Graph to engage with Facebook's 650+ million users.

Four in Five UK 9-12 year olds online use Social Networking Sites

A study by London School of Economics and the European Union to inform evidence-based policy in youth usage of social networking sites has been published.

The findings were particularly surprising for the UK, where Facebook — which only allows registration for users who declare themselves to be over 13 years old— dominates social networking site usage. 43% of 9-12 year olds who use the internet said that they had a profile on any social networking site (compared to an average of 38% across all countries studied), and 34% saying that they had a Facebook profile.

Usage was even higher among older children, with 88% of 13-16 year olds who use the internet saying they had a social networking site profile (compared to 77% across all countries studied.)

The Netherlands had the highest usage among under 13 year olds, with 70% saying they had a profile. In the Netherlands, Hyves is the main social networking site used, which states in the terms of use that users under 16 year olds must have their parent's or guardian's permission to create an account. Of the countries studied, the Netherlands had the second lowest proportion of Facebook users (5%) - second only to Poland (2%.)

The research also looked into young people's awareness of privacy settings and safety-related features, finding that 45% of 11-12-year-olds don't know how to change privacy settings (30% of 13-14-year-olds and 22% of 15-16-year-olds.)

The full study can be downloaded here (PDF)

Conde Nast slowing Tablet Magazine development

Although it seems that the only numbers growing faster than Tablet sales are the predictions of future tablet sales, not everyone is feeling the effects of their explosive growth. According to report from AdAge, company employees at Conde Nast are "acknowledging that conditions aren't quite right yet to deliver the ideal app editions at the kind of scale that advertisers want", as publishers are slowing down their rush into tablet-specific formats.

"It's a shift," one Conde publisher said. "The official stance was we're going to get all our magazines on the iPad because this is going to be such an important stream. The new change is maybe we can slow it down. In my opinion it makes Conde look smart because we have the ambition, but we're not rushing." "They're not all doing all that well, so why rush to get them all on there?" the publisher added.

As well as the 30% cut that Apple take, Adobe (who develop the digital publishing software used by many publishers, including Conde Nast, to develop iPad editions of their magazines) have announced a new pricing structure which includes a "distribution service fee", which has quickly come under criticism for being too expensive— especially for small publishers.

While the tablet market is still relatively small at the moment, the very nature of the tablet is a blank slate; while the size of the market is expected to grow extremely quickly, the patterns of usage that develop will depend on the types of applications that are available to them. It remains to be seen whether that will mean news aggregators (such as Zite, Flipboard and Pulse) which collect stories from the web and package them together in a customised bundle for the user), or publisher apps which combine professional content from offline publishers with rich media features (and tablet-specific advertising creative in a premium media environment.)

Apple's iOS platform twice the size of Android in Europe

Figures from ComScore covering the total footprint of the major smartphone operating systems (accounting for phones, tablets and other connected media devices) reveal that Apple's iOS is twice the size of Google's Android in Europe. Although Android has been growing rapidly (as we have previously noted here), particularly over the last year, with 16.1 million iPhones across the UK, France, Germany, Spain and Italy, Android is

These findings are in contrast to a recent YouGov study, which found that Android had overtaken iPhone users in the UK- a country which has traditionally seen particularly high iPhone takeup. However, as we noted, the YouGov survey may have had some flaws in its methodology, while ComScore's ongoing tracking study is more rigorous in its data capture.

The figures from Comscore follow their similar release last week, revealing that the iOS platform was 59% larger in the US than Android.

For anyone looking at the rapid growth of Android and wondering whether application development would be better channelled into Google's platform than Apple's, these figures give an important context to that decision. (Of course, assuming that they already have a website that is optimised for mobile phones and tablet PCs already as an essential first step.) Appcelerator-IDC Mobile Developer Survey report shows that the iOS platform is also the most popular with app developers- with Android a close second.

Is your smartphone recording your every move?

With the news coming out that iPhones are not just recording users' movements but storing them without encryption, a lot of attention in the tech press has been given to the privacy implications of the latest wave of smartphones.

Stern letters were sent to Apple demanding to know what this data was being recorded for by Attourney general Lisa Madigan and Senator Al Franken.

Then it was revealed that Android phones store similar data (although not for as long). Some took the opportunity to take a look at some apps using the microphone to record and processing that data to learn interesting things about the users' location.

It seems likely that whatever privacy hole has been revealed will be plugged by Apple's next software update (It isn't clear whether Apple's location tracking is being sent back to Apple, or merely stored on the device itself; Steve Jobs is alleged to have claimed that Apple aren't tracking users— but that Google is.)

With location-based marketing still in its infancy and privacy concerns an obvious threat to its growth, the future of "background" tracking (as opposed to explicit "I am here" signals such as checking in on Facebook Places or Foursquare) is yet to be seen.